Real Estate Investing in Rainsville, Alabama (35986)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 35986 (Rainsville, 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.
- High vacancy: 12.7% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 27.9 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Rainsville, AL (35986)?
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Market Analysis: 35986 Rainsville
ZIP 35986 in Rainsville, AL carries a robust set of headwinds. Home values near $235K and rents of $702/mo sit inside a market where underwriting has to be tight.
The investment case in 35986 is significant only for operators who understand what they are buying. A $235K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Turning to rents, 35986 offers a low basis, the region around Rainsville has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
The demographic picture in 35986 includes headwinds that any investor should price in. Income distribution skews lower than Rainsville averages, and tenant stability requires active management.
Strategically, 35986 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 Rainsville:
Property Strategy for 35986
Which property type performs best in this market?
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| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $235,230 | $990 | 3.0% | +9.9% | $78,410 |
| 4BR | $305,333 | $1,300 | 3.1% | +8.8% | $76,333 |
Market Trends
Home Value History (with trend line)
📊 How Does 35986 Compare?
| Metric | 35986 | Rainsville | Fort Payne, AL | Alabama |
|---|---|---|---|---|
| Home Value | $234,637 | $234,637 | N/A | $231,003 |
| 5-Year CAGR | 6.5% | 6.5% | N/A | 5.6% |
| Avg Rent | $702 | $702 | N/A | - |
| Cap Rate | 2.3% | 2.3% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 35986 (Rainsville, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $234,637 |
| Monthly Rent | $702 |
| Price-to-Rent | 27.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.6% |
| Cap Rate | 2.3% |
| 5-Year IRR | 8.9% |
📈 Home Appreciation
| 1-Year | +7.3% ▲ |
| 3-Year CAGR | +5.4% ▲ |
| 5-Year CAGR | +6.5% ▲ |
| 10-Year CAGR | +7.8% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.3%). 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 35986
Population: 8,221
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 35986
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
How qualified is the tenant pool in Rainsville, AL?
Expect a solid tenant pool in Rainsville, AL. The rental market absorbs $702/mo rents without meaningful friction.
What is the smart move for investors in Rainsville, AL?
In Rainsville, AL the solid play is typically careful cash-flow rentals with hands-on management. The combination of $235K prices and $702/mo rents suits that approach.
Are homes affordable in Rainsville, AL?
Rainsville, AL home values average about $235K. That price point suits investors targeting rentals with $702/mo in monthly income.
What are vacancy rates like in Rainsville, AL?
Vacancy in Rainsville, AL is elevated, which keeps landlord downtime on reasonable timelines. Most properties lease within the standard window at $702/mo.
Does Rainsville, AL favor landlords or tenants?
Rainsville, AL operates under AL law, which is landlord-friendly overall for landlords. Expect even-keeled treatment in typical lease and eviction cases.
You know 35986 now. You don’t know where it ranks.
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How 35986 ranks in Fort Payne, AL
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