Cost of Living in Troy

Troy runs genuinely affordable on housing and property tax, offset by a below-average median household income and Alabama's near-flat state income tax.

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Genuinely low property tax

Pike County's effective property tax rate is 0.24% for 2024 -- 0.13 percentage points below the Alabama state average and 0.59 points below the US average, with a median annual bill of $424 on a $157,600 median-value home.

A real, disclosed tension in recent home prices

One Redfin snapshot cited a $220,000 median sale price "last month," down a striking 18.2% year-over-year, while a separately cited $290,774 figure appears to reflect a different period -- both disclosed given Troy's genuinely small housing-transaction volume.

A below-average median household income

Troy's median household income is $36,150, meaningfully below several other Alabama markets in this project, with Pike County carrying a real, disclosed 20% poverty rate -- a genuine economic-hardship signal worth understanding alongside the low housing costs.

Alabama's near-flat state income tax

Alabama taxes income at 2% up to $500 (single) / $1,000 (MFJ), 4% on the next bracket, and 5% above $3,000 (single) / $6,000 (MFJ), with full federal-tax deductibility (one of only three states allowing this).

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.