Huntsville, AL Scores 40 on PropertyIQ. The Employment Numbers Tell a Different Story.

Huntsville scores 40 out of 100. The score is below average -- but the employment picture here tells a story that the number alone does not capture.

---

The Lowest Unemployment in This Batch

Huntsville's unemployment rate is 2.2% as of November 2025. That is the lowest of any market covered in Batch 11, and among the lowest in any market we track nationally.

This is not an accident. Huntsville is home to Redstone Arsenal (the largest single-site employer in Alabama), NASA's Marshall Space Flight Center, and a growing aerospace and defense contractor ecosystem that includes Boeing, Lockheed Martin, and dozens of smaller firms. The economy here is not cyclical retail and hospitality -- it is federal contracts and defense spending.

So why does Huntsville score 40? The appreciation story has already played out.

---

The Appreciation Plateau

Five-year home value appreciation in Huntsville is just 5.72% as of February 2026 -- the lowest in this batch by a wide margin. Omaha appreciated 23%. Albany appreciated 25%. Knoxville appreciated 45%. Huntsville appreciated 5.7% over five years.

This suggests the Huntsville market absorbed its pandemic-era appreciation earlier than other markets and has since plateaued. Home values are essentially flat.

Current signals are mixed:

• Home values up 1.3% YoY, but down 0.07% MoM
• Inventory grew 8.72% YoY -- moderate, not alarming
• Price cuts at 14.5% of listings
• Days on market: 65 -- slow but not stalled
• Home sales up 12.8% YoY -- buyers are still transacting

The market is 5% overvalued relative to income -- essentially fair value. Income needed to buy is $99,599 on a median income of $83,529. The affordability picture is one of the best in this batch.

---

Key Market Data (as of February 28, 2026 unless noted)

• PropertyIQ Score: 40/100
• Median home value: $309,816 (Zillow, Jan 31, 2026)
• Median listing price: $374,720 (Realtor.com, Feb 2026)
• Year-over-year price change: +1.3%
• Overvaluation vs. income: +5.0%
• Days on market: 65
• For-sale inventory: 2,638 homes
• Inventory change YoY: +8.72%
• Price cuts: 14.5% of listings
• Price per square foot: $171
• Rent index: $1,373/mo (Zillow, Dec 2025)
• Unemployment: 2.2% (Nov 2025)
• Median household income: $83,529 (Census, 2023)
• 5-year home value change: +5.7%
• Zillow price forecast: +1.7% (12-month, Dec 2025)

---

What This Means for Investors

Huntsville is not an appreciation play right now. It is a stability and rent play.

At $1,373/mo rent on a $310K median value, the gross rent multiplier is approximately 18.8x -- reasonable for a market with 2.2% unemployment and near-fair-value pricing. The defense economy provides a floor on demand that most markets of this size do not have.

For long-term buy-and-hold investors who prioritize employment stability over appreciation velocity, Huntsville is worth analyzing at the submarket level. The macro score of 40 reflects the plateau; the underlying employment fundamentals are among the strongest in the Southeast.

---