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MarketsAlabamaAuburn

Cap Rate Analysis: Auburn, AL

Investment metrics, interactive calculators, and data-driven analysis for Auburn rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $340,000 median price and $1,640/mo median rent
Est. Cap Rate
4.20%
1% Rule
0.48%
Fails
GRM
17.3x
Price / Income
6.9x

Market Data

Median Home Price$340,000
Median Monthly Rent$1,640
Property Tax Rate0.42%
Population50,000
Population Growth0.8% / yr
Median Household Income$49,614
Vacancy Rate6.4%
Annual Appreciation2.3%

Cap Rate Calculator — Auburn

Pre-filled with Auburn medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.42% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.56%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,096
net operating income
Gross Rent Multiplier
17.3x
High (>15)
1% Rule
0.48%
✗ Fails
Monthly Cash Flow
$1,008
before debt service
Annual Breakdown
Gross Rental Income$19,680
Less Vacancy−$1,260
Effective Income$18,420
Less Operating Expenses−$6,324
Net Operating Income$12,096
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Cash-on-Cash Return — Auburn

Factor in financing to see your actual return on invested capital in Auburn.

$
$85,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.97%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$95,200
$85,000 down + $10,200 closing
Monthly Mortgage
$1,662
on $255K loan
Monthly Cash Flow
$-711
after all expenses
Annual Cash Flow
$-8,537
before taxes
Cash Flow Breakdown
Monthly Rent$1,640
Less Expenses−$689
Less Mortgage−$1,662
Monthly Cash Flow$-711

Is Auburn a Good Place to Invest in Rental Property?

Auburn, AL has a population of 50,000 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $340,000 paired with median rents of $1,640/mo produces an estimated cap rate of 4.20%.

Property taxes at 0.42% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.4% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 6.9x, homes cost about 6.9 times the local median income of $49,614. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Auburn presents moderate opportunities. Cap rates near 4.20% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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