by Kristen Carney
Updated: June 20, 2024
The richest city in Alabama is Mountain Brook with an average household income of $267,337 as of 2022 and 21,737 people as of 2023 according to the most current Census data available (citation).
Rank | City | County | Population | Average Income | Median Income |
---|---|---|---|---|---|
1 | Mountain Brook | Jefferson | 21,737 | $267,337 | $167,007 |
2 | Highland Lakes | Shelby | 5,628 | $232,945 | $157,868 |
3 | Shoal Creek | Shelby | 1,171 | $199,191 | $130,375 |
4 | Indian Springs Village | Shelby | 2,492 | $198,523 | $135,114 |
5 | Mooresville | Limestone | 48 | $197,472 | -$1 |
6 | Point Clear | Baldwin | 1,755 | $185,258 | $69,310 |
7 | Hatton | Lawrence | 336 | $184,299 | $250,001 |
8 | Vestavia Hills | Jefferson; Shelby | 38,020 | $175,935 | $127,582 |
9 | Eagle Point | Shelby | 2,746 | $169,282 | $147,500 |
10 | Meadowbrook | Shelby | 9,338 | $165,938 | $141,620 |
11 | Sweet Water | Marengo | 219 | $161,384 | $78,750 |
12 | Triana | Madison | 4,456 | $159,879 | $89,531 |
13 | Pike Road | Montgomery | 11,117 | $156,811 | $119,928 |
14 | Emerald Mountain | Elmore | 3,569 | $146,622 | $121,466 |
15 | Trussville | Jefferson; St. Clair | 26,770 | $143,833 | $118,028 |
16 | Redstone Arsenal | Madison | 991 | $139,863 | $121,563 |
17 | Blue Ridge | Elmore | 1,282 | $139,113 | $113,571 |
18 | Homewood | Jefferson | 27,758 | $138,799 | $97,366 |
19 | Madison | Limestone; Madison | 60,854 | $132,478 | $118,132 |
20 | Hoover | Jefferson; Shelby | 92,448 | $131,259 | $101,765 |
We usually suggest using median income data – either instead of or in addition to – average income data as a true indicator of wealth. If you haven’t thought about median versus average since your last standardized test, you aren’t alone. Here’s what they are:
Now let’s say you had the following simplified set of income data.
Household 1: $30,000
Household 2: $50,000
Household 3: $1,000,000
The average income for this set is $360,000. The outlier data point ($1,000,000) skews the average WAY up. Conversely, the average income would be skewed WAY down if someone had an income of $500. The median income for the same data set is $50,000. Outlier data doesn’t skew the median.
So most business owners should use the median income as a true indicator of wealth, because it provides a more accurate representation of a typical income, especially in areas with significant income disparity.
If your target market is high-income households, the average income may be more relevant. This is because the average income can highlight the presence of a higher concentration of wealthy individuals, which is beneficial for luxury goods and services marketing. We’re using average income on this page because using the Census’s highest reported median value of $250,001 could result in multiple ties for the richest geography.
The Census' American Community Survey uses $250,000+ as a jam value for median income estimates to protect privacy, ensure data consistency, and simplify reporting. A "jam value" in survey data refers to a placeholder or default value used when actual data points are unavailable, incomplete, or exceed certain thresholds. We represent this jam value as $250,001 to make it easy for you to sort.
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United States Census Bureau. Annual Estimates of the Resident Population: April 1, 2020 to July 1, 2023. U.S. Census Bureau, Population Division. Web. May 2024. http://www.census.gov/.
United States Census Bureau. B01001 SEX BY AGE, 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 7 December 2023. http://www.census.gov/.
United States Census Bureau. B19013 Median Household Income, 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 7 December 2023. http://www.census.gov/.
United States Census Bureau. “DP03 SELECTED ECONOMIC CHARACTERISTICS.” 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 07 December 2023. http://www.census.gov/.
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