3505 Gay St NW · Huntsville, AL 35810

$138,000

2 bd · 1.0 ba · 840 sqft · SingleFamily public records · 4 Days on market

Built 1958 0.52 ac lot $164/sqft · 12% below area Est $159k · 13% under

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Why this score? — see what drove the C- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +18.0/30.0
• ARV discount +13.4/15.0
• DSCR +5.7/10.0
• Livability +4.1/5.0
• 1% rule +3.7/10.0
• Schools +2.9/10.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

Life feels a little slower here. Nestled in a quiet Huntsville neighborhood, this charming ranch home invites you to enjoy peaceful mornings on the covered front porch and evenings gathered on the large covered back porch. Inside, hardwood floors and fresh paint create a warm, welcoming feel. The spacious fenced backyard offers room to play, garden, or simply unwind, while raised beds beside the home are ready for flowers, herbs, or vegetables. A large backyard shed provides extra storage or workspace. With a church across the street and a peaceful setting all around, this home offers comfort, simplicity, and a place to feel at home.

Key facts

• Covered front porch
• Raised beds
• Large backyard shed

Tags

• COVERED FRONT PORCH
• LARGE COVERED BACK PORCH
• FENCED BACKYARD
• RAISED BEDS
• LARGE BACKYARD SHED

Property features AI

Finance

• Other: Directions: From Memorial Parkway west on Mastin Lake, right on Gay Street by Pentecostal Church
• HOA & community: No homeowners association; Subdivision: Pecan Grove

Exterior

• Parking: Concrete driveway
• Utilities: Public water; Public sewer; Electric heating
• Home design: Single-family residence; One story; Built in 1958; Living area about 850
• Construction: Vinyl siding
• Exterior features: Public water; Public sewer; Lot is approximately 0.52 acres

Interior

• Bathrooms: 1 full bathroom
• Heating & cooling: Central heating (electric); Central cooling
• Interior features: 5 total rooms; Crawl space foundation

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $138k.

Deal economics

• At list price, monthly cash flow is $120 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $120k (13.2% below list).
• Recommended offer: $120k (13.2% below list) — sets the bar for 1% rule.
• Cap rate 7.3% vs local median 3.8% in Huntsville — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 82/100 on livability (#3 in AL, #1,082 nationally) — a professional / high-income tenant draw. Strengths: commute A+, cost of living A+, housing A+; Watch: crime F.
• Huntsville City (urban): math 21% / reading 46% proficiency, ranked #48 of 129 in AL (top 37%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: James Dawson Elementary (math 0% / reading 24%, grade F, #536 of 627 statewide, top 88%, 432 students, 88% FRL); Ronald Mcnair 78 (math 0% / reading 23%, grade F, #225 of 257 statewide, top 88%, 414 students, 87% FRL); Jemison High School (math 12% / reading 12%, grade F, #242 of 305 statewide, top 80%, 843 students, 64% FRL) — zoned schools average 80% FRL vs 46% district-wide (34 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 12% at this address vs 34% district-wide (-22 pts) — the specific schools serving this property underperform the Huntsville City average; the district grade overstates school quality for this exact location.
• Market conditions: Rents soft (-0.1%/yr); 340 active listings in the ZIP; 21 comparable units currently listed for rent nearby; rentals lingering (median 46d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 76% of comp listings sitting > 30 days — soft ceiling on asking rent; 4,709 units permitted in Madison County in 2024 (1,186 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $954 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Madison County population projected at +18% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• Only 4 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1958 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: major flood risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $119,730 (13.2% below list)

Questions for the listing agent

1. Built in 1958 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
4. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
5. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
6. How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Investment metrics

• 1% rule: 0.87% ✗
• Cap rate: 7.34%
• Cash-on-cash: 3.72%
• DSCR: 1.17
• GRM: 9.6

CMA / ARV

• ARV (median comp): $158,745
• List price: $138,000
• Delta: -13.07%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 3 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
3506 Gay St	0.03mi	2/1.0	887 (+6%)	4mo	$68,000	$77	86
3607 Gay St	0.10mi	3/1.0 (+1)	936 (+11%)	11mo	$185,000	$198	62
3206 Stringfield Rd NW	0.50mi	3/1.0 (+1)	945 (+12%)	22mo	$158,000	$167	33

