Total monthly cost of ownership
Cost to Own a Home in Dothan, Alabama
A $187,000 home here costs
$1,623per month, all in, with 20% down at today's 7.40% 30-year fixed rate. By the 28% rule that takes a household income of about $69,500 a year.
A standard mortgage calculator would have told you $1,036. The real number is $587 higher every month, 57% more than the payment most buyers budget for.
Compare Houston County with anywhere in America · full county breakdown
Where every dollar goes
Only the first line is a mortgage payment. Change any assumption above and every figure below recalculates.
Dothan against Houston County and Alabama
| Measure | Dothan | Houston County |
|---|---|---|
| Median home value | $186,600 | $178,000 |
| Median property tax | $579 | $534 |
| Effective tax rate | 0.310% | 0.300% |
| Median gross rent | $912 | $905 |
| Population | 71,118 | 107,628 |
Dothan extends across 3 counties. Figures here use Houston County, where most of its housing sits.
The weather behind that power bill
Dothan sits in Houston County, which averages a high of 93.3°F in its hottest month and a low of 39.8°F in its coldest, with 53.85" of precipitation a year and 32% of it in a single three-month stretch. That climate drives 2,686 cooling and 1,633 heating degree days, which is what sets the $187 electricity line above.
See the full climate breakdown for Houston County , month by month temperatures, rainy season timing, snowfall and heating and cooling costs.
Other cities in Houston County
Full Houston County cost breakdown · Every county in Alabama
Talk to someone who works this market
These are Dothan averages. What one specific house costs to own, or what it would sell for today, depends on the street and the condition of the place. We will connect you with one licensed local agent who works Dothan every week. Free, no obligation, and we never sell your details to a list.
I'm looking to buy in Dothan I already own here and may sell
Common questions
How much does it cost to own a home in Dothan?
A $187,000 home in Dothan, Alabama costs approximately $1,623 per month with 20% down at 7.4%. That is $1,036 principal and interest, $48 property tax, $128 homeowners insurance, $255 utilities and $156 set aside for maintenance.
What is the property tax rate in Dothan?
Dothan has an effective property tax rate of 0.310%, based on a median home value of $186,600 and median real estate taxes of $579. That is higher than the Houston County average of 0.300%.
What is the average home price in Dothan?
The median owner-occupied home value in Dothan, Alabama is $186,600, against $178,000 across Houston County.
Is it cheaper to rent or buy in Dothan?
Median gross rent in Dothan is $912 a month, against $1,623 to own the median home all in. Renting costs less month to month here, though renting builds no equity.
What salary do you need to buy a home in Dothan?
Using the standard 28% rule, housing costs at no more than 28% of gross income, buying the median home in Dothan, Alabama at today's rate takes a household income of roughly $69,500 a year. That covers the full $1,623 monthly cost, not just the mortgage payment.
Sources & methodology
- Median home value, real estate taxes, gross rent and population for Dothan, US Census Bureau, American Community Survey ACS 2023 5-Year, place-level tables.
- Homeowners insurance, NAIC average premium for Alabama.
- Electricity price, EIA Electric Power Monthly Table 5.6.A.
- Mortgage rate, Freddie Mac PMMS, refreshed weekly.
- Maintenance (1%/yr) and water and sewer ($68/mo) are national estimates. Every assumption above is editable.