Home Affordability in Birmingham, AL
The median home price in Birmingham is $145,000 with a median household income of $35,346. Housing is moderately affordable relative to local incomes.
Median Home Price
$145,000
Median Income
$35,346
Price-to-Income Ratio
4.1x
Est. Affordable Home
$137,000
Property Tax Rate
0.40%
Annual Property Tax
$580
Sales Tax Rate
10.00%
Cost of Living Index
82
Buying a Home in Birmingham
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $35,346 in Birmingham can afford a monthly housing payment of approximately $825. This translates to a home price of roughly $137,000, which is below the median home price of $145,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Birmingham would be approximately $580 per year ($48/month) at the effective rate of 0.40%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $4,350 | $140,650 | Yes |
| 5% | $7,250 | $137,750 | Yes |
| 10% | $14,500 | $130,500 | Yes |
| 20% | $29,000 | $116,000 | No |
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