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MarketsAlabamaEnterpriseRent Analysis

Rent Analysis: 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

Rent Overview

The median monthly rent in Enterprise, AL is $1,420, translating to $17,040 in annual gross rental income per unit. The rent-to-price ratio is 0.81% — below the 1% rule but within a range where deals can work with good financing.

Rent Affordability

Renters in Enterprise spend approximately 34% of the local median household income ($49,614) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting rental demand.

Vacancy & Tenant Demand

The vacancy rate in Enterprise is 6.4%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.8% annually provides stable demand.

Gross Rent Multiplier

Enterprise's GRM (price divided by annual rent) is 10.3x. A GRM under 12x is excellent — it means you're paying less than 12 years of gross rent for the property, suggesting strong income relative to price. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.

Rental Income Projection

At the median rent of $1,420/mo, a single-family rental in Enterprise generates approximately $17,040 in gross annual income. After accounting for 6.4% vacancy ($1,091 lost), property taxes of $735, insurance (~$700), and maintenance (~$700), the estimated NOI is $13,814 per year, or $1,151/mo.

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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

What is the average rent in Enterprise, AL?
The median monthly rent in Enterprise is $1,420, or $17,040 per year. This is 7% below the national average of $1,524/mo. Rent levels vary by neighborhood, property condition, and unit size — always verify comparable rents for your target property.
Is Enterprise a good rental market for landlords?
With a rent-to-price ratio of 0.81%, Enterprise falls below the 1% rule, meaning cash flow depends on buying below median or achieving above-median rents. The 6.4% vacancy rate is moderate.
How does Enterprise rent compare to Alabama averages?
Enterprise's median rent of $1,420/mo is 5% above the Alabama average of $1,347/mo. Home prices at $175K are below the state average of $227K, giving Enterprise a rent-to-price ratio of 0.81% vs 0.59% statewide.
What is a good rent-to-price ratio?
The 1% rule says monthly rent should be at least 1% of purchase price ($1,000/mo rent on a $100,000 home). Enterprise's ratio is 0.81%. Generally, above 0.8% is workable with good financing, above 1% is strong, and above 1.2% is exceptional. The national average across the 300+ cities we track is 0.46%.
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Explore Enterprise & Related Markets

More Enterprise Guides

Rental Property Investment GuideProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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