Alabama Military Retirement: Best Cities, Housing Costs & Quality of Life

Alabama ranks among the top states for military retirees thanks to zero state income tax on military retirement, generous property tax exemptions for disabled veterans, and a cost of living 16% below the national average.

But where should you actually live? Alabama's cities vary significantly in veteran population density, job opportunities, housing costs, and access to VA healthcare.

This guide ranks Alabama's best cities for veterans with real data on home prices, veteran populations, and quality of life factors.

Bottom Line Up Front

Best overall for veterans: Huntsville (jobs, veteran community, growth) Best for affordability: Florence, Anniston, Gadsden Best for healthcare access: Birmingham (largest VA medical center) Best beach lifestyle: Gulf Shores/Mobile area Best small-city feel: Auburn, Tuscaloosa

Median home price range: $60,000 (Selma) to $332,000 (Huntsville) State average: $277,000

Top 10 Best Cities for Veterans in Alabama

1. Huntsville - "Rocket City"

Overall Grade: A

Why it's #1: Huntsville offers the best combination of veteran employment opportunities, strong veteran community, and quality of life in Alabama.

Veteran Population

• Madison County veterans: 33,094 (12.4% of adult population)
• Concentration: One of the highest in the state
• Military connection: Redstone Arsenal (major Army installation)

Housing Market

• Median home price: $332,000 (highest in Alabama, but justified by income levels)
• Year-over-year growth: Strong appreciation
• Property tax with 100% exemption: $0
• Property tax without exemption: ~$3,320/year

Cost of Living

• Overall index: 92.3 (7.7% below national average)
• Housing: Above state average but reasonable for job market
• Utilities: ~$398/month (state average)
• Groceries: 3% below national average

Employment Opportunities

Defense contractors:

• Boeing (aircraft, space systems)
• Lockheed Martin (missile defense, THAAD)
• Northrop Grumman
• Raytheon Technologies
• Dynetics (Leidos)
• SAIC
• Parsons Corporation

Other major employers:

• Redstone Arsenal (30,000+ employees)
• Blue Origin (space exploration)
• Toyota/Mazda Manufacturing
• Polaris Industries
• NASA Marshall Space Flight Center
• FBI Headquarters

Average aerospace engineer salary: $95,000-$130,000 Average program manager salary: $85,000-$120,000

VA Healthcare Access

• Closest VA facility: Florence VA Clinic (45 miles)
• Closest VA medical center: Birmingham VAMC (100 miles)
• State Veterans Home: Floyd E. "Tut" Fann State Veterans Home (150-bed facility in Huntsville)

Note: While there's no VA hospital in Huntsville proper, the state veterans home and proximity to Redstone Arsenal's medical facilities help fill the gap.

Quality of Life

• Climate: Mild winters, hot summers (avg: 40°F winter, 90°F summer)
• Outdoor recreation: Monte Sano State Park, Tennessee River access, hiking
• Culture: U.S. Space & Rocket Center, Von Braun Center, growing food scene
• Education: Strong public schools, University of Alabama Huntsville
• Crime: Moderate (below state average for violent crime)

Veterans Day Recognition

Huntsville hosts one of the largest Veterans Day parades in the United States.

Pros:

• Best job market for veterans in Alabama
• Strong defense industry presence
• High veteran concentration (you'll find your tribe)
• Tax-free military retirement income
• Growing, dynamic city

Cons:

• Highest home prices in Alabama
• No local VA medical center (must travel to Birmingham for complex care)
• Rapid growth causing some traffic issues
• Hot, humid summers

Bottom line: If you're looking for employment opportunities, especially in aerospace/defense, Huntsville is unmatched in Alabama. The high home prices are offset by strong salaries and zero state income tax on military retirement.

---

2. Birmingham - "The Magic City"

Overall Grade: A-

Why it ranks #2: Best VA healthcare access in the state, affordable housing, and diverse job market.

