Montgomery, AL—36117
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 $253,000, with a year-over-year change of 1.9%. This indicates that home prices in Montgomery, AL are increasing. 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 | $253,000 | 1.9% |
| Single Family | $253,000 | 2.0% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | $147,000 | 2.1% |
3 Bed | $214,000 | 1.9% |
4 Bed | $324,000 | 0.9% |
| 5 Bed | $481,000 | 0.8% |
% of Housing Stock
Rental Trends — Montgomery, AL
As of July '25, Rentcast reports the average rent in Montgomery, AL is $1,770, with a year-over-year rent change of 2.3%. Per bedroom, the median rent as of July '25 in Montgomery, AL is 1-bedrooms: $934, 2-bedrooms: $1,230, 3-bedrooms: $1,690, 4-bedrooms: $2,430. The most common rental property sizes in Montgomery, AL are 2-bedroom and 3-bedroom, accounting for 32.8% and 31.2% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,700 | $1,770 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $899 | $934 |
| 2 Bed Rent | $1,200 | $1,230 |
| 3 Bed Rent | $1,700 | $1,690 |
| 4 Bed Rent | $2,350 | $2,430 |
% 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 75. This is a increase of 29.0% 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 25.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $325,000 | -4.0% |
Listing Count | 293 | 2.0% |
| Listings as % of Homes | 0.7% | 2.0% |
Days on Market | 75 | 29.0% |
Demographics — Montgomery, AL
As of the latest ACS Survey released in 2023, Montgomery, AL has a population of 52,600, which has decreased by -2.3% over the past 5 years. Montgomery, AL is a moderately popular place for families, as children make up 24.4% of the population. The area has a highly educated workforce, with 46.3% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 9.6% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 52,600 | -2.3% |
% Under 18 | 24.4% | 0.4% |
% Seniors | 14.7% | 11.4% |
% WFH | 9.6% | 152.6% |
% w/ College Degree | 46.3% | 3.3% |
As of the latest ACS Survey released in 2023, Montgomery, AL is a predominantly black area, with 52.7% of the population identifying as black. The black population has grown by 8.0% in the last 5 years. The second most common race or ethnicity in Montgomery, AL is white, making up 34.2% of the population. Foreign-born residents account for 9.2% of the population in Montgomery, AL, and this percentage has increased by 19.5% 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 | 34.2% | -15.6% |
% Black | 52.7% | 8.0% |
% Hispanic | 2.8% | 16.7% |
% Asian | 7.9% | 33.9% |
% Foreign Born | 9.2% | 19.5% |
Mortgage and Risk — Montgomery, AL
According to HUD data as of 2023, there were 888 mortgage originations in Montgomery, AL, of which 58.0% of loans were conventional mortgages. The average loan-to-value was 75.0%, with 51.0% 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. 14.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 888 |
% Conventional Loans | 58.0% |
% Government Loans | 42.0% |
% Investor Loans | 3.0% |
% Second Loans | 1.0% |
% Cash Out Refinance | 14.0% |
Loan Activity
Rentals and Section 8 — Montgomery, AL
As of 2024, the percent of homes in Montgomery, AL under the Section 8 program is 2.8%. 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 units appear to be good home sizes to consider for Section 8 housing in Montgomery, AL, because HUD payments exceed market rent, while 3-bedroom and 4-bedroom units do not.
Section 8 Market Size
Total Units under HUD | 345 |
Total Units Section 8 | 265 |
% Rentals under Section 8 | 2.8% |
% Occupied Section 8 | 98.8% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $141 | $899 | $1,040 |
| 2 Bedroom | $40 | $1,200 | $1,240 |
| 3 Bedroom | -$120 | $1,700 | $1,580 |
| 4 Bedroom | -$390 | $2,350 | $1,960 |
Affordability — Montgomery, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 3.3 |
| Median Home Price | $253,000 |
| Median Household Income | $72,200 |