Salem, AL — Rental Investment Analysis

🔴WEAKappreciation play only

Cap Rate

3.6%

Below average

Monthly Cash Flow

-$764

After all expenses

Price-to-Rent

15.4

Overpriced for rent

DSCR

0.56

Fails

📊 Key Metrics

Median Home Price
$329,997
Average Rent (3BR)
$1,780/mo
Price-to-Rent Ratio
15.4(high)
1% Rule
0.54%(fails — need 1%+)
Cash-on-Cash Return
-12.1%
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

Assumptions Used

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

Customize these numbers →

Property Tax Rate

0.39%

of assessed value (AL avg)

Median Income

$56,956

household (AL avg)

Rent-to-Income

37.5%

Stretched

Section 8 Max Rent

$1,780/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)

🏘️ Best Zip Codes in Salem for Investors

36874
Cap Rate: 3.6%Cash Flow: -$764/mo$329,997
36874
Cap Rate: 3.6%Cash Flow: -$764/mo$329,997

All Zip Codes in Salem

ZipCap RateCash FlowHome PriceRent (3BR)DSCR
368743.6%-$764$329,997$1,780/mo0.56
368743.6%-$764$329,997$1,780/mo0.56