Rainbow, AL housing market
The typical Rainbow home is worth about $254,000, up 3% in a year, 5% above the Alabama typical home. Homes typically sell in 93 days, below asking.
Home values, sales, trends and how Rainbow compares with the towns next door — updated as new data is published.
Rainbow at a glance
A balanced market
About 6 months of supply: neither buyers nor sellers have a clear edge.
Typical home value, 2016–2026
Show as a table
| January | Rainbow | Alabama |
|---|---|---|
| 2017 | $142,000 | $147,000 |
| 2018 | $151,000 | $152,000 |
| 2019 | $154,000 | $158,000 |
| 2020 | $168,000 | $170,000 |
| 2021 | $182,000 | $188,000 |
| 2022 | $215,000 | $215,000 |
| 2023 | $228,000 | $228,000 |
| 2024 | $236,000 | $233,000 |
| 2025 | $247,000 | $238,000 |
| 2026 | $252,000 | $239,000 |
| August 2026 | $254,000 | $242,000 |
20 new homes permitted in 2025
Builders were permitted 20 new homes in Rainbow in 2025, all single-family houses, worth about $7.7 million to build. That's 1.9 per 1,000 residents, slower than across Alabama (5.4). Over the past 10 years, Rainbow has permitted 250 homes in all.
Homes vs. people, 2010–2020
Between the 2010 and 2020 censuses, Rainbow gained 589 residents while 179 new homes were permitted: about 3.3 new residents per new home. Building and growth moved roughly in step. Across Alabama: 1.8 new residents per new home.
How Rainbow ranks on housing keeping up with growth →
Residents: U.S. Census Bureau, 2010 and 2020 censuses. New homes: permits issued 2010–2019.
Show as a table
| Year | New homes | Single-family | 2+ per building | Value |
|---|---|---|---|---|
| 2026 (Jan–Aug) | 0 | 0 | 0 | — |
| 2025 | 20 | 20 | 0 | $7.7 million |
| 2024 | 17 | 15 | 2 | $5.5 million |
| 2023 | 12 | 12 | 0 | $2.9 million |
| 2022 | 33 | 33 | 0 | $6.3 million |
| 2021 | 68 | 18 | 50 | $10.8 million |
| 2020 | 21 | 21 | 0 | $1.2 million |
| 2019 | 0 | 0 | 0 | — |
| 2018 | 33 | 33 | 0 | $6.9 million |
| 2017 | 29 | 29 | 0 | $6.1 million |
| 2016 | 17 | 17 | 0 | $3.2 million |
| 2015 | 9 | 9 | 0 | $1.6 million |
| 2014 | 17 | 17 | 0 | $3.4 million |
| 2013 | 8 | 8 | 0 | $2 million |
| 2012 | 19 | 19 | 0 | $4.3 million |
| 2011 | 22 | 14 | 8 | $3.3 million |
| 2010 | 25 | 25 | 0 | $4 million |
| 2009 | 33 | 33 | 0 | $5.3 million |
| 2008 | 53 | 45 | 8 | $9.1 million |
| 2007 | 90 | 66 | 24 | $12.9 million |
| 2006 | 132 | 72 | 60 | $14.5 million |
| 2005 | 80 | 80 | 0 | $11.1 million |
| 2004 | 62 | 62 | 0 | $6.9 million |
| 2003 | 46 | 46 | 0 | $5.7 million |
| 2002 | 43 | 43 | 0 | $5.4 million |
| 2001 | 116 | 44 | 72 | $12.5 million |
| 2000 | 102 | 46 | 56 | $8.4 million |
How Rainbow ranks on new homes being built →
Homes authorized by building permits, counted in the year the permit was issued. U.S. Census Bureau, Building Permits Survey, through August 2026.
Rainbow and its neighbors
4.5 years of income
The typical Rainbow home costs about 4.5 years of the town's median household income, more than across Alabama (3.8 years).
How Rainbow ranks on affordability →
Home value ÷ ACS median household income.
Owners, rent & taxes
U.S. Census Bureau, ACS 2020-2024.
A two-bedroom rents for about $1,110
HUD's Fair Market Rent for a two-bedroom in Rainbow is $1,110 a month, utilities included: roughly what a modest, recently rented unit costs. Renters already in Rainbow pay a median of $1,048. A two-bedroom takes about 24% of the town's median household income.
Studio $810 · 4 bedrooms $1,560
U.S. Department of Housing and Urban Development, FY2026 Fair Market Rents by ZIP code (35906; Birmingham-Hoover, AL HUD Metro FMR Area), weighted by land area. A Fair Market Rent is the 40th-percentile rent plus utilities for a standard unit. Median rent: U.S. Census Bureau, American Community Survey.
Home values: Zillow Home Value Index (ZHVI), Zillow Research, August 2026. Sales, days on market and supply: Redfin Data Center, May 2026. Income, ownership, taxes and rent: U.S. Census Bureau, American Community Survey. New homes: U.S. Census Bureau, Building Permits Survey. Fair Market Rents: U.S. Department of Housing and Urban Development. Listings link to their publishers.