Muscle Shoals, AL—35661
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Muscle Shoals, AL
As of Oct '25, the median home price in Muscle Shoals, AL is $250,000, with a year-over-year change of 2.1%. This indicates that home prices in Muscle Shoals, AL are increasing. According to Zillow, the 1-year price projection is 1.4%, suggesting an increase housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $250,000 | 2.2% |
| Single Family | $250,000 | 2.5% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $156,000 | 4.7% |
3 Bed | $243,000 | 1.7% |
4 Bed | $379,000 | 1.9% |
| 5 Bed | $482,000 | 1.9% |
% of Housing Stock
Rental Trends — Muscle Shoals, AL
As of July '25, Rentcast reports the average rent in Muscle Shoals, AL is $1,170, with a year-over-year rent change of -18.2%. Per bedroom, the median rent as of July '25 in Muscle Shoals, AL is 1-bedrooms: $600, 2-bedrooms: $981, 3-bedrooms: $1,500, 4-bedrooms: $1,200. The most common rental property sizes in Muscle Shoals, AL are 2-bedroom and 3-bedroom, accounting for 50.5% and 36.3% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $950 | $1,170 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $600 | $600 |
| 2 Bed Rent | $950 | $981 |
| 3 Bed Rent | $1,500 | $1,500 |
| 4 Bed Rent | $1,200 | $1,200 |
% of Rental Stock
Property Listings — Muscle Shoals, AL
As of Oct '25, Realtor.com reports that the median days on market for a home in Muscle Shoals, AL is 69. This is a decrease of -3.0% from last year, suggesting that homes are sitting on the market shorter than last year. The percentage of listed homes with a reduced price is 22.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $341,000 | -1.0% |
Listing Count | 128 | 23.0% |
| Listings as % of Homes | 0.7% | 23.0% |
Days on Market | 69 | -3.0% |
Demographics — Muscle Shoals, AL
As of the latest ACS Survey released in 2023, Muscle Shoals, AL has a population of 19,000, which has increased by 12.3% over the past 5 years. Muscle Shoals, AL is a moderately popular place for families, as children make up 22.4% of the population. The area has a poorly educated workforce, with 24.3% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 11.2% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 19,000 | 12.3% |
% Under 18 | 22.4% | 12.6% |
% Seniors | 19.2% | 2.7% |
% WFH | 11.2% | 366.7% |
% w/ College Degree | 24.3% | -9.0% |
As of the latest ACS Survey released in 2023, Muscle Shoals, AL is a predominantly white area, with 77.5% of the population identifying as white. The white population has shrunk by 7.7% in the last 5 years. The second most common race or ethnicity in Muscle Shoals, AL is black, making up 14.1% of the population. Foreign-born residents account for 2.1% of the population in Muscle Shoals, AL, and this percentage has increased by 23.5% 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 | 77.5% | -7.7% |
% Black | 14.1% | 23.7% |
% Hispanic | 4.6% | 130.0% |
% Asian | 0.6% | -25.0% |
% Foreign Born | 2.1% | 23.5% |
Mortgage and Risk — Muscle Shoals, AL
According to HUD data as of 2023, there were 458 mortgage originations in Muscle Shoals, AL, of which 74.0% of loans were conventional mortgages. The average loan-to-value was 67.0%, with 30.0% above 90% LTV (very high). This implies large mortgage risk in Muscle Shoals, AL. Investor activity is low, as 3.0% of loans were by investors. 13.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 458 |
% Conventional Loans | 74.0% |
% Government Loans | 26.0% |
% Investor Loans | 3.0% |
% Second Loans | 2.0% |
% Cash Out Refinance | 13.0% |
Loan Activity
Rentals and Section 8 — Muscle Shoals, AL
As of 2024, the percent of homes in Muscle Shoals, AL under the Section 8 program is 7.0%. 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 Muscle Shoals, AL, because HUD payments exceed market rent, while 3-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 155 |
Total Units Section 8 | 155 |
% Rentals under Section 8 | 7.0% |
% Occupied Section 8 | 74.6% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $270 | $600 | $870 |
| 2 Bedroom | $190 | $950 | $1,140 |
| 3 Bedroom | -$100 | $1,500 | $1,400 |
| 4 Bedroom | $460 | $1,200 | $1,660 |
Affordability — Muscle Shoals, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 3.4 |
| Median Home Price | $250,000 |
| Median Household Income | $66,700 |