Montgomery, AL—36110
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 $52,000, with a year-over-year change of -7.9%. This indicates that home prices in Montgomery, AL are decreasing. According to Zillow, the 1-year price projection is 0.9%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $52,000 | -7.9% |
| Single Family | $52,000 | -5.5% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $39,000 | -4.9% |
3 Bed | $58,000 | -3.3% |
4 Bed | $80,000 | -3.6% |
| 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 $1,020, with a year-over-year rent change of 9.3%. Per bedroom, the median rent as of July '25 in Montgomery, AL is 1-bedrooms: $728, 2-bedrooms: $845, 3-bedrooms: $992, 4-bedrooms: $1,450. The most common rental property sizes in Montgomery, AL are 3-bedroom and 2-bedroom, accounting for 68.9% and 23.0% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $950 | $1,020 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $725 | $728 |
| 2 Bed Rent | $775 | $845 |
| 3 Bed Rent | $950 | $992 |
| 4 Bed Rent | $1,500 | $1,450 |
% 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 149. This is a increase of 130.0% 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 11.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $65,000 | 0.0% |
Listing Count | 57 | 26.0% |
| Listings as % of Homes | 0.5% | 26.0% |
Days on Market | 149 | 130.0% |
Demographics — Montgomery, AL
As of the latest ACS Survey released in 2023, Montgomery, AL has a population of 11,700, which has decreased by -1.2% over the past 5 years. Montgomery, AL is a popular place for families, as children make up 30.8% of the population. The area has a poorly educated workforce, with 10.0% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 5.5% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 11,700 | -1.2% |
% Under 18 | 30.8% | 23.7% |
% Seniors | 11.8% | -4.1% |
% WFH | 5.5% | ∞% |
% w/ College Degree | 10.0% | -13.8% |
As of the latest ACS Survey released in 2023, Montgomery, AL is a predominantly black area, with 83.2% of the population identifying as black. The black population has grown by 11.8% in the last 5 years. The second most common race or ethnicity in Montgomery, AL is white, making up 11.0% of the population. Foreign-born residents account for 1.9% of the population in Montgomery, AL, and this percentage has decreased by 9.5% 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 | 11.0% | -47.6% |
% Black | 83.2% | 11.8% |
% Hispanic | 1.2% | -62.5% |
% Asian | 1.6% | 100.0% |
% Foreign Born | 1.9% | -9.5% |
Mortgage and Risk — Montgomery, AL
According to HUD data as of 2023, there were 61 mortgage originations in Montgomery, AL, of which 74.0% of loans were conventional mortgages. The average loan-to-value was 68.0%, with 23.0% above 90% LTV (very high). This implies large mortgage risk in Montgomery, AL. Investor activity is high, as 34.0% of loans were by investors. 16.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 61 |
% Conventional Loans | 74.0% |
% Government Loans | 26.0% |
% Investor Loans | 34.0% |
% Second Loans | 7.0% |
% Cash Out Refinance | 16.0% |
Loan Activity
Rentals and Section 8 — Montgomery, AL
As of 2024, the percent of homes in Montgomery, AL under the Section 8 program is 17.3%. 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 | 352 |
Total Units Section 8 | 351 |
% Rentals under Section 8 | 17.3% |
% Occupied Section 8 | 98.8% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $105 | $725 | $830 |
| 2 Bedroom | $215 | $775 | $990 |
| 3 Bedroom | $310 | $950 | $1,260 |
| 4 Bedroom | $80 | $1,500 | $1,580 |
Affordability — Montgomery, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 1.4 |
| Median Home Price | $52,000 |
| Median Household Income | $41,100 |