The Ultimate Guide to Grading Birmingham Alabama Neighborhoods | Ask James Wise 26
Channel: HoltonWiseTV
Date: 2019-08-17

In this episode of The Ask James Wise Show James sits down with Maureen McCann from Spartan Invest to put together The Ultimate Guide to Grading Birmingham Alabama Neighborhoods.

A Neighborhoods
The majority of properties in an A neighborhood are owner occupied and rental property investors are highly unlikely to find rental properties that would cash flow. The price points and quality of properties in these neighborhoods are high and attractive to the most affluent residents of the greater Birmingham, Alabama area.
 
Mountain Brook (35213, 35216, 35223, 35243, 35253) 
Population 20k
Owner Occupied 86%
Avg Income $204k
Property Tax Rate 0.65% 
 
Homewood (35209, 35219, 35259, 35226)
Population 25k
Owner Occupied 58.9% 
Avg Income $71k
Property Tax Rate 0.65% 
 
Hoover (35216, 35226, 35236, 35244)
Population 85k
Owner Occupied 68%
Avg Income $107k 
Property Tax Rate 0.65% 
 
Vestavia (35216, 35226, 35243, 35242) 
Population 34k
Owner Occupied 75%
Avg Income $99k
Property Tax Rate 0.65% 
 
Alabaster (35007, 35114)
Population 32k
Owner Occupied 87%
Avg Income $75k
Property Tax Rate 0.51% 
 
Pelham (35124)
Population 23k
Owner Occupied 82.2%
Avg Income $74k
Property Tax Rate 0.51% 
 
Calera (35040)
Population 14k
Owner Occupied 85%
Avg Income $64k
Property Tax Rate 0.51% 
 
McCalla (35111)
Population 16k
Owner Occupied 88.6% 
Avg Income $61k
Property Tax Rate 0.65% 
 
Helena (35022, 35080)
Population 19k
Owner Occupied 94.3%
Avg Income $84k
Property Tax Rate 0.65% 
 
B Neighborhoods 
Properties in B neighborhoods are the highest quality rentals investors can target that will still pencil out from a cash flow perspective. These properties typically feature wide open spaces, a convenient commute to work as well as favorably rated schools, which is a big draw for stable, family-minded tenants.  

Moody (35004, 35094, 35120)
Population 13k
Owner Occupied 78.2%
Avg Income $61k
Property Tax Rate 0.34% 

Leeds (35004, 35094)
Population 12k
Owner Occupied 80.4% 
Avg Income $60k 
Property Tax Rate 0.65% 

Gardendale (35071, 35116, 35117, 35119) 
Population 14k
Owner Occupied 82.4%
Avg Income $63k
Property Tax Rate 0.65% 
 
Fultondale (35068, 35207)
Population 9k
Owner Occupied 71.2%
Avg Income $58k
Property Tax Rate 0.65% 
 
Forestdale (35214)
Population 10k
Owner Occupied 79.1%
Avg Income $52k
Property Tax Rate 0.65% 
 
Pleasant Grove (35224, 35127)
Population 10k
Owner Occupied 87.9%
Avg Income $65k
Property Tax Rate 0.65% 
 
Adamsville (35005, 35062, 35224)
Population 4k
Owner Occupied 77.1%
Avg Income $49k
Property Tax Rate 0.65% 
 
Grayson Valley (35235)
Population 6k
Owner Occupied 71.1% 
Avg Income $50k
Property Tax Rate 0.65% 
 
Irondale (35210) 
Population 12k
Owner Occupied 71.2%
Avg Income $50k
Property Tax Rate 0.65% 
 
Pinson (35126)
Population 8k
Owner Occupied 86%
Avg Income $61k
Property Tax Rate 0.65% 
 
Trussville (35173, 35235, 35004)
Population 22k
Owner Occupied 89.1%
Avg Income $87k
Property Tax Rate 0.65% 
 
C Neighborhoods  
These are areas where real estate investors can get a lot of bang for their buck. C Neighborhoods consist of a healthy mix of owner occupied properties and rentals. There are still some fantastic parts of these zip codes but there will also be a higher level of risk then you see when investing in B Neighborhoods.
 
Center Point (35215)
Population 16k
Owner Occupied 54.5%
Avg Income $39k
Property Tax Rate 0.65% 
 
Hueytown (35023, 35061)
Population 15k
Owner Occupied 70.2%
Avg Income $45k
Property Tax Rate 0.65% 
 
Bessemer (35020, 35021, 35022, 35023, 35111)
Population 26k
Owner Occupied 55.1%
Avg Income $31k
Property Tax Rate 0.65% 

Graysville (35005, 35062) 
Population 2k
Owner Occupied 84.2%
Avg Income $46k
Property Tax Rate 0.65% 
 
Jasper (35501, 35502, 35503, 35504)
Population 14k
Owner Occupied 65.5%
Avg Income $40k
Property Tax Rate = 0.33% 
 
Warrior (35091, 35180)
Population 3k
Owner Occupied 79.6%
Avg Income $28k
Property Tax Rate = 0.65% 
 
D & F Neighborhoods
Rental occupancy starts to outweigh owner occupancy. Low price points. High unemployment and crime rates. Can be very difficult to place qualified tenants.

Tarrant (35217)
Population 6k
Owner Occupied 56%
Avg Income $27k
Property Tax Rate = 0.65% 
 
Fairfield (35064, 35224)
Population 11k
Owner Occupied 58.4% 
Avg Income $36k
Property Tax Rate = 0.65% 
 
Ensley (35218)
Population 7k
Owner Occupied 38.28%
Avg Income $27k
Property Tax Rate = 0.65% 

East Lake (35206)
Population 1k
Owner Occupied 42%
Avg Income = $26k
Property Tax Rate = 0.65%

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