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Memphis, TN vs Birmingham, AL: Cost of Living

Compare the cost of living between Memphis, TN and Birmingham, AL. See the equivalent salary and median rent powered by BLS Regional Price Parities.

Source-verified · June 2026BEA Regional Price Parities by MSA, 2022 (Table 4); HUD FY2024 Fair Market Rents (2-BR) Official source ↗
Source-verified · June 2026BEA Regional Price Parities by MSA, 2022 (Table 4); HUD FY2024 Fair Market Rents (2-BR) Official source ↗

Memphis, TN

TN

Overall RPP (US=100)
91.8
Housing RPP
76.6
Goods RPP
94.3
2-BR median rent
$1,298/mo

Tennessee has no state income tax on wages.

Birmingham, AL

AL

Overall RPP (US=100)
91.2
Housing RPP
70.4
Goods RPP
94.6
2-BR median rent
$1,245/mo

Alabama income tax 2%-5%.

Equivalent salary

Birmingham, AL is cheaper than Memphis, TN by about 0.7% (RPP 91.8 to 91.2).

$60,000 in Memphis, TN

-> $59,608

in Birmingham, AL

$100,000 in Memphis, TN

-> $99,346

in Birmingham, AL

$150,000 in Memphis, TN

-> $149,020

in Birmingham, AL

This tool provides estimates only. Equivalent-salary figures are derived from BLS Regional Price Parities (RPP) and HUD Fair Market Rents — they are averages, not guarantees. Actual cost of living varies by neighborhood, lifestyle, and individual circumstances. Not financial advice.

Migration signal: Memphis, TN vs Birmingham, AL

IRS tax-return migration · 2021-2022

Memphis, TN

Net people
−4,235
Net rank
#41 of 65
Top origin share
1%
Top destination share
2%

Largest source: Davidson County, TN. Largest destination: Davidson County, TN.

Birmingham, AL

Net people
+263
Net rank
#29 of 65
Top origin share
4%
Top destination share
3%

Largest source: Tuscaloosa County, AL. Largest destination: Tuscaloosa County, AL.

Rent delta: Birmingham, AL is $53/mo lower for HUD FY2024 2-BR FMR than Memphis, TN. Housing RPP moves from 76.6 to 70.4.

Migration figures are derived from IRS SOI county-to-county migration data for 2021-2022, mapped to metros via Census CBSA delineation. Small county-to-county flows are IRS-suppressed, so per-metro totals are lower bounds. Source: IRS SOI migration data.

Frequently asked questions

Is Birmingham, AL cheaper or more expensive than Memphis, TN?
Birmingham, AL (RPP 91.2) is cheaper than Memphis, TN (RPP 91.8) by about 0.7%.
What salary do I need in Birmingham, AL if I earn $100,000 in Memphis, TN?
You would need approximately $99,346 in Birmingham, AL to maintain the same purchasing power as $100,000 in Memphis, TN. Formula: $100,000 x (91.2 / 91.8).
Which metro had stronger net migration, Memphis, TN or Birmingham, AL?
For 2021-2022, Memphis, TN had a net loss of 4,235 people, while Birmingham, AL had a net gain of 263 people. IRS small-flow suppression means these are lower-bound research signals, not complete population-change totals.

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