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Tuscaloosa vs Dothan for Rental Property Investing

Side-by-side comparison of Tuscaloosa, AL and Dothan, AL — cap rates, rent, prices, and investment metrics.

Dothan wins 4–3 across key metrics
Dothan leads on cash flow (5.71% vs 5.23% cap rate) · Tuscaloosa leads on population growth
Metric
Tuscaloosa, AL
Dothan, AL
Est. Cap Rate
5.23%
5.71%
Median Home Price
$195,000
$165,000
Median Monthly Rent
$1,120
$1,020
1% Rule
0.57%
0.62%
GRM
14.5x
13.5x
Price / Income
4.6x
3.7x
Property Tax Rate
0.43%
0.4%
Vacancy Rate
6.2%
6.8%
Population Growth
0.8% / yr
0.3% / yr
Annual Appreciation
2.4%
2%
Population
110,000
72,500
Median Income
$42,800
$44,200

Tuscaloosa vs Dothan: Which Is Better for Investors?

Cash flow: Dothan has the edge with an estimated cap rate of 5.71% compared to Tuscaloosa's 5.23%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $195,000 in Tuscaloosa vs $165,000 in Dothan, while rents come in at $1,120/mo and $1,020/mo respectively.

Growth & appreciation: Tuscaloosa is growing faster at 0.8% annually vs Dothan's 0.3%. Tuscaloosa leads on home value appreciation at 2.4% per year.

Costs & risk: Property taxes are 0.43% in Tuscaloosa vs 0.4% in Dothan. Vacancy rates of 6.2% and 6.8% are mixed — Tuscaloosa has the tighter rental market.

Bottom line: Dothan edges out Tuscaloosa on most key metrics. With a 5.71% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Tuscaloosa or Dothan.

Tuscaloosa, AL
5.23% cap rate · $195,000 median · $1,120/mo
Full analysis →
Dothan, AL
5.71% cap rate · $165,000 median · $1,020/mo
Full analysis →
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