Bessemer, AL — Rental Investment Analysis
🟢STRONG— excellent cash flow marketData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Bessemer, AL has a median cap rate of 10.5%, making it one of the top cash-flowing rental markets in the United States.
Bessemer is one of the strongest cash flow markets in the data. At $173,245 median home price, Bessemer is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,365/month, the 10.5% cap rate tells the story. At current prices and rates, expect to lose about $48/month — negative cash flow unless you put more down or find below-market deals.
The market passes the 1% rule (1.24%), which is increasingly rare and signals strong rent-to-price fundamentals. DSCR of 1.64 means the property's income comfortably covers debt service — DSCR loans should be easy to qualify for here.
Bottom line: Buy here if you want reliable monthly income. Bessemer is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
10.5%
Above average
Monthly Cash Flow
-$48
After all expenses
Price-to-Rent
10.2
Investor-friendly
DSCR
1.64
Passes lender test
Key Metrics
- Median Home Price
- $173,245
- Average Rent (3BR)
- $1,365/mo
- Price-to-Rent Ratio
- 10.2(good)
- 1% Rule
- 1.24%(passes)
- Cash-on-Cash Return
- 18.0%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 2.8%(-1.5% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- -0.2% YoY
Property Tax Rate
0.39%
of assessed value (AL avg)
Median Income
$56,956
household (AL avg)
Rent-to-Income
28.8%
Affordable
Section 8 Max Rent
$1,365/mo
3BR voucher payment
AL Investor Climate
Landlord Friendly
8/10
State Income Tax
Has state tax
Property Tax
0.39% effective
Population Trend
-0.2% (3yr)