Real Estate Investing in Montgomery, Alabama (36109)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36109 (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.
- Elevated vacancy: 10.1% vacancy may signal weakening demand.
What’s happening in Montgomery, AL (36109)?
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Market Analysis: 36109 Montgomery
Investors eyeing 36109 need to respect the fundamentals at play. Home values of $156K come alongside slower price movement and elevated management overhead.
Rent of $1,332/mo on a $156K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 36109 sits below the stated 0.0% once reality is priced in.
In practical terms, 36109 offers a low basis, the region around Montgomery has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
A durable renter share of 35% in 36109 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The right play in 36109 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Montgomery:
Property Strategy for 36109
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $105,320 | $1,030 | 7.0% | +7.1% | $52,660 |
| 3BR | $143,050 | $1,320 | 6.6% | +7.2% | $47,683 |
| 4BR | $197,883 | $1,560 | 5.7% | +6.3% | $49,471 |
| 5BR | $257,902 | — | — | +5.5% | $51,580 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 36109 Compare?
| Metric | 36109 | Montgomery | Montgomery, AL | Alabama |
|---|---|---|---|---|
| Home Value | $155,697 | $46,686 | N/A | $231,003 |
| 5-Year CAGR | 4.6% | 3.0% | N/A | 5.6% |
| Avg Rent | $1,332 | $1,204 | N/A | - |
| Cap Rate | 6.7% | 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 36109 (Montgomery, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $155,697 |
| Monthly Rent | $1,332 |
| Price-to-Rent | 9.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 10.3% |
| Cap Rate | 6.7% |
| 5-Year IRR | 11.2% |
📈 Home Appreciation
| 1-Year | +2.9% ▲ |
| 3-Year CAGR | +1.4% ▲ |
| 5-Year CAGR | +4.6% ▲ |
| 10-Year CAGR | +4.4% ▲ |
🏠 Rent Trends
| 1-Year | +7.7% ▲ |
| 3-Year CAGR | +6.3% ▲ |
| 5-Year CAGR | +6.6% ▲ |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (6.7%). Financing this market at current rates produces a cash-on-cash return near the cap rate. Appreciation and tax benefits may still support the investment.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 36109
Population: 24,093
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 36109
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Forest Avenue Elementary School
Highland Gardens Elementary School
Vaughn Road Elementary School
Childrens Center
Capitol Heights Middle 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
How strong is the working-renter base in Montgomery, AL?
Tenant quality in Montgomery, AL ranks as solid. Landlords generally report stable occupancy at market rents of $1,332/mo.
What is it like being a landlord in Montgomery, AL?
The landlord environment in Montgomery, AL is landlord-friendly. Statewide rules shape most day-to-day operations for rental owners.
Which investment style suits Montgomery, AL?
In Montgomery, AL the robust play is typically careful cash-flow rentals with hands-on management. The combination of $156K prices and $1,332/mo rents suits that approach.
Is Montgomery, AL a good market for FHA house hackers?
House hacking in Montgomery, AL is a challenging. With home values around $156K and rents at $1,332/mo, owner-occupants can offset a meaningful share of PITI.
Do rentals sit vacant long in Montgomery, AL?
Montgomery, AL vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
You know 36109 now. You don’t know where it ranks.
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How 36109 ranks in Montgomery, AL
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