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Cap Rate Analysis: Talladega, AL

Investment metrics, interactive calculators, and data-driven analysis for Talladega 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 $175,000 median price and $1,290/mo median rent
Est. Cap Rate
7.06%
1% Rule
0.74%
Fails
GRM
11.3x
Price / Income
3.5x

Market Data

Median Home Price$175,000
Median Monthly Rent$1,290
Property Tax Rate0.42%
Population50,000
Population Growth0.8% / yr
Median Household Income$49,614
Vacancy Rate6.4%
Annual Appreciation2.3%

Cap Rate Calculator — Talladega

Pre-filled with Talladega 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
5.87%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$10,277
net operating income
Gross Rent Multiplier
11.3x
Good (<15)
1% Rule
0.74%
✗ Fails
Monthly Cash Flow
$856
before debt service
Annual Breakdown
Gross Rental Income$15,480
Less Vacancy−$991
Effective Income$14,489
Less Operating Expenses−$4,212
Net Operating Income$10,277
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Cash-on-Cash Return — Talladega

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

$
$43,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-2.64%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$49,000
$43,750 down + $5,250 closing
Monthly Mortgage
$856
on $131K loan
Monthly Cash Flow
$-108
after all expenses
Annual Cash Flow
$-1,292
before taxes
Cash Flow Breakdown
Monthly Rent$1,290
Less Expenses−$542
Less Mortgage−$856
Monthly Cash Flow$-108

Is Talladega a Good Place to Invest in Rental Property?

Talladega, 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 $175,000 paired with median rents of $1,290/mo produces an estimated cap rate of 7.06%.

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 3.5x, homes cost about 3.5 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: Talladega 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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