Alabama Hill is a primarily residential neighborhood characterized by single-family homes built in the 1960s and 1970s. As of the 2000 census, it is home to around 3,000 residents. The neighborhood includes approximately 1,200 housing units, featuring contemporary designs that often showcase views of the bay and city. The area is defined by broad, curved streets, cul-de-sacs, limited connections to arterial roads, and lots averaging 7,200 square feet with a two-to-one depth-to-width ratio.

Recreational opportunities abound in Alabama Hill. At its southern edge, Whatcom Falls Park offers a variety of active recreation options for residents. St. Clair Park and Highland Heights Park serve the community with facilities designed primarily for grade school children. Additionally, the Railroad Trail provides a multi-use pathway and greenway, complete with a safe overpass at Alabama Street and a connection to the Whatcom Creek Trail.