State rental market reference · Data updated October 18, 2026
Alabama rental market for DSCR investors: rent, taxes and insurance by county
What a rental in Alabama rents for, what it costs to carry, and whether it stays rented, from official data for all 67 counties. Read it before you price a deal here.
Alabama at a glance
What does a rental rent for?
$1,150 a month
HUD's FY2027 2-bedroom Fair Market Rent where most of Alabama's renters live, from $921 (Dale County) to $1,434 (Baldwin County). It is the government figure for a modest 2-bedroom unit, utilities included, not the rent for a house.
What will property taxes cost?
0.38% of value a year
Homeowners in Alabama pay a median $788 a year on a median home value of $209,900 (Census ACS 2020–2024). A rental can be taxed at a different rate than an owner's home; the local tax bill is the real number.
What will insurance cost?
$1,430 a year
The median that homeowners with a mortgage in Alabama report paying for homeowners insurance (Census ACS 2020–2024). It is not a landlord quote: a rental policy usually costs more, and flood cover is extra.
Will it stay rented?
7.2% rental vacancy
Share of Alabama's rental homes vacant and for rent (Census ACS 2020–2024), across 595,092 renter households. Lower means rentals fill faster.
Are jobs growing?
Employment down 1.5% in a year
Employed residents in August 2026 against a year earlier; unemployment 3.6% (BLS, not seasonally adjusted, so compare the same month a year apart).
Is new supply coming?
19,061 homes permitted in 2025
About 9.5 new homes per 1,000 households; 81% single-family (Census Building Permits Survey). More new homes means more competition for tenants and buyers.
How often does it flood?
16,228 flood claims since 2005
National Flood Insurance Program claims on properties in Alabama since 2005, $586.3 million paid (FEMA). Claims show where water has reached insured buildings; they are not a flood map, so check the FEMA flood zone for the address.
What it means for a DSCR rental in Alabama
A lender's DSCR is the monthly rent divided by the full monthly payment: principal, interest, property taxes, insurance and any HOA dues. Many lenders accept 1.00x; 1.20x leaves a cushion.
Take a home at Alabama's median value of $209,900, bought with 25% down on a 7.5% 30-year loan, with the state's typical tax rate and insurance:
- Principal and interest ($157,425 loan)
- $1,101
- Property taxes
- $66
- Insurance
- $119
- Full monthly payment
- $1,286
- Rent for a 1.20x DSCR
- $1,540 a month
The government 2-bedroom figure where most of Alabama's renters live is $1,150 a month, below the $1,540 that home needs. A house usually rents for more than a 2-bedroom unit, so price the house you are looking at with its own rent. The last column of the table below gives the same figure for each county.
Rules and costs a landlord faces in Alabama
Each line quotes the official source it comes from and the date it was last checked. These are general rules, not legal advice; local rules can add to them.
- What does the state charge to record a purchase?
State tax: $.50 per $500 of value.
Deeds – $.50 per $500 of value or fraction thereof. (Also bills of sale.)
Alabama Department of Revenue, checked October 18, 2026
- Is a rental taxed like the owner's home?
A rental does not get the owner's homestead benefit; non-homestead assessments are capped at 7 percent.
The cap limits the annual increase in taxable assessed values of Class II (e.g., commercial properties) and Class III (e.g., agricultural or owner-occupied residential properties) to 7 percent.
Alabama Department of Revenue, checked October 18, 2026
Market hubs in Alabama
DSCRInfo does not publish a monthly market hub in Alabama yet. The figures above and the table below cover every county; the market hubs cover other states.
Alabama by county
All 67 counties, most renter households first. "Rent for 1.20x" is the monthly rent a home at that county's median value needs on the example loan above. A dash means the source publishes no reliable figure there.
