What One Acre of Land Costs in Alabama in 2026

Land in Alabama can be remarkably affordable—or surprisingly expensive—depending on where it sits and what you can do with it. One acre in a rural county with limited access may trade like a recreational tract, while a similar acre near fast-growing job centers can price like a future subdivision lot. To estimate what an acre is worth in Alabama today, you need to separate “farm economics” (income the land can produce) from “market economics” (what buyers will pay based on demand, scarcity, and development potential).

Alabama also remains a major farming state. According to the US Department of Agriculture, Alabama had over 134,200 farms spanning 8.9 million acres of farmland in 2021, with farm real estate valued at an average of $3,280 per acre. That figure provides a useful statewide benchmark for farm real estate, but individual acre values can swing widely based on location, utilities, terrain, timber, and permitted use.

Alabama Land and Real Estate at a Glance

Alabama’s broader real estate market helps explain why land continues to attract buyers. As of 2023, the median home value in Alabama was $175,200, well below the national median of $356,199. This relative affordability—paired with ongoing demand for buildable lots, recreational tracts, and productive farmland—keeps the land market active.

Several macro factors can influence buyer demand for land, including employment, in-migration, and local development pipelines. In recent years, agricultural and developable land prices in Alabama have also been supported by steady appreciation, with prices seeing about 5% annual gains over the last five years.

What Drives Land Value in Alabama

One acre is not “one price” in Alabama. Buyers typically value land based on what the property can produce, what it can become, and how easily it can be used.

• Development potential: Parcels suitable for residential or commercial projects generally command premium pricing, especially near expanding metros and job hubs.
• Access and improvements: Paved road frontage, driveways, electric/water availability, septic feasibility, and existing structures often raise per-acre values.
• Soil quality and farming capability: Higher-quality soils tend to support stronger yields, which can translate into better long-term returns for operators and investors.
• Timber and recreational utility: Mature timber, huntable habitat, water features, and scenic topography can add substantial “lifestyle value” beyond agricultural use.
• Local supply-and-demand: When inventory tightens or buyer competition increases, per-acre prices often rise—sometimes well ahead of assessed values or older comparable sales.

In other words, two acres of identical size can sell at drastically different prices because the market values their use more than their measurements.

Average Land Prices Per Acre in Alabama (Farm Real Estate Benchmarks)

For agricultural land valuation, statewide survey data helps set a baseline. According to the 2022 Alabama Farm Real Estate Survey from Auburn University, average per-acre values vary by land type and quality grade:

• Crop land: $2,196 per acre (poor) up to $4,429 per acre (excellent); statewide average-grade crop land is $3,423 per acre.
• Pasture land: $2,518 per acre (poor) up to $4,307 per acre (excellent); statewide average pasture land is $3,127 per acre.
• Forest land: $1,420 per acre (poor) up to $2,967 per acre (excellent); statewide average timber land is $2,024 per acre.

These figures describe farm real estate conditions and typical market expectations for rural acreage. However, land that is positioned for development, waterfront use, or high-demand recreation can sell for much more per acre than farm real estate averages.

What today’s cash rental rates reveal about Alabama land income

If you want a “real-world” snapshot of what farmland can earn, cash rent is one of the most practical indicators. In 2024, Alabama cropland averaged $74.50 per acre, up 6.4% from 2023, according to the Auburn University Cooperative Extension System (ACES). Within that, irrigated cropland rented for $140 per acre in 2024—an increase of $3 from 2023—also reported by ACES.

Nonirrigated cropland received $70.50 per acre in 2024, up $4 from 2023, according to ACES. Pastureland averaged $23.50 per acre in 2024, down $0.50 from 2023, per ACES.

Those averages still hide major local differences. In fact, cash rent for nonirrigated cropland increased in 33 of Alabama’s 67 counties from 2023 to 2024, according to ACES. That county-level variation is a reminder that an “average” per-acre number rarely matches what you’ll see on a specific tract.

How Alabama compares to nearby markets

Regional comparisons also help frame pricing power. In 2024, Georgia cropland rates led the region at $153 per acre, compared to Alabama’s $74.50 per acre, according to ACES. Georgia pastureland rates also led at $34.50 per acre versus Alabama’s $23.50 per acre, per ACES.

These gaps don’t automatically mean Alabama land is “underpriced,” but they do show that income expectations—and buyer competition—can differ significantly across state lines.

