Metropolitan Area

Montgomery, AL

Alabama0
73
/100
Buy
#136 of 894 metros
Top 15% nationally for investing

Market Snapshot

$214,099
Median Home Price
16% below national median
$1,402/mo
Median Rent
1% above national median
7.86%
Rent-to-Price Ratio
Top 13% nationally
-$275
Est. Monthly Cash Flow
With 20% down at 7.4% rate

Home values and rents: available snapshot

Only one observation is stored for Montgomery, AL. A historical trend cannot be calculated from this snapshot.

Typical home value (ZHVI)
$214,099
Source period: 2026-05-31
Monthly rent index (ZORI)
$1,402
Source period: 2026-05-31

Stored snapshot: 2026-06-29. Source dates describe the underlying observations, not today’s market.

Quick Investment Calculator

20%
5%50%100%

Purchase

Purchase Price$214,099
Down Payment (20%)$42,820
Loan Amount$171,279
Interest Rate7.40%

Monthly Cash Flow

Gross Rent+$1,402
Monthly P&I-$1,186
Est. Expenses (35%)-$491
Net Cash Flow-$275/mo
5.1%
Cap Rate (all cash)
-6.7%
Cash-on-Cash Return
7.86%
Rent-to-Price Ratio
Negative leverage: At 7.40% rates, borrowing costs exceed the 5.1% cap rate. All-cash buyers may see better returns.

* Based on metro-wide median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Individual counties and properties vary significantly.

Score Breakdown

Overall Investment Score
73/100
73
Cash Flow(30%)
79/100

Based on 7.86% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)
82/100

Based on 4.0% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)
50/100

Based on 0.0% population growth. Growing areas indicate economic stability.

Affordability(20%)
84/100

Based on price relative to estimated local incomes.

Scores are calculated using real Zillow metro-level home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. This metro score represents area-wide averages; individual counties may vary significantly.

Investment Outlook

Strengths

  • +Above-average rent-to-price ratio (7.86%)
  • +Affordable relative to local incomes
  • +Low unemployment (0.0%)

Challenges

  • -Negative cash flow at typical financing (-$275/mo)
  • -Negative leverage (cap rate 5.1% < mortgage rate 7.4%)

Counties in Montgomery, AL

County data is being compiled for this metro area.

Section 8 in Montgomery, AL: payment standards by ZIP, PHA waitlist status, and voucher counts are on VoucherMatch, the same HUD dataset with the tenant demand side attached.

Compare to Similar Metros

Metro AreaVerdict
Coffeyville, KS
Coffeyville, KS
85$101,366$86210.20%Strong BuyView
Blytheville, AR
Blytheville, AR
84$115,156$1,06411.08%Strong BuyView
Roanoke Rapids, NC
Roanoke Rapids, NC
84$107,523$1,07712.02%Strong BuyView
Enid, OK
Enid, OK
83$144,157$1,25010.40%Strong BuyView
Houghton, MI
Houghton, MI
83$194,696$1,73310.68%Strong BuyView
Current
Montgomery, AL
73$214,099$1,4027.86%Buy

The Bottom Line

BuyMontgomery, AL offers solid investment potential with good cash flow or appreciation prospects.

The Montgomery, AL metro area scores 73/100, ranking #136 of 894 US metros (top 15%). The 7.86% rent-to-price ratio falls below the 1% monthly rent rule (12% annually). Check operating costs and financing before making an offer.

Monthly Cash Flow
$-275/mo
Cap Rate
5.1%
Cash-on-Cash
-7.7%

Ready to Invest in Montgomery, AL?

Use our investment calculators to run detailed numbers on specific properties, or explore individual counties for more targeted opportunities.