Veteran Population

• Jefferson County veterans: 42,000+ (largest in Alabama)
• Concentration: Moderate (lower percentage than smaller cities, but highest raw numbers)

Housing Market

• Median home price: $161,250 (very affordable for a major metro)
• Property tax with 100% exemption: $0
• Property tax without exemption: ~$1,935/year (1.2% rate)
• Rental costs: $900-$1,400/month for 2BR apartment

Cost of Living

• Overall index: 89.3 (10.7% below national average)
• Housing: Very affordable
• Groceries: Slightly above state average in metro areas
• Healthcare: Below national average

Employment Opportunities

Major employers:

• UAB Health System (largest employer in Alabama, 23,000+ employees)
• Birmingham VA Medical Center
• Regions Financial Corporation
• Alabama Power
• BBVA Compass
• Blue Cross Blue Shield of Alabama
• Protective Life
• Vulcan Materials
• Drummond Company

Industries: Healthcare, finance, insurance, education, manufacturing

Average salary: $52,000 (below Huntsville but cost of living is lower)

VA Healthcare Access

• Birmingham VA Medical Center: 700 19th Street South, Birmingham, AL 35233
• Phone: (205) 933-8101
• Beds: 313 (acute tertiary care)
• Services: Full-service hospital including emergency department, surgery, mental health, PTSD treatment, spinal cord injury center

This is the best VA healthcare access in Alabama.

Quality of Life

• Climate: Mild winters (avg 45°F), hot summers (90°F)
• Outdoor recreation: Oak Mountain State Park, Cahaba River, Red Mountain Park
• Culture: Birmingham Civil Rights Institute, museums, vibrant food scene, craft breweries
• Sports: UAB Blazers, Birmingham Barons (minor league baseball)
• Education: UAB, Samford University, Birmingham-Southern College
• Crime: Higher in some neighborhoods (research specific areas)

Pros:

• Best VA medical access in Alabama
• Affordable housing
• Strong healthcare job market
• Good schools in suburbs (Hoover, Vestavia Hills, Mountain Brook)
• Cultural amenities of a major city

Cons:

• Limited defense contractor opportunities compared to Huntsville
• Higher crime in certain neighborhoods
• Hot, humid summers
• Fewer veteran-specific job programs than Huntsville

Bottom line: Birmingham is ideal if healthcare access is your top priority or if you work in medical fields. The VA medical center alone makes it attractive for veterans with service-connected conditions requiring regular care.

---

3. Mobile - "Port City"

Overall Grade: B+

Why it ranks #3: Gulf Coast lifestyle, growing economy, affordable housing, strong veteran community.

Veteran Population

• Mobile County veterans: 30,000+
• Concentration: High in certain areas near military installations

Housing Market

• Median home price: $185,000
• Property tax with 100% exemption: $0
• Property tax without exemption: ~$2,035/year (1.1% rate)
• Coastal properties: $250,000-$500,000+ in Gulf Shores/Orange Beach areas

Cost of Living

• Overall index: 87.7 (12.3% below national average)
• Housing: Very affordable (except beachfront)
• Groceries: 1% below national average
• Utilities: Near state average

Employment Opportunities

Major employers:

• Austal USA (shipbuilding, 4,000+ employees)
• Airbus (aircraft manufacturing, 1,000+ employees)
• ThyssenKrupp (steel manufacturing)
• University of South Alabama
• Infirmary Health
• Port of Mobile
• Mobile County Public Schools
• Alabama State Port Authority

Industries: Manufacturing, maritime, aerospace, healthcare, education

Military installations nearby: None active, but strong Navy veteran community due to shipbuilding

VA Healthcare Access

• William F. Green State Veterans Home: Bay Minette (30 miles north)
• Mobile Vet Center: 3221 Springhill Avenue, Suite 111, Mobile, AL 36607
• Phone: (251) 478-5906
• Closest VA medical center: Central Alabama VA (Montgomery) - 170 miles

Healthcare access is the main weakness - you'll need to travel to Montgomery or Birmingham for VA hospital care.

