Rental market · ZIP 35816 · Huntsville, AL

ZIP 35816, Huntsville, AL rental market

Population 15,939 · Huntsville, Madison County, AL · ZIP Code Tabulation Area

Ranked · ACS 2024 5-year

AGRADE
71.7/100 · Rental Investor ZIP Score
National rank #301 of 20,132 scored ZIP Codes
AL rank #13 of 410 · data confidence: high

Grade cut points, score out of 100: A from 63.7 · B from 54.7 · C from 42.4 · D from 28.1. This ZIP's 71.7 sits in the A band, which opens at 63.7 and ends below 100. The cut points are the model's own, read from the published ZIP dataset, and are identical for every ZIP Code area.

The four category scores that combine into the number above, on the model's own 0 to 100 score scale. These bars are not percentiles: for where those scores place this ZIP Code against every other scored one, see how this ZIP ranks below.

Cash Flow & Affordability ZIP data
67
Local Demand & Market Quality ZIP data
70
Surrounding-Market Growth county / place context
96
Stability & Risk ZIP + place context
51

Why it ranks here: rent sits high relative to price and taxes (solid cash-flow/affordability). a sizeable, liquid rental market with low vacancy. the surrounding county/place is growing.

Cash Flow & Affordability was scored using a measured (Zillow) home value, giving an effective price-to-income of 3.95× and tax burden of 0.37% of value: the number this category's score is actually based on, which can differ from the ACS survey value shown elsewhere on this page.

A transparent screening score, not a return forecast. Affordable, higher-yield markets can score well when demand, liquidity, low vacancy, reliable government data and a growing surrounding market support them. Categories labeled “context” use official county/place data, never presented as ZIP-level observation. ZIP and city scores are not directly comparable. See how this score works.

How this ZIP ranks: nationally & in-state

Each bar places this ZIP against all 20,132 scored ZIP Codes nationally. The marker is this ZIP and further right is more favorable to an investor; the tick is the median. Every position here is a percentile: the 0–100 scores and the grade they earn are stated once, in the card above, and this card states once where those same five numbers place this ZIP Code.

Overall Rental Investor ZIP Score
99th percentile
Cash Flow & Affordability
84th percentile
Local Demand & Market Quality
85th percentile
Surrounding-Market Growth county / place context
96th percentile
Stability & Risk ZIP + place context
56th percentile
← 0th percentile50th (median)100th percentile →

Percentiles are the frozen model's own numbers among scored ZIP Codes (deterministic competition ranking); an unreliable or thin-peer in-state comparison reads “Not available,” never zero. All underlying figures are ACS survey estimates with margins of error. The comparability caveat and the method link for this score are stated once, in the card above.

What went into this score: 14 national factor percentiles

Cash Flow & Affordabilityweight 25% · category score 67

Gross rental yieldZIP observation
90th
Price to incomeZIP observation
49th
Property-tax burdenZIP observation
92nd
Rent as a share of incomeZIP observation
37th

Local Demand & Market Qualityweight 30% · category score 70

Population scaleZIP observation · scale, not quality
63rd
Renter-household depthZIP observation · scale, not quality
85th
Renter share of householdsZIP observation
98th
Rental vacancyZIP observation
17th
Market heat (Zillow measured)ZIP observation
85th

Surrounding-Market Growthweight 25% · category score 96

County population growthcounty context
94th
Surrounding-market growthplace / county context
98th

Stability & Riskweight 20% · category score 51

Median year builtZIP observation
48th
Surrounding-market stabilityplace / county context
56th
ACS data confidenceZIP observation
49th

Every figure here is the frozen model’s own national percentile for one factor, read from the published ZIP dataset: 14 of the 15 factors this model defines were available for this ZIP Code. 1 of them could not be measured here (recently built share) and was left out of the average rather than filled in with a national guess. Higher is the direction the model treats as more favourable to a rental investor; population scale and renter-household depth are size, not quality. Each category score is the plain average of its own percentiles above; the overall score combines those four at the weights shown. The percentiles are published rounded to whole numbers, so averaging the printed figures lands a fraction of a point from the published score. Nothing on this panel is recomputed here, and a factor percentile is not a score.

Key metrics

15,939
Population

±1,600 ±10.1% moderate

$128,900
Median home value (ACS, owner-reported)

±$20,000 ±15.9% moderate

$915
Median gross rent (ACS, incl. utilities)

±$41 ±4.5% tight

8.5%
Survey gross-rent yield (proxy)

Derived from ACS estimates: no published margin of error

$40,242
Median household income

±$6,000 ±14.8% moderate

9.2%
Rental vacancy

Derived from ACS estimates: no published margin of error

75.9%
Renter share

Derived from ACS estimates: no published margin of error

0.5%
Estimated property-tax burden

Derived from ACS estimates: no published margin of error

1977
Median year built

±2 years margin in years; a share of a year number would not mean anything

20.4%
Multifamily (5+ units)

Derived from ACS estimates: no published margin of error

Data vintage: ACS 2024 5-year · data confidence: high. Of the 10 figures above, 5 carry the Census Bureau's published 90% margin of error, printed on the card in the figure's own units and as a share of the estimate; and 5 are ratios derived from those estimates, which the Census Bureau publishes no margin for. The bar and the band word restate that printed share in three bands: tight under ±10%, moderate ±10% to ±25%, wide ±25% and over. A median year built is given a margin in years only, because a margin stated as a share of a year number would not mean anything; the bar is full at ±40%. A wider margin does not make an area worse, only less precisely measured.

