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Market MapMontgomery, AL
Metropolitan Area

Montgomery, AL

Alabama03 counties
71
/100
Buy
#164 of 894 metros
Top 18% nationally for investing

Market Snapshot

$203,530
Median Home Price
17% below national median
$1,345/mo
Median Rent
3% below national median
7.93%
Rent-to-Price Ratio
Top 11% nationally
-$193
Est. Monthly Cash Flow
With 20% down at 6.9% rate

Price History

Trend based on YoY growth rate. Source: Zillow ZHVI/ZORI

Quick Investment Calculator

20%
5%50%100%

Purchase

Purchase Price$203,530
Down Payment (20%)$40,706
Loan Amount$162,824
Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,345
Monthly P&I-$1,067
Est. Expenses (35%)-$471
Net Cash Flow-$193/mo
5.2%
Cap Rate (all cash)
-5.0%
Cash-on-Cash Return
7.93%
Rent-to-Price Ratio
Negative leverage: At 6.85% rates, borrowing costs exceed the 5.2% 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.

Run Full AnalysisTry House Hack Strategy

Score Breakdown

Overall Investment Score
71/100
71
Cash Flow(30%)
79/100

Based on 7.93% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)
71/100

Based on 2.0% 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%)
86/100

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 (7.93%)
  • +Affordable relative to local incomes
  • +Low unemployment (0.0%)
  • +Multiple counties (3) for portfolio diversification

Challenges

  • -Negative leverage (cap rate 5.2% < mortgage rate 6.9%)

Counties in Montgomery, AL

Best Overall
Montgomery
AL - Score: 73
Most Affordable
Lowndes
AL - Score: 56
Verdict
MontgomeryAL
228,13273$158,007$1,33110.11%BuyView
ElmoreAL
87,69468$262,998$1,4426.58%BuyView
LowndesAL
10,15356$138,888Est.HoldView

Click any county to see detailed investment analysis

Compare to Similar Metros

Metro AreaVerdict
Decatur, IL
Decatur, IL
85$118,242$1,02110.36%Strong BuyView
Connersville, IN
Connersville, IN
82$158,083Est.Strong BuyView
Paducah, KY
Paducah, KY
82$165,710$1,2919.35%Strong BuyView
Indiana, PA
Indiana, PA
82$158,790$1,37610.40%Strong BuyView
Enid, OK
Enid, OK
81$137,435$1,0769.39%Strong BuyView
Current
Montgomery, AL
71$203,530$1,3457.93%Buy

The Bottom Line

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

The Montgomery, AL metro area scores 71/100, ranking #164 of 894 US metros (top 18%). The 7.93% rent-to-price ratio indicates moderate cash flow potential. Among 3 counties, Montgomery shows the strongest investment potential (score: 73).

Monthly Cash Flow
$-193/mo
Cap Rate
5.2%
Cash-on-Cash
-5.7%

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.

Single Family1-4 unit rentalsHouse HackOwner-occupiedMultifamily5+ unit propertiesBest CountyMontgomery
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