National context: farm real estate values and shrinking farm acreage

National trends matter because institutional demand, commodity cycles, and interest rates influence land pricing everywhere. The United States farm real estate value averaged $4,350 per acre for 2025, up $180 per acre from 2024, according to USDA National Agricultural Statistics Service (NASS).

At the same time, total land in farms in the United States decreased by 2,100,000 acres from 2023 to 2024, reaching 876,460,000 acres, according to USDA National Agricultural Statistics Service (NASS). Less farmland in the national supply can add long-term upward pressure on well-located and highly productive acres.

Examples of Per-Acre Pricing by Use (Why “Average” Can Mislead)

Outside agricultural baselines, intended use can quickly reshape per-acre pricing. In many Alabama markets, you’ll see wide ranges such as:

• Residential development land: around $15,000 per acre (often higher near growing metros)
• Waterfront lots: around $60,000 per acre (varying by lake, access, and permitting)
• Hunting land: around $3,500 per acre (strongly tied to timber, habitat, and tract size)
• ATV/recreation land: around $7,500 per acre (depends on terrain, access, and nearby demand)

Local conditions can also change pricing inside the same county. An acre without utilities and limited road access can trade in the low thousands, while a nearby acre with views, utilities, and buildability can command many times more—because the buyer pool expands dramatically when a property is “ready to use.”

Who Sets Land Values in Alabama?

No single person “sets” land value. The final per-acre price usually reflects what the market is willing to pay for a specific tract under current conditions.

• Landowners: choose listing prices based on goals, urgency, and comparable sales.
• Buyers: establish real value through demand—farmers, investors, builders, recreation buyers, and long-term holders all value land differently.
• Realtors and land brokers: shape pricing strategy and help interpret local comps, access issues, and market demand.
• Appraisers: provide a defensible estimate of market value that lenders use for financing decisions.
• County assessors: estimate taxable value using mass appraisal methods, often lagging behind fast-moving market changes.

When demand spikes or inventory tightens, buyers may pay above past comparable sales—especially for parcels with rare features (utilities, frontage, water access, or proven farm income). When economic uncertainty rises, buyers often become more selective, and pricing power shifts back toward the buyer.

Should You Get an Appraisal Before Buying Land?

An independent appraisal can protect you, especially when a vacant tract is priced aggressively per acre or has development claims that are hard to verify. A land appraisal can help you:

• Validate a price using comparable sales and market adjustments
• Avoid overpaying based on optimistic assumptions
• Identify material issues such as easements, access limitations, or utility constraints
• Confirm the value supports your financing terms

For many buyers, the small upfront cost of due diligence can prevent expensive surprises after closing.

Key Takeaways on Alabama Land Values

• Per-acre value depends on use: farm, timber, recreation, or development all price differently.
• Farm real estate averages provide a baseline, but location and buildability can add a major premium.
• Cash rent trends help estimate income potential: in 2024, Alabama cropland averaged $74.50 per acre while pasture averaged $23.50 per acre (with significant county variation).
• Utilities, access, and permitted uses often matter as much as acreage size.
• An appraisal and strong comps can keep negotiations grounded in real market behavior.

Frequently Asked Questions (FAQs)

How fast are land prices rising in Alabama?

Land appreciation varies by county and land type, but recent years have shown steady upward movement in many markets, with Alabama land prices seeing about 5% annual appreciation over the last five years. For farmland income signals, cash rental rates also moved in mixed directions in 2024: cropland increased to $74.50 per acre while pasture averaged $23.50 per acre.

What location factors maximize land value in Alabama?

Buyers typically pay the most for land with reliable road access, nearby utilities, strong buildability, and proximity to expanding job centers. Waterfront access, scenic views, and recreation features (timber, trails, wildlife habitat) also increase demand and pricing.

Does land have to be surveyed before selling in Alabama?

A survey is not always legally required, but it often reduces risk for both parties. A current survey clarifies boundaries, confirms access, and verifies acreage—especially important for rural tracts where fences, creeks, and timber lines do not match deed descriptions.

Can I negotiate with sellers on the list price for vacant land?

Yes. Many land listings include negotiation room, particularly if due diligence reveals access limitations, utility costs, or restrictions that reduce the property’s usable footprint. Strong comparable sales and an appraisal can improve your leverage.

How much does an appraisal cost for vacant land in Alabama?

Costs vary by complexity, location, and intended use. Basic vacant-land appraisals often fall in the few-hundred-dollar range, while larger tracts or development-focused assignments can cost more due to additional analysis, comp work, and research requirements.