Market Analysis
Huntsville Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$217,400
Average Monthly Rent
$1,124
Estimated Cap Rate
6.2%
Rent-to-Price Ratio
0.5%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 35810 | $219,900 | $1,395 | 0.63% |
| 35816 | $149,500 | $899 | 0.60% |
| 35805 | $214,900 | $850 | 0.40% |
| 35801 | $475,000 | $1,350 | 0.28% |
Context · FRED home price index
Market Trends
Huntsville metro area — % change since 2018
Home Prices
+92.3%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $873/mo |
| Condo | $920/mo |
| Multi-Family | $961/mo |
| Single Family | $1,418/mo |
| Townhouse | $1,443/mo |
| Manufactured | $1,750/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$217,400
Down Payment (20%)$43,480
Monthly P&I$1,134
Monthly Rent$1,124
Est. NOI$8,093/yr
Est. Cash Flow-$459/mo
Cash on Cash-11.5%
The Huntsville 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 Huntsville
- 1Moderate cap rates suggest balanced cash flow and appreciation
- 21% Rule fails at median prices — need rent of $2,174/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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