Investing in Madison County
Madison County covers 2 rental markets we actively finance in Alabama — Huntsville, Madison. Across those markets the median investment basis averages $380,000, a long-term lease averages $2,100/month, and the average all-in PITIA on a DSCR loan at the minimum down payment is $2,408. That produces a county-wide average DSCR ratio near 0.88x.
Basis varies more inside Madison County than the average suggests. Huntsville is the lowest entry point at roughly $335,000, while Huntsville currently models the strongest coverage ratio in the county at 0.95x. When two towns in the same county ratio differently, it is almost always the rent-to-price relationship rather than the rate — the same loan pricing applies county-wide, so the deal is won on which submarket you buy in.