PulseReal rankings
DSCR-friendly rental markets in Alabama
Alabama cities where a median-priced rental best covers its mortgage, ranked by debt service coverage ratio (DSCR), the figure DSCR lenders qualify loans on.
Of 55 Alabama markets with both rent and sale-price data, 0 clear a 1.25 DSCR on a median-priced home at a 7.25% rate with 25% down.
| # | Market | DSCR | Average rent | Median price | Cash flow |
|---|---|---|---|---|---|
| 1 | Selma, AL | 0.61 | $645/mo | $99,500 | -$201/mo |
| 2 | Center Point, AL | 0.55 | $878/mo | $136,250 | -$314/mo |
| 3 | Hueytown, AL | 0.48 | $931/mo | $157,260 | -$422/mo |
| 4 | Chickasaw, AL | 0.42 | $834/mo | $150,000 | -$445/mo |
| 5 | Springville, AL | 0.40 | $1,596/mo | $309,900 | -$955/mo |
| 6 | Sheffield, AL | 0.37 | $695/mo | $139,900 | -$451/mo |
| 7 | Bessemer, AL | 0.36 | $764/mo | $150,000 | -$494/mo |
| 8 | Gadsden, AL | 0.34 | $645/mo | $132,500 | -$446/mo |
| 9 | Calera, AL | 0.33 | $1,211/mo | $281,950 | -$961/mo |
| 10 | McCalla, AL | 0.31 | $1,377/mo | $288,010 | -$1,015/mo |
| 11 | Anniston, AL | 0.25 | $734/mo | $172,000 | -$657/mo |
| 12 | Millbrook, AL | 0.22 | $930/mo | $265,000 | -$1,056/mo |
| 13 | Saks, AL | 0.22 | $802/mo | $199,900 | -$801/mo |
| 14 | Leeds, AL | 0.21 | $887/mo | $259,995 | -$1,055/mo |
| 15 | Helena, AL | 0.21 | $1,201/mo | $350,900 | -$1,421/mo |
| 16 | Oxford, AL | 0.21 | $807/mo | $234,900 | -$949/mo |
| 17 | Prattville, AL | 0.20 | $1,084/mo | $322,000 | -$1,317/mo |
| 18 | Dothan, AL | 0.17 | $767/mo | $241,500 | -$1,022/mo |
| 19 | Moody, AL | 0.17 | $939/mo | $264,000 | -$1,123/mo |
| 20 | Enterprise, AL | 0.15 | $855/mo | $285,000 | -$1,243/mo |
| 21 | Decatur, AL | 0.14 | $692/mo | $235,965 | -$1,041/mo |
| 22 | Muscle Shoals, AL | 0.13 | $809/mo | $245,000 | -$1,090/mo |
| 23 | Meridianville, AL | 0.12 | $1,078/mo | $319,385 | -$1,444/mo |
| 24 | Chelsea, AL | 0.11 | $1,230/mo | $372,100 | -$1,692/mo |
| 25 | Tillmans Corner, AL | 0.11 | $742/mo | $217,000 | -$985/mo |
How this ranking works
- DSCR is net operating income divided by annual principal and interest, on a median-priced home at the city's average rent.
- Most DSCR lenders want 1.25 or higher for their best pricing; some lend down to 1.0.
- Financing is 25% down at PulseReal's default investor rate over 30 years.
Every input and default is documented in the methodology. 55 markets were considered.
