Jefferson County, Alabama
4× the national median for bankruptcy filing rate — and 66.0× the rate of the healthiest U.S. county (Glacier County, MT — 7).
Main Findings
Jefferson County, Alabama ranks 702nd most distressed in the United States on the County Distress Index. The driver: a bankruptcy filing rate of 482 — more than double the national median of 126.
- 702nd of 3,144 counties on the County Distress Index — Second-most distressed fifth, 25th in Alabama.
- A bankruptcy filing rate of 482 (U.S. median 126). Bankruptcy filing rate at the 98th percentile nationally.
- Auto loan delinquency at 11% — national median 5%, ranked at the 94th percentile.
- Severe rent burden (50%+) at 26% — national median 18%, ranked at the 91st percentile.
- Poverty rate at 16% — national median 14%, ranked at the 68th percentile.
Unemployment is 3%, near the national median of 4%, while auto loan delinquency runs at the 94th percentile. Jobs exist; wages don't close the gap.
Neighbors span four CDI distress fifths. The 33-point drop to Shelby County marks where the Alabama distress corridor ends.
"Jefferson County ranks in the second-most distressed fifth of U.S. counties. The score is above the national county midpoint, with the domain table showing the local pressure mix."
"The CDI places this county in the second-most distressed fifth nationally. The county sits above the median distress position, with the five-domain profile showing which local pressures carry the score."
Reporter's Notes
Two data points in the indicator table worth a follow-up call.
Jefferson County's transfer-income dependency indicator is at the 14th percentile — while every other indicator in the safety_net_buffer domain sits at or above the 44th percentile. The gap stands out against the other credit indicators. Worth a call to Urban Institute or a local credit counselor in Birmingham.
The Indicators Behind Jefferson County's CDI Score
Every number traces to a public source. Jefferson County's value shown alongside AL's median and the U.S. median. Full CSV available for download.
| Indicator | Jefferson | AL median | U.S. median | Pctile | Source |
|---|---|---|---|---|---|
| Delinquency — domain score 85 · Rank 386 of 3,144 | |||||
| Auto loan delinquency Share of auto loan accounts 60+ days past due | 11% | 8% | 5% | 94th | Urban Institute (2024) |
| Credit card delinquency Share of credit card accounts 60+ days past due | 7% | 7% | 5% | 77th | Urban Institute (2024) |
| Subprime credit share Share of residents with a credit score below 660 | 33% | 33% | 23% | 83rd | Urban Institute (2024) |
| Default & Legal — domain score 90 · Rank 140 of 3,144 | |||||
| Debt in collections Share of residents with a credit file who have debt in collections | 33% | 32% | 23% | 82nd | Urban Institute (2024) |
| Bankruptcy filing rate Personal bankruptcy filings per 100,000 residents | 482 | 394 | 126 | 98th | US Courts F-5A (2025) |
| Debt Burden (housing basis) — domain score 81 · Rank 384 of 3,144 | |||||
| Rent-to-income ratio Fair Market Rent (2BR) as share of median household income | 23% | 19% | 21% | 70th | HUD FMR × Census ACS (2024) |
| Severe rent burden (50%+) Share of renter households paying 50%+ of income on rent | 26% | 18% | 18% | 91st | Census ACS 5-yr (2023) |
| Labor — domain score 18 · Rank 2,544 of 3,144 | |||||
| Unemployment Share of labor force unemployed | 3% | 3% | 4% | 18th | BLS LAUS (Dec 2025) |
| Safety Net & Buffer — domain score 55 · Rank 1,389 of 3,144 | |||||
| Child poverty rate Share of children under 18 below the federal poverty line | 22% | 25% | 18% | 67th | Census SAIPE (2023) |
| Disability rate Share of residents reporting a disability | 15% | 20% | 16% | 45th | Census ACS 5-yr (2023) |
| Poverty rate Share of population below the federal poverty line | 16% | 18% | 14% | 68th | Census SAIPE (2023) |
| Transfer-income dependency Share of personal income from government transfers | 18% | 32% | 27% | 14th | BEA Regional Personal Income (2023) |
| Uninsured rate Share of residents without health insurance coverage | 9% | 9% | 8% | 60th | Census ACS 5-yr (2023) |
Five-Domain Breakdown
The CDI is an equal-weight composite of five family-v1 distress domains. Each domain contributes 20% of the county score.
Methodology
The County Distress Index is a 0–100 composite score of household financial distress, computed for all 3,144 U.S. counties. Higher scores indicate greater distress. The index is built from five equal-weighted domains: Delinquency, Default & Legal, Debt Burden, Labor, and Safety Net & Buffer. Each domain is the mean of distress-oriented indicator percentiles; the CDI score is the equal-weight mean of those domain scores.
Data sources include the Urban Institute Debt in America (Equifax consumer credit panel), U.S. Census Bureau (American Community Survey 5-year, Small Area Income and Poverty Estimates, Business Formation Statistics), Bureau of Labor Statistics (Local Area Unemployment Statistics, Quarterly Census of Employment and Wages), U.S. Courts Administrative Office (F-5A bankruptcy filings), and HUD Fair Market Rents. Data vintages range from 2023 to 2025 depending on source; full indicator-level vintage detail is in the methodology document.
For Press & Research
Everything you need to cite Jefferson County data — in under 60 seconds.
Draft wire copy 153-word AP-style article — use freely with attribution
BIRMINGHAM, Ala. — Jefferson County ranks 702nd among the nation's most financially distressed counties, according to the County Distress Index released this month by American Default Research.
The composite score of 66 out of 100 places Jefferson in the second-most distressed fifth. Among 3,144 U.S. counties scored, 701 counties rank more distressed. Within Alabama, Jefferson ranks 25th of 67 counties.
The index, which draws on 16 source indicators from the U.S. Census Bureau, Bureau of Labor Statistics, Urban Institute and federal court filings, identifies default & legal as the primary driver in Jefferson. A bankruptcy filing rate of 482 — more than double the national median of 126.
"Jefferson County ranks in the second-most distressed fifth of U.S. counties. The score is above the national county midpoint, with the domain table showing the local pressure mix," said Ross Kilburn, founder of American Default Research.
Full methodology and county-by-county data are available at americandefault.org/methodology/cdi.
Frequently Asked Questions
What is Jefferson County's CDI score, and what does it mean?
What drives Jefferson County's distress score?
How does Jefferson County compare to its neighbors?
How is the County Distress Index calculated?
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