Montgomery, AL—36105
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 $45,000, with a year-over-year change of -10.7%. This indicates that home prices in Montgomery, AL are decreasing. According to Zillow, the 1-year price projection is 0.2%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $45,000 | -10.7% |
| Single Family | $45,000 | -8.2% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $46,000 | -13.2% |
3 Bed | $56,000 | -8.2% |
4 Bed | $155,000 | -6.1% |
| 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 $1,010, with a year-over-year rent change of 1.0%. Per bedroom, the median rent as of July '25 in Montgomery, AL is 1-bedrooms: $750, 2-bedrooms: $816, 3-bedrooms: $1,180, 4-bedrooms: $1,490. The most common rental property sizes in Montgomery, AL are 3-bedroom and 2-bedroom, accounting for 58.0% and 20.9% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $900 | $1,010 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $750 | $750 |
| 2 Bed Rent | $850 | $816 |
| 3 Bed Rent | $1,000 | $1,180 |
| 4 Bed Rent | $1,400 | $1,490 |
% 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 66. This is a increase of 42.0% 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 27.0%, representing a large inventory and a lot of supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $71,200 | -5.0% |
Listing Count | 59 | 34.0% |
| Listings as % of Homes | 0.5% | 34.0% |
Days on Market | 66 | 42.0% |
Demographics — Montgomery, AL
As of the latest ACS Survey released in 2023, Montgomery, AL has a population of 9,360, which has decreased by -4.6% over the past 5 years. Montgomery, AL is a less popular place for families, as children make up 14.7% of the population. The area has a poorly educated workforce, with 18.7% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 2.4% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 9,360 | -4.6% |
% Under 18 | 14.7% | -19.7% |
% Seniors | 22.8% | 5.1% |
% WFH | 2.4% | 50.0% |
% w/ College Degree | 18.7% | 59.8% |
As of the latest ACS Survey released in 2023, Montgomery, AL is a predominantly black area, with 82.7% of the population identifying as black. The black population has shrunk by 7.5% in the last 5 years. The second most common race or ethnicity in Montgomery, AL is white, making up 12.1% of the population. Foreign-born residents account for 2.9% of the population in Montgomery, AL, and this percentage has increased by 625.0% 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 | 12.1% | 24.7% |
% Black | 82.7% | -7.5% |
% Hispanic | 4.1% | 720.0% |
% Asian | 0.3% | -25.0% |
% Foreign Born | 2.9% | 625.0% |
Mortgage and Risk — Montgomery, AL
According to HUD data as of 2023, there were 47 mortgage originations in Montgomery, AL, of which 74.0% of loans were conventional mortgages. The average loan-to-value was 79.0%, with 43.0% above 90% LTV (very high). This implies large mortgage risk in Montgomery, AL. Investor activity is low, as 11.0% of loans were by investors. 15.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 47 |
% Conventional Loans | 74.0% |
% Government Loans | 26.0% |
% Investor Loans | 11.0% |
% Second Loans | 6.0% |
% Cash Out Refinance | 15.0% |
Loan Activity
Rentals and Section 8 — Montgomery, AL
As of 2024, the percent of homes in Montgomery, AL under the Section 8 program is 22.1%. This is considered high, suggesting that the neighborhood is heavily composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. In Montgomery, AL, all tracked home sizes have HUD payment amounts above market rent, suggesting strong Section 8 opportunity across the board.
Section 8 Market Size
Total Units under HUD | 321 |
Total Units Section 8 | 321 |
% Rentals under Section 8 | 22.1% |
% Occupied Section 8 | 94.8% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $80 | $750 | $830 |
| 2 Bedroom | $140 | $850 | $990 |
| 3 Bedroom | $250 | $1,000 | $1,250 |
| 4 Bedroom | $180 | $1,400 | $1,580 |
Affordability — Montgomery, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 1.1 |
| Median Home Price | $45,000 |
| Median Household Income | $44,400 |