Cost of Living in Dothan
Dothan is genuinely affordable: a $244,200-$252,000 median home sale price, 42% below the national average, with a low 0.33% effective property tax rate in Houston County -- the lowest of the five Alabama markets built in this wave.
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Learn moreHousing runs substantially below the national median
Redfin cited $252,000 for March 2026 (-4.0% YoY) and a more recent $244,200 current snapshot -- both a real 42% below the national average. Redfin's own tiered breakdown showed a wide internal range: a $142,634 starter tier, $236,262 mid tier, and $346,051 high tier.
Alabama's income tax and Dothan's combined sales tax
Alabama's graduated income tax runs near-flat 5% for most earners, softened by its real, uncapped federal-tax-deduction offset. Dothan's combined sales tax showed a real, disclosed spread of 9.0%-9.7% across sources -- confirm the exact rate for a specific address.
A genuinely low property tax rate
Houston County's effective property tax rate runs about 0.33% -- the lowest of this wave's five Alabama markets, and well under the roughly 1.0% national median.
Key takeaways
- Dothan's median home price ($244K-$252K) runs a real 42% below the national average.
- A genuinely wide internal price range exists ($142,634 starter tier to $346,051 high tier).
- Houston County's ~0.33% effective property tax rate is the lowest of this wave's five markets.
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