Quick answer
Memphis costs $245/month less overall ($1,455 vs $1,700/mo). Memphis also has lower state income tax (None vs 5%), widening the advantage for higher earners.
City Comparison · 2026
Birmingham vs Memphis
Side-by-side on rent, home prices, taxes, walkability, jobs, and climate — with a straight verdict for each type of mover.
Last updated: April 23, 2026
Birmingham vs Memphis at a Glance
| Metric | Birmingham | Memphis |
|---|---|---|
| 1BR Monthly Rent | $1,150 | $1,220 ✓ |
| 2BR Monthly Rent | $1,400 | $1,220 ✓ |
| Median Home Price | $230K | $195K ✓ |
| Avg Utilities/mo | $170 | $150 ✓ |
| Avg Groceries/mo | $380 | $325 ✓ |
| Monthly Cost (1BR) | $1,700 | $1,455 ✓ |
| Walk Score | 39/100 ✓ | 36/100 |
| Transit Score | 21/100 | 28/100 ✓ |
| State Income Tax | 5% | None ✓ |
Monthly cost = 1BR rent + utilities + groceries for one person. ✓ marks the lower/better value.
Cost of Living: What the Numbers Actually Mean
Rent gap: Memphis's 1BR averages $980/month vs $1,150 in Birmingham — a $170/month difference, or $2,040/year. That's close enough that neighborhood choice within each city matters more than the city-level average.
State tax: Memphis charges None state income tax vs 5% in Birmingham. On an $80K salary that's a $4,000/year difference. On $120K, the gap grows to $6,000 vs $0 — important context if you're choosing between tech job offers.
Home buying: Median homes in Memphis are $195K vs $230K in Birmingham. At a 20% down payment, that's a $7,000 difference in upfront cash — significant at early-career savings rates.
Utilities: Birmingham utilities run $20 more per month than Memphis. Factor this into your all-in monthly budget.
Walkability, Transit & Daily Life
Birmingham, AL
Car ownership is effectively mandatory in Birmingham. Budget $400–600/month for a car if you don't own one.
TOP NEIGHBORHOODS
Memphis, TN
Car ownership is effectively mandatory in Memphis. Budget $400–600/month for a car if you don't own one.
TOP NEIGHBORHOODS
Climate
Birmingham
Hot and humid summers; mild winters with occasional freezing.
Memphis
Hot humid summers, mild winters with occasional ice storms, high annual rainfall
Job Market
Birmingham top industries
Memphis top industries
Who Should Pick Which City
Move to Birmingham if…
- →You're a Healthcare workers and medical professionals
- →You're a Civil rights history enthusiasts
- →You're a Anyone seeking Southern hospitality with urban amenities
- →You're a Professionals in finance and banking
Move to Memphis if…
- →You're a logistics / supply chain workers
- →You're a healthcare workers
- →You're a musicians
- →You're a remote workers seeking extreme affordability
- →You want zero state income tax
- →You're buying a home and want more for your money
Frequently Asked Questions
Is Birmingham or Memphis cheaper to live in?
Memphis is cheaper overall. Monthly costs (1BR rent + utilities + groceries) run $1,455 in Memphis vs $1,700 in Birmingham — a $245/month difference.
Which city is more walkable — Birmingham or Memphis?
Birmingham is more walkable with a Walk Score of 39/100 vs 36/100. Memphis is more car-dependent.
Birmingham vs Memphis: which has lower state income tax?
Memphis has lower state income tax (None). On an $80K salary, that saves $4,000/year vs Birmingham (5%).
Is Birmingham or Memphis better for buying a home?
Memphis has lower median home prices at $195K vs $230K in Birmingham — a $35,000 difference on the median home.