Real Estate Investing in Butler, Alabama (36904)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36904 (Butler, AL)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 22.5% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Butler, AL (36904)?
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Market Analysis: 36904 Butler
The 36904 ZIP in Butler, AL is a local-operator market. Outside capital chasing a $135K entry has to pair deep knowledge with the discount.
The 36904 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Within AL, ZIP 36904 trails on several market indicators that neighboring Choctaw County submarkets outperform. The gap is real and substantial enough to shape underwriting.
A notable renter share of 21% in 36904 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Strategy in 36904 is an operator game, not a passive one. Stepping back, entry prices of $135K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Butler:
Market Trends
Home Value History (with trend line)
📊 How Does 36904 Compare?
| Metric | 36904 | Butler | Alabama |
|---|---|---|---|
| Home Value | $135,097 | $135,097 | $231,003 |
| 5-Year CAGR | N/A | N/A | 5.6% |
| Avg Rent | $792 | $792 | - |
| Cap Rate | 4.6% | 4.6% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 36904 (Butler, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $135,097 |
| Monthly Rent | $792 |
| Price-to-Rent | 14.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.0% |
| Cap Rate | 4.6% |
| 5-Year IRR | 2.5% |
📈 Home Appreciation
| 1-Year | +0.7% ▲ |
| 3-Year CAGR | -2.1% ▼ |
| 5-Year CAGR | N/A |
| 10-Year CAGR | N/A |
🏠 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 (4.6%). 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 36904
Population: 4,468
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 36904
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.
Frequently Asked Questions
Where do rents currently stand in Butler, AL?
Butler, AL rentals go for roughly $792/mo a month. That puts gross yield in solid territory relative to $135K acquisition costs.
Are renters plentiful in Butler, AL?
Tenant demand in Butler, AL is solid. The local workforce $792/mo rents across most rental classes.
Which real estate strategy fits Butler, AL?
In Butler, AL the robust play is typically careful cash-flow rentals with hands-on management. The combination of $135K prices and $792/mo rents suits that approach.
Do landlords face vacancy issues in Butler, AL?
Butler, AL sees elevated vacancy, which is reasonable relative to the broader AL rental market.
Can owner-occupants cash flow in Butler, AL?
The a challenging house-hack environment in Butler, AL reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
You know 36904 now. You don’t know where it ranks.
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