Updated 2026 · Based on median market data for Daphne, AL
Daphne sits in the South with a population of 50,000 growing at 0.8% annually. The median home costs $365,000 while rents average $1,690/mo, producing an estimated cap rate of 3.98%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.
Daphne works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 3.98% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $365,000 median — around $292,000 or less. At this price point with $1,690/mo rents, your cap rate improves to roughly 5.3%. Factor in 0.42% property taxes ($1,533/yr), budget 5% of gross rent for maintenance, and underwrite to a 6.4% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $2,170.
Higher price points mean more capital at risk and tighter cash flow margins — ensure you have adequate reserves. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Daphne property using our cap rate calculator (pre-filled with Daphne data). Compare Daphne against similar markets in the South region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.
Daphne vs Alabama state average and national average across key investment metrics. Daphne beats the national average but trails the Alabama average on cap rate.