Real Estate Investing in Montgomery, Alabama (36104)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36104 (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: 24.6% of homes vacant — above national norms.
- Declining values: -2.8% 5-year CAGR — values have moved lower.
- Elevated poverty: 45.4% poverty rate — can affect rent collection.
- Lower household income: $31,231 median — tenant affordability is tighter.
ⓘ Read the numbers with care
- Unusually high yield — the rent-to-price ratio here is beyond what typically survives underwriting. Verify against individual properties before relying on the cash-flow math.
What’s happening in Montgomery, AL (36104)?
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Market Analysis: 36104 Montgomery
Homes in the 36104 ZIP trade near $58K, a discount that has historically rewarded investors willing to renovate. Rent comps near $1,450/mo support the pro forma.
In 36104, the deal is made on the buy and on the capex. robust entry prices of $58K leave room in the budget for light-to-medium renovation, with rent lift to match.
The a credible choice for piece of regional context is that nearby ZIPs with newer stock and higher basis have priced out of the value-add game. 36104 has not.
Residents in 36104 skew younger than the county average, and that matters for rehab positioning. Younger renters respond to finishes, appliances, and in-unit laundry in ways that move rent.
The significant opportunity in 36104 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 36104
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $70,505 | $900 | 9.2% | +2.3% | $35,252 |
| 3BR | $98,505 | $1,130 | 8.3% | +3.3% | $32,835 |
| 4BR | $183,123 | $1,430 | 5.6% | +3.7% | $45,781 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 36104 Compare?
| Metric | 36104 | Montgomery | Montgomery, AL | Alabama |
|---|---|---|---|---|
| Home Value | $57,838 | $46,686 | N/A | $231,003 |
| 5-Year CAGR | N/A | 3.0% | N/A | 5.6% |
| Avg Rent | $1,450 | $1,204 | N/A | - |
| Cap Rate | 19.6% | 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 36104 (Montgomery, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $57,838 |
| Monthly Rent | $1,450 |
| Price-to-Rent | 3.3:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 30.1% |
| Cap Rate | 19.6% |
| 5-Year IRR | 16.8% |
📈 Home Appreciation
| 1-Year | -0.9% ▼ |
| 3-Year CAGR | -7.2% ▼ |
| 5-Year CAGR | -2.8% ▼ |
| 10-Year CAGR | -2.9% ▼ |
🏠 Rent Trends
| 1-Year | -0.4% ▼ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (19.6%) 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 36104
Population: 10,637
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 36104
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Highland Gardens Elementary School
Childrens Center
Capitol Heights Middle School
Highland Avenue Elementary School
Percy Julian High 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, AL a smart market for rental property?
With a 4.0/5 investability score, Montgomery, AL ranks as a solid market for rental property investors. Median prices of $58K and rents of $1,450/mo drive the underlying numbers.
What is the best play in Montgomery, AL?
For Montgomery, AL, value-add and BRRRR deals is the standard investor playbook. The market structure makes it a reasonable default approach.
Is Montgomery, AL good for BRRRR investors?
BRRRR viability in Montgomery, AL is a strong. Disciplined acquisition and rehab can hit the 75% LTV refinance target at market comps.
Is house hacking profitable in Montgomery, AL?
House hacking in Montgomery, AL is reasonable to execute. Prices around $58K and rents of $1,450/mo solid owner-occupant economics.
How much do tenants pay in Montgomery, AL?
Rent in Montgomery, AL is around $1,450/mo. The resulting rent-to-value relationship with $58K pricing is reasonable for most investor models.
You know 36104 now. You don’t know where it ranks.
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How 36104 ranks in Montgomery, AL
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