Skip to Content

DSCR MARKET DATA · BIRMINGHAM, AL · #3 NATIONAL 2026

Birmingham — Southeast Cash-Flow DSCR With 0.4% Property Tax

$160K SFR · $1,360 rent · 0.85% R/P · DSCR 1.20–1.50 across 5 zones · 0.4% effective property tax (one of the lowest in the US).

Get Pre-Qualified for a DSCR Loan

DSCR Market Data · Birmingham, AL · #3 national

Birmingham, AL DSCR Market Snapshot · 2026 Q1

0.85%

R/P ratio

Birmingham MSA · all-property

1.32

Avg DSCR

Across 5 zones · 80% LTV / 7.5%

$160K

Median SFR price

Zillow ZHVI · 2026 Q1

$1,360

Median monthly rent

Zillow ZORI · 2026 Q1

CASH-FLOW-VALIDATED ZONES

Birmingham DSCR Neighborhoods That Pencil in 2026

Crestwood

ZIP 35213

$165K–$245K · DSCR 1.20–1.45 · East workforce

East Lake

ZIP 35210

$115K–$175K · DSCR 1.30–1.55 · Inner-ring workforce SFR

Tarrant

ZIP 35217

$95K–$155K · DSCR 1.35–1.60 · North workforce + industrial

Center Point

ZIP 35215

$125K–$185K · DSCR 1.25–1.50 · Northeast workforce suburb

Five Points West

ZIP 35221

$105K–$165K · DSCR 1.30–1.55 · West workforce SFR

WHY BIRMINGHAM WORKS

Why Birmingham for DSCR Investors

Birmingham combines low entry prices, the third-best R/P in the top 15 (0.85%), and 0.4% effective property tax — one of the lowest in the United States. UAB Medicine, Regions Bank, BBVA, and a steel + automotive industrial base anchor stable employment. The structural advantage compounds: every rental dollar flows through with minimal tax drag.

  • Property tax 0.4% effective — one of the lowest in the US
  • R/P 0.85% — third-best in the top 15
  • UAB Medicine + Regions Bank + BBVA + industrial employment anchors
  • Five validated zones span $95K–$245K SFR — broad inventory access
  • Section-8 demand stable via Birmingham Housing Authority

Birmingham DSCR Market Data — read the full market intel →

PRE-QUALIFY IN 24 HOURS

Ready to Run Birmingham Numbers?

Soft credit pull. No income docs. No tax returns. DSCR pre-qual in 24 hours.

Pre-Qualify for DSCR

Clean files close in 21-30 days · 80% LTV purchase · 75% cash-out refi

HOW BIRMINGHAM COMPARES

How Birmingham Compares to Other Top-Tier DSCR Markets

Birmingham's 0.4% property tax is the structural differentiator vs. Cleveland (2.2% tax) and Pittsburgh (2.0% tax). The R/P 0.85% is third-best in the top 15. The combination delivers the strongest after-tax DSCR yield in the Southeast.

See all DSCR markets →

DATA SOURCES

Where This Birmingham DSCR Data Comes From

Median price + rent: Zillow ZHVI / ZORI 2026 Q1 (metro single-family series, reconciled against Birmingham Association of REALTORS MLS comps). R/P derived from Zillow + ATTOM Data. Vacancy from BLS CEW 2026 Q1. Property tax from Jefferson County assessor. HUD FMR via huduser.gov. Last refreshed 2026-05-16.

Market data is informational only and does not constitute a loan offer. Verify all subject-property numbers via comparative market analysis before underwriting.

FREQUENTLY ASKED

Birmingham DSCR Lending Questions

Birmingham is the #3 national DSCR market in 2026. R/P 0.85%, property tax 0.4% (one of the lowest in the US), and broad workforce-zone inventory across five validated neighborhoods. The combination delivers strong after-tax DSCR yield.

Across the five validated zones, DSCR averages 1.32 at 80% LTV / 7.5%. Tarrant workforce + industrial-adjacent SFR pencils 1.35–1.60. East Lake runs 1.30–1.55. Crestwood walkable workforce runs 1.20–1.45.

Yes — Crestwood (35213), East Lake (35210), Tarrant (35217), Center Point (35215), Five Points West (35221). Tarrant and Five Points West have the highest workforce-zone R/P; East Lake balances cash-flow with stabilized inventory.

Birmingham loan amounts typically $75K–$200K matched to Birmingham SFR inventory. Tarrant and Five Points West SFR sometimes falls below $75K DSCR-lender minimums.

Birmingham's 0.4% property tax + Section-8 inventory in East Lake and Five Points West rewards investors who pre-qualify with Birmingham-specialist PM in place. Run the DSCR calculator with Birmingham tax (0.4%) and insurance defaults.

Homestead Capital Partners NMLS #2587985 | NEXA Mortgage, LLC NMLS #1660690 (DBA NEXA Lending)

5559 S Sossaman Rd, Bldg #1 Ste #101, Mesa, AZ 85212 | Licensed in 48 states (excluding New York and Massachusetts) | Equal Housing Lender

DSCR loans are business-purpose investor mortgages — not consumer mortgages. Terms, rates, and product availability depend on the lender, the property, and the borrower's qualifications. Nothing on this page is a commitment to lend. Verification, not guarantee.