Is it cheaper to live in Birmingham or Omaha?

Omaha, NE is cheaper. Its monthly baseline of $1,130 (1BR rent + utilities) runs about 5% below Birmingham, AL's $1,190, mainly because of electricity costs.

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

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 Omaha.

Which has lower taxes, Birmingham or Omaha?

Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% state sales tax).

Birmingham vs Omaha Cost of Living 2026

Birmingham

Alabama

$1,190/mo est.

Omaha

Nebraska

$1,130/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 $1,130 in Omaha, NE. Overall, Omaha, NE is roughly 5% cheaper to live in day-to-day than Birmingham, AL, driven mainly by electricity costs.

Median household income is $44,376 in Birmingham, AL and $72,708 in Omaha, NE — about 39% higher in Omaha, NE. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Nebraska has a top state income tax rate of 4.55% and a 5.5% state sales tax.

Birmingham, AL

Omaha, NE

Rent

Studio

$857

$908

+6% in Omaha, NE

1 Bedroom

$1,004

$984

+2% in Birmingham, AL

2 Bedroom

$1,005

$1,193

+19% in Omaha, NE

3 Bedroom

$1,188

$1,437

+21% in Omaha, NE

Buying a Home

Median Home Value

$138,600

$230,100

+66% in Omaha, NE

Income

Median Household Income

$44,376

$72,708

+64% in Omaha, NE

Metro Median Wage (annual)

$47,770

$49,660

+4% in Omaha, NE

People & Lifestyle

Median Age

35.9 yr

35.3 yr

+0.6 yr in Birmingham, AL

Homeownership

45.1%

57.7%

+12.6 pp in Omaha, NE

Bachelor's+ (25+)

30.7%

40.3%

+9.6 pp in Omaha, NE

Avg Commute

21.5 min

19.6 min

+1.9 min in Birmingham, AL

Crime (per 100k/yr)

Violent Crime

1,274.7

359

+72% in Birmingham, AL

Property Crime

4,233

3,153.5

+26% 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

51.1°F

+12.2°F in Birmingham, AL

Annual Precipitation

53.7 in

30.6 in

+23.1 in in Birmingham, AL

Gas

Regular Gasoline

$3.62/gal

$3.94/gal

+9% in Omaha, NE

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

Public Transit

Base Fare (one-way)

—

$1.25

Adult base one-way fare — — vs Metro Transit (Omaha) (2026).

Utilities

Electricity (¢/kWh)

16.8

13.6

+19% in Birmingham, AL

Natural Gas ($/MCF)

$22.64

$15.53

+31% in Birmingham, AL

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Omaha, NE

Bread (lb)

$1.75

$1.66

+5% in Birmingham, AL

Eggs (doz)

$2.21

$3.63

+64% in Omaha, NE

Ground Beef (lb)

$6.45

$6.77

+5% in Omaha, NE

Chicken (lb)

$1.90

$2.10

+10% in Omaha, NE

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (AL / NE)

5.5%

+1.5 pp in NE

Income Tax (top rate)

5.00%

4.55%

+0.5 pp in AL

Birmingham vs Omaha — FAQ

Is it cheaper to live in Birmingham or Omaha?: Omaha, NE is cheaper. Its monthly baseline of $1,130 (1BR rent + utilities) runs about 5% below Birmingham, AL's $1,190, mainly because of electricity costs.
How much more do you need to earn to live in Birmingham than in Omaha?: 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 Omaha.
Which has lower taxes, Birmingham or Omaha?: Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% 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).