Before you read the numbers: these estimates assume every home is rent-ready. ApriFind doesn't have condition data yet, so repairs needed to reach these rents are not included, and the cheapest homes are the most likely to need them. Property tax uses Birmingham's published millage for rental property (1.45% of market value). See What these numbers assume.
Birmingham combines modest home prices with low property taxes, although Alabama taxes rentals at about twice the rate of owner-occupied homes. In our ranking of the 50 largest US metros, it had the third-highest share of listings with positive cash flow, and the most balanced mix of cash flow and neighborhood quality. We ran every active for-sale listing in the city through ApriFind on October 9, 2026 and analyzed 1,263 properties, each with a rent estimate built from nearby comparable rentals.
Key takeaways
- 35% of listings show positive cash flow at 20% down and 7% interest. The median listing is negative (−$252 per month) with a 4.8% median cap rate.
- West and southwest Birmingham lead: in 35208 and 35211, 62–67% of listings cash-flow at median prices of $100,000–$106,000.
- Single-family homes do best: 41% cash-flow, against 13% of condos and 4% of townhouses.
- Nearly every listing under $100,000 cash-flows on paper (98%). Between $100,000 and $200,000, about 4 in 10 do. These cheapest homes are also the most likely to need repairs.
- Cash flow isn't limited to the weakest areas. Almost half of listings in neighborhoods with an Apri Score of 4–7 cash-flow, and 28% of all cash-flowing listings are in areas scoring 1–5, far more than in Cleveland (3%) or Detroit (1%).
Returns by ZIP code
ZIP codes with at least 40 analyzed listings, ranked by the share with positive cash flow.
| ZIP | Listings | Median price | Median est. rent | Median cap rate | Median monthly cash flow | Listings that cash-flow |
|---|---|---|---|---|---|---|
| 35208 | 84 | $100,000 | $1,088 | 7.6% | $97 | 67% |
| 35211 | 98 | $106,000 | $1,111 | 6.9% | $55 | 62% |
| 35215 | 111 | $139,000 | $1,250 | 6.5% | $21 | 51% |
| 35206 | 115 | $124,900 | $1,150 | 6.3% | −$6 | 49% |
| 35214 | 60 | $169,900 | $1,260 | 5.1% | −$183 | 33% |
| 35212 | 55 | $199,900 | $1,150 | 4.5% | −$356 | 25% |
| 35235 | 82 | $189,950 | $1,516 | 5.1% | −$197 | 23% |
| 35205 | 94 | $299,250 | $1,348 | 2.7% | −$961 | 6% |
| 35242 | 159 | $575,000 | $2,912 | 2.7% | −$1,663 | 3% |
Returns by property type and price
| Property type | Listings | Median price | Median est. rent | Median cap rate | Listings that cash-flow |
|---|---|---|---|---|---|
| Single family | 1,028 | $160,000 | $1,271 | 5.2% | 41% |
| Condo | 157 | $249,900 | $1,500 | 3.3% | 13% |
| Townhouse | 49 | $309,000 | $2,109 | 4.5% | 4% |
| Price range | Listings | Median est. rent | Median cap rate | Listings that cash-flow |
|---|---|---|---|---|
| Under $100,000 | 272 | $1,021 | 9.8% | 98% |
| $100,000–$200,000 | 426 | $1,222 | 6.0% | 41% |
| $200,000–$300,000 | 223 | $1,505 | 3.5% | 0% |
| $300,000 and up | 342 | $2,300 | 2.2% | 1% |
Returns by Apri Score (neighborhood rating)
The Apri Score is ApriFind's proprietary 1-to-10 neighborhood rating, built from census-level socioeconomic data including income, education, employment, and housing quality. It compares each neighborhood with others in the same state: 1 is among the strongest, 10 among the weakest. ApriFind shows it on every listing and as a map layer. It's built to show, before you make an offer, whether a high return comes with a weaker location. See the Apri Score for every listing in any city.
| Apri Score | Share of listings | Median price | Median est. rent | Median cap rate | Median monthly cash flow | Listings that cash-flow |
|---|---|---|---|---|---|---|
| 1–3 (strongest) | 42% | $349,999 | $1,988 | 3.1% | −$956 | 10% |
| 4–7 | 30% | $141,000 | $1,244 | 6.1% | −$33 | 46% |
| 8–10 (weakest) | 28% | $115,000 | $1,148 | 6.7% | $34 | 56% |
Based on the 1,068 listings with an Apri Score.