| County | 2-bed FMR | Property tax | Insurance / yr | Rental vacancy | Jobs, 1 yr | Permits | Flood claims | Rent for 1.20x |
|---|---|---|---|---|---|---|---|---|
| Jefferson County | $1,375 | 0.59% | $1,350 | 7.0% | -1.9% | 2,391 | 1,012 | $1,790 |
| Mobile County | $1,139 | 0.47% | $1,790 | 5.0% | -1.6% | 1,102 | 5,153 | $1,470 |
| Madison County | $1,341 | 0.40% | $1,480 | 6.5% | -1.0% | 4,070 | 272 | $2,150 |
| Montgomery County | $1,150 | 0.41% | $1,380 | 8.2% | -2.2% | 729 | 236 | $1,290 |
| Tuscaloosa County | $1,165 | 0.32% | $1,370 | 4.7% | -1.3% | 603 | 157 | $1,780 |
| Lee County | $1,277 | 0.48% | $1,320 | 8.1% | -0.7% | 1,575 | 31 | $1,910 |
| Baldwin County | $1,434 | 0.30% | $2,030 | 24.9% | -1.6% | 2,665 | 7,449 | $2,290 |
| Shelby County | $1,375 | 0.44% | $1,420 | 4.2% | -1.9% | 1,308 | 381 | $2,340 |
| Houston County | $966 | 0.31% | $1,450 | 8.3% | -1.3% | 470 | 124 | $1,360 |
| Morgan County | $1,023 | 0.34% | $1,480 | 4.0% | -0.5% | 400 | 115 | $1,550 |
| Calhoun County | $1,010 | 0.42% | $1,370 | 5.3% | -2.3% | 144 | 47 | $1,190 |
| Lauderdale County | $1,085 | 0.38% | $1,500 | 6.7% | -1.5% | 316 | 33 | $1,490 |
| Etowah County | $975 | 0.39% | $1,400 | 6.3% | -2.1% | 123 | 37 | $1,260 |
| Talladega County | $977 | 0.36% | $1,300 | 5.5% | -2.5% | 195 | 60 | $1,120 |
| Russell County | $1,212 | 0.38% | $1,280 | 8.6% | -2.8% | 151 | 42 | $1,230 |
| Limestone County | $1,341 | 0.32% | $1,440 | 5.8% | -0.5% | 449 | 22 | $2,000 |
| Marshall County | $925 | 0.36% | $1,480 | 4.7% | -1.1% | 222 | 32 | $1,490 |
| Cullman County | $1,034 | 0.26% | $1,370 | 4.6% | -1.5% | 196 | 22 | $1,440 |
| Elmore County | $1,150 | 0.27% | $1,370 | 7.0% | -2.1% | 140 | 44 | $1,610 |
| Dale County | $921 | 0.32% | $1,390 | 8.2% | -1.7% | 29 | 25 | $1,090 |
| Colbert County | $1,085 | 0.40% | $1,540 | 3.4% | -1.5% | 84 | 51 | $1,300 |
| St. Clair County | $1,375 | 0.32% | $1,320 | 3.5% | -2.0% | 411 | 48 | $1,630 |
| Walker County | $949 | 0.26% | $1,220 | 8.1% | -1.8% | 12 | 45 | $1,010 |
| Coffee County | $1,098 | 0.36% | $1,460 | 12.8% | -1.8% | 198 | 98 | $1,400 |
| Dallas County | $945 | 0.41% | $1,200 | 6.7% | -0.2% | 5 | 40 | $750 |
Show the other 42 counties
| County | 2-bed FMR | Property tax | Insurance / yr | Rental vacancy | Jobs, 1 yr | Permits | Flood claims | Rent for 1.20x |
|---|---|---|---|---|---|---|---|---|
| DeKalb County | $921 | 0.32% | $1,330 | 4.6% | -3.0% | 45 | 19 | $1,140 |
| Jackson County | $921 | 0.30% | $1,340 | 1.2% | -1.5% | 49 | 33 | $1,190 |
| Autauga County | $1,150 | 0.30% | $1,300 | 3.9% | -1.8% | 200 | 34 | $1,500 |
| Pike County | $1,055 | 0.27% | $1,430 | 14.7% | -2.3% | 27 | 0 | $1,180 |
| Blount County | $1,375 | 0.30% | $1,270 | 4.4% | -1.0% | 20 | 10 | $1,280 |
| Chilton County | $1,038 | 0.33% | $1,300 | 0.8% | -1.4% | 72 | 3 | $1,200 |
| Tallapoosa County | $994 | 0.30% | $1,210 | 10.3% | -2.0% | 230 | 6 | $1,170 |
| Chambers County | $1,091 | 0.39% | $1,320 | 3.6% | -1.7% | 100 | 15 | $1,040 |
| Escambia County | $921 | 0.39% | $1,320 | 3.4% | -0.9% | 6 | 139 | $1,040 |
| Covington County | $921 | 0.26% | $1,420 | 3.5% | -1.5% | 13 | 6 | $1,140 |
| Franklin County | $921 | 0.32% | $1,380 | 4.5% | -2.7% | 27 | 4 | $1,040 |
| Barbour County | $921 | 0.41% | $1,450 | 3.0% | +0.4% | 14 | 12 | $900 |
| Macon County | $981 | 0.50% | $1,260 | 5.6% | +0.2% | 6 | 5 | $820 |
| Butler County | $959 | 0.36% | $1,190 | 7.4% | -2.2% | 6 | 1 | $780 |