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 0.0% rent growth · sell at horizon

5-year hold

• IRR: -13.5%
• Equity multiple: 0.53×
• Total profit: $-18,293
• Equity at exit: $20,576

10-year hold

• IRR: -9.5%
• Equity multiple: 0.48×
• Total profit: $-19,900
• Equity at exit: $11,932

Cash invested: $38,640 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 90 Strongly Landlord-Friendly
• State Alabama: 90 Strongly Landlord-Friendly · R+15
• County: — inherits STATE
• City: — inherits STATE

Right-to-evict in 7 days for non-payment; no rent control; preempted statewide; courts move quickly.

Methodology + full state rankings →

ZIP-level market 35810

• Home prices YoY: -23.5%
• Rents YoY: -0.1%
• Active inventory: 340
• Price-to-rent: 9.6×

Monthly cashflow live

• Estimated rent: $1,197 high
• Mortgage (P&I): −$724
• Tax from tax record: −$45 /mo · $537/yr
• Insurance: −$58
• HOA: −$0
• Vacancy / Maint / Mgmt: −$251
• Net cashflow: $120

Break-even live

Break-even rent $1,045

Max offer price $138,000

Occupancy floor 85%

Sensitivity live

Price	-10% $198	-5% $159	+0% $120	+5% $81	+10% $42
Rent	-10% $25	-5% $73	+0% $120	+5% $167	+10% $215
Rate	-1.0pp $189	-0.5pp $155	base $120	+0.5pp $84	+1.0pp $48

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $34,500
• Closing costs: $4,140
• Reserves months: —
• Total cash needed: —

Rent comps 21 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
3601 Fay St NW Huntsville, AL	2.0	1.0	972	$1,195	$1.23	45d	1	0.11mi
3803 Mastin Lake Rd NW Huntsville, AL	3.0	1.0	1103	$1,295	$1.17	45d	1	0.39mi
3930 Pulaski Pike NW Unit D-01 Huntsville, AL	1.0	1.0	662	$699	$1.06	45d	1	0.41mi
3212 Reynolds Dr NW Unit A Huntsville, AL	1.0	1.0	850	$1,000	$1.18	45d	1	0.42mi
3210 Tucker Dr NW Huntsville, AL	3.0	1.0	1005	$1,475	$1.47	15d	1	0.55mi
3210 Caywood Dr NW Huntsville, AL	3.0	1.0	1005	$1,475	$1.47	15d	1	0.67mi
3706 Wilbanks Dr NW Huntsville, AL	3.0	1.0	1000	$1,300	$1.30	45d	1	0.88mi
4114 Blue Spring Rd NW Huntsville, AL	3.0	2.0	1100	$1,500	$1.36	25d	1	1.02mi
2708 Monticello Dr NW Huntsville, AL	3.0	1.0	1025	$1,350	$1.32	45d	1	1.08mi
2708 Monticello Dr NW Huntsville, AL	3.0	1.0	1025	$1,300	$1.27	25d	1	1.08mi
2519 Birchfield St NW Huntsville, AL	3.0	1.5	1125	$1,195	$1.06	45d	1	1.08mi
2640 Blue Spring Rd NW Huntsville, AL	1.0–3.0	1.0–2.0	944	$1,024	$1.08	45d	3	1.18mi
2728 Clayton Dr NW Unit B Huntsville, AL	2.0	1.0	900	$795	$0.88	45d	1	1.18mi
3100 Gayhart Dr NW Huntsville, AL	3.0	1.0	1050	$1,298	$1.24	45d	1	1.21mi
2721 Clayton Dr NW Huntsville, AL	3.0	1.0	1000	$998	$1.00	45d	1	1.23mi
2711 Clayton Dr NW Huntsville, AL	3.0	1.5	1030	$1,400	$1.36	45d	1	1.25mi
2401 Mount Vernon Rd NW Huntsville, AL	3.0	1.0	950	$1,045	$1.10	45d	1	1.29mi
3410 Elizabeth St NW Unit 5 Huntsville, AL	2.0	1.0	675	$799	$1.18	25d	1	1.31mi
3410 Elizabeth St NW Apt 7 Huntsville, AL	2.0	1.0	800	$799	$1.00	45d	1	1.31mi
3410 Elizabeth St NW Unit 2 Huntsville, AL	2.0	1.0	800	$850	$1.06	45d	1	1.31mi
2219 Jonathan Dr NW Apt C Huntsville, AL	2.0	1.5	850	$850	$1.00	45d	1	1.38mi

