Montgomery, AL—36111
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 $151,000, 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 0.5%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $151,000 | -1.1% |
| Single Family | $152,000 | -0.7% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $118,000 | 0.0% |
3 Bed | $132,000 | -1.5% |
4 Bed | $220,000 | -0.9% |
| 5 Bed | $403,000 | 0.0% |
% of Housing Stock
Rental Trends — Montgomery, AL
As of July '25, Rentcast reports the average rent in Montgomery, AL is $1,310, with a year-over-year rent change of 0.8%. Per bedroom, the median rent as of July '25 in Montgomery, AL is 1-bedrooms: $798, 2-bedrooms: $869, 3-bedrooms: $1,250, 4-bedrooms: $1,610. The most common rental property sizes in Montgomery, AL are 3-bedroom and 1-bedroom, accounting for 29.7% and 28.9% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,200 | $1,310 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $700 | $798 |
| 2 Bed Rent | $775 | $869 |
| 3 Bed Rent | $1,150 | $1,250 |
| 4 Bed Rent | $1,520 | $1,610 |
% 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 76. This is a increase of 65.0% 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 16.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $239,000 | 25.0% |
Listing Count | 86 | 26.0% |
| Listings as % of Homes | 0.8% | 26.0% |
Days on Market | 76 | 65.0% |
Demographics — Montgomery, AL
As of the latest ACS Survey released in 2023, Montgomery, AL has a population of 12,200, which has decreased by -1.4% over the past 5 years. Montgomery, AL is a moderately popular place for families, as children make up 22.5% of the population. The area has a moderately educated workforce, with 37.9% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 7.7% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 12,200 | -1.4% |
% Under 18 | 22.5% | -13.5% |
% Seniors | 19.1% | 40.4% |
% WFH | 7.7% | 75.0% |
% w/ College Degree | 37.9% | 6.8% |
As of the latest ACS Survey released in 2023, Montgomery, AL is a predominantly black area, with 60.2% of the population identifying as black. The black population has shrunk by 1.6% in the last 5 years. The second most common race or ethnicity in Montgomery, AL is white, making up 34.1% of the population. Foreign-born residents account for 3.1% of the population in Montgomery, AL, and this percentage has increased by 55.0% 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 | 34.1% | 4.9% |
% Black | 60.2% | -1.6% |
% Hispanic | 1.7% | -32.0% |
% Asian | 3.0% | 2,900.0% |
% Foreign Born | 3.1% | 55.0% |
Mortgage and Risk — Montgomery, AL
According to HUD data as of 2023, there were 178 mortgage originations in Montgomery, AL, of which 66.0% of loans were conventional mortgages. The average loan-to-value was 70.0%, with 43.0% 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. 16.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 178 |
% Conventional Loans | 66.0% |
% Government Loans | 34.0% |
% Investor Loans | 3.0% |
% Second Loans | 1.0% |
% 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 9.9%. 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. 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 | 201 |
Total Units Section 8 | 201 |
% Rentals under Section 8 | 9.9% |
% Occupied Section 8 | 100.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $180 | $700 | $880 |
| 2 Bedroom | $265 | $775 | $1,040 |
| 3 Bedroom | $180 | $1,150 | $1,330 |
| 4 Bedroom | $120 | $1,520 | $1,640 |
Affordability — Montgomery, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 2.7 |
| Median Home Price | $151,000 |
| Median Household Income | $54,600 |