Cost of Living: Little Rock, AR vs Birmingham, AL (2026)

Little Rock

Arkansas
74
VS

Birmingham

Alabama
62

Little Rock is 19% more expensive than Birmingham.

$1,067/mo ↑ 2%
Median Rent
$1,047/mo ↓ 2%
$60,583/yr ↑ 37%
Median Income
$44,376/yr ↓ 27%
$221,200 ↑ 60%
Home Value
$138,600 ↓ 37%
$1,099/mo ↑ 11%
Owner Costs
$991/mo ↓ 10%
202,739
Population
199,322

Tax Comparison

4.4%
Income Tax
5.0%
6.5%
State Sales Tax
4.0%
0.62%
Property Tax
0.41%

Affordability

21.1%
rent-to-income
Affordability
28.3%
rent-to-income

Detailed Comparison

When comparing Little Rock, AR and Birmingham, AL, the overall cost of living indices are 74 and 62 respectively (national median = 100). Rent is comparable in both cities, with less than $50/month separating them.

Median household income is $16,207/year higher in Little Rock. Home values also differ significantly — the median in Little Rock is $221,200 compared to $138,600 in Birmingham.

Arkansas has a lower income tax rate, making Little Rock slightly more tax-friendly.

Frequently Asked Questions

Little Rock vs Birmingham — common questions

Is Little Rock or Birmingham cheaper to live in?
Based on our cost index, Birmingham is cheaper to live in with an index of 62 compared to 74 (US average = 100).
What is the rent difference between Little Rock and Birmingham?
Median rent in Little Rock is $1,067/month and in Birmingham it's $1,047/month — a difference of $20/month.
Which city has higher income, Little Rock or Birmingham?
Median household income is $60,583 in Little Rock and $44,376 in Birmingham. Median household income is $16,207/year higher in Little Rock.
How do taxes compare between Arkansas and Alabama?
Arkansas has 4.4% income tax, 6.5% sales tax, and 0.62% property tax. Alabama has 5.0% income tax, 4.0% sales tax, and 0.41% property tax.
Should I move to Little Rock or Birmingham?
It depends on your priorities. Little Rock has a cost index of 74 with median rent of $1,067/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 Little Rock details → View Birmingham details →

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