Real Estate Investing in Dawson, Alabama (35963)

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

De Kalb County • Population: 1,562 • Data updated: September 2026

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Should you buy in 35963 (Dawson, AL)? Our answer, based on the numbers below.

🏠 For Homebuyers
MIXED
Grade C (66/100)

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
  • Elevated vacancy: 11.7% vacancy may signal weakening demand.

• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.

What’s happening in Dawson, AL (35963)?

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3.0/ 5

Investability

Overall investment appeal

3.0/ 5

Appreciation

Long-term value growth

3.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $209,853
Avg Monthly Rent $729
1% Rule ✗ Does Not Meet
Median Income $66,288
% Renters 27.3%

Market Analysis: 35963 Dawson

The 35963 ZIP in Dawson, AL is a local-operator market. Outside capital chasing a $210K entry has to pair deep knowledge with the discount.

Distressed markets are won on execution, not on spreadsheets. ZIP 35963 reports the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.

The gap between 35963 and stronger Dawson ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.

From an investor standpoint, 1,562 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.

The 35963 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.

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 Dawson:

B Good
Buy Confidence Score: 70/100
Affordability
20/25
Appreciation
22/25
Stability
7/20
Timing
6/15
Rental backup
15/15
Affordability
Moderate
Homes cost 3.2× the median income
Value Trend
Rising (+12.1%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $729/mo if you need to move
Market Conditions
WARM
Seller-favorable conditions, steady activity
Bottom Line: Mixed signals in this market. Research specific properties carefully and be prepared to negotiate.
☀️
WARM MARKET
Fort Payne, AL Metro Area
Seller-favorable conditions, steady activity
0 days
Average time to sell
Very Fast
7.4%
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 Fort Payne, AL metro data

Market Trends

Home Value History (with trend line)

$217K$196K$174K$152K$130K$108KFeb 2019Nov 2022Jul 2026

📊 How Does 35963 Compare?

Metric 35963 Dawson Fort Payne, AL Alabama
Home Value $209,853 $209,853 N/A $231,003
5-Year CAGR 5.5% 5.5% N/A 5.6%
Avg Rent $729 $729 N/A -
Cap Rate 2.7% 2.7% - -
💡 Why Invest in 35963? Click to expand

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

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Landlord Ground Truth

Real numbers from people who own or manage rentals in ZIP 35963 (Dawson, AL). Anonymous, moderated, never written by AI.

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Investability
Good
Cap Rate
2.7%
Low
5yr Growth
+5.5%
Moderate

📉 Market Crash Risk Index

Based on Fort Payne, AL metro

2/10
Low Risk
Price YoY
0/3
N/A
Rent YoY
0/2
N/A
Below List
2/3
67%
Days Pending
0/2
0 days

View all metro crash risk rankings →

📊 Market Snapshot

Home Value $209,853
Monthly Rent $729
Price-to-Rent 24.0:1
1% Rule ✗ Fails

💰 Return Metrics

Gross Yield 4.2%
Cap Rate 2.7%
5-Year IRR 8.2%

📈 Home Appreciation

1-Year +12.1% ▲
3-Year CAGR +6.1% ▲
5-Year CAGR +5.5% ▲
10-Year CAGR N/A

🏠 Rent Trends

1-Year N/A
3-Year CAGR N/A
5-Year CAGR N/A
Negative Leverage — IRR / Tax Play Cap Rate: 2.7%  |  30yr Rate: 6.8%
Leverage reduces cash returns at current rates.

The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.7%). 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.

Vacancy
11.7%
Moderate risk
Landlord Climate
5.0/5
Friendly
Value Trend (5yr)
+5.5%
Stable
Eviction process: Fast Rent control: Favorable

Demographics in 35963

Population: 1,562

💰 Median Household Income
$66,288
This area
$66,288
State
$56,875
USA
$74,580
🏠 Renter Occupied
27.3%
This area
27.3%
State
24.9%
USA
34.0%
💼 Unemployment Rate
0.0%
This area
0.0%
State
-24.3%
USA
3.7%
🎓 College Educated
8.0%
This area
8.0%
State
-11.9%
USA
33.7%
👤 Median Age
41.8 years
This area
41.8 years
State
-0.9 years
USA
38.9 years
🏚️ Vacancy Rate
11.7%
This area
11.7%
State
20.4%
USA
10.5%
👥 Population by Ethnicity
White 88.3%
Other/Mixed 11.7%
Hispanic/Latino 1.9%
👶 Under 18
16.7%
This area
16.7%
USA
22.0%
👴 65 and Over
18.0%
This area
18.0%
USA
17.3%
📊 Poverty Rate
10.1%
This area
10.1%
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

1 Nearby 412 Off-Campus Students
C
Northeast Alabama Community College
2,905 students · 13.0 mi

Frequently Asked Questions

What is the median home value in Dawson, AL?

Expect median prices around $210K in Dawson, AL. The market has run at a 0.0% 5-year CAGR, so entry costs have been predictable.

What kind of tenants rent in Dawson, AL?

Dawson, AL offers a reliable renter base at the $729/mo rent level. Tenant turnover is reasonable for well-managed properties.

Are eviction rules reasonable in Dawson, AL?

For rental operators, Dawson, AL rates as landlord-friendly. The regulatory environment standard buy-and-hold operations.

What approach is best for Dawson, AL real estate?

The best-fit strategy in Dawson, AL is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.

Do rentals sit vacant long in Dawson, AL?

Rental vacancy in Dawson, AL is elevated. Investors should budget normal turnover but not chronic empty units.

You know 35963 now. You don’t know where it ranks.

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How 35963 ranks in Fort Payne, AL

Every ZIP in this metro, ranked. Free.

Cash Flow → Appreciation → Affordable →
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