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MarketsAlabamaEnterpriseRental Property Investment Guide

Rental Property Investment Guide: Enterprise, AL

Updated 2026 · Based on median market data for Enterprise, AL

Cap Rate
7.89%
Median Price
$175K
Rent/Mo
$1,420
1% Rule
0.81%
Fails

Market Snapshot

Enterprise sits in the South with a population of 50,000 growing at 0.8% annually. The median home costs $175,000 while rents average $1,420/mo, producing an estimated cap rate of 7.89%. This puts Enterprise in the upper tier of investable US markets.

Who Should Invest Here

Enterprise is ideal for cash flow investors, BRRRR practitioners, and anyone building a portfolio of affordable, income-producing rentals. The low price point ($175,000) means you can get started with a $35,000 down payment, and the 7.89% cap rate should produce positive cash flow even with conservative financing.

Deal Criteria for Enterprise

Target properties priced 15-25% below the $175,000 median — around $140,000 or less. At this price point with $1,420/mo rents, your cap rate improves to roughly 10.2%. Factor in 0.42% property taxes ($735/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 $1,092.

Risks and Considerations

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.

Next Steps

Run the numbers on a specific Enterprise property using our cap rate calculator (pre-filled with Enterprise data). Compare Enterprise against similar markets in the South region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

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How Enterprise Compares

Enterprise vs Alabama state average and national average across key investment metrics. Enterprise outperforms both benchmarks on cap rate.

Metric
Enterprise
Alabama Avg
National Avg
Cap Rate
7.89%
5.70%
3.81%
Median Price
$175K
$227K
$333K
Median Rent
$1,420
$1,347
$1,524
Property Tax
0.42%
0.42%
1.08%
Vacancy
6.4%
6.4%
5.6%
Pop. Growth
0.8%/yr
0.8%/yr
0.9%/yr

Nearby South Markets

City
Cap Rate
Price
Rent
Tax
Enterprise, AL
7.9%
$175K
$1,420
0.42%
Shreveport, LA
6.9%
$175K
$1,300
0.54%
Ardmore, OK
5.9%
$175K
$1,170
0.88%
Houma, LA
7.1%
$175K
$1,320
0.54%
Murray, KY
5.8%
$175K
$1,140
0.81%

Frequently Asked Questions

Is Enterprise, AL a good place to invest in rental property?
Enterprise has an estimated cap rate of 7.89%, which is above the national average of 3.81%. With median home prices at $175K and rents of $1,420/mo, Enterprise offers strong cash flow fundamentals for rental investors. Population growth of 0.8% and 6.4% vacancy rate suggest moderate rental demand.
What is the average cap rate in Enterprise?
The estimated cap rate for Enterprise is 7.89%, based on median home prices of $175K, median rents of $1,420/mo, a 0.42% property tax rate, and 6.4% vacancy. This compares to a 5.70% average across Alabama and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in Enterprise?
The median home price in Enterprise is $175,000, which is 48% below the national average of $333,419. A 20% down payment would be approximately $35,000. Investment properties in Enterprise range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Enterprise property taxes for investors?
Enterprise's effective property tax rate is 0.42%, which is above the Alabama average of 0.42% and below the national average of 1.08%. On a $175K property, annual taxes are approximately $735 ($61/mo). Low property taxes are a significant cash flow advantage here.
Full Enterprise Analysis →Cap Rate CalculatorBRRRR Calculator

Explore Enterprise & Related Markets

More Enterprise Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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