Listing history 2 events

1. 2026-05-15
   listed $138,000 Active 641-char remark
2. 2022-08-08
   price $1,000

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast AL · Resets to sale price

• Current annual tax: $537 · $45/mo
• Projected year-2 tax: $566 · $47/mo
• Expected delta: +$29/yr (+$2/mo · 5.3%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X (unshaded) · 70% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 5/10 Major 7 d/yr ≥105°F today · 19 d/yr by 30 yrs out
• 💨 Wind 4/10 Moderate 21% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,368
• − Mortgage interest: −$7,730
• − Property taxes: −$537
• − Insurance: −$690
• − Repairs & maintenance: −$1,149
• − Management: −$1,149
• − Depreciation: −$4,015
• Taxable loss: −$903
• Est. tax savings @ 24.0%: +$217
• After-tax cash flow: $1,656/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Huntsville City
• NCES district ID: 0101800
• Math proficiency: 21% ▼ -23.00%
• Reading proficiency: 46% ▬ 0.00%
• Median HH income: $48,264
• Composite: 28.84/100
• National rank: #6647
• State rank: #48 of 129 in AL

Livability — Huntsville

• Score: 82/100
• State rank: #3
• US rank: #1082

Category grades

Amenities B Commute A+ Cost of living A+ Crime F Employment C Housing A+ Health & safety A+ User ratings A

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Huntsville, AL
• County: Madison County · 380,832 people
• City population: 220,435
• Metro: Huntsville, AL
• Population (ZIP): 32,843
• Household income: $51,233
• Rent vs Own: 36.6% rent · 63.4% own
• Severe rent burden: 1223.0

Population outlook (Madison County) Hauer SSP2

• Today (2025): 392,086 people
• By 2030: 409,788 · +4.5%
• By 2040: 440,557 · +12.4%
• By 2050: 460,990 · +17.6%
• By 2075: 502,872 · +28.3%
• By 2100: 513,623 · +31.0%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly Black (69%)
• Race & ethnicity: Black 69% White 18% Hispanic / Latino 9% Two or more races 5%
• Hispanic origin (detail): Mexican 3% Puerto Rican 2% Dominican 2%
• Common ancestry: Italian 2% Lithuanian 0%
• Foreign-born: 6% · Canada
• Languages at home: 92% English-only · Spanish 7%

Political lean MEDSL · Madison

• 2024 margin: Lean R (+9.0) · D 44.7% · R 53.7% · Other 1.6%
• 2008→2024 swing: +6.0pp toward D · 2008: -14.9pp · 2024: -9.0pp
• All cycles: 2024: R+9.0 2020: R+8.0 2016: R+16.8 2012: R+18.7 2008: R+14.9

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -61.00%
• Current HPI: 198.9629
• Rent YoY: ▬ -0.05%
• Metro: Huntsville, AL
• State GDP YoY: ▲ 2.94%
• F500 in state: 4

Industry mix (Fortune 500 HQ in AL)

Industry	F500 HQs	Revenue
▸Financial Services	1	$8B
▸Healthcare	1	$5B

Price history

+13700.0% since first listed

3 events — show timeline

• 2026-05-19 Pending — VMLS
• 2026-05-15 Listed $138,000 VMLS
• 2022-08-08 Price Changed $1,000 RENT.

Property tax history

+1.7%/yr

Latest (2024): $537 · +2.0% YoY. Source: county tax records.