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Birmingham vs Tuscaloosa for Rental Property Investing

Side-by-side comparison of Birmingham, AL and Tuscaloosa, AL — cap rates, rent, prices, and investment metrics.

Birmingham wins 4–3 across key metrics
Birmingham leads on cash flow (5.54% vs 5.23% cap rate) · Tuscaloosa leads on population growth
Metric
Birmingham, AL
Tuscaloosa, AL
Est. Cap Rate
5.54%
5.23%
Median Home Price
$185,000
$195,000
Median Monthly Rent
$1,120
$1,120
1% Rule
0.61%
0.57%
GRM
13.8x
14.5x
Price / Income
4.6x
4.6x
Property Tax Rate
0.42%
0.43%
Vacancy Rate
7%
6.2%
Population Growth
0.3% / yr
0.8% / yr
Annual Appreciation
2.1%
2.4%
Population
197,575
110,000
Median Income
$40,100
$42,800

Birmingham vs Tuscaloosa: Which Is Better for Investors?

Cash flow: Birmingham has the edge with an estimated cap rate of 5.54% compared to Tuscaloosa's 5.23%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $185,000 in Birmingham vs $195,000 in Tuscaloosa, while rents come in at $1,120/mo and $1,120/mo respectively.

Growth & appreciation: Tuscaloosa is growing faster at 0.8% annually vs Birmingham's 0.3%. Tuscaloosa leads on home value appreciation at 2.4% per year.

Costs & risk: Property taxes are 0.42% in Birmingham vs 0.43% in Tuscaloosa. Vacancy rates of 7% and 6.2% are mixed — Tuscaloosa has the tighter rental market.

Bottom line: Birmingham edges out Tuscaloosa on most key metrics. With a 5.54% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Birmingham or Tuscaloosa.

Birmingham, AL
5.54% cap rate · $185,000 median · $1,120/mo
Full analysis →
Tuscaloosa, AL
5.23% cap rate · $195,000 median · $1,120/mo
Full analysis →
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