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Definitely recommend Five Points. Lots of younger people live there--it's kind of an artsy/bohemian/young-hip type neighborhood. Walking distance to Star Market and Pharmacy, lots of little shops on Pratt, the BP on the corner has an awesome wine and beer selection. Plus it's less than 5 mins from downtown, and 5 mins to the Land Trust park on Bankhead Pkwy (lots of walking trails, pet friendly). And if you want to go all the way to the top of the mountain, Monte Sano State Park is beautiful. Oh, and traffic flows very well in the mornings/afternoon. Plus, 10 minutes to Research Park or the Arsenal. Also, there are several good sized churches scattered around within walking distance (with most of the major denominations represented).
The houses tend to be small (which is great for starting out!), but there are some large, historic homes as well. For a young couple starting out, it's great. FYI, the closer you are to Pratt Ave. the nicer the homes are (and the heftier the price tag). I lived there about a year ago before buying a house in Oak Park (slightly further northeast, more affordable), and loved both areas. You may want to look at Oak Park--most of the same perks still apply, plus it feels a bit more stable, there are a few more families around (but a tiny bit further from the amenities--wasn't enough to make a difference for me though). I've seen a few small brick homes for rent in the area... next time I take my dogs for a walk I'll make sure and note what streets they were on.
Oh, and Monte Sano Terrace apartments were great, if you want to start with an apartment--I had no problems whatsoever, very quiet, considerate neighbors (which is saying a lot for apartments). Very reasonably priced. I lived there before I started renting in 5 Points. (It seems far away, but it is actually quite convenient. Probably still less than 15 minutes to almost anywhere in town.)
The thing about Madison--it's generally pretty boring. I used to live there about 4 years ago while I was in college, and I was always driving OUT of Madison to do anything. It's convenient to work, but for young people it's pretty stale. A lot of the young people that live there have kids, so I guess that's why the "entertainment" aspect of Madison isn't as big. Nothing against the town at all, but it just wasn't for me (plus, traffic was awful). Now, if you want to start a family soon, then it might be the perfect place for you. It kind of depends on what you're looking for. Same applies to SE HSV.
I'd recommend driving around, and seeing which areas feel right.
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