Cost of Living in Huntsville, AL: What Salary Do You Need?

Housing Costs: The Biggest Line Item

Housing is the largest expense for most Huntsville residents, but it remains considerably cheaper than the national average. The median home price in the Huntsville metro area hovers around $290,000 to $320,000, compared to the national median of approximately $400,000. That gap has narrowed as the city's population has surged past 225,000, but Huntsville still offers significantly more square footage per dollar than comparable tech hubs.

Renting in Huntsville

For renters, a one-bedroom apartment averages $950 to $1,050 per month. Two-bedroom units range from $1,100 to $1,250, while three-bedroom apartments and townhomes fall between $1,300 and $1,500. Location matters significantly — apartments near Cummings Research Park and downtown Huntsville carry a premium of 15 to 25 percent over units in south Huntsville or outlying areas of Madison County.

If these numbers are beyond your budget, the Huntsville Housing Authority administers programs that can reduce your housing costs substantially. Check our income limits guide to see if you qualify for subsidized housing.

Utility Costs

Huntsville Utilities provides electricity, natural gas, and water through a single municipal provider, which simplifies billing. Average monthly utility costs for a standard two-bedroom apartment run approximately $180 to $230, broken down roughly as:

• Electricity: $110 to $150 per month (higher in summer due to air conditioning)
• Natural gas: $30 to $50 per month (higher in winter for heating)
• Water and sewer: $40 to $60 per month
• Trash collection: Typically included in city services for single-family homes; apartment residents pay through rent

Alabama summers push electricity bills up sharply — July and August bills can exceed $200 for a three-bedroom home. Budget for seasonal variation and consider energy efficiency upgrades to keep costs manageable.

Groceries and Food

Grocery costs in Huntsville track close to the national average, with a single adult spending approximately $350 to $400 per month and a family of four budgeting $800 to $1,000. Popular chains include Publix, Kroger, Aldi, and Walmart Supercenter, with Aldi and Walmart offering the lowest prices in most categories. The Madison County Farmers Market provides seasonal produce at competitive prices during spring and summer months.

Dining out adds up faster. A meal at a mid-range restaurant costs $12 to $18 per person, while fast-casual options run $8 to $12. Huntsville's food scene has expanded considerably, but cooking at home remains the most effective way to control food spending.

Transportation

Huntsville is a car-dependent city. Public transit exists through the Huntsville Shuttle Bus system, but routes are limited and frequency is low compared to larger metros. Most residents drive, making vehicle costs a significant budget item.

• Gas: Alabama gas prices typically run $0.10 to $0.30 below the national average. Budget $120 to $180 per month depending on your commute
• Car insurance: Alabama averages $1,400 to $1,800 per year for full coverage, varying by age, driving record, and vehicle
• Vehicle registration: Annual tag renewal costs $23 plus ad valorem tax based on vehicle value

Commute times are relatively short. The average one-way commute in Huntsville is about 22 minutes, which helps keep gas costs lower than in cities with longer average drives.

Healthcare

Healthcare costs in Huntsville are slightly below the national average. Huntsville Hospital, the state's largest hospital, anchors the local medical system alongside Crestwood Medical Center and several specialty clinics. An employer-sponsored health insurance plan for a family averages $500 to $700 per month in employee contributions. Individual ACA marketplace plans range from $300 to $550 per month before subsidies.

What Salary Do You Actually Need?

Pulling together all the major expense categories, here is what a comfortable budget looks like in Huntsville:

Single Adult

• Housing (1-bedroom): $1,000
• Utilities: $150
• Groceries: $375
• Transportation: $350
• Healthcare: $300
• Personal and miscellaneous: $300
• Total monthly: approximately $2,475
• Annual salary needed: approximately $48,000 to $52,000

Family of Four

• Housing (3-bedroom): $1,400
• Utilities: $230
• Groceries: $900
• Transportation (2 vehicles): $600
• Healthcare: $600
• Childcare or after-school: $800
• Personal and miscellaneous: $500
• Total monthly: approximately $5,030
• Annual salary needed: approximately $72,000 to $78,000

These figures assume no debt payments. If you carry student loans, car payments, or credit card balances, adjust upward accordingly. For residents earning below these thresholds, Huntsville Housing Authority's assistance programs and affordable properties can help bridge the gap between income and housing costs.

For additional information on Huntsville's economy and community resources, visit the City of Huntsville official website.

Frequently Asked Questions

Is Huntsville, Alabama an affordable place to live?

Compared to the national average, Huntsville's overall cost of living is approximately 12 to 18 percent lower. Housing provides the most significant savings, with median home prices running roughly 20 percent below the national median. Groceries and healthcare are close to national norms, while transportation costs benefit from lower gas prices and shorter commutes.

What is the average rent in Huntsville, AL?

One-bedroom apartments average $950 to $1,050, two-bedrooms run $1,100 to $1,250, and three-bedrooms range from $1,300 to $1,500. Neighborhoods near Research Park and downtown carry higher rents, while south Huntsville and surrounding Madison County areas offer more affordable options. Rents have risen 4 to 6 percent annually in recent years due to strong population growth.