Market Analysis
Birmingham Rental Market
Rental investment market data and analysis · Updated October 2026
Median Home Price
$160,200
Average Monthly Rent
$1,394
Estimated Cap Rate
10.4%
Rent-to-Price Ratio
0.9%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · October 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 35206 | $107,000 | $1,050 | 0.98% |
| 35215 | $135,500 | $1,210 | 0.89% |
| 35235 | $184,900 | $1,520 | 0.82% |
| 35203 | $325,000 | $1,795 | 0.55% |
Rent ÷ price over time
PacRent rent-to-price index · Birmingham
Context · FRED home price index
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 | $882/mo |
| Townhouse | $1,047/mo |
| Condo | $1,068/mo |
| Apartment | $1,075/mo |
| Single Family | $1,428/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$160,200
Down Payment (20%)$32,040
Monthly P&I$836
Monthly Rent$1,394
Est. NOI$10,037/yr
Est. Cash Flow$1/mo
Cash on Cash0.0%
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 $1,602/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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