Most residents in the Alabama neighborhood have views of the Lake Whatcom or the city, depending on which side of the hill they live. On the north side of the neighborhood, sidewalk-lined streets wind around the crest of the hill and the well-kept yards in front of large homes. The south side of the neighborhood has a less-planned feel, with older houses and no sidewalks but similarly spectacular views.

The Alabama neighoborhood shares its borders with the Silver Beach Neighborhood to the east, Mount Baker Neighborhood to the north, Roosevelt Neighborhood to the west, and Whatcom Falls Neighborhood to the south.