Pelham, AL

Average · 98

Alabama · Population 24,510 · Updated March 2026

$1,573
Median Rent / Month
$91,904
Median Income
$278,900
Median Home Value
$1,304
Owner Costs / Month

Affordability

How far your income goes in Pelham

20.5%
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

$18,876
Annual Rent
$4,595
State Income Tax
$1,143
Property Tax (est.)

Cost of Living Overview

Pelham has a cost of living close to the national average, offering a balanced mix of expenses and amenities. With a cost index of 98 (where 100 equals the national median), Pelham residents can expect to pay median rent of $1,573/month while earning a median household income of $91,904/year.

The median home value in Pelham, AL is $278,900, with typical monthly owner costs around $1,304 including mortgage, insurance, and taxes. The median rent-to-income ratio of 20.5% 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 Pelham.

Frequently Asked Questions

Common questions about living costs in Pelham

What is the cost of living in Pelham, AL?
The cost of living index in Pelham, AL is 98 (US average = 100). Median monthly rent is $1,573, median household income is $91,904/year, and the median home value is $278,900.
Is Pelham, AL affordable?
Yes, Pelham is more affordable than the national average with a cost index of 98. The rent-to-income ratio is 20.5%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Pelham, AL?
The median gross rent in Pelham, AL is $1,573 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $18,876.
What is the median household income in Pelham?
The median household income in Pelham, AL is $91,904 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%.