Birmingham vs Arlington: Cost of Living Comparison
How does the cost of living in Birmingham, Alabama compare to Arlington, Texas? Below is a side-by-side breakdown of housing costs, income, wages, and taxes using official government data.
Summary: Birmingham is the more affordable city overall. Housing costs are 51% lower in Birmingham compared to Arlington, while rent is 23% lower. TX has no state income tax.
| Metric | Birmingham, AL | Arlington, TX | Diff |
|---|---|---|---|
| Housing | |||
| Median Home Value | $123,000 | $251,300 | -51.1% |
| Median Monthly Rent | $995 | $1,297 | -23.3% |
| Income | |||
| Median Household Income | $42,464 | $71,736 | -40.8% |
| Per Capita Income | $29,289 | $33,477 | -12.5% |
| Taxes | |||
| State Income Tax Rate | 5.0% | None | same |
| Combined Sales Tax | 9.2% | 8.2% | +12.4% |
| Demographics | |||
| Population | 200,431 | 393,469 | -49.1% |
Source: U.S. Census Bureau ACS 5-Year Estimates (2022), Freddie Mac Primary Mortgage Market Survey. State/local tax rates from Tax Foundation (2024).
Rent vs. Buy Calculator — Birmingham
Default home price from Census ACS median. Mortgage rate: 6.38% (Freddie Mac PMMS, March 2026). Property tax est. 1.1%, insurance est. 0.35% of home value annually.
Rent vs. Buy Calculator — Arlington
Default home price from Census ACS median. Mortgage rate: 6.38% (Freddie Mac PMMS, March 2026). Property tax est. 1.1%, insurance est. 0.35% of home value annually.
Key Takeaways
- Housing: The median home in Birmingham costs $123,000 compared to $251,300 in Arlington — a 51% discount.
- Rent: Median rent is $995/mo in Birmingham vs $1,297/mo in Arlington.
- Income: Median household income is $42,464 in Birmingham and $71,736 in Arlington.
- Taxes: Texas has no state income tax, while Alabama has a 5% rate.
Methodology
This comparison uses data from the U.S. Census Bureau American Community Survey 5-Year Estimates (2022) for median household income, median home value, median gross rent, per capita income, and population. State and local tax rates are sourced from the Tax Foundation. Mortgage rates are from the Freddie Mac Primary Mortgage Market Survey (updated weekly).