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Birmingham, AL, Investor Yield Index

Yes, a median Birmingham rental cash-flows and clears a DSCR loan today. It scores 100/100 (grade A) and ranks #3 of 18 tracked metros. At the Birmingham-Hoover median of $122,274 renting near $1,448/mo, the estimated DSCR is 1.45 and cash-on-cash is 9.50% at a 6.80% loan rate, which clears the 1.2 lender minimum.

Prices and rents are live Zillow medians. The 6.80% 30-year rate is a current market estimate. Neither is a lender quote, so run your real numbers below.

30-yr mortgage
6.80%
DSCR loan
7.75%
Hard money
11.50%
Data source
Live Jun 19, 2026
A

Index 100/100 · rank #3

Cap rate

8.53%

Gross yield

14.21%

Median price

$122,274

DSCR

1.45

Cash-on-cash

9.50%

Monthly rent

$1,448

GRM

7.04
Clears the DSCR line. At 6.80% financing and 25% down the estimated 1.45 DSCR beats the 1.2 lender minimum, so rent covers the debt with room to spare. Cash-on-cash runs 9.50% on the cash you put in. Only 4 of the 18 tracked metros clear this line, and Birmingham is one of them.

Run the numbers on a Birmingham deal

Pre-filled with Birmingham medians. Adjust price, rent, and rate to your actual deal.

8.53%
Cap rate · DSCR 1.45 · cash-on-cash 9.50%
Gross yield
14.21%
Cap rate
8.53%
NOI / yr
$10,426
Loan amount
$91,706
Monthly P&I
$598
DSCR
1.45
Annual cash flow
$3,251
Cash-on-cash
9.50%
GRM
7.04
Rent / price
1.18%

Assumptions: 25% down + 3% closing costs, 40% opex/vacancy load 30-year amortization. Lenders typically require DSCR ≥ 1.2. Estimates, not a quote.

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Common questions about Birmingham

Is Birmingham, AL a good market for rental investors in 2026?

On the Investor Yield Index it scores 100/100 (grade A), ranking #3 of 18 tracked metros. The median price is $122,274 with rent around $1,448/mo, producing an estimated 8.53% cap rate and 1.45 DSCR at a 6.80% financing rate. At today's rates only 4 of the 18 tracked metros clear the 1.2 DSCR line on default terms, so the score is best read as where Birmingham stands relative to other markets.

What is the cap rate in Birmingham?

The model estimates a 8.53% cap rate at the median price-to-rent ratio, assuming a 40% operating-expense load. Your actual cap rate depends on the specific property and expenses.

Will a rental in Birmingham qualify for a DSCR loan?

Yes, the estimated DSCR of 1.45 clears the typical 1.2 lender minimum at prevailing rates.

Markets ranked near Birmingham

The closest metros above and below Birmingham on the index, plus the top markets for comparison.

Cleveland, OH

100 · #1 · grade A

Memphis, TN

100 · #2 · grade A

Chicago, IL

100 · #4 · grade A

Tampa, FL

89 · #5 · grade A

Indianapolis, IN

85 · #6 · grade A

Kansas City, MO

68 · #7 · grade A

See all 18 markets →

Index assumptions, 25% down, a 40% operating-expense load, 30-year amortization, and a 6.80% loan rate. DSCR is net operating income divided by annual debt service, lenders typically want at least 1.2. Cap rate, gross yield, DSCR, and cash-on-cash are weighted 30, 20, 30, and 20 percent. Prices and rents are live Zillow medians for the 18 tracked metros, the 6.80% 30-year rate is a current market estimate, and the numbers are for relative comparison, not lender quotes or investment advice.