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Decatur vs Enterprise for Rental Property Investing

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

Enterprise wins 3–0 across key metrics
Enterprise leads on cash flow (7.89% vs 4.32% cap rate) · Decatur leads on population growth
Metric
Decatur, AL
Enterprise, AL
Est. Cap Rate
4.32%
7.89%
Median Home Price
$225,000
$175,000
Median Monthly Rent
$1,110
$1,420
1% Rule
0.49%
0.81%
GRM
16.9x
10.3x
Price / Income
4.5x
3.5x
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

Decatur vs Enterprise: Which Is Better for Investors?

Cash flow: Enterprise has the edge with an estimated cap rate of 7.89% compared to Decatur's 4.32%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $225,000 in Decatur vs $175,000 in Enterprise, while rents come in at $1,110/mo and $1,420/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

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

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

Entry point: Enterprise offers a lower entry at $175K vs Decatur's $225K — a difference of $50K. With a 20% down payment, that's $35K vs $45K. Enterprise combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Enterprise edges out Decatur on most key metrics. With a 7.89% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Decatur or Enterprise.

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Decatur, AL
4.32% cap rate · $225,000 median · $1,110/mo
Full analysis →
Enterprise, AL
7.89% cap rate · $175,000 median · $1,420/mo
Full analysis →

Frequently Asked Questions

Is Decatur or Enterprise better for rental investing?
Enterprise wins 3–0 across our 7 key metrics. Enterprise's 7.89% cap rate and $175K median price give it the edge overall.
What is the cap rate difference between Decatur and Enterprise?
Decatur has a 4.32% cap rate vs Enterprise's 7.89% — a difference of 3.57 percentage points. This is a significant gap that meaningfully impacts cash flow. For context, the national average is 3.81%.
Which city has lower property taxes?
Enterprise has lower property taxes at 0.42% vs 0.42%. On a $200K property, that's a difference of approximately $210/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Decatur is growing at 0.8% annually vs Enterprise's 0.8%. Moderate growth provides stable demand. Decatur's appreciation rate of 2.3% also leads on home value growth.

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