Cash Flow Investing in Huntsville, AL

Cash Flow Score: 5.4/10Ranked #8 of 52 markets

Data-driven cash flow analysis for Huntsville, AL — score breakdown, key investment metrics, and how it compares to other markets.

Last updated: May 2026

Score Breakdown

Cash Flow Score:5.4
Rent-to-Price Ratio(30%)
0.58%3.1
Cap Rate(30%)
7.1%4.8
Low Vacancy(20%)
7.0%6.3
Low Property Taxes(20%)
0.42%8.6

Key Metrics for Cash Flow

Cap Rate

7.1%

Good

Rent-to-Price

0.58%

Below 1% rule

Vacancy Rate

7.0%

Healthy

Property Tax

0.42%

Very low

Cash Flow Investment Thesis

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.

How Huntsville Compares

RankCityCash Flow ScoreCap RateMedian Price
#5Toledo, OH5.49.0%$88,000
#6Dayton, OH5.48.8%$95,000
#7Birmingham, AL5.48.5%$125,000
#8Huntsville, AL5.47.1%$260,000
#9Indianapolis, IN5.38.1%$175,000
#10Tulsa, OK5.27.9%$155,000
#11Louisville, KY5.27.3%$195,000

Showing markets ranked near Huntsville for this strategy.

Quick Math: Estimated Annual Return

Annual Gross Rent ($1,500/mo)$18,000
Less: Vacancy (7%)-$1,260
Less: Property Tax (0.42%)-$1,092
Less: Insurance (~0.5%)-$1,300
Less: Maintenance (~1.5%)-$3,900
Estimated NOI$10,448
Implied Cap Rate4.0%

Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.

Frequently Asked Questions

What is the cash flow score for Huntsville, AL?

Huntsville, AL scores 5.4 out of 10 on our cash flow score, ranking #8 out of 52 markets we track. Weighted composite: rent-to-price ratio (30%), cap rate (30%), low vacancy (20%), low property taxes (20%). Scale 0–10.

Is Huntsville a good city for cash flow investing?

Yes — Huntsville, AL ranks in the top 10 for cash flow investing with a score of 5.4/10. Key factors include a median home price of $260,000, cap rate of 7.1%, and positive population growth of +14.2%.

What is the average cap rate in Huntsville?

The average cap rate in Huntsville, AL is 7.1%. The median home price is $260,000 with a median monthly rent of $1,500, resulting in a rent-to-price ratio of 0.58%.

What are the property taxes in Huntsville?

The effective property tax rate in Huntsville, AL is 0.42%. On a $260,000 property, that translates to approximately $1,092 per year in property taxes.

How does Huntsville compare to other cash flow markets?

Among our 52 tracked markets, Huntsville, AL ranks #8 for cash flow investing. It performs above average for this strategy.

Does Huntsville meet the 1% rule?

Huntsville, AL has a rent-to-price ratio of 0.58%, which falls significantly below the 1% rule. However, the 1% rule is a rough guideline — individual deals can still cash flow well in this market.

Run Your Own Numbers for Huntsville

Use our free calculators pre-filled with Huntsville, AL market data, or adjust the numbers for your specific deal.