Cost of Living: Houston, TX vs Birmingham, AL (2026)

Houston

Texas
88
VS

Birmingham

Alabama
62

Houston is 42% more expensive than Birmingham.

$1,313/mo ↑ 25%
Median Rent
$1,047/mo ↓ 20%
$62,894/yr ↑ 42%
Median Income
$44,376/yr ↓ 29%
$253,400 ↑ 83%
Home Value
$138,600 ↓ 45%
$1,316/mo ↑ 33%
Owner Costs
$991/mo ↓ 25%
2,300,419
Population
199,322

Tax Comparison

0%
Income Tax
5.0%
6.25%
State Sales Tax
4.0%
1.6%
Property Tax
0.41%

Affordability

25.1%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Houston, TX and Birmingham, AL, the overall cost of living indices are 88 and 62 respectively (national median = 100). Rent is $266/month cheaper in Birmingham, saving renters about $3,192/year.

Median household income is $18,518/year higher in Houston. Home values also differ significantly — the median in Houston is $253,400 compared to $138,600 in Birmingham.

Texas has no state income tax, giving Houston residents a significant tax advantage over Alabama's 5.0% rate.

Frequently Asked Questions

Houston vs Birmingham — common questions

Is Houston or Birmingham cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 88 (US average = 100).
What is the rent difference between Houston and Birmingham?
Median rent in Houston is $1,313/month and in Birmingham it's $1,047/month — a difference of $266/month.
Which city has higher income, Houston or Birmingham?
Median household income is $62,894 in Houston and $44,376 in Birmingham. Median household income is $18,518/year higher in Houston.
How do taxes compare between Texas and Alabama?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Houston or Birmingham?
It depends on your priorities. Houston has a cost index of 88 with median rent of $1,313/mo, while Birmingham has a cost index of 62 with rent of $1,047/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Houston details → View Birmingham details →

More Comparisons

Other cost of living comparisons for Houston and Birmingham

Houston vs. Chicago Houston vs. Phoenix Houston vs. Los Angeles Houston vs. Philadelphia Houston vs. New York Houston vs. San Antonio Birmingham vs. Tallahassee Birmingham vs. Sunrise Manor Birmingham vs. Amarillo Birmingham vs. Grand Prairie Birmingham vs. Oxnard Birmingham vs. Montgomery