Alabama · 229th largest metro area

Buying a home in Auburn, Alabama

In Auburn, the median value of owner-occupied homes is $364,800, Lee County's effective property tax rate is 0.48%, a purchase mortgage carried a median $6,810 in total loan costs in 2025, and median gross rent is $1,098 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Auburn home costs, fact by fact

About Auburn

Auburn, Alabama, is the first-named place in the Auburn-Opelika, AL metro area and has 83,757 residents. Median gross rent is $1,098 a month, and 53.1% of homes are owner-occupied.

Reading the Auburn figures

Auburn's median value, as owners see it, is $364,800, well above Alabama's $246,500, though below Hoover's $412,200. Huntsville reports $293,600 and Tuscaloosa $255,500, with Birmingham far lower, near $158,800. Renters pay a median of $1,098 monthly, under HUD's Fair Market Rent of $1,277 for the Auburn-Opelika area, a HUD benchmark and not a market median. Lee County's yearly taxes come to a median of $1,252 on a county value of $262,200, an effective rate of 0.48%, and the 2,020 loans of 2025 had a closing cost of $6,810 at the median, with a typical range from $4,246 to $10,499. Owners occupy 53.1% of homes, against 42.9% in Tuscaloosa.

Calculate for Alabama

If you buy

Alabama state transfer tax

Deed tax (privilege or license tax), Code of Alabama 40-22-1: $0.50 per $500 of price, or fraction of $500 (about 0.1%). Change the price: the amount is recalculated instantly.

Price$246,500
State transfer tax$246.50
Share of the price0.1% of the price
Who paysSet by the purchase contract

Default price: the Alabama median value of owner-occupied homes, $246,500 (Census ACS 2025). Rule: Divide the price by $500, round up to the next whole unit, multiply by $0.50. Instruments of $500 or less pay $0.50. Two-thirds goes to the State and one-third to the county. Who pays: Neither statute says who pays; the sales contract and closing statement assign it. Not included: county and city transfer taxes, the tax on the mortgage, recording fees, title insurance and lender charges. Alabama transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Alabama state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Auburn

How much is property tax in Auburn?

Homeowners in Lee County pay a median $1,252 a year in property tax, 0.48% of the county median home value of $262,200 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Auburn?

Home-purchase mortgages in Lee County carried median total loan costs of $6,810 in 2025; half of the 2,020 loans fell between $4,246 and $10,499 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Auburn?

Alabama has no single transfer tax but charges a deed tax of $0.50 per $500 of price (or fraction) and a mortgage tax of $0.15 per $100 borrowed, both paid at recording. The statutes do not say whether buyer or seller pays.

Is it cheaper to rent or buy in Auburn?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Auburn ($364,800) equals 27.7 years of the median gross rent ($1,098 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in Auburn?

Across Alabama, the main hazards for home insurance are hurricanes, tornadoes and flooding, and the insurer of last resort is Alabama Insurance Underwriting Association (AIUA), for eligible property in Baldwin and Mobile counties. Standard Alabama home policies do not cover flood; an NFIP policy covers up to $250,000 for a home and $100,000 for belongings, and the Strengthen Alabama Homes program offers grants of up to $10,000.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Alabama rules that apply in Auburn

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Sources

Alabama · All states · Federal guides