Markets/Alabama/Tuscaloosa

Tuscaloosa, AL Real Estate Market 2026

Investor-grade market analytics for Tuscaloosa, Alabama. Data from Zillow ZHVI, FRED, Census ACS, and FEMA NRI. Data through August 2026.

Median Home Price

$241,271

+0.4% year-over-year

Est. Rental Yield

7.5%

gross annual

12-Month Forecast

+0.4%

base case (Zillow ZHVF)

+0.4% year-over-year

Climate Risk

24/100

Very Low

Market Momentum

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Warm
2.8mo supply ยท Score +2/7

Net migration: Bottom 10% nationally

Income Migration

๐Ÿ“‰ Wealth Drain0.85x

In-migrants avg $47,151 AGI vs out-migrants $55,689

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Opportunity Zone Market

9 ZIP codes in Tuscaloosa are designated Qualified Opportunity Zones (IRC 1400Z-2), eligible for capital gains tax deferral on qualifying investments. Learn more โ†’

Tuscaloosa Market Summary

Tuscaloosa, AL is in a stabilization phase with 0.4% year-over-year appreciation, suggesting cooling demand and a shift toward balanced conditions. Affordability remains favorable with a price-to-income ratio of 4.02x, below the national average of 4.8x. Climate risk remains low (24/100), favorable for long-term investment stability. Rental yield of 7.52% is strong, making this market attractive for buy-and-hold investors.

Affordability

Affordability Score85/100
Price-to-Income Ratio4.0x (national avg 4.8x)
Median Household Income$59,975

Price Forecast Scenarios

12-month projection (Zillow ZHVF model)

Bear Case+0.2%
Base Case+0.4%
Bull Case+0.6%

Climate & Natural Hazard Risk

Tuscaloosa, AL's primary climate exposure is tornadoes (49/100). The composite climate risk score of 24/100 (Low) indicates overall risk reflecting favorable conditions for long-term real estate investment. This market benefits from relatively low natural hazard exposure compared to coastal and wildfire-prone regions.

Source: FEMA National Risk Index

Get the full Tuscaloosa dataset

Migration flows, ZIP-level neighborhood data, full demographics, price history, and the Market Screener.