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Updated over 5 years ago, 09/08/2019
Birmingham Market by Class
Class A
Mountain Brook - https://www.neighborhoodscout.com/al/mountain-brook
Homewood - https://www.neighborhoodscout.com/al/homewood
Vestavia Hills - https://www.neighborhoodscout.com/al/vestavia-hills
Hoover - https://www.neighborhoodscout.com/al/hoover
Class B
Alabaster - https://www.neighborhoodscout.com/al/alabaster
Pelham - https://www.neighborhoodscout.com/al/pelham
Gardendale - https://www.neighborhoodscout.com/al/gardendale
Trussville - https://www.neighborhoodscout.com/al/trussville
Helena - https://www.neighborhoodscout.com/al/helena
Chelsea - https://www.neighborhoodscout.com/al/chelsea
Indian Springs - https://www.neighborhoodscout.com/al/indian-springs-village
Class C
Fultondale - https://www.neighborhoodscout.com/al/fultondale
Centerpoint - https://www.neighborhoodscout.com/al/center-point
Roebuck - https://www.neighborhoodscout.com/al/birmingham/roebuck-crest-estates
Forestdale - https://www.neighborhoodscout.com/al/birmingham (Unincorporated)
Adamsville - https://www.neighborhoodscout.com/al/adamsville
Graysville - https://www.neighborhoodscout.com/al/graysville
Hueytown - https://www.neighborhoodscout.com/al/hueytown
Pleasant Grove - https://www.neighborhoodscout.com/al/pleasant-grove
Mt. Olive - https://www.neighborhoodscout.com/al/gardendale
Irondale - https://www.neighborhoodscout.com/al/irondale
Moody - https://www.neighborhoodscout.com/al/moody
Leeds - https://www.neighborhoodscout.com/al/leeds
Grayson Valley - https://www.neighborhoodscout.com/al/birmingham (Unincorporated)
Pinson - https://www.neighborhoodscout.com/al/pinson
McCalla - https://www.neighborhoodscout.com/al/bessemer (Unincorporated)
Mulga - https://www.neighborhoodscout.com/al/mulga
Minor - https://www.neighborhoodscout.com/al/mulga (Unincorporated)
Morris - https://www.neighborhoodscout.com/al/kimberly (Unincorporated)
Kimberly - https://www.neighborhoodscout.com/al/kimberly
Class D
Midfield - https://www.neighborhoodscout.com/al/midfield
Tarrant - https://www.neighborhoodscout.com/al/tarrant
West End - https://www.neighborhoodscout.com/al/birmingham/zipcode/35211
Ensley - https://www.neighborhoodscout.com/al/birmingham/zipcode/35208
Inglenook - https://www.neighborhoodscout.com/al/birmingham/inglenook
Class F
Bessemer - https://www.neighborhoodscout.com/al/bessemer
Fairfield - https://www.neighborhoodscout.com/al/fairfield
Eastlake - https://www.neighborhoodscout.com/al/birmingham/zipcode/35206
Lipscomb - https://www.neighborhoodscout.com/al/lipscomb
Brighton - https://www.neighborhoodscout.com/al/brighton
North Birmingham - https://www.neighborhoodscout.com/al/birmingham/zipcode/35207
Comparison by Class
Homewood – Class A
Median Home Value - $379,563
Median Household Income - $66,573
Individuals Below the Poverty Level – 11.1%
Crime Index – 8 out of 100 (100 being Safest)
School System – Top 10 in the State
Average Market Rent - $1,420
Alabaster – Class B
Median Home Value - $179,984
Median Household Income - $73,325
Individuals Below the Poverty Level – 10.2%
Crime Index – 40 out of 100 (100 being Safest)
School System – Top 50 in the State
Average Market Rent - $1,362
Centerpoint – Class C
Median Home Value - $117,940
Median Household Income - $39,134
Individuals Below the Poverty Level – 26.7%
Crime Index – 12 out of 100 (100 being Safest)
School System – Lower 3rd of State
Average Market Rent - $1,162
Tarrant - Class D
Median Home Value - $73,542
Median Household Income - $26,800
Individuals Below the Poverty Level – 32.6%
Crime Index – 1 out of 100 (100 being Safest)
School System – Lower 3rd of State
Average Market Rent - $1,045
Alabama is similar to all other states regarding property class. They are driven mainly by school systems and crime statistics. Since Birmingham is a smaller MSA the per capita rates for crime are skewed and typically reflect more crime than actually happens.
Homewood is a Class A area however, due to recent annexations the crime stats reflect an area of higher than normal crime. Homewood is an affluent suburb of Birmingham. It was chosen as a comparison to show this fact. It has one of the highest median home values and income in the state. The school system is consistently rated in the top 5 of the state. This is a predominately owner-occupied market.
Tarrant City is a lower income area that is a predominately tenant-occupied market that receives assistance in one form or another. This area consistently rents above market. It is a higher crime area of Birmingham.
Birmingham is not the crime filled market data would typically suggest. It consists mainly of domestic abuse and/or petty vandalism.
If you are investing in Birmingham I ask you do your own research to verify the data provided. Class C & D areas are the best markets for renting properties. The Class D areas in Birmingham would likely be Class C areas in other markets however, the classes have been assigned based on local activity and knowledge of the markets as a whole for Birmingham and the MSA.
I used to Appraise Real Estate prior to Investing. I only invest in Class C or D areas since the return is higher and the pool of potential occupants never decreases. In Class A or B areas the return is lower since the entry prices are higher and the return is typically half of predominately rental areas. If you are investing for cash flow it is better to invest in areas that reflect your goals instead of investing in areas that do not offer the returns you are seeking.
If you have any questions about Birmingham I welcome you to reach out to discuss further.