Birmingham, AL — Rental Investment Analysis

🟢GOODsolid returns

Cap Rate

7.8%

Above average

Monthly Cash Flow

+$340

After all expenses

Price-to-Rent

8.7

Investor-friendly

DSCR

1.38

Passes lender test

📊 Key Metrics

Median Home Price
$125,000
Average Rent (3BR)
$1,200/mo
Price-to-Rent Ratio
8.7(good)
1% Rule
0.96%(fails — need 1%+)
Cash-on-Cash Return
9.8%
Vacancy Rate
9.5%

📈 Market Strength

Job Growth
+1% YoY
Population Growth
+0.1% YoY
Home Price Appreciation (5yr)
+25%

Assumptions Used

20% down, 7.000000000000001% rate, 30yr, 8% vacancy, 10% maintenance

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🏘️ Best Zip Codes in Birmingham for Investors

35207
Cap Rate: 9.5%Cash Flow: +$480/mo$90,000
35204
Cap Rate: 8.8%Cash Flow: +$410/mo$105,000
35206
Cap Rate: 7.9%Cash Flow: +$350/mo$130,000