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Cap Rate Analysis: Huntsville, AL

Investment metrics, interactive calculators, and data-driven analysis for Huntsville rental properties.

Moderate — source deals carefully
Based on $285,000 median price and $1,380/mo median rent
Est. Cap Rate
4.29%
1% Rule
0.48%
Fails
GRM
17.2x
Price / Income
4.6x

Market Data

Median Home Price$285,000
Median Monthly Rent$1,380
Property Tax Rate0.43%
Population225,054
Population Growth2.4% / yr
Median Household Income$62,400
Vacancy Rate5%
Annual Appreciation3.4%

Cap Rate Calculator — Huntsville

Pre-filled with Huntsville medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.43% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.65%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,392
net operating income
Gross Rent Multiplier
17.2x
High (>15)
1% Rule
0.48%
✗ Fails
Monthly Cash Flow
$866
before debt service
Annual Breakdown
Gross Rental Income$16,560
Less Vacancy−$828
Effective Income$15,732
Less Operating Expenses−$5,340
Net Operating Income$10,392

Cash-on-Cash Return — Huntsville

Factor in financing to see your actual return on invested capital in Huntsville.

$
$71,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.92%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$79,800
$71,250 down + $8,550 closing
Monthly Mortgage
$1,393
on $214K loan
Monthly Cash Flow
$-593
after all expenses
Annual Cash Flow
$-7,122
before taxes
Cash Flow Breakdown
Monthly Rent$1,380
Less Expenses−$580
Less Mortgage−$1,393
Monthly Cash Flow$-593

Is Huntsville a Good Place to Invest in Rental Property?

Huntsville, AL has a population of 225,054 and has been growing at 2.4% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $285,000 paired with median rents of $1,380/mo produces an estimated cap rate of 4.29%.

Property taxes at 0.43% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.6x, homes cost about 4.6 times the local median income of $62,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Huntsville presents moderate opportunities. Cap rates near 4.29% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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