Real Estate Investing in Huntsville, Alabama (35741)

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

Madison County • Population: 4,292 • Data updated: September 2026

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Should you buy in 35741 (Huntsville, AL)? Our answer, based on the numbers below.

🏠 For Homebuyers
MIXED
Grade C (57/100)

Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
1 flag
  • High price-to-rent: Price-to-rent ratio 25.5 — hard to cash-flow at these prices.

What’s happening in Huntsville, AL (35741)?

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3.0/ 5

Investability

Overall investment appeal

2.0/ 5

Appreciation

Long-term value growth

3.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $410,203
Avg Monthly Rent $1,340
1% Rule ✗ Does Not Meet
Median Income $88,979
% Renters 20.9%

Market Analysis: 35741 Huntsville

ZIP 35741 in Huntsville, AL carries a significant set of headwinds. Home values near $410K and rents of $1,340/mo sit inside a market where underwriting has to be tight.

Distressed markets are won on execution, not on spreadsheets. ZIP 35741 clocks in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.

The gap between 35741 and stronger Huntsville ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.

Resident income in 35741 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.

Distressed ZIPs reward experience. significant returns are possible in 35741, but they flow to investors who already understand how to operate in soft markets.

Explore the Data — Click a Tab Below
🏦 Current 30-yr Fixed Mortgage Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS

Here's what matters if you're considering buying a home in Huntsville:

C+ Average
Buy Confidence Score: 60/100
Affordability
10/25
Appreciation
18/25
Stability
7/20
Timing
10/15
Rental backup
15/15
Affordability
Moderate
Homes cost 4.6× the median income
Value Trend
Stable (+2.8%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $1,340/mo if you need to move
Market Conditions
COOL
More inventory, negotiating room for buyers
Bottom Line: Mixed signals in this market. Research specific properties carefully and be prepared to negotiate.
❄️
COOL MARKET
Huntsville, AL Metro Area
More inventory, negotiating room for buyers
57 days
Average time to sell
Average
10.7%
Listings with price cuts
Few Cuts
0.0%
Sale price vs asking
Below Ask
0.0%
Income needed for mortgage
Affordable
📅 Market conditions as of August 29, 2026 — updated weekly from Huntsville, AL metro data
🏠

Property Strategy for 35741

Which property type performs best in this market?

Best for Cash Flow
3BR
3.7% cap rate
Best for Appreciation
3BR
+8.8% 5yr CAGR
Best Overall Value
3BR
$123,074/bedroom
📊 Compare All Property Types →
Type Median Value Est. Rent Cap Rate 5yr CAGR $/Bedroom
3BR $369,222 $1,880 3.7% +8.8% $123,074
4BR $562,752 $2,350 3.0% +8.3% $140,688

Market Trends

Home Value History (with trend line)

$441K$367K$293K$218K$144K$70KJul 2006Jul 2016Jul 2026

Rent History (with trend line)

No data available

📊 How Does 35741 Compare?

Metric 35741 Huntsville Huntsville, AL Alabama
Home Value $410,203 $137,420 N/A $231,003
5-Year CAGR 3.8% 3.4% N/A 5.6%
Avg Rent $1,340 $1,325 N/A -
Cap Rate 2.6% 3.9% - -
💡 Why Invest in 35741? Click to expand

With a 3/5 investability rating, this ZIP shows solid fundamentals for buy-and-hold investors.

📊 See where this ZIP ranks in our Best-of lists →
A great house in the wrong ZIP is still a bad deal — screen every market by cash flow & cap rate.
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Landlord Ground Truth

Real numbers from people who own or manage rentals in ZIP 35741 (Huntsville, AL). Anonymous, moderated, never written by AI.

