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

ZipMedian priceMedian rentRent ÷ price
35810$219,900$1,3950.63%
35816$149,500$8990.60%
35805$214,900$8500.40%
35801$475,000$1,3500.28%

Context · FRED home price index

Market Trends

Huntsville metro area — % change since 2018

Home Prices

+92.3%

Rent Index

+36.2%

-2%17%37%56%75%94%20182020202220242026

Average Rent by Bedroom

BedroomsAvg 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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