Real Estate Investing in Selma, Alabama (36701)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36701 (Selma, AL)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 20.8% of homes vacant — above national norms.
- Declining values: -0.4% 5-year CAGR — values have moved lower.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Selma, AL (36701)?
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Market Analysis: 36701 Selma
The 36701 ZIP in Selma, AL is a local-operator market. Outside capital chasing a $99K entry has to pair deep knowledge with the discount.
The investment case in 36701 is sturdy only for operators who understand what they are buying. A $99K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
ZIP 36701's metrics run below Dallas County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Employment concentration in 36701 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Experienced landlords with local relationships tend to find 36701 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Selma:
Property Strategy for 36701
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $133,586 | $1,180 | 6.4% | +6.0% | $44,529 |
| 4BR | $193,530 | $1,430 | 5.3% | +4.3% | $48,382 |
Market Trends
Home Value History (with trend line)
📊 How Does 36701 Compare?
| Metric | 36701 | Selma | Selma, AL | Alabama |
|---|---|---|---|---|
| Home Value | $99,271 | $81,238 | N/A | $231,003 |
| 5-Year CAGR | N/A | N/A | N/A | 5.6% |
| Avg Rent | $810 | $810 | N/A | - |
| Cap Rate | 6.4% | 8.2% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 36701 (Selma, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $99,271 |
| Monthly Rent | $810 |
| Price-to-Rent | 10.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 9.8% |
| Cap Rate | 6.4% |
| 5-Year IRR | 6.0% |
📈 Home Appreciation
| 1-Year | +6.9% ▲ |
| 3-Year CAGR | -1.0% ▼ |
| 5-Year CAGR | -0.4% ▼ |
| 10-Year CAGR | -0.2% ▼ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (6.4%). Financing this market at current rates produces a cash-on-cash return near the cap rate. Appreciation and tax benefits may still support the investment.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 36701
Population: 22,358
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 36701
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 viable is house hacking in Selma, AL?
Selma, AL offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $810/mo rent level.
How does Selma, AL rate as a rental market?
Investors tracking Selma, AL will find a 3.0/5 rating supported by $99K median home values and $810/mo rents. That profile suits long-term holders targeting reliable returns.
What is the average home sale price in Selma, AL?
Selma, AL median home values land near $99K. That is reasonable territory for investors looking at $810/mo-per-month rentals.
How landlord-friendly is Selma, AL?
AL ranks as a landlord-friendly state for landlord-tenant law. Selma generally follows the statewide framework, so landlords face reasonable operating rules.
How much is rent in Selma, AL?
Rental rates in Selma, AL average $810/mo. Tenant demand and $99K home values make the yield look reasonable by investor standards.
You know 36701 now. You don’t know where it ranks.
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How 36701 ranks in Selma, AL
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