Investment metrics, interactive calculators, and data-driven analysis for Dothan rental properties.
Pre-filled with Dothan medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Dothan.
Dothan, AL has a population of 72,500 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $165,000 paired with median rents of $1,020/mo produces an estimated cap rate of 5.71%.
Property taxes at 0.4% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.8% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.7x, homes cost about 3.7 times the local median income of $44,200. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Dothan presents moderate opportunities. Cap rates near 5.71% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.