Living Cost Compare
Birmingham

Alabama

$1,190/mo est.

vs
Indianapolis

Indiana

$1,150/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,190 in Birmingham, AL versus $1,150 in Indianapolis, IN. Overall, Indianapolis, IN is roughly 3% cheaper to live in day-to-day than Birmingham, AL, driven mainly by rent.

Median household income is $44,376 in Birmingham, AL and $62,995 in Indianapolis, IN — about 30% higher in Indianapolis, IN. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Indiana has a top state income tax rate of 2.95% and a 7% state sales tax.

Birmingham, AL
Indianapolis, IN

Rent

Studio
$857
$933
+9% in Indianapolis, IN
1 Bedroom
$1,004
$963
+4% in Birmingham, AL
2 Bedroom
$1,005
$1,132
+13% in Indianapolis, IN
3 Bedroom
$1,188
$1,304
+10% in Indianapolis, IN

Buying a Home

Median Home Value
$138,600
$207,000
+49% in Indianapolis, IN

Income

Median Household Income
$44,376
$62,995
+42% in Indianapolis, IN
Metro Median Wage (annual)
$47,770
$49,340
+3% in Indianapolis, IN

People & Lifestyle

Median Age
35.9 yr
34.1 yr
+1.8 yr in Birmingham, AL
Homeownership
45.1%
55.3%
+10.2 pp in Indianapolis, IN
Bachelor's+ (25+)
30.7%
34.2%
+3.5 pp in Indianapolis, IN
Avg Commute
21.5 min
24.3 min
+2.8 min in Indianapolis, IN

Crime (per 100k/yr)

Violent Crime
1,274.7
936.6
+27% in Birmingham, AL
Property Crime
4,233
3,351.7
+21% 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
63.3°F
53.2°F
+10.1°F in Birmingham, AL
Annual Precipitation
53.7 in
42.4 in
+11.3 in in Birmingham, AL

Gas

Regular Gasoline
$3.62/gal
$3.94/gal
+9% in Indianapolis, IN

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

Public Transit

Base Fare (one-way)
—
$1.75

Adult base one-way fare — — vs IndyGo (2026).

Utilities

Electricity (¢/kWh)
16.8
18.1
+8% in Indianapolis, IN
Natural Gas ($/MCF)
$22.64
$13.70
+39% in Birmingham, AL

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

Groceries

Milk (gal)
$4.00
$4.31
+8% in Indianapolis, IN
Bread (lb)
$1.75
$1.66
+5% in Birmingham, AL
Eggs (doz)
$2.21
$3.63
+64% in Indianapolis, IN
Ground Beef (lb)
$6.45
$6.77
+5% in Indianapolis, IN
Chicken (lb)
$1.90
$2.10
+10% in Indianapolis, IN
Bananas (lb)
$0.62
$0.62
about equal

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

State Taxes

Sales Tax (AL / IN)
4%
7%
+3.0 pp in IN
Income Tax (top rate)
5.00%
2.95%
+2.0 pp in AL

Birmingham vs Indianapolis — FAQ

Is it cheaper to live in Birmingham or Indianapolis?
Indianapolis, IN is cheaper. Its monthly baseline of $1,150 (1BR rent + utilities) runs about 3% below Birmingham, AL's $1,190, mainly because of rent.
How much more do you need to earn to live in Birmingham than in Indianapolis?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $39,000 in Indianapolis.
Which has lower taxes, Birmingham or Indianapolis?
Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Indianapolis under Indiana's (a top state income tax rate of 2.95% and a 7% 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).