Huntsville was ranked as one of the 10 most undervalued real estate markets in 2021, according to research from the National Association of REALTORS® (NAR). The Huntsville housing market is expected to experience stronger price appreciation this year, relative to other markets.
Home values in Huntsville have increased by 28.6% compared to a year ago, while rent prices for 3-bedroom properties in the metropolitan area have increased by 50% over the past 3 years. In the city of Huntsville and some of the surrounding suburbs, 30% or more of households are occupied by renters.
Here are 15 areas in the Huntsville metropolitan area in which to consider purchasing investment property.
Key takeaways
- Huntsville is home to over 215,000 residents in the city and more than 470,000 million in the metropolitan area.
- Home values in metropolitan Huntsville have increased by 26.8% over the past year, while rent prices have grown by 11% year over year.
- Areas in the Huntsville region with large percentages of renters include Athens, Boaz, and the city of Huntsville.
>>Explore Roofstock's Huntsville investment properties.
Why invest in Huntsville?
Communities with strong employment growth and home sales are driving economic recovery, and Huntsville led the U.S. in economic growth last year.
The Huntsville Madison County Chamber reports that the region’s employment has already returned to pre-pandemic levels, and that Huntsville has one of the highest growth rates in the country. That’s according to an analysis by Stessa, a Roofstock company and a leading real estate technology service provider.
Over the past 12 months, the value of a middle-price-tier home in the Huntsville area has increased by 26.8% (Zillow through February 2022). The growing economy in the metropolitan area is also increasing the demand for rental property in Huntsville. Median rents for 3-bedroom properties increased by 11% year over year, according to Zumper.
15 great areas in Huntsville for investment properties
Huntsville is the most populous city in Alabama and part of the second-largest metropolitan area in the state. The city is home to 9 unique neighborhoods and over 50 cities and towns in the metropolitan area, with home prices ranging from less than $70K to $1.95M.
Here are 15 neighborhoods in the Huntsville area to consider, based on data from:
- Niche.com (suburb descriptions, population, median rent, percentage of renter-occupied households, and median household income)
- Redfin (median sales price, change in sales price, and days on market)
Huntsville
Over 215,000 people live in the city of Huntsville, and nearly half rent their homes. Huntsville has a dense suburban feel, with a lot of coffee shops and parks, and is ranked as the second-best place to live in the metropolitan area by Niche.com:
- Population: 215,006
- Median sale price: $311,000
- Change in sales price (year over year): 15.6%
- Days on market: 38
- Median rent: $827
- Renter-occupied households: 43%
- Median household income: $55,305
- ZIP codes: 35649, 35748, 35757, 35773
Decatur
Nicknamed “The River City,” Decatur is one of the core cities in the metropolitan area and is 26 miles southwest of Huntsville, along the banks of Wheeler Lake. Decatur has a sparse suburban feel and good options for dining and entertainment:
- Population: 54,478
- Median sale price: $238,000
- Change in sales price (year over year): 41.7%
- Days on market: 39
- Median rent: $655
- Renter-occupied households: 36%
- Median household income: $48,429
- ZIP codes: 35601, 35603, 35671, 35699
Albertville
Albertville is the most populous city in Marshall County, one of 6 counties that make up the Huntsville metropolitan area. Albertville is about 50 miles southeast of Huntsville via US-431 and has a sparse suburban feel:
- Population: 21,541
- Median sale price: $186,050
- Change in sales price (year over year): 26.1%
- Days on market: 39
- Median rent: $671
- Renter-occupied households: 38%
- Median household income: $45,867
- ZIP codes: 35950, 35951
Fort Payne
Fort Payne is located 70 miles southeast of Huntsville, along I-59, between Birmingham and Chattanooga, Tennessee. Fort Payne has a suburban-rural feel, and a third of residents rent their homes:
- Population: 14,115
- Median sale price: $165,000
- Change in sales price (year over year): 10.1%
- Days on market: 54
- Median rent: $595
