Cost of Living in Selma

Selma is genuinely, substantially affordable on housing, though a low median household income and real economic distress mean that affordability reflects real underlying conditions, not simply a bargain.

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Substantially affordable housing, with a real, wide source spread

Zillow's algorithm-based average home value was $79,586, a separately cited figure put the median at $160,058, and a third source cited $92,700 -- all disclosed rather than reconciled, but consistently placing Selma among the most affordable housing markets in the country.

A real, severe income and poverty picture

Selma's median household income is $33,197 -- among the lowest of any Alabama city per multiple sources -- against a 30.84% poverty rate, the 4th-highest in the state. The lower cost of living here reflects genuine, disclosed economic hardship, not just a favorable exchange rate on housing.

Alabama's near-flat income tax and Selma's own tax rates

Alabama's graduated income tax functions as a near-flat 5% for most earners, softened by the state's real federal-tax-deduction offset. Selma's combined sales tax is a genuinely high 10%, while its 0.60% effective property tax rate runs above the Alabama state median even though the median dollar tax bill ($373) stays low given the city's low home values.

A real, cited unemployment gap

Selma's unemployment rate was cited at 12.9%, well above Alabama's roughly 2.9% statewide rate as of a September 2024 comparison point -- both figures dated to that point and disclosed as such rather than presented as a current reading.

Key takeaways

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Last reviewed: 2026-08-24. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.