Real Estate Investing in Montgomery, Alabama (36107)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36107 (Montgomery, AL)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 25.2% of homes vacant — above national norms.
- Elevated poverty: 35.8% poverty rate — can affect rent collection.
- Lower household income: $29,922 median — tenant affordability is tighter.
What’s happening in Montgomery, AL (36107)?
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Market Analysis: 36107 Montgomery
Investors scanning Montgomery, AL for forced-equity plays often land on the 36107 ZIP. A worth a close look for entry near $69K pairs with rents of $993/mo to widen the renovation window.
Value-add is the defining thesis in 36107. Homes trade near $69K, well below the state median, and rehabbed comps tend to clear meaningfully higher — a classic forced-equity setup.
Across AL, value-add opportunity tends to concentrate where housing stock is older and entry prices are below the state median. ZIP 36107 clocks in at both traits clearly.
Household income in 36107 supports the rent-lift thesis. 8,063 residents, deep working-age cohort, and the kind of tenant profile that responds to upgraded stock.
Flippers with local expertise can do well in 36107. Out-of-state investors should partner with boots-on-the-ground operators or skip the ZIP entirely.
Here's what matters if you're considering buying a home in Montgomery:
Property Strategy for 36107
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $58,175 | $900 | 11.1% | +5.4% | $29,088 |
| 3BR | $83,047 | $1,130 | 9.8% | +5.8% | $27,682 |
| 4BR | $114,018 | $1,430 | 9.0% | +6.5% | $28,505 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 36107 Compare?
| Metric | 36107 | Montgomery | Montgomery, AL | Alabama |
|---|---|---|---|---|
| Home Value | $68,511 | $46,686 | N/A | $231,003 |
| 5-Year CAGR | 1.7% | 3.0% | N/A | 5.6% |
| Avg Rent | $993 | $1,204 | N/A | - |
| Cap Rate | 11.3% | 10.2% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 36107 (Montgomery, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $68,511 |
| Monthly Rent | $993 |
| Price-to-Rent | 5.8:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 17.4% |
| Cap Rate | 11.3% |
| 5-Year IRR | 13.0% |
📈 Home Appreciation
| 1-Year | +3.4% ▲ |
| 3-Year CAGR | -1.8% ▼ |
| 5-Year CAGR | +1.7% ▲ |
| 10-Year CAGR | +3.9% ▲ |
🏠 Rent Trends
| 1-Year | -1.6% ▼ |
| 3-Year CAGR | +6.0% ▲ |
| 5-Year CAGR | N/A |
The estimated cap rate (11.3%) 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 36107
Population: 8,063
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 36107
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Lanier Senior High School
Baldwin Art And Academics Magnet
Flowers Elementary School
Forest Avenue Elementary School
Vaughn Road Elementary School
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
Is Montgomery in AL worth investing in?
Yes - Montgomery, AL a 4.0/5 investability score. With $69K home prices against $993/mo monthly rent, the market delivers a reasonable entry point for new investors.
Does buy-rehab-rent-refinance work in Montgomery, AL?
Operators BRRRR-ing in Montgomery, AL report a strong results. Focus on sub-market acquisition and tight rehab budgets to capture the spread.
How do experienced investors play Montgomery, AL?
A value-add and BRRRR deals strategy Montgomery, AL best. The market produces even-keeled results for that approach at the $69K price point.
What is the typical home price in Montgomery, AL?
Typical homes in Montgomery, AL go for around $69K. The 5-year CAGR of 0.0% stable price movement.
Does house hacking work in Montgomery, AL?
Montgomery, AL offers an attractive house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $993/mo rent level.
You know 36107 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 36107 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 36107 ranks in Montgomery, AL
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