Updated 2026 · Based on median market data for Troy, AL
The median monthly rent in Troy, AL is $1,160, translating to $13,920 in annual gross rental income per unit. The rent-to-price ratio is 0.73% — below the 1% rule but within a range where deals can work with good financing.
Renters in Troy spend approximately 28% of the local median household income ($49,614) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units.
The vacancy rate in Troy 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.
Troy's GRM (price divided by annual rent) is 11.5x. 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.
At the median rent of $1,160/mo, a single-family rental in Troy generates approximately $13,920 in gross annual income. After accounting for 6.4% vacancy ($891 lost), property taxes of $672, insurance (~$640), and maintenance (~$640), the estimated NOI is $11,077 per year, or $923/mo.
Troy vs Alabama state average and national average across key investment metrics. Troy outperforms both benchmarks on cap rate.