Alabama
Ranked #8 of 51 for housing affordability
Median Home Price
🏠$217K
3.48x income
Median Rent
🔑$982
28.5% rent-burdened
Median Income
💰$62K
Population: 5,108,468
Homeownership
🏡70.0%
3,434 experiencing homelessness
Housing Shortage
📉45,000
units needed
Building Permits (2024)
🔨20,725
Price-to-Income
📊3.48x
Severe Rent Burden
⚠️13.2%
paying >50% of income
Rent Burden Breakdown
vs. National Average
House Price Index (2000–2025)
FHFA All-Transactions HPI · Base = 100 (1980s)
HUD Fair Market Rents (FY2026)
Maximum rent HUD considers fair for Section 8 voucher holders
FMR ($1079) is above the state median rent ($982) — vouchers cover typical rents.
Metros in Alabama
| Metro | Score | Home Price | Rent | Income | Rent Burden |
|---|---|---|---|---|---|
| Birmingham | 65 | $248K | $1,153 | $69K | 30.5% |
| Huntsville | 62 | $311K | $1,240 | $85K | 28.5% |
| Mobile | 85 | $192K | $1,022 | $55K | 21.9% |
| Montgomery | 89 | $193K | $1,018 | $62K | 24.2% |
| Tuscaloosa | 81 | $230K | $958 | $58K | 30.6% |
| Daphne-Fairhope-Foley | 78 | $307K | $1,286 | $73K | 14.8% |
| Auburn-Opelika | 74 | $266K | $966 | $58K | 31.7% |
| Decatur | 91 | $214K | $854 | $73K | 23.2% |
| Dothan | 90 | $171K | $952 | $57K | 19.7% |
| Anniston-Oxford | 88 | $161K | $782 | $51K | 20.7% |
| Gadsden | 84 | $188K | $760 | $52K | 23.4% |
Market Trends
Homeownership Rate
70.0%
Rent-to-Income Ratio
19.0%
of gross income spent on rent
Total Households
2,051,545
Owner-Occupied
1,438,756
Renter-Occupied
612,789
Homelessness
Latest Count (2024)
4,601
1-Year Change
+39.3%
10-Year Trend (2015–2024)
+15.9%
3,970 → 4,601
Housing Policies
Construction Activity
Total Permits (2024)
20,725
1.5% of national total
Single-Family
17,423
84% of state permits
Multi-Family
3,302
16% of state permits
Mortgage Access
National HMDA data — mortgage denial rates by race/ethnicity
Denial Rates by Race
Top Denial Reasons
Housing Shortage
State Shortage
45,000
units needed
National Shortage
7,300,000
0.6% of national total
Affordable Units per 100 ELI Renters
35
nationally (NLIHC)
National Shortage by Unit Type
45%
Single-Family
18%
Small Multi (2-4)
22%
Medium Multi (5-49)
15%
Large Multi (50+)
Rent Burden Detail
Alabama burden rates with national demographic breakdown
Cost-Burdened Renters
28.5%
paying >30% of income
Severely Burdened
13.2%
paying >50% of income
Households >30% Burden
138,735
Households >35% Burden
72,264