Birmingham is the exception among high cash-flow cities. Listings are spread fairly evenly across Apri Score bands, and the middle band works: 46% of Apri Score 4–7 listings cash-flow on paper, at a median price of $141,000 and a 6.1% cap rate, almost as often as in the weakest areas. Of all the listings that cash-flow, 28% are in areas scoring 1–5, compared with 3% in Cleveland and 1% in Detroit.
That makes Birmingham the most balanced of the top cash-flow markets in our data for investors who want cash flow without buying in the weakest areas: 147 listings in Apri Score 4–7 areas showed positive cash flow. The weakest areas still lead on paper (56%), and they can also bring more turnover, longer vacancies, and older housing than the same 5% vacancy assumption reflects.
Birmingham asking rents by bedrooms
Median asking rent for single-family and townhouse rentals on the market:
| Bedrooms | Median asking rent | Rentals |
|---|---|---|
| 2 | $950 | 177 |
| 3 | $1,200 | 589 |
| 4 | $1,400 | 173 |
| 5+ | $1,868 | 24 |
What these numbers assume
1. Every home is rent-ready. Rent estimates come from comparable rentals currently on the market, which are homes in rentable condition. ApriFind doesn't have condition data yet. A home that needs a roof, HVAC, or a full renovation won't earn these rents until the work is done, and that cost is not included here. The 98% cash-flow rate under $100,000 describes those homes after they're rent-ready. Get an inspection and a repair estimate before relying on any of these numbers.
2. Property tax uses Birmingham's published millage. Birmingham's total property tax is 72.5 mills (state 6.5, Jefferson County 13.5, Birmingham schools 24.0, and the City of Birmingham 28.5), according to the Alabama Department of Revenue's 2025 millage rates (source). Alabama assesses rental property at 20% of market value, twice the 10% ratio for owner-occupied homes, so a rental pays about 1.45% of market value a year. Your parcel's actual bill can differ. If taxes were half a point higher, 31% of listings would still cash-flow; a full point higher, 27%.
3. Rent estimates are estimates. Rent estimates are based on asking rents from comparable rental listings nearby, which can run above what tenants ultimately sign for. Check them against local leasing evidence before relying on them.
4. Financing and expenses. 20% down, 7.0% 30-year fixed mortgage, 5% vacancy, 10% property management, 10% maintenance reserve, insurance, and HOA dues where listed.
5. Some listings are excluded. We left out 71 listings priced far below comparable homes nearby, or whose estimated rent was far above what similar listings nearby earn, along with vacant land. Multi-family buildings (29 listings) are omitted from the tables because too few were available for reliable figures. This "Verify condition" flag is a rough filter: it can't detect a property's actual condition, so homes needing major work remain in these figures.
Methodology
All active for-sale listings with a Birmingham, AL address on October 9, 2026 (data from RentCast), analyzed with ApriFind. Each property's rent comes from ApriFind's proprietary rent model, which considers comparable rentals nearby and how closely they match on factors including location, property type, size, bedrooms, bathrooms, and age. Cap rate is net operating income divided by price; cash flow is rent minus all costs including the mortgage.
Listings change daily. Search Birmingham on ApriFind to see today's listings with your own down payment, rate, tax rate, and expense assumptions.
FAQ
Is Birmingham, AL good for rental property investing? In our October 2026 analysis, 35% of active Birmingham listings showed positive cash flow at 20% down and 7% interest, the third-highest share among the main cities of the 50 largest US metros. Results assume rent-ready homes; repairs on older, low-priced homes can change the picture.
What is the property tax rate on a Birmingham rental property? About 1.45% of market value a year. Birmingham's total millage is 72.5 mills (Alabama Department of Revenue, 2025), and Alabama assesses rental property at 20% of market value, twice the ratio for owner-occupied homes, so landlords pay roughly double a homeowner's rate.
What is the average cap rate in Birmingham? The median cap rate across 1,263 active listings was 4.8%, from about 7.6% in 35208 to under 3% in 35205 and 35242.
Can you find cash flow in better Birmingham neighborhoods? More than in any other top cash-flow market in our data. In our October 2026 analysis, 46% of listings in areas with an Apri Score of 4–7 (ApriFind's 1-to-10 neighborhood rating, where 10 is weakest) showed positive cash flow, and 28% of all cash-flowing listings were in areas scoring 1–5.
Which Birmingham ZIP codes have the best rental returns? 35208 and 35211 had the highest share of listings with positive cash flow (62–67%), with median prices of $100,000–$106,000.
ApriFind provides informational tools only and does not provide investment, financial, legal, or tax advice. Figures are estimates from listing data on one date; actual results vary.