Montgomery, AL—36106
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 $190,000, with a year-over-year change of -1.1%. This indicates that home prices in Montgomery, AL are decreasing. According to Zillow, the 1-year price projection is 0.3%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $190,000 | -1.1% |
| Single Family | $190,000 | -1.0% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $151,000 | 0.7% |
3 Bed | $187,000 | -0.5% |
4 Bed | $239,000 | 0.0% |
| 5 Bed | $394,000 | -1.5% |
% of Housing Stock
Rental Trends — Montgomery, AL
As of July '25, Rentcast reports the average rent in Montgomery, AL is $1,390, with a year-over-year rent change of 7.8%. Per bedroom, the median rent as of July '25 in Montgomery, AL is studios: $1,310, 1-bedrooms: $1,080, 2-bedrooms: $1,250, 3-bedrooms: $1,760, 4-bedrooms: $1,810. The most common rental property sizes in Montgomery, AL are 2-bedroom and 3-bedroom, accounting for 32.6% and 25.7% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,310 | $1,390 |
| Studio Rent | $1,080 | $1,310 |
| 1 Bed Rent | $800 | $1,080 |
| 2 Bed Rent | $1,150 | $1,250 |
| 3 Bed Rent | $1,600 | $1,760 |
| 4 Bed Rent | $1,800 | $1,810 |
% 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 73. This is a increase of 30.0% 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 30.0%, representing a large inventory and a lot of supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $221,000 | -7.0% |
Listing Count | 105 | 21.0% |
| Listings as % of Homes | 0.8% | 21.0% |
Days on Market | 73 | 30.0% |
Demographics — Montgomery, AL
As of the latest ACS Survey released in 2023, Montgomery, AL has a population of 14,600, which has decreased by -3.2% over the past 5 years. Montgomery, AL is a moderately popular place for families, as children make up 19.5% of the population. The area has a highly educated workforce, with 51.0% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 6.0% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 14,600 | -3.2% |
% Under 18 | 19.5% | -3.9% |
% Seniors | 16.2% | 5.9% |
% WFH | 6.0% | 106.9% |
% w/ College Degree | 51.0% | 8.3% |
As of the latest ACS Survey released in 2023, Montgomery, AL is a predominantly white area, with 47.2% of the population identifying as white. The white population has grown by 3.3% in the last 5 years. The second most common race or ethnicity in Montgomery, AL is black, making up 43.5% of the population. Foreign-born residents account for 4.4% of the population in Montgomery, AL, and this percentage has decreased by 10.2% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 47.2% | 3.3% |
% Black | 43.5% | -8.6% |
% Hispanic | 5.4% | 237.5% |
% Asian | 1.4% | -68.9% |
% Foreign Born | 4.4% | -10.2% |
Mortgage and Risk — Montgomery, AL
According to HUD data as of 2023, there were 199 mortgage originations in Montgomery, AL, of which 55.0% of loans were conventional mortgages. The average loan-to-value was 78.0%, with 52.0% above 90% LTV (very high). This implies large mortgage risk in Montgomery, AL. Investor activity is low, as 3.0% of loans were by investors. 13.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 199 |
% Conventional Loans | 55.0% |
% Government Loans | 45.0% |
% Investor Loans | 3.0% |
% Second Loans | 1.0% |
% Cash Out Refinance | 13.0% |
Loan Activity
Rentals and Section 8 — Montgomery, AL
As of 2024, the percent of homes in Montgomery, AL under the Section 8 program is 6.8%. 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. 1-bedroom units appear to be good home sizes to consider for Section 8 housing in Montgomery, AL, because HUD payments exceed market rent, while 2-bedroom and 3-bedroom and 4-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 194 |
Total Units Section 8 | 194 |
% Rentals under Section 8 | 6.8% |
% Occupied Section 8 | 100.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $130 | $800 | $930 |
| 2 Bedroom | -$50 | $1,150 | $1,100 |
| 3 Bedroom | -$200 | $1,600 | $1,400 |
| 4 Bedroom | -$60 | $1,800 | $1,740 |
Affordability — Montgomery, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 2.6 |
| Median Home Price | $190,000 |
| Median Household Income | $71,200 |