Decatur, AL—35601
Real Estate Data & Market Trends
Key Metrics at a Glance
Other Zip Codes in Decatur, AL
Home Price Trends — Decatur, AL
As of Oct '25, the median home price in Decatur, AL is $174,000, with a year-over-year change of -1.6%. This indicates that home prices in Decatur, AL are decreasing. According to Zillow, the 1-year price projection is 0.5%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $174,000 | -1.6% |
| Single Family | $174,000 | -1.7% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $161,000 | 0.6% |
3 Bed | $194,000 | 1.0% |
4 Bed | $284,000 | 1.1% |
| 5 Bed | $381,000 | 3.5% |
% of Housing Stock
Rental Trends — Decatur, AL
As of July '25, Rentcast reports the average rent in Decatur, AL is $1,260, with a year-over-year rent change of 4.1%. Per bedroom, the median rent as of July '25 in Decatur, AL is studios: $752, 1-bedrooms: $887, 2-bedrooms: $1,070, 3-bedrooms: $1,510, 4-bedrooms: $1,400. The most common rental property sizes in Decatur, AL are 2-bedroom and 3-bedroom, accounting for 42.0% and 33.5% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,220 | $1,260 |
| Studio Rent | $703 | $752 |
| 1 Bed Rent | $725 | $887 |
| 2 Bed Rent | $875 | $1,070 |
| 3 Bed Rent | $1,450 | $1,510 |
| 4 Bed Rent | $1,400 | $1,400 |
% of Rental Stock
Property Listings — Decatur, AL
As of Oct '25, Realtor.com reports that the median days on market for a home in Decatur, AL is 77. This is a increase of 60.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 27.0%, representing a large inventory and a lot of supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $246,000 | -4.0% |
Listing Count | 180 | 85.0% |
| Listings as % of Homes | 0.3% | 85.0% |
Days on Market | 77 | 60.0% |
Demographics — Decatur, AL
As of the latest ACS Survey released in 2023, Decatur, AL has a population of 36,000, which has increased by 10.2% over the past 5 years. Decatur, AL is a popular place for families, as children make up 25.4% of the population. The area has a poorly educated workforce, with 18.3% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 2.9% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 36,000 | 10.2% |
% Under 18 | 25.4% | 2.8% |
% Seniors | 14.8% | -8.6% |
% WFH | 2.9% | 81.2% |
% w/ College Degree | 18.3% | -10.7% |
As of the latest ACS Survey released in 2023, Decatur, AL is a predominantly white area, with 47.5% of the population identifying as white. The white population has shrunk by 8.3% in the last 5 years. The second most common race or ethnicity in Decatur, AL is black, making up 25.9% of the population. Foreign-born residents account for 10.2% of the population in Decatur, AL, and this percentage has increased by 10.9% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 47.5% | -8.3% |
% Black | 25.9% | -3.0% |
% Hispanic | 24.0% | 23.7% |
% Asian | 0.4% | -20.0% |
% Foreign Born | 10.2% | 10.9% |
Mortgage and Risk — Decatur, AL
According to HUD data as of 2023, there were 422 mortgage originations in Decatur, AL, of which 68.0% of loans were conventional mortgages. The average loan-to-value was 68.0%, with 36.0% above 90% LTV (very high). This implies large mortgage risk in Decatur, AL. Investor activity is low, as 5.0% of loans were by investors. 12.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 422 |
% Conventional Loans | 68.0% |
% Government Loans | 32.0% |
% Investor Loans | 5.0% |
% Second Loans | 1.0% |
% Cash Out Refinance | 12.0% |
Loan Activity
Rentals and Section 8 — Decatur, AL
As of 2024, the percent of homes in Decatur, AL under the Section 8 program is 8.4%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. 1-bedroom and 2-bedroom and 4-bedroom units appear to be good home sizes to consider for Section 8 housing in Decatur, AL, because HUD payments exceed market rent, while 3-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 1,071 |
Total Units Section 8 | 462 |
% Rentals under Section 8 | 8.4% |
% Occupied Section 8 | 56.7% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $55 | $725 | $780 |
| 2 Bedroom | $75 | $875 | $950 |
| 3 Bedroom | -$200 | $1,450 | $1,250 |
| 4 Bedroom | $100 | $1,400 | $1,500 |
Affordability — Decatur, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 3.3 |
| Median Home Price | $174,000 |
| Median Household Income | $50,200 |