Real Estate Investing in Montgomery, Alabama (36105)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36105 (Montgomery, AL)? Our answer, based on the numbers below.
Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 22.9% of homes vacant — above national norms.
- Flat appreciation: Values have barely moved over 5 years (0.5% CAGR).
- Elevated poverty: 23.5% poverty rate — can affect rent collection.
What’s happening in Montgomery, AL (36105)?
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Market Analysis: 36105 Montgomery
ZIP 36105 inside Montgomery, AL leans into a value-add thesis. Home values near $47K sit below the state median, and rents of $1,019/mo leave room for forced-equity plays.
Flippers and value-add operators have treated 36105 as a working ZIP for a reason. Entry prices around $47K and a deep rental base of 39% renters underpin the exit strategy on both the sale and rent sides.
Comparing Montgomery submarkets, ZIP 36105 offers an entry cost that most surrounding neighborhoods have moved past. The solid delta is the opportunity.
The 36105 ZIP's demographic trend has been one of stability with upside — population of 9,359, steady renter share, and an incoming cohort that is willing to pay for improved units.
The impressive opportunity in 36105 is buying the worst house on the block, fixing it, and renting it at the top of the local band. That is the strategy, repeated.
Here's what matters if you're considering buying a home in Montgomery:
Property Strategy for 36105
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $45,761 | $930 | 14.6% | — | $22,880 |
| 3BR | $56,225 | $1,190 | 15.2% | +5.6% | $18,742 |
| 4BR | $154,612 | $1,430 | 6.7% | +3.3% | $38,653 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 36105 Compare?
| Metric | 36105 | Montgomery | Montgomery, AL | Alabama |
|---|---|---|---|---|
| Home Value | $47,489 | $46,686 | N/A | $231,003 |
| 5-Year CAGR | 0.5% | 3.0% | N/A | 5.6% |
| Avg Rent | $1,019 | $1,204 | N/A | - |
| Cap Rate | 16.7% | 10.2% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 36105 (Montgomery, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $47,489 |
| Monthly Rent | $1,019 |
| Price-to-Rent | 3.9:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 25.7% |
| Cap Rate | 16.7% |
| 5-Year IRR | 17.3% |
📈 Home Appreciation
| 1-Year | +7.0% ▲ |
| 3-Year CAGR | -0.8% ▼ |
| 5-Year CAGR | +0.5% ▲ |
| 10-Year CAGR | +2.1% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (16.7%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 36105
Population: 9,359
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 36105
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 3,341 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What are rental rates like in Montgomery, AL?
Montgomery, AL rentals go for roughly $1,019/mo a month. That puts gross yield in solid territory relative to $47K acquisition costs.
Does BRRRR pencil out in Montgomery, AL?
BRRRR in Montgomery, AL is a strong. The interplay of $47K values and $1,019/mo rents creates reasonable refinance conditions.
Is Montgomery, AL better for rentals, flips, or BRRRR?
Investors who focus on value-add and BRRRR deals typically do well in Montgomery, AL. The numbers - $47K homes against $1,019/mo rents - support that play.
How much does a house cost in Montgomery, AL?
Median home price in Montgomery, AL is near $47K, with a 5-year CAGR of 0.0%. Prices have been reliable and supportive of buy-and-hold strategies.
Is Montgomery, AL a good market for buy-and-hold investors?
Montgomery, AL rates 4.0/5 for investability. With median values at $47K and rents near $1,019/mo, the market offers reasonable fundamentals for rental investors.
You know 36105 now. You don’t know where it ranks.
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How 36105 ranks in Montgomery, AL
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