Quality of Life

• Climate: Mild winters (55°F), hot/humid summers (90°F+), hurricane risk
• Outdoor recreation: Gulf beaches (30 miles south), Mobile Bay, fishing, boating
• Culture: USS Alabama Battleship Memorial Park, Mardi Gras (family-friendly version), historic districts
• Education: University of South Alabama
• Crime: Moderate to high in some areas

Pros:

• Gulf Coast access (beaches 30 minutes away)
• Growing job market in aerospace/maritime
• Affordable housing
• Strong fishing/outdoor culture
• Tax-free military retirement

Cons:

• Limited VA medical access
• Hurricane risk requires preparation
• Hot, humid climate year-round
• Higher crime in some neighborhoods

Bottom line: Mobile is perfect if you want affordable Southern coastal living with access to beaches and a strong maritime industry. Just plan for VA healthcare access challenges.

---

4. Montgomery - "The Capital City"

Overall Grade: B+

Why it ranks #4: State capital with government jobs, VA medical center access, affordable housing.

Veteran Population

• Montgomery County: 10.9% of adult population are veterans
• Military connection: Maxwell Air Force Base, Gunter Annex

Housing Market

• Median home price: $166,000
• Property tax with 100% exemption: $0
• Property tax without exemption: ~$1,494/year (0.9% rate)

Cost of Living

• Overall index: 85.9 (14.1% below national average)
• Housing: Very affordable
• Overall: Among the most affordable metros in Alabama

Employment Opportunities

Major employers:

• Maxwell Air Force Base / Air University
• Hyundai Motor Manufacturing (3,000+ employees)
• Alabama State Government (largest employer)
• Montgomery Public Schools
• Baptist Health
• Jackson Hospital
• Alabama State University

State government hiring preference for veterans is valuable here.

VA Healthcare Access

• Central Alabama VA Medical Center - Montgomery: 215 Perry Hill Road, Montgomery, AL 36109
• Phone: (334) 272-4670
• Services: Primary care, mental health, specialty services
• Montgomery Vet Center: 4405 Atlanta Highway, Montgomery, AL 36109

Quality of Life

• Climate: Mild winters, very hot summers
• Culture: Civil Rights landmarks, State Capitol, museums
• Outdoor recreation: Alabama River, Lake Martin (45 mins)
• Education: Auburn University Montgomery, Alabama State University
• Crime: Higher in some areas

Pros:

• VA medical center access
• State government jobs with veteran preference
• Affordable housing
• Maxwell AFB provides military community

Cons:

• Limited private-sector veteran employment compared to Huntsville
• Higher crime in some neighborhoods
• Very hot summers

Bottom line: Montgomery works well for veterans seeking state government employment or those wanting to stay connected to the military community via Maxwell AFB.

---

5. Auburn - "The Loveliest Village"

Overall Grade: B+

Why it ranks #5: College town quality of life, strong veteran support at Auburn University, excellent schools.

Veteran Population

• Auburn University: 1,500+ student veterans (among highest in Alabama)
• Lee County: Moderate veteran concentration

Housing Market

• Median home price: $285,000 (elevated due to college town demand)
• Property tax with 100% exemption: $0
• Property tax without exemption: ~$2,565/year
• Rental market: Competitive due to students

Cost of Living

• Overall index: 93.8 (6.2% below national average)
• Housing: Above state average due to college demand
• Otherwise: Reasonable

Employment Opportunities

Major employers:

• Auburn University (largest employer)
• East Alabama Medical Center
• Columbus, GA metro area (30 minutes)
• Fort Benning, GA (45 minutes - now Fort Moore)

Limited defense contractor presence, but Columbus/Fort Benning expand job options.

