Alabama · 136th largest metro area

Buying a home in Mobile, Alabama

In Mobile, the median value of owner-occupied homes is $193,300, Mobile County's effective property tax rate is 0.47%, a purchase mortgage carried a median $6,332 in total loan costs in 2025, and median gross rent is $1,068 a month.

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

Mobile home costs, fact by fact

About Mobile

Mobile, Alabama, is a city with 201,367 residents, and it lies in the Mobile, AL metro area, ranked 136th in the country. Mobile County has an effective property tax rate (median tax as a share of home value) of 0.47%, and 54% of homes are owner-occupied.

Reading the Mobile figures

Mobile is one of the lower-priced places among the covered Alabama cities. Owners report $193,300, below the statewide $246,500 and far under Huntsville's $293,600 or Tuscaloosa's $255,500. Only Montgomery and Birmingham, where the reported values are $161,900 and $158,800, come in lower.

Rent hardly separates the cities. Mobile renters pay $1,068; Montgomery renters $1,089; Birmingham $1,107; Huntsville $1,171. With such a narrow band, the real decision between renting and buying turns on up-front costs and the monthly carrying bill. Mobile County's rate of 0.47% produces a $888 yearly tax bill at the median, and its lenders reported costs of $3,944 to $8,447 with a median of $6,332.

HUD's benchmark of $1,139 for the metro area sits above the $1,068 median rent, a reminder that a benchmark and a median measure different things. Ownership stands at 54%, practically level with Montgomery's 54.4% and above Birmingham's 45.5%.

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 Mobile

How much is property tax in Mobile?

Homeowners in Mobile County pay a median $888 a year in property tax, 0.47% of the county median home value of $190,700 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Mobile?

Home-purchase mortgages in Mobile County carried median total loan costs of $6,332 in 2025; half of the 3,322 loans fell between $3,944 and $8,447 (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 Mobile?

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 Mobile?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Mobile ($193,300) equals 15.1 years of the median gross rent ($1,068 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in Mobile?

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 Mobile

Other large cities in Alabama

Who licenses each trade in Alabama · All covered cities

Sources

Alabama · All states · Federal guides