Is Birmingham, AL a Good STR Investment in 2026?
1,261 active listings
Top Market
Median Price
$167,967
STR Revenue/mo
$2,487
Cap Rate
7.8%
1Y Appreciation
-2.5%
Avg Nightly Rate
$162
Market Score
98.4/100
Market Overview
Birmingham, AL presents a strong opportunity for real estate investors in 2026, with a market score of 98.4 out of 100. The median home price sits at $167,967 with average short-term rental revenue of $2,487 per month, yielding a 7.8% cap rate.
Short-Term Rental Performance
Short-term rental hosts in Birmingham average $2,487 in monthly revenue with a 59% occupancy rate. This translates to approximately $29,844 in annual gross revenue for a typical listing. The average nightly rate is $162.
Investment Analysis
Assuming a 20% down payment at 7% interest on a $167,967 property, your monthly mortgage would be approximately $894. After accounting for mortgage, taxes, and insurance, the estimated monthly cash flow for an STR is $195.
The long-term rental market shows potential with median rents at $1,130 per month. Home values have declined 2.5% year-over-year, so investors should factor in potential equity loss when evaluating returns.
Our Verdict
Birmingham ranks among the top investment markets with a score of 98.4/100. Strong cap rates make it attractive for cash-flow-focused investors. However, declining home values (-2.5%) mean investors should focus on cash flow rather than equity growth.