VA Healthcare Access

• Closest VA facilities: Tuskegee VA (25 miles), Columbus GA VA clinic
• VA services: Must travel for complex care

Quality of Life

• Climate: Mild winters, hot summers
• Culture: SEC football, college town amenities, festivals
• Education: Auburn University (Yellow Ribbon school), excellent K-12 schools
• Outdoor recreation: Chewacla State Park, Saugahatchee Creek
• Crime: Low (college town safety)
• Community: Strong "family" atmosphere

Pros:

• Excellent education benefits at Auburn (Yellow Ribbon, 100 slots)
• Very safe community
• Great schools for families
• College town amenities
• Strong veteran support programs at university

Cons:

• Higher housing costs due to student demand
• Limited veteran job market outside university/healthcare
• Must travel for VA medical care
• Town revolves around Auburn University (good or bad depending on perspective)

Bottom line: Auburn is ideal for veterans using GI Bill, veterans with families prioritizing schools, or those who love college town culture. Not ideal if employment is your primary concern.

---

6. Tuscaloosa - "Druid City"

Overall Grade: B

Similar profile to Auburn - college town with University of Alabama, good quality of life, limited veteran-specific employment.

Veteran Population

• University of Alabama: 1,000+ student veterans
• Tuscaloosa County: Moderate

Housing Market

• Median home price: $220,000
• Property tax: ~$1,980/year without exemption

Employment

• University of Alabama
• DCH Health System
• Mercedes-Benz U.S. International (nearby in Vance)

Quality of Life

• SEC football culture
• Good schools
• Low crime in most areas

Best for: Veterans using GI Bill at Alabama, families wanting college town lifestyle with big-city amenities.

---

7. Dothan - "Peanut Capital"

Overall Grade: B

Southeast Alabama hub with VA clinic access and affordable living.

Housing

• Median home price: $180,000
• Very affordable

Employment

• Agriculture, manufacturing, healthcare
• Fort Novosel (formerly Fort Rucker) - 40 miles - Army Aviation

VA Healthcare

• Dothan VA Clinic: 3753 Ross Clark Circle, Suite 4, Dothan, AL 36303
• Phone: (334) 678-1933

Best for: Veterans wanting small-city Southern living with direct VA clinic access.

---

8. Florence/Muscle Shoals - "The Shoals"

Overall Grade: B

Northwest Alabama - Most affordable city with VA clinic.

Housing

• Median home price: ~$165,000
• Cheapest major city: Florence is 6% below state average, 16% below national average

Cost of Living

• Overall: Lowest among Alabama metros
• Utilities: 11% below national average

Employment

• University of North Alabama
• Manufacturing
• TVA (Tennessee Valley Authority)

VA Healthcare

• Florence VA Clinic: 422 Cox Boulevard, Sheffield, AL 35660
• Phone: (256) 381-9055

Best for: Veterans prioritizing affordability with VA clinic access.

---

9. Anniston/Oxford

Overall Grade: B-

East-central Alabama with VA clinic but economic challenges.

Housing

• Median home price: $135,000
• Very affordable

VA Healthcare

• Anniston VA Clinic: 96 Ali Way, Creekside South, Oxford, AL 36203
• Phone: (256) 832-4141

Challenges

• Economic decline in recent decades
• Higher utilities (25% above national average)
• Limited job market

Best for: Veterans on fixed income prioritizing low housing costs with VA access.

---

10. Gulf Shores/Orange Beach

Overall Grade: B-

Beach lifestyle with tourism economy.

Housing

• Median home price: $350,000-$500,000 (coastal premium)
• Rental market: Strong for investment properties

Employment

• Tourism, hospitality, construction
• Seasonal fluctuations

Lifestyle

• Beach access
• Fishing, boating
• Resort atmosphere

Best for: Retirees with other income sources wanting beach living.

