Birmingham, AL Cap Rate Calculator
Calculate the cap rate (capitalization rate) for any rental property in Birmingham. Based on current Birmingham market data.
Birmingham Market Snapshot
$135,000
$1,050/mo
9%
0.5%
$9,843
1.28
Based on median price, 25% down, 6.5% rate, 30-year term.
Run Your Birmingham Numbers
Plug in any Birmingham property to get Cap Rate, NOI, cash flow, and more.
How Cap Rate Works in Birmingham
The Birmingham rental market has a median home price of $135,000 and median rent of $1,050/month, which puts the average cap rate (capitalization rate) at roughly 9% for a typical single-family rental. That means for every dollar of property value, you can expect about 9 cents in annual net income before debt service.
With a 25% down payment ($33,750) and a 6.5% mortgage rate, a median Birmingham rental generates roughly $9,843/yr in NOI against $7,680/yr in debt service, giving you a DSCR of 1.28. That comfortably exceeds the 1.25 minimum most DSCR lenders require.