Rental Property Investing in Birmingham, AL

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The numbers

Median sale price

$92,900

Median monthly rent

$1,075

Rent / price

1.16%

Estimated cap rate

9.9%

Estimated monthly cash flow

$275

Estimated cash-on-cash

15.4%

Sale prices

falling

Rents

falling

County population change (5 yrs)

1.2%

County unemployment

2.9%

Measured in ZIP 35208 on 2026-10-19. That’s one established investor neighborhood, not the whole city. The cash flow and cash-on-cash figures run the median price and rent through the calculator’s defaults (20% down, 7% interest, 30-year loan, a flat 1.1% property tax rate, standard vacancy, repairs and management), so they describe a typical house in that zip.

What to know about Birmingham

Birmingham's biggest employer is the University of Alabama at Birmingham and its hospital system, with banking, engineering and steel-related industry behind it. Prices are low and Alabama has some of the lowest effective property tax rates in the country.

The trade-off is a smaller, slower market. Fewer investors compete for each deal, but selling can also take longer than in a bigger metro.

Landlord and tenant rules in Alabama

• Overall: balanced
• Security deposit limit: 1 month's rent
• Rent control: no statewide rent control
• Notice for unpaid rent: 7 days

General information only, not legal advice. Landlord-tenant law changes and varies by city/county within a state. Verify current rules with a local attorney or your state's housing authority before relying on this. More on this in tenant-friendly vs landlord-friendly states.

Check a real deal in Birmingham

Market medians point you at a city. Whether one house works depends on its own price, rent and repair needs, so paste them into the calculator, or read how cash-on-cash return and a good cap rate are worked out. If you’re buying from far away, the out-of-state guide covers property managers and remote closings.

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