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Investability
Good
Cap Rate
2.6%
Low
5yr Growth
+3.8%
Moderate

📉 Market Crash Risk Index

Based on Huntsville, AL metro

2/10
Low Risk
Price YoY
0/3
N/A
Rent YoY
0/2
N/A
Below List
1/3
52%
Days Pending
1/2
57 days

View all metro crash risk rankings →

📊 Market Snapshot

Home Value $410,203
Monthly Rent $1,340
Price-to-Rent 25.5:1
1% Rule ✗ Fails

💰 Return Metrics

Gross Yield 3.9%
Cap Rate 2.6%
5-Year IRR 6.3%

📈 Home Appreciation

1-Year +2.8% ▲
3-Year CAGR +1.4% ▲
5-Year CAGR +3.8% ▲
10-Year CAGR +5.8% ▲

🏠 Rent Trends

1-Year N/A
3-Year CAGR N/A
5-Year CAGR N/A
Negative Leverage — IRR / Tax Play Cap Rate: 2.6%  |  30yr Rate: 6.8%
Leverage reduces cash returns at current rates.

The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.6%). 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.

Vacancy
1.6%
Low risk
Landlord Climate
5.0/5
Friendly
Value Trend (5yr)
+3.8%
Stable
Eviction process: Fast Rent control: Favorable

Demographics in 35741

Population: 4,292

💰 Median Household Income
$88,979
This area
$88,979
State
$56,875
USA
$74,580
🏠 Renter Occupied
20.9%
This area
20.9%
State
24.9%
USA
34.0%
💼 Unemployment Rate
0.0%
This area
0.0%
State
-24.3%
USA
3.7%
🎓 College Educated
63.8%
This area
63.8%
State
-11.9%
USA
33.7%
👤 Median Age
52.3 years
This area
52.3 years
State
-0.9 years
USA
38.9 years
🏚️ Vacancy Rate
1.6%
This area
1.6%
State
20.4%
USA
10.5%
👥 Population by Ethnicity
White 90.2%
Other/Mixed 5.2%
Black/African American 4.6%
Hispanic/Latino 2.2%
👶 Under 18
12.9%
This area
12.9%
USA
22.0%
👴 65 and Over
23.8%
This area
23.8%
USA
17.3%
📊 Poverty Rate
8.3%
This area
8.3%
USA
11.5%

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

🎓 Nearby Colleges & Universities

7 Nearby 990 Off-Campus Students
C
J. F. Drake State Community and Technical College
1,011 students · 6.3 mi
C+
Alabama A & M University
6,614 students · 6.6 mi
C
Huntsville Bible College
121 students · 6.9 mi
C+
University of Alabama in Huntsville
8,743 students · 9.3 mi
C
The Salon Professional Academy-Huntsville
56 students · 10.2 mi
C+
Oakwood University
1,319 students · 10.2 mi
D
Ross Medical Education Center-Huntsville
109 students · 10.5 mi

Investor Insight: With 990 students living off-campus nearby, this area has strong rental demand from the college population.

Frequently Asked Questions

What is the typical rental rate in Huntsville, AL?

Investors in Huntsville, AL typically see rents near $1,340/mo per month against $410K home values - a solid setup for rental cash flow.

What kind of tenants rent in Huntsville, AL?

Huntsville, AL offers a reliable renter base at the $1,340/mo rent level. Tenant turnover is reasonable for well-managed properties.

How do home values compare in Huntsville, AL?

Homes in Huntsville, AL typically sell near $410K. Prices have moved at a 0.0% 5-year CAGR, which steady long-term demand.

What is it like being a landlord in Huntsville, AL?

AL law landlord-friendly for landlords, and Huntsville inherits those rules. Investors should still review local ordinances for rental licensing.

Is Huntsville, AL better for rentals, flips, or BRRRR?

Huntsville, AL investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($410K prices, $1,340/mo rents) make it a reasonable choice.

You know 35741 now. You don’t know where it ranks.

This page stays free — all of it. What one page can’t tell you is how 35741 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.

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How 35741 ranks in Huntsville, AL

Every ZIP in this metro, ranked. Free.

Cash Flow → Appreciation → Affordable →
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