Market context

Trend context

Loading home value context…

View source data

Each point is one ACS 5-year estimate on the same 2020-Census ZCTA boundary. Adjacent releases overlap, so the release-to-release differences are not independent annual market movement.

ACS estimates by release; ± is the margin of error.
Series2017–20212018–20222019–20232020–2024
Median home value B25077$91,200 ±$13,041$107,100 ±$9,280$114,100 ±$8,194$128,900 ±$20,470
Median gross rent B25064$764 ±$19$832 ±$28$875 ±$28$915 ±$41
Population B0100314,440 ±1,44415,569 ±1,21415,172 ±1,47815,939 ±1,605

ACS 2021 release

2017-2021 five-year estimate

Median home value B25077
$91,200Margin of error ±$13,041
Median gross rent B25064
$764Margin of error ±$19
Population B01003
14,440Margin of error ±1,444

ACS 2022 release

2018-2022 five-year estimate

Median home value B25077
$107,100Margin of error ±$9,280
Median gross rent B25064
$832Margin of error ±$28
Population B01003
15,569Margin of error ±1,214

ACS 2023 release

2019-2023 five-year estimate

Median home value B25077
$114,100Margin of error ±$8,194
Median gross rent B25064
$875Margin of error ±$28
Population B01003
15,172Margin of error ±1,478

ACS 2024 release

2020-2024 five-year estimate

Median home value B25077
$128,900Margin of error ±$20,470
Median gross rent B25064
$915Margin of error ±$41
Population B01003
15,939Margin of error ±1,605

Source: U.S. Census Bureau, American Community Survey 5-year, table-based Summary File (ZCTA geography); tables B25077 (median value), B25064 (median gross rent), and B01003 (population); estimate + margin of error. Missing releases remain gaps and are never interpolated. Home value is owner-reported; gross rent describes renter housing stock; population is a ZCTA estimate. Dollar figures are nominal.

Measured market data

Measured observations for this ZIP Code, published beside the government survey figures above rather than replacing them. They measure different things and will legitimately disagree; the reconciliation below states on which axis, one axis at a time, instead of leaving a reader to guess. ZORI does not correct the ACS rent; neither is a better version of the other. Monthly series, revised in recent months, observed 2026-07, not live.

Why two figures for apparently the same thing differ: source, vintage, methodology and geography, stated one axis at a time.
FigureACS survey estimateZillow measured index
Typical home value$128,900±$20,000, the Census Bureau’s published 90% margin of error$158,980no published margin of error
Methodology typical home valueThe median of what owners themselves estimate their own home to be worth, across owner-occupied homes only.A smoothed index of the typical value of homes in the middle tier (35th to 65th percentile) of the local stock, whether or not they sold.
Typical rent$915/mo±$41, the Census Bureau’s published 90% margin of error$1,044/mono published margin of error
Methodology typical rentThe median gross rent sitting tenants actually pay, including utilities, across the whole occupied rental stock.An index of the rent landlords are asking on units newly listed for rent: what is on the market now, not what sitting tenants pay.
Gross rent yield8.52%no published margin of error7.88%no published margin of error
Methodology gross rent yieldThe two survey medians above, divided. Renter gross rent against owner-occupied value is different housing stock, so this is a proxy and not a cap rate.The two measured indices above, divided (ZORI × 12 ÷ ZHVI): asking rent against a whole-stock value index.
SourceU.S. Census Bureau, American Community Survey 5-year estimates.Zillow Economic Research public research data.
VintageACS 2024 5-year: one estimate pooled over 2020–2024. Restated once a year, not monthly, and adjacent releases overlap.Monthly series, observed 2026-07 and revised in recent months. Not live.
Geography2020 Census ZIP Code Tabulation Area 35816.USPS ZIP code 35816: a related, but not identical, area.

The index for typical home value is $30,080 higher than the survey estimate, whose own 90% margin of error is ±$20,000: the two are separated by more than survey sampling error alone accounts for. The index for typical rent is $129/mo higher than the survey estimate, whose own 90% margin of error is ±$41: the two are separated by more than survey sampling error alone accounts for. A gap of either size is expected when the source, vintage, methodology and geography all differ, and is not evidence that either figure is wrong. Neither figure corrects the other, and no margin of error is implied for the index, which publishes none.

