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Rainbow City, AL—35906

Real Estate Data & Market Trends

Key Metrics at a Glance

Median Home Value
$248,000
1.9% YoY Growth
Household Income
$58,900
19.2% YoY Growth
Days on Market
73
30.0% Longer YoY
Home Price Forecast
2.1%
Median Rent
$1,700
9.8% YoY Growth
1-Bed Rent
$575
8.9% YoY Growth
2-Bed Rent
$1,300
N/A
3-Bed Rent
$1,700
2.9% YoY Growth
  • Home Price Trends
  • Rental Trends
  • Property Listings
  • Demographics
  • Mortgage and Risk

Home Price Trends — Rainbow City, AL

As of Dec '25, the median home price in Rainbow City, AL is $248,000, with a year-over-year change of 1.9%. This indicates that home prices in Rainbow City, AL are increasing. According to Zillow, the 1-year price projection is 2.1%, suggesting an increase housing market in the next year.

Cost per Home Type

Home TypeMedian Home ValueYoY % Change
All Homes
$248,0001.9%
Single Family $248,0002.5%
Condos N/AN/A

Cost per Home Size

Home SizeMedian Home ValueYoY % Change
1 Bed
  • Affordability
  • Rentals and Section 8
    • N/A
    N/A
    2 Bed
    		N/AN/A
    3 Bed
    		$243,0003.4%
    4 Bed
    		$342,0003.3%
    5 Bed N/AN/A
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    % of Housing Stock

    Studio
    1.2%
    1 Bedroom
    5.5%
    2 Bedrooms
    30.4%
    3 Bedrooms
    44.3%
    4 Bedrooms
    12.9%
    5+ Bedrooms
    5.6%

    Rental Trends — Rainbow City, AL

    As of July '25, Rentcast reports the average rent in Rainbow City, AL is $1,740, with a year-over-year rent change of -9.8%. Per bedroom, the median rent as of July '25 in Rainbow City, AL is 1-bedrooms: $762, 2-bedrooms: $1,300, 3-bedrooms: $1,800, 4-bedrooms: $3,050. The most common rental property sizes in Rainbow City, AL are 2-bedroom and 3-bedroom, accounting for 56.8% and 19.0% of the rental stock.

    TypeMedian RentAverage Rent
    Average Rent$1,700$1,740
    Studio Rent N/AN/A
    1 Bed Rent $575$762
    2 Bed Rent $1,300$1,300
    3 Bed Rent $1,700$1,800
    4 Bed Rent $2,300$3,050
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    % of Rental Stock

    Studio
    0.3%
    1 Bedroom
    18.7%
    2 Bedrooms
    56.8%
    3 Bedrooms
    19.0%
    4 Bedrooms
    5.3%

    Property Listings — Rainbow City, AL

    As of Dec '25, Realtor.com reports that the median days on market for a home in Rainbow City, AL is 83. This is a increase of 15.0% 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 22.0%, representing a small inventory and little supply pressure on home prices.

    MetricZip Code AverageYear over Year % Change
    Median Listing Price
    		$290,0001.0%
    Listing Count
    		311.0%
    Listings as % of Homes0.8%1.0%
    Days on Market
    		7330.0%
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    Demographics — Rainbow City, AL

    As of the latest ACS Survey released in 2023, Rainbow City, AL has a population of 10,400, which has increased by 5.8% over the past 5 years. Rainbow City, AL is a moderately popular place for families, as children make up 22.5% of the population. The area has a poorly educated workforce, with 21.6% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 8.5% reporting working from home.

    MetricLatest CensusYoY % Change
    Population
    		10,4005.8%
    % Under 18
    		22.5%0.9%
    % Seniors
    		18.2%0.6%
    % WFH
    		8.5%97.7%
    % w/ College Degree
    		21.6%-26.3%
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    As of the latest ACS Survey released in 2023, Rainbow City, AL is a predominantly white area, with 80.7% of the population identifying as white. The white population has grown by 2.3% in the last 5 years. The second most common race or ethnicity in Rainbow City, AL is black, making up 9.4% of the population. Foreign-born residents account for 5.5% of the population in Rainbow City, AL, and this percentage has decreased by 3.5% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.

    Race and Ethnicity

    MetricLatest Census5-Year % Change
    % White
    		80.7%2.3%
    % Black
    		9.4%-33.3%
    % Hispanic
    		3.9%-4.9%
    % Asian
    		2.5%0.0%
    % Foreign Born
    		5.5%-3.5%
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    Mortgage and Risk — Rainbow City, AL

    According to HUD data as of 2023, there were 153 mortgage originations in Rainbow City, AL, of which 61.0% of loans were conventional mortgages. The average loan-to-value was 68.0%, with 37.0% above 90% LTV (very high). This implies large mortgage risk in Rainbow City, AL. Investor activity is low, as 4.0% of loans were by investors. 10.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.

    Mortgages

    MetricZip Code Average
    Total Loan Originations
    		153
    % Conventional Loans
    		61.0%
    % Government Loans
    		39.0%
    % Investor Loans
    		4.0%
    % Second Loans
    		1.0%
    % Cash Out Refinance
    		10.0%
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    Rentals and Section 8 — Rainbow City, AL

    As of 2024, the percent of homes in Rainbow City, AL under the Section 8 program is 10.8%. 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 units appear to be good home sizes to consider for Section 8 housing in Rainbow City, AL, because HUD payments exceed market rent, while 2-bedroom and 3-bedroom and 4-bedroom units do not.

    Section 8 Market Size

    Total Units under HUD
    		148
    Total Units Section 8
    		148
    % Rentals under Section 8
    		10.8%
    % Occupied Section 8
    		88.0%

    Section 8 Opportunity

    Home SizeHUD PremiumMarket RentMax HUD Rent
    1 Bedroom$425$575$1,000
    2 Bedroom-$160$1,300$1,140
    3 Bedroom-$280$1,700$1,420
    4 Bedroom-$720$2,300$1,580

    Affordability — Rainbow City, AL

    Home Price to Income Ratio

    MetricZip Code Average
    Home Price to Income Ratio3.8
    Median Home Price$248,000
    Median Household Income$58,900

    Rainbow City, AL — ZIP Code Boundary Map

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    Nearby ZIP Codes

    Southside, AL

    35907

    Steele, AL

    35987

    Attalla, AL

    35954

    Ohatchee, AL

    36271

    Gallant, AL

    35972

    Frequently Asked Questions