Real Estate Investing in Decatur, Alabama (35601)
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Should you buy in 35601 (Decatur, 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.
- Elevated vacancy: 10.6% vacancy may signal weakening demand.
What’s happening in Decatur, AL (35601)?
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Market Analysis: 35601 Decatur
ZIP 35601 inside Morgan County looks affordable on the surface — median value of $175K — but the discount exists for reasons that a careful buyer should understand before committing.
The investment case in 35601 is impressive only for operators who understand what they are buying. A $175K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
In practical terms, 35601 offers a low basis, the region around Decatur has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Demographically, 35601 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
Strategically, 35601 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 Decatur:
Property Strategy for 35601
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $161,489 | $990 | 4.4% | +10.0% | $80,744 |
| 3BR | $194,479 | $1,300 | 4.8% | +10.0% | $64,826 |
| 4BR | $284,169 | $1,600 | 4.1% | +8.9% | $71,042 |
| 5BR | $380,752 | — | — | +8.7% | $76,150 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 35601 Compare?
| Metric | 35601 | Decatur | Decatur, AL | Alabama |
|---|---|---|---|---|
| Home Value | $175,290 | $152,326 | N/A | $231,003 |
| 5-Year CAGR | 2.6% | 3.2% | N/A | 5.6% |
| Avg Rent | $1,131 | $1,074 | N/A | - |
| Cap Rate | 5.0% | 3.9% | - | - |
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 35601 (Decatur, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $175,290 |
| Monthly Rent | $1,131 |
| Price-to-Rent | 12.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.7% |
| Cap Rate | 5.0% |
| 5-Year IRR | 7.6% |
📈 Home Appreciation
| 1-Year | +0.0% ▲ |
| 3-Year CAGR | +0.3% ▲ |
| 5-Year CAGR | +2.6% ▲ |
| 10-Year CAGR | +6.1% ▲ |
🏠 Rent Trends
| 1-Year | +3.2% ▲ |
| 3-Year CAGR | +4.7% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (5.0%). 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 35601
Population: 36,008
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 35601
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 1,109 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How do home values compare in Decatur, AL?
Homes in Decatur, AL typically sell near $175K. Prices have moved at a 0.0% 5-year CAGR, which reliable long-term demand.
Which investment style suits Decatur, AL?
A careful cash-flow rentals with hands-on management strategy Decatur, AL best. The market produces predictable results for that approach at the $175K price point.
How does Decatur, AL stack up for property investment?
Yes - Decatur, AL a 3.0/5 investability score. With $175K home prices against $1,131/mo monthly rent, the market delivers a reasonable entry point for new investors.
Does Decatur, AL favor landlords or tenants?
Rental owners in Decatur, AL deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
What is the tenant pool like in Decatur, AL?
The tenant pool in Decatur, AL is solid, supported by local employment and population fundamentals. Rents of $1,131/mo are well-absorbed by the market.
You know 35601 now. You don’t know where it ranks.
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How 35601 ranks in Decatur, AL
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