Real Estate Investing in Tuscaloosa, Alabama (35405)
Should you buy in 35405 (Tuscaloosa, AL)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 11.3% vacancy may signal weakening demand.
What’s happening in Tuscaloosa, AL (35405)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 35405 Tuscaloosa
This part of Tuscaloosa County is not an easy win. The 35405 ZIP records softness in key indicators, and the playbook that works in cleaner markets often stalls here.
The 35405 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
In the broader AL picture, 35405 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
The demographic picture in 35405 includes headwinds that any investor should price in. Income distribution skews lower than Tuscaloosa averages, and tenant stability requires active management.
New investors are better served looking at Tuscaloosa's stable or hybrid ZIPs before stepping into 35405. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Tuscaloosa:
Property Strategy for 35405
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $172,873 | $1,300 | 5.4% | +7.8% | $86,436 |
| 3BR | $236,429 | $1,660 | 5.1% | +6.5% | $78,810 |
| 4BR | $315,648 | $1,720 | 3.9% | +5.1% | $78,912 |
| 5BR | $385,414 | — | — | +3.8% | $77,083 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 35405 Compare?
| Metric | 35405 | Tuscaloosa | Tuscaloosa, AL | Alabama |
|---|---|---|---|---|
| Home Value | $246,629 | $104,991 | N/A | $231,003 |
| 5-Year CAGR | 5.3% | 4.3% | N/A | 5.6% |
| Avg Rent | $1,295 | $1,463 | N/A | - |
| Cap Rate | 4.1% | 5.1% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 35405 (Tuscaloosa, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $246,629 |
| Monthly Rent | $1,295 |
| Price-to-Rent | 15.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.3% |
| Cap Rate | 4.1% |
| 5-Year IRR | 9.4% |
📈 Home Appreciation
| 1-Year | +3.7% ▲ |
| 3-Year CAGR | +2.9% ▲ |
| 5-Year CAGR | +5.3% ▲ |
| 10-Year CAGR | +4.7% ▲ |
🏠 Rent Trends
| 1-Year | -9.8% ▼ |
| 3-Year CAGR | -0.1% ▼ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (4.1%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 35405
Population: 48,564
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 35405
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 2,331 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Should investors worry about vacancy in Tuscaloosa, AL?
Vacancy risk in Tuscaloosa, AL is elevated. That supports even-keeled cash flow for typical rental holds.
Are homes affordable in Tuscaloosa, AL?
Typical homes in Tuscaloosa, AL go for around $247K. The 5-year CAGR of 0.0% consistent price movement.
What do rentals go for in Tuscaloosa, AL?
Tuscaloosa, AL rentals go for roughly $1,295/mo a month. That puts gross yield in solid territory relative to $247K acquisition costs.
Is Tuscaloosa, AL better for rentals, flips, or BRRRR?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Tuscaloosa, AL. The numbers - $247K homes against $1,295/mo rents - support that play.
What kind of market is Tuscaloosa, AL for investors?
Tuscaloosa, AL scores 3.0/5 for investability. Home values sit at $247K and rents near $1,295/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
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