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Market Snapshot

Median listing price
$125K

The median listing price in Birmingham, AL ZIP 35206 is $125,000 as of July 2026.

Median rent
$995/mo

The median market rent in Birmingham, AL ZIP 35206 is $995/month as of July 2026.

Days on market
6 days

The median days on market in Birmingham, AL ZIP 35206 is 6 days as of July 2026. The market is currently cold.

Gross rental yield
9.55%

At a median list price of $125,000 and a median rent of $995/month, the gross rental yield in Birmingham, AL ZIP 35206 is 9.55% as of July 2026.

STR vs LTR
$1,167/mo STR · $995/mo LTR

In Birmingham, AL ZIP 35206, median Airbnb revenue is $1,167/month compared to median long-term rent of $995/month as of July 2026.

Birmingham, AL 35206 Real Estate Market Report

ZIP Code: 35206

Report Date: July 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
124
Active Listings
81
Sold Properties
43

Market Metrics

Median Listing Price
$125,000
Median Sold Price
$111,000
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
$995

Property Taxes

Property Tax Rate
1.08%

Liquidity & Velocity

Median Days on Market
6
Sale-to-List Ratio
100.0%

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
flat
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 6.6% compared to the 6.0% average observed earlier in 2026, indicating that property owners in this market currently hold more favorable financing than what is available today.

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


Key Findings

  1. The median sold price is 111,000, which should be treated as the primary indicator of current market value and recent transaction activity in 35206 and anchors pricing expectations for both single-family residential and condominium segments.
  2. A gap between the median listing price of 125,000 and the median sold price of 111,000 suggests pricing friction where seller expectations exceed recent transaction levels, a dynamic consistent with the down year-over-year price trend.
  3. The median days on market of 6 may indicate that competitively priced properties still achieve relatively quick closings, even as broader conditions point to a cold market temperature—suggesting selective buyer activity and pricing sensitivity.
  4. The median market rent of 995 combined with a flat rent trend and elevated interest rate pressure may constrain investor demand and limit near-term upside for rental-driven purchases, reinforcing cautious buyer behavior.

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

648 Ridge Top Cir, Birmingham, AL 35206
Top Sale

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

3 beds2 baths1,448 sqft
$444,900
May 1, 2026
$307/sqft
825 Shadywood Ln, Birmingham, AL 35206
Premium

Sold above market average

3 beds2 baths1,923 sqft
$315,000
Apr 1, 2026
$164/sqft
816 86th St S, Birmingham, AL 35206
Premium

Quick sale indicating strong buyer demand and competitive market conditions.

3 beds2 baths1,264 sqft
$135,000
May 1, 2026
$107/sqft
1 days on market
750 78th Pl S, Birmingham, AL 35206
Market Benchmark

Representative market sale establishing baseline for properties in the core neighborhood.

3 beds2 baths1,613 sqft
$120,000
May 1, 2026
$74/sqft
33 days on market
7519 2nd Ave S, Birmingham, AL 35206
Market Benchmark

Representative market sale establishing baseline for properties in the core neighborhood.

3 beds2 baths1,518 sqft
$110,700
May 1, 2026
$73/sqft
8236 2nd Ave S, Birmingham, AL 35206
Market Benchmark

Representative market sale establishing baseline for properties in the core neighborhood.

4 beds1 baths1,326 sqft
$103,750
Jun 1, 2026
$78/sqft
93 days on market
7604 Oporto Madrid Blvd S, Birmingham, AL 35206
Value

Below-market acquisition. Investor purchase with value-add potential through renovation.

3 beds2 baths1,676 sqft
$80,000
May 1, 2026
$48/sqft
1 days on market
884 77th St S, Birmingham, AL 35206
Value

Sold below market average

3 beds1 baths1,197 sqft
$55,000
May 1, 2026
$46/sqft

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

$302/mo
35206 Avg Rent
35206 Cost to Own
Rent$995
Own$693

20% down, 6.49% 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$139/night
Occupancy219 of 365 days

Data Sources

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

Report generated: 7/16/2026

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