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MarketsAlabamaOzark

Cap Rate Analysis: Ozark, AL

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

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Strong investment fundamentals
Based on $155,000 median price and $1,310/mo median rent
Est. Cap Rate
8.27%
1% Rule
0.85%
Fails
GRM
9.9x
Price / Income
3.1x

Market Data

Median Home Price$155,000
Median Monthly Rent$1,310
Property Tax Rate0.42%
Population50,000
Population Growth0.8% / yr
Median Household Income$49,614
Vacancy Rate6.4%
Annual Appreciation2.3%

Cap Rate Calculator — Ozark

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.42% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
6.85%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$10,610
net operating income
Gross Rent Multiplier
9.9x
Good (<15)
1% Rule
0.85%
✗ Fails
Monthly Cash Flow
$884
before debt service
Annual Breakdown
Gross Rental Income$15,720
Less Vacancy−$1,006
Effective Income$14,714
Less Operating Expenses−$4,104
Net Operating Income$10,610
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Cash-on-Cash Return — Ozark

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

$
$38,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
0.06%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
$2
after all expenses
Annual Cash Flow
$26
before taxes
Cash Flow Breakdown
Monthly Rent$1,310
Less Expenses−$550
Less Mortgage−$758
Monthly Cash Flow$2

Is Ozark a Good Place to Invest in Rental Property?

Ozark, 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 $155,000 paired with median rents of $1,310/mo produces an estimated cap rate of 8.27%.

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 3.1x, homes cost about 3.1 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: Ozark offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.

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