Decatur, AL

Very Low · 61

Alabama · Population 57,760 · Updated March 2026

$861
Median Rent / Month
$59,831
Median Income
$190,500
Median Home Value
$854
Owner Costs / Month

Affordability

How far your income goes in Decatur

17.3%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Alabama

State-level tax rates that affect your costs

5.0%
Income Tax (Top Rate)
4.0%
Sales Tax
0.41%
Property Tax Rate

Estimated Annual Costs

$10,332
Annual Rent
$2,992
State Income Tax
$781
Property Tax (est.)

Cost of Living Overview

Decatur is significantly cheaper than the national average, making it an attractive option for budget-conscious individuals and families. With a cost index of 61 (where 100 equals the national median), Decatur residents can expect to pay median rent of $861/month while earning a median household income of $59,831/year.

The median home value in Decatur, AL is $190,500, with typical monthly owner costs around $854 including mortgage, insurance, and taxes. The median rent-to-income ratio of 17.3% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Alabama has a moderate income tax rate of 5.0%. Combined with a 4.0% sales tax rate and 0.41% effective property tax rate, the overall tax environment is a factor in the total cost of living in Decatur.

Frequently Asked Questions

Common questions about living costs in Decatur

What is the cost of living in Decatur, AL?
The cost of living index in Decatur, AL is 61 (US average = 100). Median monthly rent is $861, median household income is $59,831/year, and the median home value is $190,500.
Is Decatur, AL affordable?
Yes, Decatur is more affordable than the national average with a cost index of 61. The rent-to-income ratio is 17.3%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Decatur, AL?
The median gross rent in Decatur, AL is $861 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $10,332.
What is the median household income in Decatur?
The median household income in Decatur, AL is $59,831 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Alabama?
Alabama has a top income tax rate of 5.0%, a sales tax of 4.0%, and an effective property tax rate of 0.41%.