Cap Rate in Huntsville, AL

2026 Market Overview for Real Estate Investors

Avg Cap Rate

7.1%

#16 of 50 markets

Median Home Price

$260,000

Purchase price

Median Monthly Rent

$1,500

$18,000/yr gross

Rent-to-Price Ratio

0.58%

Moderate

Cap Rate Rating

Good

Strong return relative to market norms. Common in cash-flow-focused markets in the Midwest and South.

Market Snapshot

Population	225,492
5-Year Population Growth	+14.2%
Median Household Income	$62,000
Vacancy Rate	5.5%
Property Tax Rate	0.42%($1,092/yr)

Investor Takeaway

Huntsville is the fastest-growing city in Alabama with massive aerospace and defense investment. Low property taxes and explosive population growth make it a strong appreciation + cash-flow hybrid play.

Quick Math

Estimated annual numbers for a median-priced property in Huntsville, AL before financing:

Annual Gross Rent$18,000

Less Vacancy (5.5%)($990)

Less Property Tax (0.42%)($1,092)

Less Est. Insurance + Maintenance($5,200)

Estimated NOI$10,718

Implied Cap Rate4.1%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.