Birmingham, AL Rental Market for Investors
An estimated 78% of Birmingham's active listings could cash-flow as a short-term rental — here's what the numbers say for investors, as of August 2026.
Homes in Birmingham that pencil right now
A sample of active Birmingham listings whose DSCR clears 1.25 using short-term rental income projections we accept as a direct lender. These are spread across the price range, not ranked, and current as of August 2026.
$174,900DSCR 1.933 bed · 2 bath · 1,394 sqft
- STR revenue
- $30,440/yr
- Est. interest-only payment
- $1,052/mo
On the market 148 days · Listed by Keller Williams Homewood
Scout this home & market: 3-bed house in Birmingham
$180,000DSCR 2.263 bed · 1 bath · 1,626 sqft
- STR revenue
- $40,025/yr
- Est. interest-only payment
- $1,182/mo
On the market 71 days · Listed by Town Square Realty
Scout this home & market: 3-bed house in Birmingham
$208,000DSCR 1.834 bed · 2 bath · 1,789 sqft
- STR revenue
- $36,322/yr
- Est. interest-only payment
- $1,326/mo
On the market 197 days · Listed by LAH - Mountain Brook
Scout this home & market: 4-bed house in Birmingham
$226,000DSCR 1.793 bed · 2 bath · 1,155 sqft
- STR revenue
- $38,641/yr
- Est. interest-only payment
- $1,437/mo
On the market 65 days · Listed by Method Alabama LLC
Scout this home & market: 3-bed house in Birmingham
$249,900DSCR 1.723 bed · 2 bath · 1,400 sqft
- STR revenue
- $42,242/yr
- Est. interest-only payment
- $1,641/mo
On the market 185 days · Listed by BARNES & ASSOCIATES
Scout this home & market: 3-bed house in Birmingham
$275,000DSCR 1.372 bed · 2 bath · 978 sqft
- STR revenue
- $40,316/yr
- Est. interest-only payment
- $1,957/mo
On the market 101 days · Listed by Shader Realty
Scout this home & market: 2-bed condo in Birmingham
$335,000DSCR 1.322 bed · 2 bath · 1,340 sqft
- STR revenue
- $42,764/yr
- Est. interest-only payment
- $2,153/mo
On the market 52 days · Listed by Keller Williams Realty Vestavia
Scout this home & market: 2-bed condo in Birmingham
$384,900DSCR 1.353 bed · 3.5 bath · 2,706 sqft
- STR revenue
- $49,726/yr
- Est. interest-only payment
- $2,454/mo
On the market 75 days · Listed by RealtySouth | Mtn. Brook Village
Scout this home & market: 3-bed condo in Birmingham
As of August 2026, we analyzed 687 active for-sale homes in Birmingham, Alabama. The typical listing is priced at $289,000 and is projected to generate about $39,400 a year as a short-term rental.
After setting aside an estimated 20% for operating costs, an estimated 78.2% of those homes could still cover an investor mortgage payment on short-term-rental income — well above the 52.5% median across the 200 major metros we track, ranking Birmingham #11 of 200 for cash-flow potential.
On market momentum: homes in Birmingham sit a median of 66 days on the market, and 26% of active listings came on in just the last 30 days — a steadily paced market, which shapes how much room there is to negotiate.
For a DSCR loan — which qualifies on the property's rental income rather than your personal income — that's a relatively healthy setup: in Birmingham, a meaningful share of listings throw off enough short-term-rental income, after costs, to cover an estimated investor mortgage payment.
What actually works in Birmingham
Birmingham is a broad cash-flow market right now: 329 of the 507 Birmingham homes, condos and townhomes we can price confidently clear a DSCR of 1.25. Nine in ten of them are priced under $396,000.
| Price | 1 bed | 2 bed | 3 bed | 4 bed | 5 bed |
|---|---|---|---|---|---|
| Under $150k | — | — | 100%2.03 | — | — |
| $150k–$250k | 57%1.31 | 75%1.62 | 94%1.83 | 100%1.83 | — |
| $250k–$350k | 0%0.89 | 59%1.36 | 81%1.41 | 75%1.48 | — |
| $350k–$500k | — | 17%1.00 | 42%1.17 | 82%1.45 | — |
| $500k+ | — | — | 0%0.77 | 15%0.92 | 27%1.11 |
Darker means a larger share of that group cash-flows. “—” means fewer than 8 active listings — too few to draw a conclusion from.
Birmingham in full
| Active for-sale homes analyzed | 687 |
|---|---|
| Median list price | $289,000 |
| Median projected STR revenue (annual, gross) | $39,400 |
| Median average daily rate (ADR) | $190 |
| Median occupancy | 57% |
| Median beds | 3 |
| Median size | 1,740 sqft |
| Estimated cash-flow-positive share | 78.2% |
| Median days on market | 66 days |
| New listings (last 30 days) | 25.6% of active |
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