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Cap Rate Analysis: Mobile, AL

Investment metrics, interactive calculators, and data-driven analysis for Mobile rental properties.

Moderate — source deals carefully
Based on $155,000 median price and $980/mo median rent
Est. Cap Rate
5.78%
1% Rule
0.63%
Fails
GRM
13.2x
Price / Income
3.8x

Market Data

Median Home Price$155,000
Median Monthly Rent$980
Property Tax Rate0.44%
Population188,720
Population Growth0.1% / yr
Median Household Income$40,800
Vacancy Rate7.5%
Annual Appreciation1.8%

Cap Rate Calculator — Mobile

Pre-filled with Mobile medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.44% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.81%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,458
net operating income
Gross Rent Multiplier
13.2x
Good (<15)
1% Rule
0.63%
✗ Fails
Monthly Cash Flow
$622
before debt service
Annual Breakdown
Gross Rental Income$11,760
Less Vacancy−$882
Effective Income$10,878
Less Operating Expenses−$3,420
Net Operating Income$7,458

Cash-on-Cash Return — Mobile

Factor in financing to see your actual return on invested capital in Mobile.

$
$38,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.25%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$43,400
$38,750 down + $4,650 closing
Monthly Mortgage
$758
on $116K loan
Monthly Cash Flow
$-190
after all expenses
Annual Cash Flow
$-2,278
before taxes
Cash Flow Breakdown
Monthly Rent$980
Less Expenses−$412
Less Mortgage−$758
Monthly Cash Flow$-190

Is Mobile a Good Place to Invest in Rental Property?

Mobile, AL has a population of 188,720 and has been growing at 0.1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $155,000 paired with median rents of $980/mo produces an estimated cap rate of 5.78%.

Property taxes at 0.44% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 7.5% runs above average, which increases cash flow volatility and warrants conservative underwriting.

At a price-to-income ratio of 3.8x, homes cost about 3.8 times the local median income of $40,800. 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 1.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Mobile presents moderate opportunities. Cap rates near 5.78% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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