What's a good cap rate in Tuscaloosa?

In Tuscaloosa, cap rates typically run around 8.0% (Alabama state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Tuscaloosa deal lands versus this benchmark.

What's the average rent for a rental in Tuscaloosa?

A typical rental in Tuscaloosa runs about $1,150–$1,550/mo (estimate; varies by neighborhood, size, and condition). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Alabama?

Alabama's effective property tax rate is about 0.41% of value per year — the figure TrueCap applies by default for Tuscaloosa deals. You can override it with the exact local rate.

Tuscaloosa, AL

Tuscaloosa rental property analysis

Tuscaloosa is anchored by the University of Alabama — a huge student base plus manufacturing (Mercedes) drives steady demand at low prices.

Tuscaloosa market snapshot

Cash-flow market

Higher typical cap rates — built for monthly cash flow more than price growth.

Typical cap rate

8.0%

Alabama state median

Typical rent

$1,150–$1,550/mo

est., SFR / small multi

Typical price

$200,000–$290,000

est., all-in

Property tax

0.41%

Alabama effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Tuscaloosa a good place to buy rentals?

Crimson Tide demand keeps occupancy high and yields healthy; near-campus is turnover-heavy and football-season sensitive.

See the full Alabamainvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Tuscaloosa

Near UA

Student rentals, high occupancy.

East Tuscaloosa

Family renters, steady demand.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Tuscaloosa deal in 60 seconds

Paste a Tuscaloosa address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Alabama tax and HUD rent so you start from the right assumptions.

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