Average Alabama Rent Prices, Caps & Deposit Rules (2025 Update)

Understanding current rent prices, legal limits, and deposit rules is crucial for Alabama renters in 2025. Whether you're renewing your lease or worried about an unexpected increase, knowing the state’s latest regulations can help you make informed decisions and avoid financial surprises. This guide explains rent averages, discusses caps and deposit limits, and shares where to find official support and legal forms.

Typical Alabama Rent Prices in 2025

Average rents in Alabama vary by location and size. According to AL Housing data and the U.S. Census Bureau:

• Statewide median (2-bedroom): $950/month
• Birmingham metro: $1,100/month
• Mobile: $990/month
• Montgomery: $930/month

Keep in mind, local markets and property demand can push prices higher or lower than these averages. Always check local rental listings and HUD’s Alabama Fair Market Rents for your county (view HUD's Fair Market Rent data).

Are There Rent Caps or Controls in Alabama?

Currently, Alabama does not have state or local rent control laws. Landlords can set rental amounts and increases, as long as changes follow proper legal notice. There is no statewide rent cap, but all increases must comply with your lease terms and the Alabama Uniform Residential Landlord and Tenant Act (read Alabama's landlord-tenant act)[1].

• Rent increases: No legal limit, but written notice must be given before any increase.
• Notice required: For month-to-month leases, landlords must provide at least 30 days’ written notice to change rent (Code of Alabama, § 35-9A-161)[2].

Alabama Security Deposit Limits

State law limits how much landlords can collect as a security deposit. The Alabama Uniform Residential Landlord and Tenant Act, § 35-9A-201, states:

• Deposit amount: Landlords may not charge more than one month’s rent as a security deposit (with narrow exceptions for pets or special circumstances).
• Return deadline: Deposits must be refunded within 60 days after you move out and provide a new address.

If deductions are made (like for damage or unpaid rent), a written itemization must be provided.

Official Forms and Where to Find Them

• 30-Day Notice to Terminate or Change Lease (No Form Number):
  What it does: Landlords must provide this written notice to change rent terms in a month-to-month arrangement. Renters can also use this type of letter to give notice of move-out. Download sample templates and see official guidance via the Alabama Legal Help Notice to End Tenancy page.
• Security Deposit Refund Request Letter (No Form Number):
  What it does: If your deposit isn't returned within 60 days, you can send a written request to your landlord (via certified mail is recommended). Get sample letters from Alabama Legal Help: Security Deposit Letter.

Always keep copies of any correspondence you send or receive about rent, notices, or deposits.

Which Tribunal Handles Rental Disputes in Alabama?

In Alabama, most landlord-tenant disputes (such as disagreements about rent, deposit refunds, or eviction) are filed with your local District Court. The Alabama Unified Judicial System oversees these matters. If you have questions about your county process, contact your courthouse clerk (see Alabama court directory).

FAQ: Alabama Rent and Deposit Rules

1. Do Alabama cities have rent control?
   No, neither Alabama nor any of its cities currently have rent control laws that cap how much landlords can charge or increase rent.
2. How much notice does my landlord need to give before raising my rent?
   For month-to-month tenancies, landlords must give 30 days’ written notice before any rent increase.
3. What is the maximum security deposit?
   Usually one month’s rent, unless special conditions (like a pet or additional risk) exist.
4. What should I do if my security deposit isn’t returned?
   Send a written demand for your deposit. If your landlord does not respond within 60 days, you may seek help from your local district court.
5. Who do I contact for rental disputes or questions?
   Contact your local District Court, Legal Services Alabama, or the Alabama Department of Economic and Community Affairs.

Key Takeaways for Alabama Renters in 2025

• No statewide rent caps: Landlords can increase rent with proper notice.
• Security deposits must not exceed one month's rent (with some exceptions).
• Written communication and timely notice protect your rights.

Staying aware of your rights helps you avoid rental surprises and resolve issues fairly.

Need Help? Resources for Renters

• Alabama Department of Economic and Community Affairs – Housing: Guidance and programs for renters.
• Legal Services Alabama: Free legal help for eligible renters (including eviction, deposit, and lease issues).
• Alabama Unified Judicial System: District Courts: For filing disputes or complaints.
• HUD Alabama Renting and Assistance: Federal resources and rental help.

---

1. Alabama Uniform Residential Landlord and Tenant Act (Chapter 9A)
2. Required notice for rent changes, Code of Alabama, § 35-9A-161
3. Security deposit limits, Code of Alabama, § 35-9A-201

Categories

Renter Rights & Legal Protections Lease Agreements & Renewals Rent, Fees & Security Deposits Moving In: Inspections & Disclosures Moving Out & Ending a Lease Maintenance, Repairs & Habitability Health & Safety Standards Evictions & Lease Violations Roommates, Subletting & Shared Housing Discrimination & Fair Housing Laws Accessibility & Disability Accommodations Utilities, Services & Billing Affordable Housing & Rental Assistance Rent Control & Rent Stabilization Privacy Rights & Landlord Entry Security, Locks & Emergency Protections Dispute Resolution & Legal Aid Retaliation & Harassment Protections Mobile Home & Manufactured Housing Rights Special Housing Types & Situations