Montgomery, AL—36116
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 $141,000, 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 | $141,000 | -1.1% |
| Single Family | $142,000 | -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 | $107,000 | 1.9% |
3 Bed | $135,000 | 0.0% |
4 Bed | $258,000 | 1.2% |
| 5 Bed | $403,000 | 0.5% |
% of Housing Stock
Rental Trends — Montgomery, AL
As of July '25, Rentcast reports the average rent in Montgomery, AL is $1,330, with a year-over-year rent change of -7.0%. Per bedroom, the median rent as of July '25 in Montgomery, AL is 1-bedrooms: $806, 2-bedrooms: $1,140, 3-bedrooms: $1,270, 4-bedrooms: $1,790. The most common rental property sizes in Montgomery, AL are 2-bedroom and 3-bedroom, accounting for 39.8% and 35.0% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,200 | $1,330 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $699 | $806 |
| 2 Bed Rent | $1,000 | $1,140 |
| 3 Bed Rent | $1,200 | $1,270 |
| 4 Bed Rent | $1,750 | $1,790 |
% 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 62. This is a increase of 15.0% 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 24.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $220,000 | -9.0% |
Listing Count | 173 | 17.0% |
| Listings as % of Homes | 0.6% | 17.0% |
Days on Market | 62 | 15.0% |
Demographics — Montgomery, AL
As of the latest ACS Survey released in 2023, Montgomery, AL has a population of 44,400, which has remained stable by -0.4% over the past 5 years. Montgomery, AL is a popular place for families, as children make up 26.2% of the population. The area has a moderately educated workforce, with 33.2% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 6.1% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 44,400 | -0.4% |
% Under 18 | 26.2% | -2.6% |
% Seniors | 14.1% | 53.3% |
% WFH | 6.1% | 103.3% |
% w/ College Degree | 33.2% | 16.1% |
As of the latest ACS Survey released in 2023, Montgomery, AL is a predominantly black area, with 80.4% of the population identifying as black. The black population has grown by 3.2% in the last 5 years. The second most common race or ethnicity in Montgomery, AL is white, making up 12.2% of the population. Foreign-born residents account for 4.7% of the population in Montgomery, AL, and this percentage has decreased by 14.5% 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 | 12.2% | -9.6% |
% Black | 80.4% | 3.2% |
% Hispanic | 2.4% | -51.0% |
% Asian | 2.6% | 4.0% |
% Foreign Born | 4.7% | -14.5% |
Mortgage and Risk — Montgomery, AL
According to HUD data as of 2023, there were 683 mortgage originations in Montgomery, AL, of which 56.0% of loans were conventional mortgages. The average loan-to-value was 74.0%, with 46.0% above 90% LTV (very high). This implies large mortgage risk in Montgomery, AL. Investor activity is low, as 4.0% 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 | 683 |
% Conventional Loans | 56.0% |
% Government Loans | 44.0% |
% Investor Loans | 4.0% |
% 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 11.8%. 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 and 2-bedroom and 3-bedroom units appear to be good home sizes to consider for Section 8 housing in Montgomery, AL, because HUD payments exceed market rent, while 4-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 1,056 |
Total Units Section 8 | 1,032 |
% Rentals under Section 8 | 11.8% |
% Occupied Section 8 | 100.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $181 | $699 | $880 |
| 2 Bedroom | $50 | $1,000 | $1,050 |
| 3 Bedroom | $140 | $1,200 | $1,340 |
| 4 Bedroom | -$90 | $1,750 | $1,660 |
Affordability — Montgomery, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 2.6 |
| Median Home Price | $141,000 |
| Median Household Income | $54,000 |