Data through September 2026 · updated 2026-11-07 · free, from Zillow, Realtor.com, the Census Bureau and other public sources
Typical home value$212,437+3.6% YoY · prices are rising fast
Market right nowBalanced, leaning sellersMore homes for sale than last year, 15% have cut their price
Income needed to buy, per year$46,052About 0.7× the local median income ($67,998): affordable for a typical household
Days on market71 daysSlower than a year ago: buyers have time to negotiate
Next 12 months+2.0%Zillow expects prices to rise slightly
The typical home in Montgomery, AL is worth $212,437, up 3.6% from a year ago. That is slightly below what local incomes have historically supported: fair value is about $217,942, so the area is 2.5% undervalued. It is a balanced market, leaning toward sellers: homes take about 71 days to sell, listings are up 6% from a year ago, 15% of listings have had a price cut. Zillow expects prices to rise about 2.0% over the next year. A household needs about $46,052 a year to afford the typical home here at today's 7.18% mortgage rate (20% down, payment at 30% of income); the median household earns $67,998. Typical rent is $1,383 a month, or $1,470 for a house. In the latest IRS figures, 1,079 more people moved out than in.
Home value over time
Solid: typical home value · dashed: fair value (household income × the 20-year average price-to-income ratio). Sources: FHFA, Zillow, U.S. Census Bureau.
Prices and affordability
Typical home value
$212,437
Change in 1 year
+3.6%
Overvalued %
−2.5%
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Fair home value
$217,942
Change in 5 years
+23.8%
Zillow forecast, next 12 months
+2.0%
Home value to income
3.1×
Monthly mortgage payment (20% down)
$1,151
Income needed to afford it
$46,052
Property tax rate
0.34%
Rent and investing
Typical rent
$1,383
Typical rent for houses
$1,470
Price-to-rent ratio
12.8×
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HUD Fair Market Rent, 2 bedrooms
$1,150
Gross rental yield
7.81%
Cap rate (estimate)
5.08%
Market activity
Listings vs a year ago
+6.3%
Days on market
71
Listings with a price cut
15.4%
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Homes for sale
1,371
Pending sales per 100 listings
42
Asking price per sq ft
$130
People and jobs
Median household income
$67,998
Population change (1 year)
+0.2%
Unemployment rate
5.1%
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Population
388,747
Income adjusted for cost of living
$75,806
Net moves in (IRS)
−1,079
Cost of living (US = 100)
89.7
Schools, risk and environment
School rating (1 to 10)
4.7
FEMA hazard risk score (0 to 100)
80.2
Unhealthy air days a year
0
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Flood risk score
84.9
Wildfire risk score
52.6
Walkability (1 to 20)
8.9
Road, rail and air noise
55 dB
Questions people ask
Is Montgomery, AL overvalued?
Home prices in Montgomery, AL are slightly below what local incomes have historically supported: fair value is about $217,942, so the area is 2.5% undervalued.
Is Montgomery, AL a buyer's or seller's market?
Montgomery, AL is a balanced market, leaning toward sellers: homes take about 71 days to sell, listings are up 6% from a year ago, 15% of listings have had a price cut.
Are home prices going down in Montgomery, AL?
Home values in Montgomery, AL are up 3.6% over the last year. Zillow's forecast for the next 12 months is +2.0%.
How much do you need to earn to buy a home in Montgomery, AL?
A household needs about $46,052 a year to afford the typical home in Montgomery, AL at today's 7.18% mortgage rate (20% down, payment at 30% of income); the median household earns $67,998.