Montgomery, AL—36107
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 $68,000, with a year-over-year change of -4.8%. This indicates that home prices in Montgomery, AL are decreasing. According to Zillow, the 1-year price projection is 0.5%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $68,000 | -4.8% |
| Single Family | $68,000 | -2.9% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $58,000 | -3.3% |
3 Bed | $83,000 | -3.5% |
4 Bed | $114,000 | 1.8% |
| 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 $1,080, with a year-over-year rent change of 15.3%. Per bedroom, the median rent as of July '25 in Montgomery, AL is 1-bedrooms: $918, 2-bedrooms: $1,010, 3-bedrooms: $1,070, 4-bedrooms: $1,410. The most common rental property sizes in Montgomery, AL are 3-bedroom and 2-bedroom, accounting for 36.6% and 35.6% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,020 | $1,080 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $750 | $918 |
| 2 Bed Rent | $1,000 | $1,010 |
| 3 Bed Rent | $1,020 | $1,070 |
| 4 Bed Rent | $1,450 | $1,410 |
% 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 52. This is a increase of 32.0% 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 8.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $94,000 | -23.0% |
Listing Count | 52 | 18.0% |
| Listings as % of Homes | 1.1% | 18.0% |
Days on Market | 52 | 32.0% |
Demographics — Montgomery, AL
As of the latest ACS Survey released in 2023, Montgomery, AL has a population of 8,060, which has increased by 4.9% over the past 5 years. Montgomery, AL is a popular place for families, as children make up 30.6% of the population. The area has a poorly educated workforce, with 17.5% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 11.0% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 8,060 | 4.9% |
% Under 18 | 30.6% | 15.5% |
% Seniors | 14.2% | 4.4% |
% WFH | 11.0% | 83.3% |
% w/ College Degree | 17.5% | -17.1% |
As of the latest ACS Survey released in 2023, Montgomery, AL is a predominantly black area, with 43.1% of the population identifying as black. The black population has shrunk by 16.0% in the last 5 years. The second most common race or ethnicity in Montgomery, AL is white, making up 27.2% of the population. Foreign-born residents account for 10.7% of the population in Montgomery, AL, and this percentage has increased by 214.7% 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 | 27.2% | -32.0% |
% Black | 43.1% | -16.0% |
% Hispanic | 23.4% | 212.0% |
% Asian | 0.8% | 166.7% |
% Foreign Born | 10.7% | 214.7% |
Mortgage and Risk — Montgomery, AL
According to HUD data as of 2023, there were 48 mortgage originations in Montgomery, AL, of which 65.0% of loans were conventional mortgages. The average loan-to-value was 72.0%, with 38.0% above 90% LTV (very high). This implies large mortgage risk in Montgomery, AL. Investor activity is high, as 23.0% of loans were by investors. 10.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 48 |
% Conventional Loans | 65.0% |
% Government Loans | 35.0% |
% Investor Loans | 23.0% |
% Second Loans | 2.0% |
% Cash Out Refinance | 10.0% |
Loan Activity
Rentals and Section 8 — Montgomery, AL
As of 2024, the percent of homes in Montgomery, AL under the Section 8 program is 14.9%. 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 and 3-bedroom and 4-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 units do not.
Section 8 Market Size
Total Units under HUD | 367 |
Total Units Section 8 | 294 |
% Rentals under Section 8 | 14.9% |
% Occupied Section 8 | 97.5% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $80 | $750 | $830 |
| 2 Bedroom | -$10 | $1,000 | $990 |
| 3 Bedroom | $230 | $1,020 | $1,250 |
| 4 Bedroom | $130 | $1,450 | $1,580 |
Affordability — Montgomery, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 2.3 |
| Median Home Price | $68,000 |
| Median Household Income | $31,900 |