ZIP Codes That Pass the 1% Rule in Birmingham-Hoover, AL (2026)

Where monthly rent is at least 1% of the purchase price — the quick screen investors use before running full numbers.

# ZIP City Home value Rent Cap rate 5-yr growth
1 35020 1% rule Bessemer, AL $64,797 $1,212 14.59% 0.0%
2 35211 1% rule Birmingham, AL $76,101 $1,423 14.59% 1.1%
3 35224 1% rule McDonald Chapel, AL $71,955 $1,200 13.01% 1.0%
4 35221 1% rule Birmingham, AL $61,358 $1,008 12.81% 4.2%
5 35207 1% rule Birmingham, AL $59,590 $918 12.02% 0.2%
6 35208 1% rule Birmingham, AL $78,578 $1,180 11.71% -0.1%
7 35204 1% rule Birmingham, AL $71,879 $1,038 11.26% 4.3%
8 35228 1% rule Midfield, AL $80,664 $1,124 10.87% 0.8%
9 35218 1% rule Birmingham, AL $72,748 $1,007 10.80% 3.8%
10 35217 1% rule Tarrant, AL $81,051 $1,074 10.34% 0.3%
11 35061 1% rule Birmingham, AL $103,744 $1,233 9.27% 5.9%
12 35064 1% rule Fairfield, AL $95,540 $1,130 9.22% -1.6%
13 35206 1% rule Birmingham, AL $104,239 $1,123 8.40% 0.5%
14 35073 1% rule Graysville, AL $97,811 $990 7.89% 2.7%
15 35212 1% rule Birmingham, AL $121,059 $1,218 7.85% -0.6%

Ranked from Repit’s own ZIP-level data — Zillow home values and rents, HUD fair-market rents where Zillow has no coverage, and U.S. Census vacancy. Cap rate is gross: annual rent over purchase price, before financing and expenses. Every ZIP above links to its full free page. How we calculate this →

Same metro, different strategy

Cash Flow in Birmingham-Hoover, AL  ·  Appreciation in Birmingham-Hoover, AL  ·  Affordable in Birmingham-Hoover, AL

Or see the full Birmingham-Hoover, AL metro profile.