Is it cheaper to live in Birmingham or Salem?

Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 2% below Birmingham, AL's $1,190, mainly because of rent.

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

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

Which has lower taxes, Birmingham or Salem?

Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Birmingham vs Salem Cost of Living 2026

Birmingham

Alabama

$1,190/mo est.

Salem

Oregon

$1,170/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 $1,170 in Salem, OR. Overall, Salem, OR is roughly 2% cheaper to live in day-to-day than Birmingham, AL, driven mainly by rent.

Median household income is $44,376 in Birmingham, AL and $71,900 in Salem, OR — about 38% higher in Salem, OR. Alabama has a top state income tax rate of 5.00% and a 4% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Birmingham, AL

Salem, OR

Rent

Studio

$857

$1,075

+25% in Salem, OR

1 Bedroom

$1,004

$989

+1% in Birmingham, AL

2 Bedroom

$1,005

$1,337

+33% in Salem, OR

3 Bedroom

$1,188

$1,778

+50% in Salem, OR

Buying a Home

Median Home Value

$138,600

$382,400

+176% in Salem, OR

Income

Median Household Income

$44,376

$71,900

+62% in Salem, OR

Metro Median Wage (annual)

$47,770

$55,310

+16% in Salem, OR

People & Lifestyle

Median Age

35.9 yr

35.7 yr

+0.2 yr in Birmingham, AL

Homeownership

45.1%

55.7%

+10.6 pp in Salem, OR

Bachelor's+ (25+)

30.7%

31.4%

+0.7 pp in Salem, OR

Avg Commute

21.5 min

22.4 min

+0.9 min in Salem, OR

Crime (per 100k/yr)

Violent Crime

1,274.7

540.6

+58% in Birmingham, AL

Property Crime

4,233

2,878.6

+32% 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

53.0°F

+10.3°F in Birmingham, AL

Annual Precipitation

53.7 in

39.7 in

+14.0 in in Birmingham, AL

Gas

Regular Gasoline

$3.62/gal

$5.09/gal

+40% in Salem, OR

Area: Gulf Coast (PADD 3) vs West Coast (PADD 5).

Utilities

Electricity (¢/kWh)

16.8

16.3

+3% in Birmingham, AL

Natural Gas ($/MCF)

$22.64

$20.59

+9% in Birmingham, AL

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

Groceries

Milk (gal)

$4.00

$4.82

+20% in Salem, OR

Bread (lb)

$1.75

$2.04

+17% in Salem, OR

Eggs (doz)

$2.21

$2.19

+1% in Birmingham, AL

Ground Beef (lb)

$6.45

$7.36

+14% in Salem, OR

Chicken (lb)

$1.90

$2.01

+6% in Salem, OR

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (AL / OR)

None

+4.0 pp in AL

Income Tax (top rate)

5.00%

9.90%

+4.9 pp in OR

Birmingham vs Salem — FAQ

Is it cheaper to live in Birmingham or Salem?: Salem, OR is cheaper. Its monthly baseline of $1,170 (1BR rent + utilities) runs about 2% below Birmingham, AL's $1,190, mainly because of rent.
How much more do you need to earn to live in Birmingham than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $40,000 a year in Birmingham versus $40,000 in Salem.
Which has lower taxes, Birmingham or Salem?: Birmingham is taxed under Alabama's rules (a top state income tax rate of 5.00% and a 4% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no 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).