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Alabama Cap Rate Calculator

Calculate cap rates using Alabama market data. Property tax, insurance, vacancy rates, and other defaults are pre-filled with current Alabama averages. Net Operating Income ÷ Property Price

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Property Details

Operating Expenses(Alabama defaults)

Total Annual Expenses$9,667

Alabama Market Context

Avg Cap Rate

7.2%

Median Price

$281K

Property Tax

0.37%

Vacancy Rate

10.1%

Local Factors

  • -Very low property tax rates among the lowest in the nation
  • -Gulf Coast areas carry hurricane and flood insurance surcharges
  • -Strong rental demand in Birmingham and Huntsville metro areas

Sources

World Population Review – Median Home PriceFL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance RatesiPropertyManagement – Vacancy Rates

Cap Rate

2.2%

Low
Net Operating Income$6,113
Gross Income$15,780
Total Expenses$9,667
Alabama Avg Cap Rate7.2%
CAP RATE2.2%
NOI$6,113
Property Tax$1,040
Insurance$2,961
Maintenance$2,810
Management$1,262
Vacancy$1,594

What does this mean?

A cap rate below 4% is typical for premium locations with lower risk but limited cash flow. Common in Class A properties in major metros.

Keep running the numbers

One calculator rarely tells the whole story.

Cap rate tells you the return without financing. Now see what happens when you add a mortgage with Alabama rates.

Cash on Cash Return

Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.

Calculate

NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

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Gross Rent Multiplier

Quickly screen and compare rental properties by how many years of gross income cover the purchase price.

Calculate

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