Market Snapshot
- Median listing price
- $825K
- Median rent
- $2,000/mo
- Days on market
- 255 days
- Gross rental yield
- 2.91%
- STR vs LTR
- $2,640/mo STR · $2,000/mo LTR
The median listing price in Tuscaloosa, AL ZIP 35406 is $825,000 as of June 2026.
The median market rent in Tuscaloosa, AL ZIP 35406 is $2,000/month as of June 2026.
The median days on market in Tuscaloosa, AL ZIP 35406 is 255 days as of June 2026. The market is currently neutral.
At a median list price of $825,000 and a median rent of $2,000/month, the gross rental yield in Tuscaloosa, AL ZIP 35406 is 2.91% as of June 2026.
In Tuscaloosa, AL ZIP 35406, median Airbnb revenue is $2,640/month compared to median long-term rent of $2,000/month as of June 2026.
Tuscaloosa, AL 35406 Real Estate Market Report
ZIP Code: 35406
Report Date: June 2026
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.
Market Metrics
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
Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.
Property Taxes
Liquidity & Velocity
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 Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.
Current Mortgage Rate Context
Market-level mortgage rate comparison for this area:
Current 30-year fixed mortgage rates in Tuscaloosa, AL, are averaging approximately 6.6% as of June 2026, reflecting a market environment where rates have remained stubbornly above 6% throughout the year.
Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.
Key Findings
- The primary market indicator is the median sold price 420,000, which anchors recent transaction activity and suggests a mid-market valuation for SFR and condo transactions in 35406; paired with a long median days on market 255, this appears to indicate slower sales velocity despite ongoing transactions.
- There is a meaningful mismatch between asking and sale expectations: the median listing price 825,000 sits well above the median sold price 420,000, which may indicate pricing friction or elevated seller expectations relative to recent transaction levels.
- Market-level signals show prices and rents trending higher—price year-over-year trend up and rent year-over-year trend up—while market temperature is neutral, suggesting steady appreciation without strong heat; interest rate pressure remains a headwind with elevated mortgage rates (~6.6% current 30-year average reported).
- Income and valuation context: median price per square foot 197 combined with a median market rent 2,000 suggests rental demand is supporting valuation upside; given the long median days on market 255, consider cautious pricing adjustments and targeted marketing for listings to improve time-to-contract.
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
Highest sale in the past 90 days. Fully renovated with modern finishes and premium lot positioning.
Sold above market average
Sold below market average
Representative market sale establishing baseline for properties in the core neighborhood.
Representative market sale establishing baseline for properties in the core neighborhood.
Representative market sale establishing baseline for properties in the core neighborhood.
Sold below market average
Sold below market average
Investment Analysis
Compare rental income potential against ownership costs and benchmark against market averages.
Monthly rental income vs estimated ownership cost
20% down, 6.53% rate, 0.4% tax
Avg nightly rate and occupancy for this ZIP
Data Sources
Real estate market data & public records, and GemHaus® proprietary models.
Report generated: 6/1/2026
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