Real Estate Investing in Tuscaloosa, Alabama (35404)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 35404 (Tuscaloosa, AL)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 26.2% of homes vacant — above national norms.
What’s happening in Tuscaloosa, AL (35404)?
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Market Analysis: 35404 Tuscaloosa
Meanwhile, ZIP 35404 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $165K median. It rewards specialists, not generalists.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 35404 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Regionally, 35404 sits on the difficult end of the AL spectrum. The an appealing option for read — for disciplined operators — is that pricing reflects the difficulty.
Who lives in 35404 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Distressed ZIPs reward experience. substantial returns are possible in 35404, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Tuscaloosa:
Property Strategy for 35404
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $156,161 | $1,180 | 5.4% | +5.9% | $78,080 |
| 3BR | $198,196 | $1,500 | 5.4% | +6.3% | $66,065 |
| 4BR | $266,805 | $1,560 | 4.2% | +6.0% | $66,701 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 35404 Compare?
| Metric | 35404 | Tuscaloosa | Tuscaloosa, AL | Alabama |
|---|---|---|---|---|
| Home Value | $165,044 | $105,281 | N/A | $231,003 |
| 5-Year CAGR | 3.2% | 3.8% | N/A | 5.6% |
| Avg Rent | $1,386 | $1,407 | N/A | - |
| Cap Rate | 6.6% | 4.8% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 35404 (Tuscaloosa, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $165,044 |
| Monthly Rent | $1,386 |
| Price-to-Rent | 9.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 10.1% |
| Cap Rate | 6.6% |
| 5-Year IRR | 9.7% |
📈 Home Appreciation
| 1-Year | +3.3% ▲ |
| 3-Year CAGR | +1.4% ▲ |
| 5-Year CAGR | +3.2% ▲ |
| 10-Year CAGR | +4.1% ▲ |
🏠 Rent Trends
| 1-Year | -0.2% ▼ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (6.6%). Financing this market at current rates produces a cash-on-cash return near the cap rate. Appreciation and tax benefits may still support the investment.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 35404
Population: 23,553
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 35404
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 2,331 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is AL a landlord-friendly state?
Landlord-friendliness in Tuscaloosa, AL is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
How strong is tenant demand in Tuscaloosa, AL?
Working renters make up the core of the Tuscaloosa, AL tenant base. The pool is reasonable for investors targeting long-term holds.
What is the average home sale price in Tuscaloosa, AL?
Expect median prices around $165K in Tuscaloosa, AL. The market has run at a 0.0% 5-year CAGR, so entry costs have been consistent.
Can I house hack in Tuscaloosa, AL?
Tuscaloosa, AL is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $165K price point reasonable to enter.
What kind of market is Tuscaloosa, AL for investors?
Our data puts Tuscaloosa, AL at 3.0/5 for investability. Home prices of $165K and rents around $1,386/mo create a solid backdrop for investor activity.
You know 35404 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 35404 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 35404 ranks in Tuscaloosa, AL
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Community Ratings
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