Montgomery, AL—36104
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Montgomery, AL
As of Oct '25, the median home price in Montgomery, AL is $57,000, with a year-over-year change of -19.8%. This indicates that home prices in Montgomery, AL are decreasing. According to Zillow, the 1-year price projection is -1.2%, suggesting a decrease housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $57,000 | -19.8% |
| Single Family | $55,000 | -19.1% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $71,000 | -12.3% |
3 Bed | $99,000 | -8.3% |
4 Bed | $183,000 | -6.2% |
| 5 Bed | N/A | N/A |
% of Housing Stock
Rental Trends — Montgomery, AL
As of July '25, Rentcast reports the average rent in Montgomery, AL is $1,050, with a year-over-year rent change of -6.2%. Per bedroom, the median rent as of July '25 in Montgomery, AL is studios: $995, 1-bedrooms: $963, 2-bedrooms: $921, 3-bedrooms: $1,490, 4-bedrooms: $1,780. The most common rental property sizes in Montgomery, AL are 1-bedroom and 2-bedroom, accounting for 31.6% and 29.6% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $950 | $1,050 |
| Studio Rent | $995 | $995 |
| 1 Bed Rent | $875 | $963 |
| 2 Bed Rent | $795 | $921 |
| 3 Bed Rent | $1,120 | $1,490 |
| 4 Bed Rent | $1,700 | $1,780 |
% of Rental Stock
Property Listings — Montgomery, AL
As of Oct '25, Realtor.com reports that the median days on market for a home in Montgomery, AL is 109. This is a increase of 34.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 0.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $119,000 | -32.0% |
Listing Count | 29 | 0.0% |
| Listings as % of Homes | 0.4% | 0.0% |
Days on Market | 109 | 34.0% |
Demographics — Montgomery, AL
As of the latest ACS Survey released in 2023, Montgomery, AL has a population of 10,600, which has increased by 27.5% over the past 5 years. Montgomery, AL is a moderately popular place for families, as children make up 18.6% of the population. The area has a moderately educated workforce, with 26.0% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 8.0% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 10,600 | 27.5% |
% Under 18 | 18.6% | -5.1% |
% Seniors | 11.9% | -15.6% |
% WFH | 8.0% | 116.2% |
% w/ College Degree | 26.0% | 14.0% |
As of the latest ACS Survey released in 2023, Montgomery, AL is a predominantly black area, with 72.1% of the population identifying as black. The black population has shrunk by 9.6% in the last 5 years. The second most common race or ethnicity in Montgomery, AL is white, making up 20.1% of the population. Foreign-born residents account for 2.1% of the population in Montgomery, AL, and this percentage has increased by 75.0% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 20.1% | 11.0% |
% Black | 72.1% | -9.6% |
% Hispanic | 2.4% | 140.0% |
% Asian | 0.3% | 0.0% |
% Foreign Born | 2.1% | 75.0% |
Mortgage and Risk — Montgomery, AL
According to HUD data as of 2023, there were 43 mortgage originations in Montgomery, AL, of which 58.0% of loans were conventional mortgages. The average loan-to-value was 76.0%, with 51.0% above 90% LTV (very high). This implies large mortgage risk in Montgomery, AL. Investor activity is low, as 12.0% of loans were by investors. 7.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 43 |
% Conventional Loans | 58.0% |
% Government Loans | 42.0% |
% Investor Loans | 12.0% |
% Second Loans | 2.0% |
% Cash Out Refinance | 7.0% |
Loan Activity
Rentals and Section 8 — Montgomery, AL
As of 2024, the percent of homes in Montgomery, AL under the Section 8 program is 10.5%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. 2-bedroom and 3-bedroom units appear to be good home sizes to consider for Section 8 housing in Montgomery, AL, because HUD payments exceed market rent, while 1-bedroom and 4-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 858 |
Total Units Section 8 | 325 |
% Rentals under Section 8 | 10.5% |
% Occupied Section 8 | 96.5% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | -$45 | $875 | $830 |
| 2 Bedroom | $195 | $795 | $990 |
| 3 Bedroom | $130 | $1,120 | $1,250 |
| 4 Bedroom | -$120 | $1,700 | $1,580 |
Affordability — Montgomery, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 2.1 |
| Median Home Price | $57,000 |
| Median Household Income | $35,000 |