That place in east Alabama is heavenly (8)
I believe the answer is:
ethereal
'heavenly' is the definition.
(similar in meaning)
'that place in east alabama' is the wordplay.
'that place' becomes 'there' (as opposed to 'here' meaning this place).
'in' is an insertion indicator.
'east' becomes 'e' (abbreviation).
'alabama' becomes 'al' (abbreviation).
'e'+'al'='eal'
'there' going into 'eal' is 'ETHEREAL'.
'is' acts as a link.
(Other definitions for ethereal that I've seen before include "Like fairies" , "Insubstantial or heavenly" , "Delicate - airy" , "Insubstantial, other-worldly" , "Airy or supernatural" .)