TUSCALOOSA, Ala. — New research from the Waller, Weeks and Johnson Rental Index, produced by The University of Alabama in partnership with Florida Gulf Coast University and the University of Mississippi, shows that rents across Alabama continue to rise while remaining below national averages.
Rent in Alabama remains well below the national average of $2,007, with Birmingham at $1,424, Huntsville at $1,414, Mobile at $1,293, and Montgomery at $1,378. Montgomery posted the fastest growth in the state at 5.1% year-over-year, while Huntsville saw a very slight increase of 0.3%, indicating a largely stable market.
Alabama’s metro areas are generally outpacing the national growth rate of 2.6%. Montgomery led the state with a 5.1% increase, followed by Birmingham at 3.65% and Mobile at 2.43%. Overall, the data reflects continued upward momentum across Alabama markets.
“Alabama’s rental market reflects a balance of growth and affordability,”, said Dr. Bennie Waller, in the UA Culverhouse College of Business and a research associate in the Alabama Center for Real Estate at UA. “While cities like Montgomery are seeing stronger year-over-year rent growth, overall housing costs remain more manageable than in many comparable U.S. metros.”
Despite rising rents, Alabama remains roughly 30% more affordable than the national below the national average of $2,007, providing a competitive advantage for both residents and businesses. Montgomery leads in growth, while Huntsville remains stable, demonstrating a mix of dynamic and steady market conditions.
Nationally, 11 of the top 100 rental markets require household incomes over $100,000 to avoid being rent-burdened. In comparison, Birmingham’s threshold is about $56,965 and Montgomery’s is $55,110, both well below the national average of $82,900.
Complete interactive data for both the U.S. and Alabama can be found on the ACRE website.
The University of Alabama, part of The University of Alabama System, is the state’s flagship university. UA shapes a better world through its teaching, research and service. With a global reputation for excellence, UA provides an inclusive, forward-thinking environment and nearly 200 degree programs on a beautiful, student-centered campus. A leader in cutting-edge research, UA advances discovery, creative inquiry and knowledge through more than 30 research centers. As the state’s largest higher education institution, UA drives economic growth in Alabama and beyond.
