Market Analysis
Birmingham Rental Market
Rental investment market data and analysis · Updated September 2026
Median Home Price
$159,900
Average Monthly Rent
$1,429
Estimated Cap Rate
10.7%
Rent-to-Price Ratio
0.9%
Below 1% Rule
Market Trends
Birmingham metro area — % change since 2018
Home Prices
+72.8%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Multi-Family | $925/mo |
| Apartment | $1,102/mo |
| Townhouse | $1,110/mo |
| Condo | $1,150/mo |
| Single Family | $1,419/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$159,900
Down Payment (20%)$31,980
Monthly P&I$834
Monthly Rent$1,429
Est. NOI$10,289/yr
Est. Cash Flow$23/mo
Cash on Cash0.8%
Positive cash flow at median prices — Birmingham offers strong fundamentals for buy-and-hold investors.
What Investors Should Know About Birmingham
- 1Strong cap rates above 7% — excellent cash flow potential
- 21% Rule fails at median prices — need rent of $1,599/mo to pass
- 3Below-average rents keep entry costs low for new investors
- 4Affordable market — lower barrier to entry for first-time investors
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