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Market MapBirmingham, AL
Metropolitan Area

Birmingham, AL

Alabama0
61
/100
Buy
#481 of 894 metros
Top 54% nationally for investing

Market Snapshot

$252,254
Median Home Price
3% above national median
$1,365/mo
Median Rent
1% below national median
6.49%
Rent-to-Price Ratio
Top 40% nationally
-$435
Est. Monthly Cash Flow
With 20% down at 6.9% rate

Price History

Trend based on YoY growth rate. Source: Zillow ZHVI/ZORI

Quick Investment Calculator

20%
5%50%100%

Purchase

Purchase Price$252,254
Down Payment (20%)$50,451
Loan Amount$201,803
Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,365
Monthly P&I-$1,322
Est. Expenses (35%)-$478
Net Cash Flow-$435/mo
4.2%
Cap Rate (all cash)
-9.0%
Cash-on-Cash Return
6.49%
Rent-to-Price Ratio
Negative leverage: At 6.85% rates, borrowing costs exceed the 4.2% 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.

Run Full AnalysisTry House Hack Strategy

Score Breakdown

Overall Investment Score
61/100
61
Cash Flow(30%)
65/100

Based on 6.49% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)
55/100

Based on 0.0% 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%)
76/100

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

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

Challenges

  • -Negative cash flow at typical financing (-$435/mo)
  • -Negative leverage (cap rate 4.2% < mortgage rate 6.9%)

Counties in Birmingham, AL

County data is being compiled for this metro area.

Compare to Similar Metros

Metro AreaVerdict
Grenada, MS
Grenada, MS
81$126,460Est.Strong BuyView
Enid, OK
Enid, OK
81$137,435$1,0769.39%Strong BuyView
Danville, IL
Danville, IL
81$93,319$81510.48%Strong BuyView
Mayfield, KY
Mayfield, KY
81$161,362Est.Strong BuyView
Portsmouth, OH
Portsmouth, OH
80$135,768Est.Strong BuyView
Current
Birmingham, AL
61$252,254$1,3656.49%Buy

The Bottom Line

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

The Birmingham, AL metro area scores 61/100, ranking #481 of 894 US metros (top 54%). The 6.49% rent-to-price ratio indicates moderate cash flow potential. Current metro-wide averages make traditional buy-and-hold investing challenging. Consider house hacking, value-add strategies, or drilling down to specific counties.

Monthly Cash Flow
$-435/mo
Cap Rate
4.2%
Cash-on-Cash
-10.3%

Ready to Invest in Birmingham, AL?

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

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