Real Estate Investing in Orange Beach, Alabama (36561)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36561 (Orange Beach, AL)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 73.9% of homes vacant — above national norms.
What’s happening in Orange Beach, AL (36561)?
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Market Analysis: 36561 Orange Beach
Not every below-median market is a bargain. Orange Beach's 36561 ZIP clocks in at signals that favor experienced operators who can absorb the risk $688K pricing implies.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 36561 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
In the broader AL picture, 36561 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
The demographic picture in 36561 includes headwinds that any investor should price in. Income distribution skews lower than Orange Beach averages, and tenant stability requires active management.
Strategy in 36561 is an operator game, not a passive one. On balance, entry prices of $688K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Orange Beach:
Property Strategy for 36561
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $417,955 | $1,310 | 2.3% | +5.0% | $417,955 |
| 2BR | $551,482 | $1,470 | 1.9% | +5.6% | $275,741 |
| 3BR | $747,672 | $1,850 | 1.8% | +6.4% | $249,224 |
| 4BR | $1,121,994 | $2,370 | 1.5% | +8.9% | $280,499 |
| 5BR | $1,806,086 | — | — | +10.0% | $361,217 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 36561 Compare?
| Metric | 36561 | Orange Beach | Daphne-Fairhope-Foley, AL | Alabama |
|---|---|---|---|---|
| Home Value | $688,173 | $688,173 | N/A | $231,003 |
| 5-Year CAGR | 2.8% | 2.8% | N/A | 5.6% |
| Avg Rent | $2,533 | $2,533 | N/A | - |
| Cap Rate | 2.9% | 2.9% | - | - |
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 36561 (Orange Beach, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $688,173 |
| Monthly Rent | $2,533 |
| Price-to-Rent | 22.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.4% |
| Cap Rate | 2.9% |
| 5-Year IRR | 5.7% |
📈 Home Appreciation
| 1-Year | -0.6% ▼ |
| 3-Year CAGR | -1.7% ▼ |
| 5-Year CAGR | +2.8% ▲ |
| 10-Year CAGR | +5.4% ▲ |
🏠 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 (2.9%). 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 36561
Population: 9,275
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 36561
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
Do landlords face vacancy issues in Orange Beach, AL?
Rental vacancy in Orange Beach, AL is elevated. Investors should budget normal turnover but not chronic empty units.
What is the tenant pool like in Orange Beach, AL?
The tenant pool in Orange Beach, AL is solid, supported by local employment and population fundamentals. Rents of $2,533/mo are well-absorbed by the market.
What investment strategy works best in Orange Beach, AL?
In Orange Beach, AL the durable play is typically careful cash-flow rentals with hands-on management. The combination of $688K prices and $2,533/mo rents suits that approach.
Can owner-occupants cash flow in Orange Beach, AL?
Orange Beach, AL is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $688K price point reasonable to enter.
What is the median home value in Orange Beach, AL?
Expect median prices around $688K in Orange Beach, AL. The market has run at a 0.0% 5-year CAGR, so entry costs have been stable.
You know 36561 now. You don’t know where it ranks.
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How 36561 ranks in Daphne-Fairhope-Foley, AL
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