Alabama Hill is a predominantly residential neighborhood with single-family houses built during the 1960s and 1970s. According to the 2000 census, the neighborhood is home to about 3,000 people. There are approximately 1,200 housing units in the neighborhood most of which are of mid-century or contemporary design. The neighborhood is oriented toward views of the bay and city, with broad, curved streets, cul-de-sacs, limited access to arterial streets, and 7,200 square foot lots.

Near the south end of Alabama Hill, Whatcom Falls Park provides a wide range of active recreation opportunities. Nearby St. Clair Park and Highland Heights Park are smalls parks that feature recreation facilities primarily for grade school children. The Railroad Trail provides a multi-use path and greenway corridor with a safe overpass of Alabama Street and connection to Whatcom Creek Trail.