Zillow Home Value Index (ZHVI, mid tier)$158,980
ZHVI bottom tier (5th–35th pct)$102,302
ZHVI top tier (65th–95th pct)$227,664
Zillow asking-rent index (ZORI)$1,044/mo
Measured gross yield (ZORI × 12 ÷ ZHVI)7.88%
Market heat index65
Share of listings with a price cut29.0%
For-sale inventory50
New listings13
Median list price$171,600
Measured 3-yr value growth-0.86%/yr
Measured 5-yr value growth3.69%/yr
Measured 10-yr value growth9.21%/yr
Measured 3-yr rent growth0.87%/yr
Price–rent divergence (value − rent growth)-1.73%/yr
ZHVI, 2-bedroom$134,558
ZHVI, 3-bedroom$188,085
ZHVI, 4-bedroom$232,602

Measured value-growth signal: 13 of 100: this ZIP Code area ranks #16,866 of 19,419 ZIP Codes with a measured 3-year value growth rate. This is a separate national signal, published beside the overall score and deliberately not folded into it.

Measured-cohort score: 53.4 of 100, #2,120 of 4,756. This is ranked only against the 4,756 ZIP Code areas Zillow measures asking rent for: a cohort percentile, not a national one, and not comparable to the overall score above.

Source: Zillow Economic Research public research data, observation month 2026-07. Zillow keys on USPS ZIP codes; this page is a 2020 Census ZCTA, related but not identical geographies, so a Zillow value is matched to this ZCTA by code and is not a statement that the two areas are the same. Zillow is not affiliated with, and does not endorse, Compounding Estates.

Market Negotiation Leverage

Strong seller leverage (15th percentile among scored ZIP Codes)

Derived from Zillow's market-heat index for this ZIP, inverted (a cooler market means more room for a buyer to negotiate). 29% of listings have had a price cut · 50 active listings. This is a cross-sectional snapshot (how this ZIP compares to every other tracked ZIP today), not a seasonal or historical baseline for this specific ZIP (no multi-year time series exists to support that claim). Not a prediction of what any specific seller will accept. See how this is calculated.

Source: Zillow Economic Research public research data. Zillow is not affiliated with, and does not endorse, Compounding Estates.

Underwrite with these as starting points

Opening a calculator pre-loads the ACS median owner value and median gross rent as a survey-level starting point; every calculator input is editable. Owner-occupied median value and renter median gross rent describe different housing stock: the median-valued home is not the typical rental, so this is a screen, not a listing, appraisal, asking rent, cap rate, or forecast. Bring your own entry price and rent.

ZIP Codes bordering 35816

5 ZIP Code areas share a land boundary with 35816 in the official Census 2020 ZCTA map, ordered by shared-boundary length, not ZIP-number proximity or driving distance. 4 of them are in CE’s ranked set and are listed below, each with its own Rental Investor ZIP Score, grade and national rank, read from the same published dataset as this page. The rest are counted here and searchable from the ZIP Code explorer. A neighbour’s score is a score for that area, never for 35816, and this list is ordered by border length, so it is not a ranking and no neighbour is called best.

Evidence, sources & limitations

Official geography: Huntsville city, Madison County. Analytical entity: the U.S. Census ZIP Code Tabulation Area (ZCTA) 35816, an approximation of the USPS ZIP delivery area, not its exact route boundaries. Model z3-measured-v1; data ACS 2024 5-year.

This ZIP Code area is primarily in Madison County, overlapping Huntsville, by land-area overlap from the official Census 2020 ZCTA relationship files (not population or address share).

Populationsurvey ACS B01003 · ±10.1% margin of error
Median home value (ACS, owner-reported)survey ACS B25077 · ±15.9% margin of error
Median gross rent (ACS, incl. utilities)survey ACS B25064 · ±4.5% margin of error
Survey gross-rent yield (proxy)derived 12 * ACS B25064 / B25077 · no published margin of error
Median household incomesurvey ACS B19013 · ±14.8% margin of error
Rental vacancyderived ACS B25004 E002 / (B25003 E003 + B25004 E002) · no published margin of error
Renter sharederived ACS B25003 E003/E001 · no published margin of error
Estimated property-tax burdenderived ACS B25103 / B25077 · no published margin of error
Median year builtsurvey ACS B25035 · ±<1% margin of error
Multifamily (5+ units)derived ACS B25024 (5+ unit structures / total) · no published margin of error

Class: survey = ACS estimate (with margin of error); derived = computed from ACS. The survey gross-rent yield is a proxy (renter gross rent vs owner-occupied value, different housing stock; ACS top-codes very high values/rents) and is not a cap rate. Subscores are national percentiles among data-eligible areas; ranks are competition-ranked with deterministic ties. No vendor, listing, parcel, or school data. Not investment advice.