---

Housing Market Analysis

Median Home Prices by City (2025)

City	Median Price	Property Tax (no exemption)	Savings with 100% Exemption
Huntsville	$332,000	$3,320	$3,320/year
Gulf Shores	$350,000+	$3,500+	$3,500+/year
Auburn	$285,000	$2,565	$2,565/year
Birmingham	$161,250	$1,935	$1,935/year
Mobile	$185,000	$2,035	$2,035/year
Tuscaloosa	$220,000	$1,980	$1,980/year
Dothan	$180,000	$1,620	$1,620/year
Montgomery	$166,000	$1,494	$1,494/year
Florence	$165,000	$1,485	$1,485/year
Anniston	$135,000	$1,215	$1,215/year

State median: $277,200

Rental Market

2-bedroom apartment average rents:

• Huntsville: $1,100-$1,500
• Birmingham: $900-$1,400
• Mobile: $850-$1,300
• Montgomery: $800-$1,200
• Auburn: $1,000-$1,600 (student demand)
• Tuscaloosa: $900-$1,400
• Dothan: $700-$1,100
• Florence: $700-$1,000

Affordability Analysis

Most affordable (low home prices, low cost of living):

1. Florence/Muscle Shoals
2. Anniston/Oxford
3. Dothan

Best value (price vs. job market/quality of life):

1. Birmingham
2. Montgomery
3. Mobile

Least affordable (but highest earning potential):

1. Huntsville
2. Gulf Shores (without employment to match)

Cost of Living Breakdown by City

Huntsville

• Housing: 95 (5% below national avg, above state avg)
• Groceries: 97
• Healthcare: 90
• Utilities: 100
• Transportation: 95
• Overall: 92.3

Birmingham

• Housing: 72 (28% below national)
• Groceries: 96
• Healthcare: 92
• Utilities: 98
• Transportation: 90
• Overall: 89.3

Mobile

• Housing: 68 (32% below national)
• Groceries: 99
• Healthcare: 95
• Utilities: 100
• Transportation: 88
• Overall: 87.7

Montgomery

• Housing: 65 (35% below national)
• Groceries: 95
• Healthcare: 93
• Utilities: 97
• Transportation: 85
• Overall: 85.9

Florence

• Housing: 60 (40% below national)
• Groceries: 94
• Healthcare: 88
• Utilities: 89 (11% below national)
• Transportation: 84
• Overall: 84.0

Alabama state average: 84.1 (15.9% below US average)

Climate and Weather Considerations

Overall Alabama Climate

• Winters: Mild (35-50°F average)
• Summers: Hot and humid (85-95°F, high humidity)
• Rainfall: 50-65 inches annually (wettest in Southeast)

By Region

North Alabama (Huntsville, Florence)

• Occasional snow (1-3 inches per year)
• Four distinct seasons
• Slightly cooler summers than southern Alabama

Central Alabama (Birmingham, Montgomery, Tuscaloosa, Auburn)

• Rare snow
• Hot, humid summers
• Tornado risk (Alabama is in "Dixie Alley")

South Alabama/Gulf Coast (Mobile, Gulf Shores)

• Subtropical climate
• Rare freezing temperatures
• Hurricane risk (June-November)
• Very hot, humid summers

Veteran Health Considerations

Heat and humidity: Can exacerbate respiratory conditions, cardiovascular issues. Alabama summers are challenging for veterans with these conditions.

Tornado risk: Central and north Alabama experience tornadoes, particularly March-May. Ensure home has safe room or tornado shelter.

Hurricane preparedness: Gulf Coast residents need evacuation plans and insurance.

Mild winters: Excellent for veterans with cold-weather injuries or arthritis aggravated by cold.

