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Data on this report is based on areas within the legal city boundary, outlined in black on the map. Any additional neighborhoods shown on the map are associated with the city by name and are included for reference only.



Rainbow City, AL Real Estate Market

Source & Methodology

Analytics built by:   Location, Inc.

Raw data sources:   American Community Survey (U.S. Census Bureau), U.S. Department of Housing and Urban Development, Federal Housing Finance Agency.

Date(s) & Update Frequency:
  • Home Values, Rents: Reflects Q4 2023. Updated quarterly.
  • Setting, Housing Stock, Homeownership: 2022 (latest available). Updated annually.

Methodology:   NeighborhoodScout uses over 600 characteristics to build a neighborhood profile… Read more about Scout's Real Estate Data

Rainbow City, AL Housing Market Trends

With a population of 10,271, 3,908 total housing units (homes and apartments), and a median house value of $346,329, Rainbow City real estate is some of the most expensive in Alabama, although Rainbow City home values aren't among America's most expensive.

Single-family detached homes are the single most common housing type in Rainbow City, accounting for 67.90% of the city's housing units. Other types of housing that are prevalent in Rainbow City include large apartment complexes or high rise apartments ( 18.28%), duplexes, homes converted to apartments or other small apartment buildings ( 7.89%), and a few mobile homes or trailers ( 5.92%).

The most prevalent building size and type in Rainbow City are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 63.35% owning and 36.65% renting.

There is a lot of housing in Rainbow City built from 1970 to 1999 so parts of town may have that "Brady Bunch" look of homes popular in the '70s and early '80s, although some of these houses were built up through the early '90s as well. There is also a lot of housing in Rainbow City built between 2000 and later ( 24.29%). A lesser amount of the housing stock also hails from between 1940-1969 ( 12.22%).

Vacant housing appears to be an issue in Rainbow City. Fully 13.62% of the housing stock is classified as vacant. Left unchecked, vacant Rainbow City homes and apartments can be a drag on the real estate market, holding Rainbow City real estate prices below levels they could achieve if vacant housing was absorbed into the market and became occupied. Housing vacancy rates are a useful measure to consider, along with other things, if you are a home buyer or a real estate investor.

Rainbow City Home Appreciation Rates

Rainbow City's appreciation rate notably has been below the national average for the last ten years. The average annual home appreciation rate in Rainbow City during the period has been just 4.74%, which is lower than 80% of US communities.

Appreciation rates are so strong in Rainbow City that despite a nationwide downturn in the housing market, Rainbow City real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Rainbow City appreciation rates continue to be some of the highest in America, at 9.51%, which is higher than appreciation rates in 94.04% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Rainbow City. Rainbow City appreciation rates in the latest quarter were at 11.05%, which equates to an annual appreciation rate of 52.08%.

Importantly, this makes Rainbow City one of the highest appreciating communities in the nation for the latest quarter, and may signal the city's near-future real estate investment strength.

Relative to Alabama, our data show that Rainbow City's latest annual appreciation rate is higher than 90% of the other cities and towns in Alabama.

Average Home Values

Median Home Value

$346,329

Rainbow City, AL Home Prices
> $1,389,000
$1,041,001 - $1,389,000
$694,001 - $1,041,000
$556,001 - $694,000
$417,001 - $556,000
$278,001 - $417,000
$139,001 - $278,000
$69,001 - $139,000
$0 - $69,000
0.0%
0.0%
1.9%
1.9%
3.5%
3.5%
6.6%
6.6%
11.8%
11.8%
20.1%
20.1%
47.1%
47.1%
4.1%
4.1%
4.8%
4.8%
0% 100.0%
% of Homes
Very High

for Alabama

High

for nation

Number of Homes And Apartments:

3,908

Rainbow City Appreciation Rates

Rent & Ownership

Average Market Rent:

$1,782 / per month

Homeownership Rate

Owners
Renters
63.4%
63.4%
36.6%
36.6%
0% 100.0%
% of Homes

Vacancy Rate

Vacant
Occupied
13.6%
13.6%
86.4%
86.4%
0% 100.0%
% of Homes

Housing Market Details

Age of Homes

2000 or Newer
1970 - 1999
1940 - 1969
1939 or Older
24.3%
24.3%
63.2%
63.2%
12.2%
12.2%
0.3%
0.3%
0% 100.0%
% of Homes

Types of Homes

Single-Family
Townhomes
Small Apt. Buildings
Apt. Complexes
Mobile Homes
Other
67.9%
67.9%
0.0%
0.0%
7.9%
7.9%
18.3%
18.3%
5.9%
5.9%
0.0%
0.0%
0% 100.0%
% of Homes

Home Size

No Bedroom
1 Bedroom
2 Bedrooms
3 Bedrooms
4 Bedrooms
5 or more bedrooms
1.0%
1.0%
4.4%
4.4%
24.2%
24.2%
49.0%
49.0%
16.8%
16.8%
4.6%
4.6%
0% 100.0%
% of Homes

Popular Neighborhoods in Rainbow City

Zip Codes in Rainbow City, AL