Riding the Rental Wave
What’s Ahead for Baldwin County’s Rental Market
Nestled along Alabama’s Gulf Coast, Baldwin County has fast become one of the state’s most desirable places to live—and that’s evident in its rental market. As of 2025, the county lends itself to a dynamic rental environment shaped by affordability, growing demand, and shifting demographics.
According to HUD’s 2025 Fair Market Rents (FMRs) for the Daphne–Fairhope–Foley metro area, Baldwin County’s FMR stands at:
Studio: $972
1-Bedroom: $1,043
2-Bedroom: $1,244
3-Bedroom: $1,550
4-Bedroom: $1,975
Zip-code–specific Small Area FMRs (SAFMRs) vary across Baldwin County. For instance, 36535—which includes Foley—has a 3-bedroom SAFMR of $1,510
But what are landlords actually seeing? Rental listings from August 2025 paint a real-world picture. In areas like 36526, median rents are around $1,925—a notable increase year-over-year despite significant declines in studio, 1-bedroom, and 2-bedroom rates
Additionally, insight from the local Level Property Management Group shows the average single-family rental in Baldwin County is about $2,073/month, with average days on market around 46—reflecting strong demand and quick turnover
Level Property Management Group
How Will Rates Shift in 2026?
While precise forecasts are scarce, broader trends offer clues:
- Rising demand & migration: Baldwin County continues to be one of Alabama’s fastest-growing regions, attracting families and retirees alike
- Housing supply constraints: Inventory remains limited, helping sustain higher rents amid ongoing demand
- Higher-than-expected rents: Across Alabama, actual rental growth recently exceeded projections by nearly 5%—a pattern that suggests upward momentum may continue into 2026
ACRE - Alabama Center for Real Estate
Taken together, a conservative estimate would suggest 3-bedroom rents may rise 3–6% by 2026, pushing FMRs toward $1,600–$1,650, while actual market rents in popular areas could edge up to $2,100–$2,200/month, especially for newer or well-appointed homes.
Key Drivers of Rental Rates
- Population growth & migration: Continued influx of new residents, drawn by the coast’s lifestyle and lower cost of living.
- Supply-demand imbalance: Limited new rental inventory coupled with high demand sustains upward pressure on rents.
- Economic pressures: Stable job markets and inflation—including rising costs for homeowners—keep rental housing in favor.
- Affordability dynamics: Rents growing faster than wages could eventually slow demand—but for now, Baldwin’s rental market remains resilient.
In Summary: As of mid-2025, Baldwin County offers competitive FMRs ($1,550 for 3-bedrooms), but actual market rents are already higher, often around $2,000/month. With ongoing demand and tight supply, the upward trend is likely to continue through 2026, pushing both FMRs and market rents higher. Whether you're a renter, landlord, or investor, staying tuned to these shifting currents will be essential.
