Market Analysis
Birmingham, Alabama
Rental investment market data and analysis · Updated June 2026
Median Home Price
$166,950
Average Monthly Rent
$1,427
Estimated Cap Rate
10.3%
Rent-to-Price Ratio
0.8%
Below 1% Rule
Market Trends
Birmingham metro area — % change since 2018
Home Prices
+69.6%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Multi-Family | $850/mo |
| Apartment | $1,048/mo |
| Townhouse | $1,167/mo |
| Condo | $1,250/mo |
| Single Family | $1,298/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$166,950
Down Payment (20%)$33,390
Monthly P&I$871
Monthly Rent$1,427
Est. NOI$10,274/yr
Est. Cash Flow-$15/mo
Cash on Cash-0.5%
The Birmingham market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Birmingham
- 1Strong cap rates above 7% — excellent cash flow potential
- 21% Rule fails at median prices — need rent of $1,670/mo to pass
- 3Below-average rents keep entry costs low for new investors
- 4Affordable market — lower barrier to entry for first-time investors
Ready to analyze a property in Birmingham?
Get instant cap rate, cash flow, and DSCR analysis on any address. Access data on 140M+ properties.