Veteran Community Strength

Counties with Highest Veteran Concentration

1. Coffee County: 17.7% of adults are veterans
2. Russell County: 14.0% (Fort Moore/Benning nearby)
3. Baldwin County: 13.0% (Gulf Coast)
4. Autauga County: 13.5%
5. Madison County: 12.4% (Huntsville/Redstone)
6. Calhoun County: 12.0%
7. Elmore County: 12.0%

VFW and American Legion Posts

Most posts: Jefferson County (Birmingham area), Madison County (Huntsville), Mobile County

Veterans Day events: Major parades and celebrations in Huntsville, Birmingham, Mobile

Veteran Organizations

• American Legion: 100+ posts statewide
• VFW: 80+ posts
• DAV: Chapters in all major cities
• Vietnam Veterans of America: Multiple chapters

Quality of Life Factors

Recreation

Best outdoor recreation:

• Gulf Coast: Beaches, fishing, boating
• North Alabama: Hiking, lakes, Tennessee River
• Central Alabama: State parks, rivers

Best for fishing: Gulf Coast, Tennessee River (north), Alabama River (central)

Best for golf: Birmingham, Mobile, Gulf Shores (Robert Trent Jones Golf Trail)

Culture and Entertainment

Best food scenes: Birmingham, Huntsville, Mobile Best music: Muscle Shoals (music history), Birmingham, Mobile Best museums: Birmingham (Civil Rights Institute), Huntsville (Space Center), Montgomery (Civil Rights sites)

Education (for families)

Best school districts:

• Vestavia Hills (Birmingham suburb)
• Hoover (Birmingham suburb)
• Mountain Brook (Birmingham suburb)
• Madison (Huntsville area)
• Auburn City Schools

Best universities: Auburn, University of Alabama, UAB

Healthcare Access

Best overall healthcare: Birmingham (UAB Medical Center is nationally ranked) Best VA access: Birmingham (largest VA hospital)

Transportation

Airports:

• Huntsville International (moderate service)
• Birmingham-Shuttlesworth International (best service in state)
• Mobile Regional Airport
• Montgomery Regional Airport

Public transit: Limited in all Alabama cities (car required)

Decision Matrix: Which City is Right for You?

Choose Huntsville if:

• You want the best veteran job opportunities
• Defense/aerospace career is your goal
• You value a strong veteran community
• You can afford higher home prices
• You're willing to travel for VA hospital care

Choose Birmingham if:

• VA healthcare access is critical
• You work in healthcare/medical field
• You want big-city amenities with affordable housing
• You prioritize cultural activities

Choose Mobile if:

• You want coastal/beach access
• You work in maritime/manufacturing
• You want affordable housing near the coast
• You can manage limited VA access

Choose Montgomery if:

• You want state government employment
• You value Maxwell AFB connection
• You want affordability + VA medical center
• You want central location in Alabama

Choose Auburn/Tuscaloosa if:

• You're using GI Bill
• You want excellent schools for kids
• You love college town culture
• Job market isn't your primary concern

Choose Florence/Dothan/Anniston if:

• Affordability is your #1 priority
• You want VA clinic access
• You're on fixed income
• You prefer small-city living

Key Takeaways

1. Huntsville leads for employment - Defense contractors actively recruit veterans
2. Birmingham leads for healthcare - Largest VA facility in Alabama
3. Florence leads for affordability - Lowest cost of living with VA clinic
4. All cities benefit from zero state tax on military retirement
5. 100% disabled veterans save $1,500-$3,500 annually on property taxes depending on location

Alabama offers genuine value for military retirees. Unlike Florida or North Carolina where housing costs have skyrocketed, Alabama remains affordable while delivering solid veteran benefits.

The best city for you depends on your priorities: jobs (Huntsville), healthcare (Birmingham), affordability (Florence), or beach life (Mobile/Gulf Shores).

Additional Resources

• Alabama Department of Veterans Affairs: (334) 242-5077 | va.alabama.gov
• Housing market data: Zillow.com/AL, Redfin.com/state/Alabama
• Cost of living calculators: BestPlaces.net
• Job search: JobLink.alabama.gov
• VA facility locator: VA.gov/find-locations

---

Information current as of January 2025. Housing prices and market conditions change frequently - verify current prices before making decisions.