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Market Snapshot

Median listing price
$120K

The median listing price in Birmingham, AL ZIP 35206 is $120,000 as of June 2026.

Median rent
$1,050/mo

The median market rent in Birmingham, AL ZIP 35206 is $1,050/month as of June 2026.

Days on market
311 days

The median days on market in Birmingham, AL ZIP 35206 is 311 days as of June 2026. The market is currently cold.

Gross rental yield
10.50%

At a median list price of $120,000 and a median rent of $1,050/month, the gross rental yield in Birmingham, AL ZIP 35206 is 10.50% as of June 2026.

STR vs LTR
$1,906/mo STR · $1,050/mo LTR

In Birmingham, AL ZIP 35206, median Airbnb revenue is $1,906/month compared to median long-term rent of $1,050/month as of June 2026.

Birmingham, AL 35206 Real Estate Market Report

ZIP Code: 35206

Report Date: June 2026

Market Temperature:
COLD

Scope: This ZIP code analysis focuses on single-family residential (SFR) properties. Metrics are calculated from recent sales and active listings within the past 90 days.


Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

Analysis Window
90 Days
Total Properties Analyzed
131
Active Listings
41
Sold Properties
90

Market Metrics

Median Listing Price
$120,000
Median Sold Price
$79,500
Median Price per Sqft
$91/sqft

The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.


Rental Market

Median Market Rent
$1,050

Property Taxes

Property Tax Rate
1.07%

Liquidity & Velocity

Median Days on Market
311
Sale-to-List Ratio
100.0%

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.


Market Trends & Context

Understanding Market Temperature

A Cold market indicates weak buyer demand relative to available inventory, typically characterized by declining or flat prices, extended days on market, and elevated inventory levels relative to sales.

Price YoY Trend
down
Market Temperature
cold
Rent YoY Trend
up
Interest Rate Pressure
elevated

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Birmingham, AL are averaging approximately 6.60%, reflecting a period of elevated borrowing costs for property owners in this market compared to earlier 2026 levels.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.


Key Findings

  1. The primary market signal is the median sold price of 79,500, which anchors realized value in the area and, combined with a cold market temperature, suggests downward price momentum consistent with the reported price year-over-year trend of down.
  2. There is a notable gap between the median listing price of 120,000 and realized transactions; this pricing spread may indicate pricing friction where seller expectations exceed recent sale outcomes and could prolong time to close.
  3. Market liquidity is slow: the median days on market of 311 indicates extended marketing periods and slower sales velocity, which appears consistent with a cold market and elevated interest rate pressure.
  4. Operational metrics show mixed signals for investors: the median price per square foot of 90.97 and the median market rent of 1,050 are available for comp work, while financing costs remain elevated (current 30-year fixed mortgage rates averaging approximately 6.60%), creating higher carrying costs that may compress investor yields; note that rent is trending up while prices are trending down, which may influence short-term hold strategies.

Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.

Recent Transactions

419 Exeter Dr, Birmingham, AL 35206
Top Sale

Highest sale in the past 90 days. Fully renovated with modern finishes and premium lot positioning.

3 beds5 baths2,457 sqft
$375,000
May 1, 2026
$153/sqft/sqft
89 days on market
215 Observatory Dr, Birmingham, AL 35206
Premium

Sold above market average

3 beds3 baths1,585 sqft
$287,400
May 1, 2026
$181/sqft/sqft
315 days on market
732 Highland Ave, Birmingham, AL 35206
Premium

Sold above market average

3 beds2 baths1,894 sqft
$280,000
May 1, 2026
$148/sqft/sqft
452 days on market
904 75th St S, Birmingham, AL 35206
Premium

Sold above market average

3 beds1 baths1,000 sqft
$139,000
May 1, 2026
$139/sqft/sqft
215 days on market
784 80th St S, Birmingham, AL 35206
Market Benchmark

Sold at market average

3 beds1 baths1,412 sqft
$135,000
May 1, 2026
$96/sqft/sqft
334 days on market
8609 10th Ave S, Birmingham, AL 35206
Premium

Sold above market average

3 beds1 baths1,040 sqft
$134,900
May 1, 2026
$130/sqft/sqft
221 days on market
783 80th St S, Birmingham, AL 35206
Value

Sold below market average

2 beds1 baths1,006 sqft
$52,000
May 1, 2026
$52/sqft/sqft
314 days on market
7300 London Ave, Birmingham, AL 35206
Value

Sold below market average

2 beds1 baths840 sqft
$50,000
May 1, 2026
$60/sqft/sqft
200 days on market

Investment Analysis

Compare rental income potential against ownership costs and benchmark against market averages.

Rent vs Cost to Own

Monthly rental income vs estimated ownership cost

$552/mo
35206 Avg Rent
35206 Cost to Own
Rent$1,050
Own$498

20% down, 6.53% rate, 1.1% tax

Short-Term Rental

Avg nightly rate and occupancy for this ZIP

35206 Avg nightly rate
35206 Avg occupancy (days/year)
Nightly rate$154/night
Occupancy131 of 365 days

Data Sources

Real estate market data & public records, and GemHaus® proprietary models.

Report generated: 6/1/2026

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