Estimated Monthly Payment — Median Alabama Home
$1,428
Based on $220,000 home · 20% down · 6.7% APR · 30-year fixed · taxes & insurance included
Median Price
$220,000
Property Tax
0.41%
Avg. HOA
$125/mo
Median Rent
$1,100/mo
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Estimate only. Not a loan offer, approval, pre-approval, or financial advice. Actual payments and terms may vary. Consult a licensed mortgage professional before making real estate decisions.
Market Insights
About the Alabama housing market
Alabama's housing market is among the most affordable in the country, with a median home price around $220,000. Birmingham is the largest metro, with Huntsville a close second. Alabama's effective property tax rate is among the lowest in the country, with generous homestead exemptions that further reduce annual bills. Alabama's effective property tax rate of 0.41% is one of the lowest in the country.
The median Alabama home costs $220,000. At today's average 30-year fixed rate (6.7%) with 20% down, principal & interest works out to roughly $1,136, and the total monthly payment including taxes, insurance, and average HOA comes to approximately $1,428. First-time buyers in Alabama can explore programs through Alabama HFA.
Photo by Nathan Anderson on Unsplash
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FAQ
Alabama mortgage FAQs
What's the property tax rate in Alabama?
Alabama's effective property tax rate averages about 0.41% — one of the lowest in the country. On a $220,000 home, that's roughly $75/month or $902/year.
How much do I need to earn to afford a typical Alabama home?
Using the 28/36 rule, a buyer would need roughly $54,000–$69,000 in gross annual income to comfortably afford Alabama's $220,000 median home with 20% down at current rates.
What first-time buyer programs are available in Alabama?
AHFA offers the Step Up down payment assistance program for moderate-income buyers and Mortgage Credit Certificates that convert mortgage interest into a federal tax credit. Eligibility typically requires being a first-time buyer with income within program limits and completing homebuyer education.
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