Is it cheaper to live in Aberdeen or Birmingham?

Aberdeen, SD is cheaper. Its monthly baseline of $740 (1BR rent + utilities) runs about 38% below Birmingham, AL's $1,190, mainly because of rent.

How much more do you need to earn to live in Aberdeen than in Birmingham?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $23,000 a year in Aberdeen versus $40,000 in Birmingham.

Which has lower taxes, Aberdeen or Birmingham?

Aberdeen is taxed under South Dakota's rules (no state income tax and a 4.2% state sales tax); Birmingham under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Aberdeen vs Birmingham Cost of Living 2026

Aberdeen

South Dakota

$740/mo est.

Birmingham

Alabama

$1,190/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $740 in Aberdeen, SD versus $1,190 in Birmingham, AL. Overall, Aberdeen, SD is roughly 38% cheaper to live in day-to-day than Birmingham, AL, driven mainly by rent.

Median household income is $63,715 in Aberdeen, SD and $44,376 in Birmingham, AL — about 30% higher in Aberdeen, SD. South Dakota has no state income tax and a 4.2% state sales tax; Alabama has a top state income tax rate of 5.00% and a 4% state sales tax.

Aberdeen, SD

Birmingham, AL

Rent

Studio

$529

$857

+62% in Birmingham, AL

1 Bedroom

$576

$1,004

+74% in Birmingham, AL

2 Bedroom

$824

$1,005

+22% in Birmingham, AL

3 Bedroom

$924

$1,188

+29% in Birmingham, AL

Buying a Home

Median Home Value

$205,500

$138,600

+33% in Aberdeen, SD

Income

Median Household Income

$63,715

$44,376

+30% in Aberdeen, SD

Metro Median Wage (annual)

—

$47,770

People & Lifestyle

Median Age

35.8 yr

35.9 yr

+0.1 yr in Birmingham, AL

Homeownership

58.4%

45.1%

+13.3 pp in Aberdeen, SD

Bachelor's+ (25+)

33.6%

30.7%

+2.9 pp in Aberdeen, SD

Avg Commute

11.1 min

21.5 min

+10.4 min in Birmingham, AL

Crime (per 100k/yr)

Violent Crime

275

1,274.7

+364% in Birmingham, AL

Property Crime

1,421.2

4,233

+198% in Birmingham, AL

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

43.0°F

63.3°F

+20.3°F in Birmingham, AL

Annual Precipitation

21.7 in

53.7 in

+32.0 in in Birmingham, AL

Gas

Regular Gasoline

$3.85/gal

$3.62/gal

+6% in Aberdeen, SD

Area: Midwest (PADD 2) vs Gulf Coast (PADD 3).

Utilities

Electricity (¢/kWh)

15.4

16.4

+7% in Birmingham, AL

Natural Gas ($/MCF)

$15.26

$24.06

+58% in Birmingham, AL

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

$4.00

+7% in Aberdeen, SD

Bread (lb)

$1.66

$1.75

+5% in Birmingham, AL

Eggs (doz)

$3.63

$2.21

+39% in Aberdeen, SD

Ground Beef (lb)

$6.77

$6.45

+5% in Aberdeen, SD

Chicken (lb)

$2.10

$1.90

+9% in Aberdeen, SD

Bananas (lb)

$0.62

about equal

Average prices — Midwest vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (SD / AL)

4.2%

+0.2 pp in SD

Income Tax (top rate)

None

5.00%

+5.0 pp in AL

Aberdeen vs Birmingham — FAQ

Is it cheaper to live in Aberdeen or Birmingham?: Aberdeen, SD is cheaper. Its monthly baseline of $740 (1BR rent + utilities) runs about 38% below Birmingham, AL's $1,190, mainly because of rent.
How much more do you need to earn to live in Aberdeen than in Birmingham?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $23,000 a year in Aberdeen versus $40,000 in Birmingham.
Which has lower taxes, Aberdeen or Birmingham?: Aberdeen is taxed under South Dakota's rules (no state income tax and a 4.2% state sales tax); Birmingham under Alabama's (a top state income tax rate of 5.00% and a 4% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).