Median rent is 23% lower in Birmingham ($1,107/mo vs $1,440/mo). Buying is cheaper in Birmingham, where the median home runs $158,800 versus $334,100. Households earn more in Chicago ($77,902 vs $46,051 a year). Taken together, Birmingham is the more affordable choice with a cost index of 91.8 against 102.5 — about 10% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Chicago, IL.
Cost of living verdict
Birmingham is 10% cheaper overall
Cost of Living Index: 91.8 in Birmingham vs 102.5 in Chicago (US national average = 100)
City A
Birmingham, AL
City B
Chicago, IL
How much would you need to earn in Chicago, IL to maintain your standard of living from Birmingham, AL?
Equivalent salary in Chicago, IL
$83,762
You'd need $8,762 more (12% higher).
Based on BEA Regional Price Parity (cost index) for each metro area. This estimates overall purchasing power; it does not account for taxes or take-home pay differences.
Metric
Birmingham
Alabama
Chicago
Illinois
Population
Median Household Income
Annual
Median Gross Rent
Per month
Median Home Value
Cost of Living Index
US avg = 100
1BR Fair Market Rent
HUD FMR
2BR Fair Market Rent
HUD FMR
3BR Fair Market Rent
HUD FMR
Air Quality Index
Lower = cleaner
Top State Income Tax
Top marginal rate
State Sales Tax
Statewide base rate
Median Age
Years
✓ = better value · Sources: Census ACS, BEA, HUD Fair Market Rents, EPA AirNow, Tax Foundation
Renters will find significantly cheaper housing in Birmingham — median rent of $1,107/mo versus $1,440/mo in Chicago, a 23% difference. Home buyers face a steeper market in Chicago: the median home is $334,100 versus $158,800 in Birmingham — 52% more expensive.
Metric
Birmingham
Chicago
Software Developer
Registered Nurse
Elementary Teacher
Electrician
Accountant
Higher wage highlighted · BLS OEWS 2023 (metro-level data)
State tax data is not yet available for these cities.
Birmingham
Income tax: N/A
Sales tax: N/A
Chicago
Income tax: N/A
Sales tax: N/A
Chicago has cleaner air on average: 31.0 AQI (Good) compared to 36.0 AQI (Good) in the other city. Lower AQI means cleaner, healthier air.
Pick Birmingham if you prioritize lower overall cost of living (index 91.8 vs 102.5).
Pick Chicago if you prioritize higher median household income ($77,902/yr).
Pick Birmingham if you prioritize cheaper rent ($1,107/mo median).
Birmingham is cheaper overall, with a cost of living index of 91.8 versus 102.5 (US average = 100). That means prices run about 10% lower in Birmingham.
Median rent is $1,107/mo in Birmingham, AL and $1,440/mo in Chicago, IL. Birmingham, AL has the lower rent by about 23%.
Median household income is $46,051 in Birmingham, AL and $77,902 in Chicago, IL. Chicago, IL has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Chicago, IL has better air quality on average: 31.0 AQI versus 36.0 AQI. Both are EPA AirNow annual averages; lower is better.
State tax data is not yet available for one or both cities.
To maintain the same purchasing power, a salary of $100,000 in Birmingham, AL is equivalent to roughly $111,683 in Chicago, IL (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: June 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
