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MarketsMarket MapBirmingham, AL
Metropolitan Area

Birmingham, AL

Alabama0
65
/100
Buy
#358 of 894 metros
Top 40% nationally for investing

Market Snapshot

$262,556
Median Home Price
3% above national median
$1,448/mo
Median Rent
5% above national median
6.62%
Rent-to-Price Ratio
Top 33% nationally
-$435
Est. Monthly Cash Flow
With 20% down at 6.9% rate

Price History

Median Home Price

Median Rent

Trend based on YoY growth rate. Source: Zillow ZHVI/ZORI

Quick Investment Calculator

20%
5%50%100%

Purchase

Purchase Price$262,556
Down Payment (20%)$52,511
Loan Amount$210,045
Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,448
Monthly P&I-$1,376
Est. Expenses (35%)-$507
Net Cash Flow-$436/mo
4.3%
Cap Rate (all cash)
-8.7%
Cash-on-Cash Return
6.62%
Rent-to-Price Ratio
Negative leverage: At 6.85% rates, borrowing costs exceed the 4.3% cap rate. All-cash buyers may see better returns.

* Based on metro-wide median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Individual counties and properties vary significantly.

Run Full AnalysisTry House Hack Strategy

Score Breakdown

Overall Investment Score
65/100
65
Cash Flow(30%)
66/100

Based on 6.62% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)
70/100

Based on 2.0% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)
50/100

Based on 0.0% population growth. Growing areas indicate economic stability.

Affordability(20%)
74/100

Based on price relative to estimated local incomes.

Scores are calculated using real Zillow metro-level home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. This metro score represents area-wide averages; individual counties may vary significantly.

Investment Outlook

Strengths

  • +Above-average rent-to-price ratio (6.62%)
  • +Affordable relative to local incomes
  • +Low unemployment (0.0%)

Challenges

  • -Negative cash flow at typical financing (-$435/mo)
  • -Negative leverage (cap rate 4.3% < mortgage rate 6.9%)

Counties in Birmingham, AL

County data is being compiled for this metro area.

Compare to Similar Metros

Metro AreaVerdict
Coffeyville, KS
Coffeyville, KS
85$101,366$86210.20%Strong BuyView
Blytheville, AR
Blytheville, AR
84$115,156$1,06411.08%Strong BuyView
Roanoke Rapids, NC
Roanoke Rapids, NC
84$107,523$1,07712.02%Strong BuyView
Enid, OK
Enid, OK
83$144,157$1,25010.40%Strong BuyView
Houghton, MI
Houghton, MI
83$194,696$1,73310.68%Strong BuyView
Current
Birmingham, AL
65$262,556$1,4486.62%Buy

Rent vs buy in this metro

Rent vs buy in Birmingham, ALMedian $208,520 · rent $1,292/mo

The Bottom Line

BuyBirmingham, AL offers solid investment potential with good cash flow or appreciation prospects.

The Birmingham, AL metro area scores 65/100, ranking #358 of 894 US metros (top 40%). The 6.62% rent-to-price ratio indicates moderate cash flow potential. Current metro-wide averages make traditional buy-and-hold investing challenging. Consider house hacking, value-add strategies, or drilling down to specific counties.

Monthly Cash Flow
$-435/mo
Cap Rate
4.3%
Cash-on-Cash
-9.9%

Ready to Invest in Birmingham, AL?

Use our investment calculators to run detailed numbers on specific properties, or explore individual counties for more targeted opportunities.

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