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Dothan vs Anniston for Rental Property Investing

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

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Dothan wins 4–3 across key metrics
Dothan leads on cash flow (5.80% vs 4.86% cap rate) · Anniston leads on population growth
Metric
Dothan, AL
Anniston, AL
Est. Cap Rate
5.80%
4.86%
Median Home Price
$190,000
$170,000
Median Monthly Rent
$1,190
$920
1% Rule
0.63%
0.54%
GRM
13.3x
15.4x
Price / Income
4.3x
3.4x
Property Tax Rate
0.4%
0.42%
Vacancy Rate
6.8%
6.4%
Population Growth
0.3% / yr
0.8% / yr
Annual Appreciation
2%
2.3%
Population
72,500
50,000
Median Income
$44,200
$49,614

Dothan vs Anniston: Which Is Better for Investors?

Cash flow: Dothan has the edge with an estimated cap rate of 5.80% compared to Anniston's 4.86%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $190,000 in Dothan vs $170,000 in Anniston, while rents come in at $1,190/mo and $920/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Anniston is growing faster at 0.8% annually vs Dothan's 0.3%. Anniston leads on home value appreciation at 2.3% per year.

Costs & risk: Property taxes are 0.4% in Dothan vs 0.42% in Anniston. Vacancy rates of 6.8% and 6.4% are mixed — Anniston has the tighter rental market.

Entry point: Anniston offers a lower entry at $170K vs Dothan's $190K — a difference of $20K. With a 20% down payment, that's $34K vs $38K. Dothan's higher price may be justified by better market fundamentals.

Bottom line: Dothan edges out Anniston on most key metrics. With a 5.80% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Dothan or Anniston.

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Dothan, AL
5.80% cap rate · $190,000 median · $1,190/mo
Full analysis →
Anniston, AL
4.86% cap rate · $170,000 median · $920/mo
Full analysis →

Frequently Asked Questions

Is Dothan or Anniston better for rental investing?
Dothan wins 4–3 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Dothan's 5.80% cap rate and $190K median price edge out Anniston's 4.86% at $170K.
What is the cap rate difference between Dothan and Anniston?
Dothan has a 5.80% cap rate vs Anniston's 4.86% — a difference of 0.95 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?
Dothan has lower property taxes at 0.4% vs 0.42%. On a $180K property, that's a difference of approximately $46/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Anniston is growing at 0.8% annually vs Dothan's 0.3%. Moderate growth provides stable demand. Anniston's appreciation rate of 2.3% also leads on home value growth.

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