| Lawrence County | $1,023 | 0.29% | $1,390 | 0.5% | +0.0% | 6 | 27 | $1,270 |
| Marion County | $921 | 0.28% | $1,340 | 11.5% | -0.7% | 12 | 6 | $830 |
| Clarke County | $921 | 0.33% | $1,460 | 1.4% | +1.2% | 10 | 11 | $950 |
| Marengo County | $921 | 0.38% | $1,430 | 3.6% | -0.5% | 0 | 10 | $860 |
| Geneva County | $966 | 0.34% | $1,350 | 4.2% | -0.6% | 20 | 47 | $1,000 |
| Winston County | $921 | 0.32% | $1,340 | 4.9% | -2.7% | 2 | 10 | $920 |
| Randolph County | $923 | 0.25% | $1,400 | 13.7% | -1.6% | 0 | 1 | $1,330 |
| Monroe County | $921 | 0.32% | $1,200 | 8.6% | -2.8% | 37 | 4 | $920 |
| Cherokee County | $986 | 0.38% | $1,520 | 2.0% | -1.7% | 21 | 21 | $1,350 |
| Pickens County | $921 | 0.29% | $1,330 | 7.9% | +0.1% | 4 | 36 | $950 |
| Bibb County | $1,375 | 0.20% | $1,300 | 6.3% | -1.6% | 5 | 6 | $1,080 |
| Sumter County | $921 | 0.43% | $680 | 2.4% | +3.0% | 4 | 6 | $620 |
| Henry County | $921 | 0.34% | $1,420 | 7.2% | +0.0% | 100 | 6 | $1,210 |
| Hale County | $1,165 | 0.32% | $1,270 | 3.1% | +1.6% | 8 | 46 | $970 |
| Crenshaw County | $921 | 0.32% | $1,460 | 6.6% | -0.8% | 4 | 0 | $900 |
| Fayette County | $921 | 0.28% | $1,540 | 3.8% | -0.4% | 0 | 0 | $980 |
| Cleburne County | $1,004 | 0.29% | $1,330 | 13.7% | -0.8% | 11 | 0 | $1,220 |
| Greene County | $1,163 | 0.55% | $890 | 2.3% | -1.0% | 1 | 37 | $640 |
| Lamar County | $921 | 0.24% | $1,380 | 12.4% | +1.6% | 0 | 0 | $880 |
| Bullock County | $921 | 0.41% | $980 | 6.6% | -2.4% | 0 | 2 | $650 |
| Clay County | $921 | 0.21% | $1,210 | 18.2% | -4.1% | 8 | 0 | $1,140 |
| Conecuh County | $921 | 0.31% | $1,480 | 10.0% | -1.4% | 1 | 1 | $840 |
| Lowndes County | $1,150 | 0.39% | $1,240 | 3.3% | +1.7% | 4 | 4 | $700 |
| Choctaw County | $921 | 0.17% | $1,380 | 1.3% | -1.5% | 0 | 16 | $940 |
| Wilcox County | $921 | 0.32% | $1,700 | 2.1% | +3.8% | 0 | 4 | $820 |
| Washington County | $921 | 0.23% | $1,600 | 6.8% | +2.2% | 0 | 6 | $1,200 |
| Coosa County | $921 | 0.27% | $1,190 | 0.0% | -3.0% | 0 | 7 | $880 |
| Perry County | $921 | 0.33% | $1,180 | 11.6% | +2.2% | 0 | 0 | $690 |
Where these numbers come from
- 2-bedroom Fair Market Rent
- HUD's FY2027 Fair Market Rents, in effect from October 1, 2026: the rent and utilities of a modest 2-bedroom unit, set for housing vouchers. It is not a house rent. Where HUD publishes by town (New England), the county shows the range. HUD Fair Market Rents
- Property tax, insurance, vacancy and home value
- Census American Community Survey 5-year estimates, 2020–2024. Property tax is the median tax paid divided by the median home value of owner-occupied homes. Insurance is the median that owners with a mortgage report paying, not a landlord quote. Rental vacancy is homes vacant for rent divided by all rental homes. Figures from too few homes are left blank. American Community Survey
- Jobs
- BLS Local Area Unemployment Statistics: employed residents in August 2026 against the same month a year earlier, not seasonally adjusted. BLS LAUS
- Permits
- Census Building Permits Survey: new housing units authorized in 2025, all building sizes. Building Permits Survey
- Flood claims
- FEMA National Flood Insurance Program claims with a loss in 2005 or later, and the net amount paid. Only insured buildings appear. Check a flood zone
These are screening figures for comparing places, not a quote, an appraisal or a loan offer. Alabama total flood payments since 2005: $586.3 million.