- Renter-occupied households: 33%
- Median household income: $40,273
- ZIP codes: 35967, 35968
Madison
Niche.com ranks Madison as the best suburb to buy a house in Alabama. Located 12 miles southwest of Huntsville, Madison has a sparse suburban feel, a lot of parks, and good options for dining and entertainment:
- 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
- ZIP codes: 35756, 35757, 35758
Athens
The suburb of Athens is home to Athens Limestone Hospital and Athens State University, the oldest institution of higher education in Alabama. Athens has a sparse suburban feel and is 35 miles northwest of Huntsville:
- 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
- ZIP codes: 35611, 35613, 35613, 35671
Boaz
Boaz is located just south of Albertville, about an hour and a half from Huntsville. The town has a sparse suburban feel and a large proportion of renter-occupied households:
- Population: 9,277
- Median sale price: $152,450
- Change in sales price (year over year): -21.8%
- Days on market: 55
- Median rent: $618
- Renter-occupied households: 40%
- Median household income: $40,551
- ZIP codes: 35950, 35956, 35957
Hartselle
Located 10 miles south of Decatur and 40 miles from Huntsville, Hartselle is the second-largest town in Morgan County, which is part of the Huntsville metropolitan area. Hartselle has a suburban-rural feel:
- Population: 14,428
- Median sale price: $211,350
- Change in sales price (year over year): 22.9%
- Days on market: 58
- Median rent: $681
- Renter-occupied households: 28%
- Median household income: $59,697
- ZIP code: 35640
New Market
The small town of New Market is ranked as one of the best places to buy a house in the Huntsville area by Niche.com. Located 49 miles southwest of Huntsville, New Market has a suburban-rural feel, and a third of residents rent their homes:
- Population: 1,122
- Median sale price: $273,475
- Change in sales price (year over year): -6.1%
- Days on market: 87
- Median rent: $599
- Renter-occupied households: 33%
- Median household income: $61,696
- ZIP code: 35761
Meridianville
Meridianville is 9 miles north of Huntsville, near Alabama A&M University. The city has a rural feel and is ranked as one of the best places to live in Alabama by Niche.com:
- Population: 7,087
- Median sale price: $325,900
- Change in sales price (year over year): 34.4%
- Days on market: 59
- Median rent: $1,122
- Renter-occupied households: 11%
- Median household income: $80,476
- ZIP codes: 35750, 35759, 35773
Harvest
Harvest is located 15 miles northwest of Huntsville. The city has a rural feel and is a short distance from Madison Hospital and Alabama A&M University:
- Population: 5,819
- Median sale price: $291,894
- Change in sales price (year over year): 18.1%
- Days on market: 7
- Median rent: $1,233
- Renter-occupied households: 12%
- Median household income: $83,677
- ZIP code: 35749
Falkville
The small town of Falkville is 40 miles southwest of Huntsville, just south of Hartselle. Falkville has a suburban-rural feel, and nearly a third of households are occupied by renters:
- Population: 1,348
- Median sale price: $142,000
- Change in sales price (year over year): 6.8%
- Days on market: 22
- Median rent: $692
- Renter-occupied households: 29%
- Median household income: $42,813
- ZIP code: 35622
Priceville
Niche.com ranks Priceville as the best place to live in Morgan County, which is part of the Huntsville metropolitan area. Priceville is located near the banks of the Tennessee River and has a rural feel:
- Population: 3,475
- Median sale price: $350,000
- Change in sales price (year over year): 76.3%
- Days on market: 39
- Median rent: $798
- Renter-occupied households: 2%
- Median household income: $91,797
- ZIP code: 35603
Trinity
Trinity is 33 miles southwest of Huntsville via I-565, near the city of Decatur. The town has a rural feel and is a short distance from the Tennessee River:
- Population: 2,493
- Median sale price: $200,500
- Change in sales price (year over year): -29.6%
- Days on market: 21
- Median rent: $415
- Renter-occupied households: 13%
- Median household income: $60,691
- ZIP code: 35673
Hazel Green
Hazel Green is 16 miles north of Huntsville, near the Alabama-Tennessee border, and has a rural feel:
- 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
- ZIP code: 35750
>>Explore Roofstock's Huntsville investment properties.
