Rent vs Buy in Birmingham, AL

Should you rent or buy a home in Birmingham? Use our calculator with local market data to make an informed decision.

Median Home Price
$200,000
Median Rent
$1,150/mo
Property Tax Rate
0.41%
Price-to-Rent Ratio
14.5x

Rent vs Buy in Birmingham, Alabama

Should you rent or buy a home? Calculate your best option.

Your Scenario

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%
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7 years
1 years30 years

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Adjust these sliders to see how different assumptions affect your decision.

Mortgage Rate7.00%
5%7%9%
Home Appreciation3.0%
0%3%5%
Rent Growth3.0%
0%3%6%
Time Horizon7 years
35710

💡 Tips

  • • Higher mortgage rates favor renting
  • • Higher home appreciation favors buying
  • • Higher rent growth favors buying
  • • Longer time horizons typically favor buying
🏠Buying is Better

You could save $21,148 by buying

Over 7 years

Monthly Cost (Rent)
$1,259
Average
Monthly Cost (Own)
$1,476
Average (excl. equity)
Total Rent Paid
$105,742
Total Owner Costs
$169,974
Final Equity
$85,380
After selling costs
Break-Even Year
Year 4
Within horizon

Upfront Costs to Buy

Down Payment (20%)$40,000
Closing Costs (3%)$6,000
Total Needed$46,000

Cost Comparison Over Time

$169,974$135,979$101,985$67,990$33,995$00y1y2y3y4y5y6y7y
Total Rent Paid
Total Owner Costs
Net Cost (After Equity)
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About Buying vs Renting in Birmingham

The decision to rent or buy in Birmingham, Alabama depends on many factors including your financial situation, how long you plan to stay, and current market conditions.

With a median home price of $200,000 and median rent of $1,150 per month, Birmingham has a price-to-rent ratio of 14.5. This relatively low ratio suggests buying may be advantageous.

Use our calculator above to input your specific scenario and see a personalized analysis. Adjust the time horizon, mortgage rate, and other factors to explore different outcomes.