Tuscaloosa, Alabama Rental Homes: A Plain Look at the Numbers
Tuscaloosa is home to the University of Alabama. Our homes there are aimed at families and workers who need a place to live all year. Here is how our current homes pencil out.
The numbers at a glance
Our Tuscaloosa homes run about $267,000 to $360,000. Rent is about $1,600 to $2,300 a month for three and four bedroom homes.
We model 25% down and a 5.8% loan rate. Down payment is about $66,750 to $90,000. The loan payment is about $1,180 to $1,590 a month.
The cap rate (yearly rent left after costs, divided by price) is about 4.9% to 6.0%.
Where the money goes each month
Taxes, insurance, a small homeowners group fee, and a vacancy cushion all come out of the rent. A vacancy cushion is money set aside for months with no tenant.
Management is free in year one on our new construction homes. After that, plan on about 8% of the rent.
What to watch
Rent depends on the exact home and the street. Ask for the line by line sheet on any home you like.
Taxes vary by county. Verify them with the county before you buy.
See the Tuscaloosa page for current numbers.
Common questions
Is Tuscaloosa only a student market?
Our homes are family and workforce homes, not student housing. Still, check demand for each street before you buy.
What return should I expect?
Our estimate of the cap rate (yearly rent left after costs, divided by price) is about 4.9% to 6.0%. It changes with price, rent, and costs.
What is the first step?
Book a call. We walk through the numbers on real homes and answer your questions.
These numbers are estimates, not promises. Results vary. Talk with a qualified CPA and a licensed lender before you buy.