Enterprise is one of the most affordable markets in the country in the South with a small but investable metro of 50,000. At a 7.89% estimated cap rate, this is a high-yield market where rents of $1,420/mo lag behind home prices. With a median home price of $175,000 and steady population growth supports long-term rental demand, Enterprise stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
At a 0.8% rent-to-price ratio, Enterprise falls just below the 1% rule threshold. A median-priced property at $175,000 with $1,420/mo rent yields approximately $1,151/mo in NOI — workable with favorable financing but not a slam-dunk cash flow market.
With 20% down ($35K) on a 7% conventional loan, estimated monthly cash flow is $220 — a 7.5% cash-on-cash return. That's strong enough to weather vacancies and unexpected repairs without dipping into reserves.
The 10.3x gross rent multiplier and 6.4% vacancy rate position Enterprise as a value-oriented market. With annual appreciation at 2.3%, total returns (cash flow + equity growth) run approximately 10.2% before financing leverage.
Pre-filled with Enterprise medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Enterprise.
Enterprise, AL has a population of 50,000 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $175,000 paired with median rents of $1,420/mo produces an estimated cap rate of 7.89%.
Property taxes at 0.42% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 6.4% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.5x, homes cost about 3.5 times the local median income of $49,614. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Enterprise offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.