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MarketsAlabamaOzarkRental Property Investment Guide

Rental Property Investment Guide: Ozark, AL

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

Cap Rate
8.27%
Median Price
$155K
Rent/Mo
$1,310
1% Rule
0.85%
Fails

Market Snapshot

Ozark sits in the South with a population of 50,000 growing at 0.8% annually. The median home costs $155,000 while rents average $1,310/mo, producing an estimated cap rate of 8.27%. This puts Ozark in the upper tier of investable US markets.

Who Should Invest Here

Ozark is ideal for cash flow investors, BRRRR practitioners, and anyone building a portfolio of affordable, income-producing rentals. The low price point ($155,000) means you can get started with a $31,000 down payment, and the 8.27% cap rate should produce positive cash flow even with conservative financing.

Deal Criteria for Ozark

Target properties priced 15-25% below the $155,000 median — around $124,000 or less. At this price point with $1,310/mo rents, your cap rate improves to roughly 10.6%. Factor in 0.42% property taxes ($651/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 $979.

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 Ozark property using our cap rate calculator (pre-filled with Ozark data). Compare Ozark 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 Ozark Compares

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

Metric
Ozark
Alabama Avg
National Avg
Cap Rate
8.27%
5.70%
3.81%
Median Price
$155K
$227K
$333K
Median Rent
$1,310
$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
Ozark, AL
8.3%
$155K
$1,310
0.42%
Batesville, AR
5.4%
$155K
$940
0.61%
London, KY
6.7%
$155K
$1,130
0.81%
Muskogee, OK
7.2%
$155K
$1,220
0.88%
Albany, GA
5.7%
$160K
$1,050
0.93%

Frequently Asked Questions

Is Ozark, AL a good place to invest in rental property?
Ozark has an estimated cap rate of 8.27%, which is above the national average of 3.81%. With median home prices at $155K and rents of $1,310/mo, Ozark 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 Ozark?
The estimated cap rate for Ozark is 8.27%, based on median home prices of $155K, median rents of $1,310/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 Ozark?
The median home price in Ozark is $155,000, which is 54% below the national average of $333,419. A 20% down payment would be approximately $31,000. Investment properties in Ozark range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Ozark property taxes for investors?
Ozark'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 $155K property, annual taxes are approximately $651 ($54/mo). Low property taxes are a significant cash flow advantage here.
Full Ozark Analysis →Cap Rate CalculatorBRRRR Calculator

Explore Ozark & Related Markets

More Ozark Guides

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

Similar Markets in the South

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Enterprise, AL$175K · $1,420/mo
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Vidalia, GA$165K · $1,400/mo
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