Is Montgomery County, AL good for real estate investing?

Montgomery County has an investment score of 74/100, rated as "Buy". The county ranks #54 nationally among 1000 counties analyzed.

What is the rent-to-price ratio in Montgomery?

The rent-to-price ratio in Montgomery County is 10.04% annually, which ranks in the 98th percentile nationally. Higher ratios indicate better cash flow potential.

What is the median home price in Montgomery?

The median home price in Montgomery County is $160,357. This ranks #192 in affordability among all US counties.

Can you cash flow on rental properties in Montgomery?

Based on median values with 20% down at current rates, a typical rental in Montgomery County would generate positive cash flow of $32/month. Individual property performance varies based on purchase price, rent, and operating expenses.

Montgomery County

AlabamaPopulation: 228,132Montgomery, AL Metro

/100

Buy

#54 of 1,000 counties

#1 in Alabama (67 counties)

Market Snapshot

$160,357

Median Home Price

31% below national median

$1,341/mo

Median Rent

11% below national median

10.04%

Rent-to-Price Ratio

Top 2% nationally

+$32

Est. Monthly Cash Flow

With 20% down at 6.9% rate

Price History

Historical data from Zillow ZHVI/ZORI

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$160,357

Down Payment (20%)$32,071

Loan Amount$128,286

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,341

Monthly P&I-$841

Est. Expenses (35%)-$469

Net Cash Flow+$32/mo

6.5%

Cap Rate (all cash)

1.0%

Cash-on-Cash Return

10.04%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 6.5% cap rate. All-cash buyers may see better returns.

* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.

Run Full Analysis Try House Hack Strategy

Score Breakdown

Overall Investment Score

74/100

Cash Flow(30%)

100/100

Based on 10.04% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

55/100

Based on 0.5% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

88/100

Price-to-income ratio of 2.8x. Lower ratios indicate more affordable markets.

Scores are calculated using real Zillow home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. Markets with missing rent data use estimated values based on regional averages.

Investment Outlook

Strengths

+Above-average rent-to-price ratio (10.04%)
+Affordable relative to local incomes
+Complete rent data available

Challenges

-Negative leverage (cap rate 6.5% < mortgage rate 6.9%)

Economic Indicators

Population

228,132

Median Income

$56,707

vs $57,018 national est.

Unemployment Rate

—

Data pending

Price-to-Income

2.8x

Very affordable

Compare to Nearby Counties

County					Verdict
CurrentMontgomeryAL	74	$160,357	$1,341	10.04%	Buy
MaconAL	74	$127,462	Est. pending	—	Buy	View
CalhounAL	72	$167,035	$1,050	7.54%	Buy	View
HoustonAL	69	$199,496	$1,199	7.21%	Buy	View
WinstonAL	69	$188,884	Est. pending	—	Buy	View
ElmoreAL	68	$262,416	$1,435	6.56%	Buy	View

The Bottom Line

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

Montgomery County in Alabama scores 74/100, ranking #54 of 1,000 US counties (top 7%). The 10.04% rent-to-price ratio exceeds the 1% rule target, suggesting strong cash flow potential. At current rates with 20% down, a median-priced property could generate approximately $32/month in cash flow.

Monthly Cash Flow

+$32/mo

Cap Rate

6.5%

Cash-on-Cash

1.0%

Ready to Analyze a Deal in Montgomery?

Use our investment calculators to run detailed numbers on specific properties.

Single Family1-4 unit rentals, BRRRR House HackOwner-occupied strategy Multifamily5+ unit properties

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Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$160,357

Down Payment (20%)$32,071

Loan Amount$128,286

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$1,341

Monthly P&I-$841

Est. Expenses (35%)-$469

Net Cash Flow+$32/mo

6.5%

Cap Rate (all cash)

1.0%

Cash-on-Cash Return

10.04%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 6.5% cap rate. All-cash buyers may see better returns.

* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.

Run Full Analysis Try House Hack Strategy

Score Breakdown

Overall Investment Score

74/100

Cash Flow(30%)

100/100

Based on 10.04% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

55/100

Based on 0.5% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

88/100

Price-to-income ratio of 2.8x. Lower ratios indicate more affordable markets.

County

Verdict

CurrentMontgomeryAL

$160,357

$1,341

10.04%

Buy

MaconAL

$127,462

Est. pending

—

Buy

View

CalhounAL

$167,035

$1,050

7.54%

Buy

View

HoustonAL

$199,496

$1,199

7.21%

Buy

View

WinstonAL

$188,884

Est. pending

—

Buy

View

ElmoreAL

$262,416

$1,435

6.56%

Buy

View

The Bottom Line

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

Monthly Cash Flow

+$32/mo

Cap Rate

6.5%

Cash-on-Cash

1.0%