Real Estate Investing in Montgomery, Alabama (36108)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36108 (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: 27.2% of homes vacant — above national norms.
- Elevated poverty: 31.1% poverty rate — can affect rent collection.
- Lower household income: $27,338 median — tenant affordability is tighter.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Montgomery, AL (36108)?
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Market Analysis: 36108 Montgomery
The 36108 ZIP in Montgomery is not a pristine, turnkey story — it is a value-add map. Stock is older, prices near $68K are approachable, and upside sits in the rehab line.
Value-add is the defining thesis in 36108. Homes trade near $68K, well below the state median, and rehabbed comps tend to clear meaningfully higher — a classic forced-equity setup.
The a viable market for piece of regional context is that nearby ZIPs with newer stock and higher basis have priced out of the value-add game. 36108 has not.
The 36108 ZIP's demographic trend has been one of stability with upside — population of 15,549, steady renter share, and an incoming cohort that is willing to pay for improved units.
ZIP 36108 fits investors who can swing a hammer — or pay someone to swing one well. BRRRR, fix-and-flip, and fix-and-hold all work when the rehab scope is matched to the rent lift.
Here's what matters if you're considering buying a home in Montgomery:
Property Strategy for 36108
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $39,976 | $900 | 16.2% | +5.5% | $19,988 |
| 3BR | $83,502 | $1,130 | 9.7% | +8.1% | $27,834 |
| 4BR | $118,980 | $1,430 | 8.7% | +6.8% | $29,745 |
Market Trends
Home Value History (with trend line)
📊 How Does 36108 Compare?
| Metric | 36108 | Montgomery | Montgomery, AL | Alabama |
|---|---|---|---|---|
| Home Value | $67,741 | $46,686 | N/A | $231,003 |
| 5-Year CAGR | 3.9% | 3.0% | N/A | 5.6% |
| Avg Rent | $810 | $1,204 | N/A | - |
| Cap Rate | 9.3% | 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 36108 (Montgomery, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $67,741 |
| Monthly Rent | $810 |
| Price-to-Rent | 7.0:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 14.4% |
| Cap Rate | 9.3% |
| 5-Year IRR | 13.2% |
📈 Home Appreciation
| 1-Year | +8.4% ▲ |
| 3-Year CAGR | +0.8% ▲ |
| 5-Year CAGR | +3.9% ▲ |
| 10-Year CAGR | +4.0% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (9.3%) 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 36108
Population: 15,549
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 36108
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
How do BRRRR numbers look in Montgomery, AL?
BRRRR viability in Montgomery, AL is a strong. Disciplined acquisition and rehab can hit the 75% LTV refinance target at market comps.
How does Montgomery, AL rate as a rental market?
Montgomery, AL rates 5.0/5 for investability. With median values at $68K and rents near $810/mo, the market offers reasonable fundamentals for rental investors.
Are homes affordable in Montgomery, AL?
Montgomery, AL home values average about $68K. That price point suits investors targeting rentals with $810/mo in monthly income.
How strong are rents in Montgomery, AL?
The typical rental in Montgomery, AL commands about $810/mo monthly. That rent profile stable cash flow against the $68K purchase basis.
Does a duplex house hack pencil in Montgomery, AL?
The an attractive house-hack environment in Montgomery, AL reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
You know 36108 now. You don’t know where it ranks.
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How 36108 ranks in Montgomery, AL
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