Your rental market update for the 5 biggest cities in Alabama

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Downtown views of The Rocket City. (Bham Now)

Rental rates are going up across the board as demand rises for living in some of the most rapidly growing cities in Alabama. Huntsville is thriving after being named #1 place to live in the country by US News & World Report and several other cities are gaining accolades and attracting new residents. Read on for the state of the rental market in the five biggest Alabama cities.

1. Huntsville

Downtown Huntsville
Views of downtown Huntsville. (Nathan Watson / The Bama Buzz)

The Rocket City is well known as the fastest growing city in Alabama, gaining more than 450 new residents per month in 2022. With several upcoming multi-million-dollar building projects, growing city hotspots and more, Huntsville is a high demand destination. Rental rates aren’t the most expensive in the state, but are on the rise.

  • Population: 210,081
  • Average rent: $1,151
  • Average apartment size: 941 sq. ft.
  • Most affordable neighborhoods: Baker Park, Blue Haven – Holly Acres, Brookhurst
  • Most popular neighborhoods: Old Town Huntsville, Village Of Providence, Sherwood Park 

2. Birmingham

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Gotta love The Magic City. (Nathan Watson / Bham Now)

From the food scene to the growing tech industry, Birmingham is going through a renaissance. Named as one of the Best Cities to Raise a Family in the U.S., it’s no surprise that people want to live in Birmingham. This is causing rental rates to steadily increase.

  • Population: 202,234
  • Average rent: $1,280
  • Average apartment size: 971 sq. ft.
  • Most affordable neighborhoods: Acipco – Finley, College Hills, East Thomas
  • Most popular neighborhoods: Five Points South, North Titusville, Highland Park

3. Montgomery

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Montgomery, Alabama. (The Bama Buzz)

Our state’s capital is neck and neck with Birmingham when it comes to population, but Montgomery has a bit more affordable housing. The city has a lot going for it at the moment, attracting a record breaking $1.7 Billion in capital investments creating more than 2000 new jobs in the past year.

  • Population: 201,022
  • Average rent: $1,086
  • Most affordable neighborhoods: South Hull, Brentwood, Elmore
  • Most popular neighborhoods: Old Cloverdale, Cottage Hill, McGehee

4. Mobile

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Downtown Mobile, Alabama in the day. (Nathan Watson / Bham Now)

The birthplace of Mardi Gras is an exciting place to live, full to the brim with rich history, culture and exciting events happening all year long. This popular port city on Alabama’s Gulf Coast has been a gem of the southeast for over 300 years.

  • Population: 187,445
  • Average rent: $1,081
  • Average apartment size: 933 sq. ft.
  • Most affordable neighborhoods: Georgia Avenue, Hannon Park, Leinkauf
  • Most popular neighborhoods: Sheldon, Westhill, Thornhill

5. Tuscaloosa

Roll Tide! (Jacob Blankenship / Bham Now)

Home to The University of Alabama, much of Tuscaloosa’s population can be attributed to the popular state school. Not only does Tuscaloosa have plenty of college students, but many recent graduates who are looking to start new careers stay in the city. It has recently been ranked among top 5 best places for career opportunities in the US.

  • Population: 99,252
  • Average rent: $1,230
  • Average apartment size: 1,007 sq. ft.
  • Most affordable neighborhoods: Holt, Southwood, West Tuscaloosa
  • Most popular neighborhoods: Community Park, The Strip/Druid City, University

More cities in Alabama

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Toomer’s Corner in Auburn, Alabama. (Nathan Watson / Bham Now)

Cost of any given apartment depends on many factors, including size, location and amenities. Here are the average rent prices for other popular cities across the state:

  • Auburn: $1,445
  • Madison: $1,323
  • Phenix City: $1,036
  • Athens: $877
  • Decatur: $796

All data used in this article is from and Alabama Demographics.

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Gabby Gervais
Gabby Gervais
Articles: 223