Home Values in Decatur, Alabama — 2026 Market Report
Updated March 2026 | Seller's Market | +2.9% YoY
The median home value in Decatur, Alabama is $175,000 as of March 2026, which is below the national median of $400,000. Home values in Decatur have increased by 2.9% over the past year and 15.4% over the last five years. With a population of 57,938 and a median household income of $42,250, the price-to-income ratio stands at 4.1x, making Decatur affordable for the average household.
Decatur Housing Market Conditions
| Metric | Decatur | National Avg |
|---|---|---|
| Median Home Value | $175,000 | $400,000 |
| YoY Appreciation | +2.9% | +3.8% |
| 5-Year Appreciation | +15.4% | +22.4% |
| Price per Sq Ft | $48 | $222 |
| Days on Market | 65 days | 45 days |
| Months of Supply | 1.8 | 3.5 |
| List-to-Sale Ratio | 101.9% | 98.5% |
| Monthly Homes Sold | 40 | — |
| Foreclosure Rate | 0.15% | 0.3% |
Home Value Trends in Decatur
A homeowner who purchased at the median price of $151,646 five years ago in Decatur would have gained approximately $23,354 in equity, representing a 15.4% return on investment. Over the past year alone, the typical homeowner gained $4,932 in home equity.
Affordability in Decatur, AL
With a median household income of $42,250 and a median home price of $175,000, the price-to-income ratio in Decatur is 4.1x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $1,037 compared to estimated monthly ownership costs of $891 gives a rent-vs-buy ratio of 0.86. In Decatur, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Decatur
The effective property tax rate in Alabama is 0.41%. On a home valued at $175,000, the estimated annual property tax bill is $718, or approximately $60/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Decatur is 82.5 (100 = national average), indicating living costs are below the national average.
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Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Decatur, AL?
The median home value in Decatur, Alabama is $175,000 as of March 2026. Home values have changed +2.9% over the past year, with a 5-year appreciation of 15.4%.
Is Decatur a buyer's or seller's market?
Decatur is currently a seller's market with 1.8 months of housing supply. Homes spend an average of 65 days on market, and the list-to-sale price ratio is 101.9%. Low inventory gives sellers an advantage.
Are home values going up in Decatur?
Yes, home values in Decatur have increased by 2.9% over the past year. The 5-year appreciation rate is 15.4%, meaning a home worth $151,646 five years ago is now worth $175,000.
Is it better to rent or buy in Decatur?
The average monthly rent in Decatur is $1,037, while estimated monthly homeownership costs are approximately $891. The price-to-rent ratio is 14.1. Based on current conditions, buying may be more cost-effective than renting in this market.
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Disclaimer: Home value data for Decatur, Alabama is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.