In Madison County (Huntsville), Alabama (Madison County (Huntsville), AL metro), 1–4 unit investment properties carry an average effective property tax rate of 0.48% and landlord hazard insurance averaging $590 per $100K of coverage. At a median 1–4 unit acquisition price of $335,000 and Form 1007 market rent of $2,400/mo, a 75% LTV DSCR loan models at 1.24x DSCR ($1,929/mo total PITIA).
Statutory county assessor periodic revaluation; underwriters use post-acquisition projected tax bill (typically 85%–100% of purchase price × county millage rate).
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Standard county deed recording & nominal transfer fee ($50–$350 flat or ≤0.20% of consideration).
Underwrite post-acquisition tax bill using county millage calculator to prevent Year-2 escrow shortage.
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