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Daphne vs Decatur for Rental Property Investing

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

Decatur wins 3–0 across key metrics
Decatur leads on cash flow (4.32% vs 3.98% cap rate) · Daphne leads on population growth
Metric
Daphne, AL
Decatur, AL
Est. Cap Rate
3.98%
4.32%
Median Home Price
$365,000
$225,000
Median Monthly Rent
$1,690
$1,110
1% Rule
0.46%
0.49%
GRM
18.0x
16.9x
Price / Income
7.4x
4.5x
Property Tax Rate
0.42%
0.42%
Vacancy Rate
6.4%
6.4%
Population Growth
0.8% / yr
0.8% / yr
Annual Appreciation
2.3%
2.3%
Population
50,000
50,000
Median Income
$49,614
$49,614

Daphne vs Decatur: Which Is Better for Investors?

Cash flow: Decatur has the edge with an estimated cap rate of 4.32% compared to Daphne's 3.98%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $365,000 in Daphne vs $225,000 in Decatur, while rents come in at $1,690/mo and $1,110/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Daphne is growing faster at 0.8% annually vs Decatur's 0.8%. Daphne leads on home value appreciation at 2.3% per year.

Costs & risk: Property taxes are 0.42% in Daphne vs 0.42% in Decatur. Vacancy rates of 6.4% and 6.4% are mixed — Decatur has the tighter rental market.

Entry point: Decatur offers a lower entry at $225K vs Daphne's $365K — a difference of $140K. With a 20% down payment, that's $45K vs $73K. Decatur combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Decatur edges out Daphne on most key metrics. While cap rates are moderate at 4.32%, Decatur's overall profile is stronger. Use our free calculators to model specific deals in Daphne or Decatur.

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Daphne, AL
3.98% cap rate · $365,000 median · $1,690/mo
Full analysis →
Decatur, AL
4.32% cap rate · $225,000 median · $1,110/mo
Full analysis →

Frequently Asked Questions

Is Daphne or Decatur better for rental investing?
Decatur wins 3–0 across our 7 key metrics. Decatur's 4.32% cap rate and $225K median price give it the edge overall.
What is the cap rate difference between Daphne and Decatur?
Daphne has a 3.98% cap rate vs Decatur's 4.32% — a difference of 0.34 percentage points. This is a relatively small difference — other factors like growth, taxes, and local market conditions may matter more. For context, the national average is 3.81%.
Which city has lower property taxes?
Decatur has lower property taxes at 0.42% vs 0.42%. On a $295K property, that's a difference of approximately $588/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Daphne is growing at 0.8% annually vs Decatur's 0.8%. Moderate growth provides stable demand. Daphne's appreciation rate of 2.3% also leads on home value growth.

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