Why Huntsville, AL is Quietly Becoming the Top MTR Market in the Southeast
The story begins with a single employer decision.
In 2020, Mazda Toyota Manufacturing opened its doors in Huntsville, bringing 4,000 direct jobs. Then came Blue Origin's orbital launch facility. Then Aerojet Rocketdyne's expansion. In five years, Huntsville added more aerospace and defense jobs per capita than any metro in the country.
What nobody noticed — at least not in the STR analytics world — was what all those jobs meant for the midterm rental market.
Why MTR specifically?
Government contractors. Defense consultants. Aerospace engineers on 3–6 month rotations. These workers don't want a hotel and they can't sign a 12-month lease. They need a furnished, equipped home for 30–90 days — and they'll pay a premium for it.
Huntsville now has a waiting list on Furnished Finder.
The numbers
- Average MTR revenue for a 3BR in Huntsville: $3,100/mo
- Average purchase price: $285,000
- Average lease rate (LTR): $1,650/mo
- MTR-to-LTR spread: $1,450/mo
At 20% down ($57,000), that pencils to a 14%+ cash-on-cash return — with a DSCR of 1.6 and virtually no STR regulation risk because these aren't short-term rentals.
The risk
The single biggest risk is employer concentration. If a major defense contract ends or a facility relocates, MTR demand could soften quickly. Maintain LTR as your fallback underwrite.