Metropolitan Area

Dothan, AL

Alabama0
72
/100
Buy
#164 of 894 metros
Top 18% nationally for investing

Market Snapshot

$196,979
Median Home Price
23% below national median
$1,241/mo
Median Rent
10% below national median
7.56%
Rent-to-Price Ratio
Top 16% nationally
-$226
Est. Monthly Cash Flow
With 20% down at 6.9% rate

Home values and rents: available snapshot

Only one observation is stored for Dothan, AL. A historical trend cannot be calculated from this snapshot.

Typical home value (ZHVI)
$196,979
Source period: 2026-05-31
Monthly rent index (ZORI)
$1,241
Source period: 2026-05-31

Stored snapshot: 2026-06-29. Source dates describe the underlying observations, not today’s market.

Quick Investment Calculator

20%
5%50%100%

Purchase

Purchase Price$196,979
Down Payment (20%)$39,396
Loan Amount$157,583
Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,241
Monthly P&I-$1,033
Est. Expenses (35%)-$434
Net Cash Flow-$226/mo
4.9%
Cap Rate (all cash)
-6.0%
Cash-on-Cash Return
7.56%
Rent-to-Price Ratio
Negative leverage: At 6.85% rates, borrowing costs exceed the 4.9% 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.

Score Breakdown

Overall Investment Score
72/100
72
Cash Flow(30%)
76/100

Based on 7.56% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)
77/100

Based on 3.0% 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%)
88/100

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 (7.56%)
  • +Affordable relative to local incomes
  • +Low unemployment (0.0%)

Challenges

  • -Negative cash flow at typical financing (-$226/mo)
  • -Negative leverage (cap rate 4.9% < mortgage rate 6.9%)

Counties in Dothan, AL

County data is being compiled for this metro area.

Section 8 in Dothan, AL: payment standards by ZIP, PHA waitlist status, and voucher counts are on VoucherMatch, the same HUD dataset with the tenant demand side attached.

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
Dothan, AL
72$196,979$1,2417.56%Buy

The Bottom Line

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

The Dothan, AL metro area scores 72/100, ranking #164 of 894 US metros (top 18%). The 7.56% rent-to-price ratio falls below the 1% monthly rent rule (12% annually). Check operating costs and financing before making an offer.

Monthly Cash Flow
$-226/mo
Cap Rate
4.9%
Cash-on-Cash
-6.9%

Ready to Invest in Dothan, AL?

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