Real Estate Investing in Tuscaloosa, Alabama (35406)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 35406 (Tuscaloosa, AL)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 9.6% vacancy may signal weakening demand.
What’s happening in Tuscaloosa, AL (35406)?
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Market Analysis: 35406 Tuscaloosa
ZIP 35406 in Tuscaloosa, AL carries a durable set of headwinds. Home values near $461K and rents of $1,619/mo sit inside a market where underwriting has to be tight.
The 35406 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Within AL, ZIP 35406 trails on several market indicators that neighboring Tuscaloosa County submarkets outperform. The gap is real and substantial enough to shape underwriting.
A substantial renter share of 24% in 35406 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategically, 35406 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Tuscaloosa:
Property Strategy for 35406
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $182,402 | $1,520 | 6.0% | +7.2% | $91,201 |
| 3BR | $366,303 | $1,940 | 3.8% | +5.8% | $122,101 |
| 4BR | $564,841 | $2,010 | 2.6% | +5.4% | $141,210 |
| 5BR | $767,559 | — | — | +5.3% | $153,512 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 35406 Compare?
| Metric | 35406 | Tuscaloosa | Tuscaloosa, AL | Alabama |
|---|---|---|---|---|
| Home Value | $461,133 | $105,281 | N/A | $231,003 |
| 5-Year CAGR | 4.3% | 3.8% | N/A | 5.6% |
| Avg Rent | $1,619 | $1,407 | N/A | - |
| Cap Rate | 2.7% | 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 35406 (Tuscaloosa, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $461,133 |
| Monthly Rent | $1,619 |
| Price-to-Rent | 23.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.2% |
| Cap Rate | 2.7% |
| 5-Year IRR | 7.1% |
📈 Home Appreciation
| 1-Year | +4.2% ▲ |
| 3-Year CAGR | +2.4% ▲ |
| 5-Year CAGR | +4.3% ▲ |
| 10-Year CAGR | +4.2% ▲ |
🏠 Rent Trends
| 1-Year | +13.6% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.7%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 35406
Population: 18,533
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 35406
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
Frequently Asked Questions
Should investors worry about vacancy in Tuscaloosa, AL?
Tuscaloosa, AL sees elevated vacancy, which is reasonable relative to the broader AL rental market.
Which investment style suits Tuscaloosa, AL?
Investors usually favor careful cash-flow rentals with hands-on management in Tuscaloosa, AL. With home values at $461K and rents near $1,619/mo, other strategies can work but produce measured rather than outsized returns.
Does Tuscaloosa, AL favor landlords or tenants?
Rental owners in Tuscaloosa, AL deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
Is Tuscaloosa, AL a good market for FHA house hackers?
Tuscaloosa, AL is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $461K price point reasonable to enter.
Should investors consider Tuscaloosa, AL?
The 3.0/5 investability rating in Tuscaloosa, AL reflects its $461K prices and $1,619/mo rents. Investors generally consider it a solid option within AL.
You know 35406 now. You don’t know where it ranks.
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How 35406 ranks in Tuscaloosa, AL
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