Real Estate Investing in Valley Head, Alabama (35989)

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

DeKalb • Population: 3,793 • Data updated: September 2026

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Should you buy in 35989 (Valley Head, AL)? Our answer, based on the numbers below.

🏠 For Homebuyers
CAUTION
Grade D (48/100)

Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.

📈 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
2 flags
  • High vacancy: 17.1% of homes vacant — above national norms.
  • High price-to-rent: Price-to-rent ratio 28.5 — 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 Valley Head, AL (35989)?

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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 $240,187
Avg Monthly Rent $702
1% Rule ✗ Does Not Meet
Median Income $47,138
% Renters 14.7%

Market Analysis: 35989 Valley Head

This part of DeKalb is not an easy win. The 35989 ZIP sits at softness in key indicators, and the playbook that works in cleaner markets often stalls here.

The investment case in 35989 is solid only for operators who understand what they are buying. A $240K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.

In the broader AL picture, 35989 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.

Meanwhile, 3,793 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 right play in 35989 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.

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 Valley Head:

C+ Average
Buy Confidence Score: 62/100
Affordability
10/25
Appreciation
22/25
Stability
7/20
Timing
8/15
Rental backup
15/15
Affordability
Expensive
Homes cost 5.1× the median income
Value Trend
Rising (+12.5%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $702/mo if you need to move
Market Conditions
BALANCED
Even conditions for buyers and sellers
Bottom Line: Mixed signals in this market. Research specific properties carefully and be prepared to negotiate.

Market Trends

Home Value History (with trend line)

$251K$219K$187K$154K$122K$90KJul 2006Jul 2016Jul 2026

📊 How Does 35989 Compare?

Metric 35989 Valley Head Alabama
Home Value $240,187 $240,187 $231,003
5-Year CAGR 5.2% 5.2% 5.6%
Avg Rent $702 $702 -
Cap Rate 2.3% 2.3% -
💡 Why Invest in 35989? 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 35989 (Valley Head, AL). Anonymous, moderated, never written by AI.

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Investability
Good
Cap Rate
2.3%
Low
5yr Growth
+5.2%
Moderate

📊 Market Snapshot

Home Value $240,187
Monthly Rent $702
Price-to-Rent 28.5:1
1% Rule ✗ Fails

💰 Return Metrics

Gross Yield 3.5%
Cap Rate 2.3%
5-Year IRR 7.5%

📈 Home Appreciation

1-Year +12.5% ▲
3-Year CAGR +5.6% ▲
5-Year CAGR +5.2% ▲
10-Year CAGR +7.2% ▲

🏠 Rent Trends

1-Year N/A
3-Year CAGR N/A
5-Year CAGR N/A
Negative Leverage — IRR / Tax Play Cap Rate: 2.3%  |  30yr Rate: 6.8%
Leverage reduces cash returns at current rates.

The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.3%). 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.

Vacancy
17.1%
Elevated risk
Landlord Climate
5.0/5
Friendly
Value Trend (5yr)
+5.2%
Stable
Eviction process: Fast Rent control: Favorable

Demographics in 35989

Population: 3,793

💰 Median Household Income
$47,138
This area
$47,138
State
$56,875
USA
$74,580
🏠 Renter Occupied
14.7%
This area
14.7%
State
24.9%
USA
34.0%
💼 Unemployment Rate
0.9%
This area
0.9%
State
-24.3%
USA
3.7%
🎓 College Educated
14.6%
This area
14.6%
State
-11.9%
USA
33.7%
👤 Median Age
37.8 years
This area
37.8 years
State
-0.9 years
USA
38.9 years
🏚️ Vacancy Rate
17.1%
This area
17.1%
State
20.4%
USA
10.5%
👥 Population by Ethnicity
White 78.5%
Other/Mixed 21.5%
Hispanic/Latino 16.2%
Black/African American 0.1%
👶 Under 18
26.9%
This area
26.9%
USA
22.0%
👴 65 and Over
16.8%
This area
16.8%
USA
17.3%
📊 Poverty Rate
19.1%
This area
19.1%
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

🎓 Schools in 35989

B+ Avg School Grade
1 Schools
14.1:1 Avg Class Size
$12,957 Avg Per Pupil

Schools in This ZIP Code

B+ Above Average

Valley Head High School

📚 Pre-K – 12 K-12
👥
492 Students
👨‍🏫
14.1:1 Class Size
💰
$12,957 Per Student
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.

Frequently Asked Questions

What is the renter demographic in Valley Head, AL?

Valley Head, AL offers a even-keeled renter base at the $702/mo rent level. Tenant turnover is reasonable for well-managed properties.

How do landlord-tenant laws work in Valley Head, AL?

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

Should investors worry about vacancy in Valley Head, AL?

Valley Head, AL sees elevated vacancy, which is reasonable relative to the broader AL rental market.

What monthly rent should investors expect in Valley Head, AL?

Average rent in Valley Head, AL is approximately $702/mo per month. Against $240K home values that yields a reasonable rent-to-price ratio.

What is the average home sale price in Valley Head, AL?

Typical homes in Valley Head, AL go for around $240K. The 5-year CAGR of 0.0% measured price movement.

You know 35989 now. You don’t know where it ranks.

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