Updated 2026 · Based on median market data for Tuscaloosa, AL
The median monthly rent in Tuscaloosa, AL is $1,120, translating to $13,440 in annual gross rental income per unit. The rent-to-price ratio is 0.57% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Tuscaloosa spend approximately 31% of the local median household income ($42,800) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting rental demand.
The vacancy rate in Tuscaloosa is 6.2%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.8% annually provides stable demand.
Tuscaloosa's GRM (price divided by annual rent) is 14.5x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,120/mo, a single-family rental in Tuscaloosa generates approximately $13,440 in gross annual income. After accounting for 6.2% vacancy ($833 lost), property taxes of $839, insurance (~$780), and maintenance (~$780), the estimated NOI is $10,208 per year, or $851/mo.