Best places to buy rental properties in Alabama

January 3, 2022
● Written by
Teddy

Alabama

Investing in Alabama

If you're looking to invest in rental properties, consider Alabama. In addition to being one of the most affordable rental property markets in the US, Alabama is also expected to bring in military, aerospace, and defense organizations. This means more jobs and talent which is good for the local economy. It's not all work though! Alabama regularly hosts events such as the World Food Championship and the Annual National Shrimp Festival.

The Nophin team crunched the numbers and found the five best places to invest in Alabama rental properties.

Statewide vacancy rates

AL Rental Vacancy Rate via Federal Reserve Bank of St. Louis

Birmingham, AL

Birmingham is the largest city in Alabama. The “Magic City” is known for world class healthcare and its history in the steel industry.

  • Population: 200,733
  • Median household income: $38,832
  • Median 1-bedroom monthly rent: $1,102
  • Median listing home price: $179,900

Montgomery, AL

Montgomery is the state capital of Alabama and is known for its beautiful riverfront.

  • Population: 228,954
  • Median household income: $51,963
  • Median 1-bedroom monthly rent: $700
  • Median listing home price: $165,000

Huntsville, AL

Huntsville is known for its aerospace industry and where Saturn V rocket was designed and tested.

  • Population: 215,006
  • Median household income: $56,758
  • Median 1-bedroom monthly rent: $898
  • Median listing home price: $329,000

Mobile, AL

Mobile is home to one of the largest wetlands ecosystems in the world.

  • Population: 187,041
  • Median household income: $43,456
  • Median 1-bedroom monthly rent: $878
  • Median listing home price: $215,000

Tuscaloosa, AL

Tuscaloosa is a college town home to the University of Alabama.

  • Population: 227,036
  • Median household income: $54,283
  • Median 1-bedroom monthly rent: $650
  • Median listing home price: $260,000

Nophin is landlord banking and software for rental properties

With FDIC-insured bank accounts and cards that seamlessly integrate with easy-to-use software, Nophin helps landlords increase returns and automate rental property finances. Check out what we offer on the Nophin homepage!

Methodology:

To help us determine the five best cities in all states, the Nophin team used data from several sources including the 2020 United States Census, the Department of Housing & Urban Development, Federal Reserve Economic Data (FRED), the National Association of REALTORS®, Zumper, internal data, and other reputable sources.

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Please note: Nothing above should be construed as legal, investment, tax, nor financial advice. This content is for informational purposes only. Consult a lawyer and/or an accountant if the above is right for your personal situation.

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