It’s no secret that savvy rental investors have their eye on Huntsville investment real estate. But where should you invest in Huntsville and where should you avoid? Understanding the Huntsville metropolitan area will be key in making sound investment decisions here.
The Huntsville metropolitan area sits in both Madison and Limestone counties and is centrally located in the northernmost part of the state. Huntsville is Madison county’s seat and, while more than 200,000 reside in the city proper, the total metro area’s combined population tops 1.2 million. As such, Huntsville proper and the surrounding metro area are the largest in Alabama.
This area is regularly named one of the best to live, work, and play in, and real estate investing is no exception. In fact, Huntsville investment real estate is in high demand since the city was recently named one of the best places to invest. But, if you’re looking to break into this promising market, you’ll need to know which areas to invest in and which to avoid.
Huntsville Proper (ZIP Codes 35649, 35748, 35757, and 35773)
Of course, while the Huntsville metropolitan area boasts plenty of opportunity for eager investors, the core city is a compelling place to start.
Highlights include:
Population: 207,921 in the city proper; 489,110 in the metro area
Median sales price: $278,918
Change in sales price (year over year): 28.2%
Median rent: $1,105
Renter-occupied households: 42%
Median household income: $56,758
Huntsville proper is home to more than 200,000 residents, whose median age is 36.8 and median income is over $55,000, the highest in the state. Plus, while nearby Birmingham is heating up as well, Huntsville boasts higher average home prices – $278,918 versus $105,772. The city sees a large population of professionals in technology, engineering, and aerospace, due to the local NASA flight center. It’s also home to a handful of Fortune 500 companies, including Facebook, Blue Origin, and Mazda-Toyota.
So, the very best places to invest in Huntsville proper? It depends on your goals and motivations. You’ll find an array of A, B, C, and D class neighborhoods and properties throughout the city. With the help of an investor-friendly agent, you’re sure to find the right balance of risk and reward, no matter your buy box.
When in doubt, schedule an in-person visit! You’ll get to see the market up close and personal. Or, at least check local news reports. It’s a quick and easy way to dive into just what’s happening locally.
Overall, Huntsville is a large and diverse city. Whatever your real estate goals are, the city proper can deliver.
Suggested Reading: 6 Factors to Consider When Choosing a Neighborhood to Invest In
Pro Tip: Evernest boasts an expert team of boots-on-the-ground professionals in Huntsville, Alabama. Our investor-friendly agents can help you find the perfect Huntsville property, and our property management professionals can complete the rehab, secure residents, and keep it in tip-top shape.
Decatur (ZIP Codes 35601, 35603, 35671, and 35699)
If you’re interested in investing just outside the city, nearby suburbs within the Huntsville metropolitan area also provide plenty of choices.
Decatur, Alabama, is one of the largest cities in the Huntsville area. Nicknamed the River City, it’s located 26 miles southeast of Huntsville proper and backs up to scenic Wheeler Lake.
Other highlights include:
Population: 54,478
Median sale price: $238,000
Change in sales price (year over year): 41.7%
Median rent: $655
Renter-occupied households: 36%
Median household income: $48,429
Decatur offers a more suburban feel than Huntsville proper and, depending on your real estate goals, could be a great place to invest. A local agent with specific market knowledge can help you determine if Decatur is the right place for you.
Madison (ZIP Codes 35756, 35757, and 35758)
Madison, Alabama, is one of Huntsville’s most desirable suburbs. It’s a short 12 miles southwest of the city and offers a much sparser feel. Madison is known for its abundance of green space, and new restaurants, shops, and other retail spaces are regularly popping up across the city.
Homes in Madison tend to be newer and more expensive, with many falling into the A and B+ categories. The local school district doesn’t hurt, either. Madison City Schools are among the 50 best school systems in America, one feature that is sure to draw plenty of eager renters.
Other highlights include:
Population: 49,327
Median sale price: $345,000
Change in sales price (year over year): 15.0%
Days on market: 34
Median rent: $946
Renter-occupied households: 29%
Median household income: $99,188
If you’re looking to invest in lower risk homes in the Huntsville area, Madison is a can’t-miss. With a high median household income, substantial median rent, and highly-desirable schools, residents will likely be lining up!
Athens (ZIP Codes 35611, 35613, 35613, and 35671)
Athens, Alabama, is a suburban community located just 35 miles northwest of the city proper. It’s home to both Athens State University and Athens Limestone Hospital, both of which draw potential renters.
Compared to other Alabama towns, Athens is rated #18 in best places to retire, #19 in best suburbs to live in, and #20 in best suburbs for young professionals. It offers a quiet, scenic livability with the convenience of nearby bustling cities. What’s not to like?
Other highlights include:
Population: 25,922
Median sale price: $320,500
Change in sales price (year over year): 27.6%
Days on market: 27
Median rent: $664
Renter-occupied households: 33%
Median household income: $53,165
With one-third of residents opting to rent and local fixtures providing persistent demand, Athens offers a compelling choice for real estate investors interested in the Huntsville area. An investor-friendly agent could highlight ideal neighborhoods, potential homes, and even off-market deals in Athens.
Hazel Green (ZIP Code 35750)
Hazel Green, Alabama, is a small town located just 16 miles north of Huntsville. The rural community is made up of nearly 4,000 residents, 16% of whom rent.
Hazel Green is known for its close-knit community and quiet, peaceful way of life. Homes have historically been sparse but, in recent years, development has picked up. Additional housing options and even new retail spaces are popping up across town as more and more people discover the charm of this community.
Other highlights include:
Population: 3,901
Median sale price: $295,900
Change in sales price (year over year): 37.0%
Days on market: 30
Median rent: $845
Renter-occupied households: 16%
Median household income: $43,269
If you’re interested in rural real estate investments, Hazel Green could be a good fit. These properties marry the appeal of country living with the convenience of nearby Huntsville and, with less competition in terms of housing options, investing in Hazel Green could prove lucrative.
Final Thoughts: Best Places to Invest in Huntsville, Alabama
The Huntsville, Alabama, metropolitan area offers an array of urban, suburban, and even rural options for real estate investors. Whether you’re a local Alabamian or out-of-state investor, you’ll want to keep an eye on this red-hot market.
Source: This article was originally written for Evernest and published at Evernest.co.
