Real Estate Investing in Dothan, Alabama (36301)
Should you buy in 36301 (Dothan, AL)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 14.2% of homes vacant — above national norms.
What’s happening in Dothan, AL (36301)?
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Market Analysis: 36301 Dothan
This part of Houston County is not an easy win. The 36301 ZIP sits at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $186K asset, 36301 is the wrong submarket. If the plan prices in friction, the yield can still work.
ZIP 36301's metrics run below Houston County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Employment concentration in 36301 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Strategy in 36301 is an operator game, not a passive one. Turning to rents, entry prices of $186K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Dothan:
Property Strategy for 36301
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $103,778 | $910 | 6.3% | +7.1% | $51,889 |
| 3BR | $183,868 | $1,230 | 4.8% | +7.8% | $61,289 |
| 4BR | $309,409 | $1,370 | 3.2% | +7.7% | $77,352 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 36301 Compare?
| Metric | 36301 | Dothan | Dothan, AL | Alabama |
|---|---|---|---|---|
| Home Value | $186,334 | $129,360 | N/A | $231,003 |
| 5-Year CAGR | 6.8% | 6.5% | N/A | 5.6% |
| Avg Rent | $1,172 | $1,229 | N/A | - |
| Cap Rate | 4.9% | 4.5% | - | - |
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 36301 (Dothan, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $186,334 |
| Monthly Rent | $1,172 |
| Price-to-Rent | 13.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.6% |
| Cap Rate | 4.9% |
| 5-Year IRR | 11.7% |
📈 Home Appreciation
| 1-Year | +4.5% ▲ |
| 3-Year CAGR | +4.6% ▲ |
| 5-Year CAGR | +6.8% ▲ |
| 10-Year CAGR | +5.1% ▲ |
🏠 Rent Trends
| 1-Year | +3.6% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.5%) exceeds the estimated cap rate (4.9%). 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 36301
Population: 38,627
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 36301
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 1,026 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What type of investing works in Dothan, AL?
Investors usually favor careful cash-flow rentals with hands-on management in Dothan, AL. With home values at $186K and rents near $1,172/mo, other strategies can work but produce reliable rather than outsized returns.
What does house hacking look like in Dothan, AL?
The a challenging house-hack environment in Dothan, AL reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
Does Dothan, AL make sense for an investment property?
The 3.0/5 investability rating in Dothan, AL reflects its $186K prices and $1,172/mo rents. Investors generally consider it a solid option within AL.
What price range are homes in Dothan, AL?
Median home price in Dothan, AL is near $186K, with a 5-year CAGR of 0.0%. Prices have been stable and supportive of buy-and-hold strategies.
What is the typical rental rate in Dothan, AL?
Investors in Dothan, AL typically see rents near $1,172/mo per month against $186K home values - a solid setup for rental cash flow.
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