Real Estate Investing in Alabama

124 counties • 535 cities • Landlord Friendliness: 5/5

3.0/ 5

Investability

Top ZIPs average

3.0/ 5

Appreciation

5.6% 5yr CAGR

5.0/ 5

Landlord Climate

Regulatory friendliness

Landlord Friendliness: Alabama

★ ★ ★ ★ ★ 5/5
Eviction Speed Fast 7-21 days
Rent Control No rent control (prohibited)
Security Deposit No limit

📊 Alabama Market Overview

Median Home Value $231,003
1-Year CAGR +0.3%
5-Year CAGR +5.6%
10-Year CAGR +5.4%

Investing in Alabama Real Estate

Alabama is one of the states where screen data understates the risk. A aggregate and a 0.0% 5-year CAGR warn what the glossy brochures don't.

Rent trends across Alabama have been soft, and price trends have been mixed — a combination that compresses realized returns well below headline cap rates.

For investors in Alabama's weaker markets, the landlord environment is one more variable to underwrite carefully. a harder case for courts can be slow, and enforcement costs real money.

A great house in the wrong ZIP is still a bad deal — screen every market by cash flow & cap rate.
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Free to search · investor plans from $19/mo
Avg Home Value $231,003
Cities Tracked 535
ZIP Codes 729

Market Trends — Alabama

Statewide Home Value History

$241K$215K$189K$162K$136K$109KNov 2005Nov 2015Oct 2025

Statewide Rent History

$1,530$1,374$1,218$1,062$906$751May 2016May 2021May 2026

Top ZIP Codes in Alabama

35242 Birmingham $568,729 ★ ★ ★ ★ ★ 36695 Mobile $281,386 ★ ★ ★ ★ ★ 36117 Montgomery $258,843 ★ ★ ★ ★ ★ 35758 Madison $379,445 ★ ★ ★ ★ ★ 35405 Tuscaloosa $246,629 ★ ★ ★ ★ ★ 36830 Auburn $430,793 ★ ★ ★ ★ ★ 35215 Center Point $153,689 ★ ★ ★ ★ ★ 36116 Montgomery $150,132 ★ ★ ★ ★ ★ 35401 Tuscaloosa $178,397 ★ ★ ★ ★ ★ 36330 Enterprise $213,318 ★ ★ ★ ★ ★ 36301 Dothan $186,334 ★ ★ ★ ★ ★ 36535 Foley $304,048 ★ ★ ★ ★ ★

🎓 Education in Alabama

🏫 Top K-12 Schools

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🎓 Top Colleges & Universities

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📊 Explore More for Alabama

🏠 Landlord-Friendly States 💰 Lowest Property Tax States 📈 Best States for Investing 💼 Career Paths & Salaries 📚 Degree Programs 🎓 Alabama Colleges

Counties in Alabama

Jefferson County (43 ZIPs) Mobile County (31 ZIPs) Madison County (20 ZIPs) Shelby County (15 ZIPs) Baldwin County (19 ZIPs) Tuscaloosa County (16 ZIPs) Montgomery County (16 ZIPs) Lee County (8 ZIPs) Calhoun County (11 ZIPs) Morgan County (6 ZIPs) Houston County (10 ZIPs) Etowah County (10 ZIPs) Marshall County (9 ZIPs) Limestone County (7 ZIPs) Lauderdale County (8 ZIPs) Elmore County (9 ZIPs) Cullman County (11 ZIPs) Saint Clair County (10 ZIPs) Talladega County (5 ZIPs) De Kalb County (13 ZIPs) Russell County (7 ZIPs) Autauga County (6 ZIPs) Colbert County (5 ZIPs) Walker County (9 ZIPs) Coffee County (5 ZIPs) Jackson County (11 ZIPs) Jefferson (10 ZIPs) Chilton County (6 ZIPs) Chambers County (5 ZIPs) Tallapoosa County (5 ZIPs)

94 more counties available

Major Cities in Alabama

Mobile (28 ZIPs) Birmingham (20 ZIPs) Huntsville (22 ZIPs) Montgomery (26 ZIPs) Tuscaloosa (10 ZIPs) Madison (3 ZIPs) Dothan (5 ZIPs) Auburn (2 ZIPs) Bessemer (3 ZIPs) Hoover (2 ZIPs) Decatur (3 ZIPs) Phenix City (3 ZIPs) Athens (3 ZIPs) Florence (3 ZIPs) Cullman (3 ZIPs) Prattville (2 ZIPs) Northport (3 ZIPs) Center Point (1 ZIPs) Opelika (2 ZIPs) Enterprise (1 ZIPs) Foley (1 ZIPs) Fairhope (1 ZIPs) Vestavia Hills (1 ZIPs) Alabaster (2 ZIPs) Albertville (2 ZIPs) Daphne (1 ZIPs) Homewood (1 ZIPs) Jasper (3 ZIPs) Wetumpka (2 ZIPs) Gadsden (3 ZIPs) Trussville (1 ZIPs) Selma (2 ZIPs) Harvest (1 ZIPs) Hartselle (1 ZIPs) Mountain Brook (2 ZIPs) Talladega (1 ZIPs) Pell City (3 ZIPs) Troy (3 ZIPs) Prichard (3 ZIPs) Boaz (2 ZIPs)

495 more cities available

Don’t scroll every ZIP in this state by hand — filter the whole state by cap rate, vacancy and appreciation with Pro Search ($19/mo), and get a weekly alert when your shortlist moves (Investor Pro+). See plans →

Popular Neighborhoods in Alabama

Acipco-Finley Birmingham (20 ZIPs) Arlington-West End Birmingham (20 ZIPs) Belview Heights Birmingham (20 ZIPs) Bridlewood Birmingham (20 ZIPs) Brownsville Heights Birmingham (20 ZIPs) Bush Hills Birmingham (20 ZIPs) Central City Birmingham (20 ZIPs) Central Park Birmingham (20 ZIPs) Central Pratt Birmingham (20 ZIPs) College Hills Birmingham (20 ZIPs) Collegeville Birmingham (20 ZIPs) Crestline Birmingham (20 ZIPs) Crestwood North Birmingham (20 ZIPs) Crestwood South Birmingham (20 ZIPs) Druid Hills Birmingham (20 ZIPs) East Avondale Birmingham (20 ZIPs) East Brownville Birmingham (20 ZIPs) East Lake Birmingham (20 ZIPs) East Thomas Birmingham (20 ZIPs) Eastwood Birmingham (20 ZIPs) Echo Highlands Birmingham (20 ZIPs) Enon Ridge Birmingham (20 ZIPs) Ensley Birmingham (20 ZIPs) Ensley Highlands Birmingham (20 ZIPs) Evergreen Birmingham (20 ZIPs)

Frequently Asked Questions About Alabama Real Estate

Do rentals sit vacant long in, AL?

Rental vacancy in, AL is elevated. Investors should budget normal turnover but not chronic empty units.

How strong is the working-renter base in, AL?

The renter base in, AL is reasonable for the price point. Screening well and pricing to market typically yields consistent tenants.

Does, AL favor landlords or tenants?

, AL operates under AL law, which is landlord-friendly overall for landlords. Expect predictable treatment in typical lease and eviction cases.

Are home values higher in, AL than the rest of AL?

within AL reads broadly in line with the state benchmark. Investors comparing markets should weight local data above the statewide aggregate.

Find Your Next Investment in Alabama

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