Real Estate Investing in Montgomery, Alabama (36116)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36116 (Montgomery, AL)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 12.6% of homes vacant — above national norms.
- Elevated poverty: 20.7% poverty rate — can affect rent collection.
What’s happening in Montgomery, AL (36116)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 36116 Montgomery
Not every below-median market is a bargain. Montgomery's 36116 ZIP clocks in at signals that favor experienced operators who can absorb the risk $150K pricing implies.
Stepping back, the numbers look inviting — $150K purchase price, 0.0% nominal cap — the work to hit that pro forma in 36116 is substantial and deserves full respect.
Meanwhile, 36116 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.
Resident income in 36116 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
tilts toward the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Montgomery:
Property Strategy for 36116
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $106,611 | $1,040 | 7.0% | +7.2% | $53,305 |
| 3BR | $135,284 | $1,340 | 7.1% | +7.0% | $45,095 |
| 4BR | $257,784 | $1,570 | 4.4% | +6.0% | $64,446 |
| 5BR | $402,596 | — | — | +5.0% | $80,519 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 36116 Compare?
| Metric | 36116 | Montgomery | Montgomery, AL | Alabama |
|---|---|---|---|---|
| Home Value | $149,708 | $46,686 | N/A | $231,003 |
| 5-Year CAGR | 5.0% | 3.0% | N/A | 5.6% |
| Avg Rent | $1,407 | $1,204 | N/A | - |
| Cap Rate | 7.3% | 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 36116 (Montgomery, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $149,708 |
| Monthly Rent | $1,407 |
| Price-to-Rent | 8.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 11.3% |
| Cap Rate | 7.3% |
| 5-Year IRR | 12.4% |
📈 Home Appreciation
| 1-Year | +7.1% ▲ |
| 3-Year CAGR | +1.8% ▲ |
| 5-Year CAGR | +5.0% ▲ |
| 10-Year CAGR | +4.8% ▲ |
🏠 Rent Trends
| 1-Year | +6.4% ▲ |
| 3-Year CAGR | +5.4% ▲ |
| 5-Year CAGR | +5.5% ▲ |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (7.3%). 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 36116
Population: 44,369
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 36116
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
Is Montgomery, AL a good market for buy-and-hold investors?
Montgomery, AL rates 3.0/5 for investability. With median values at $150K and rents near $1,407/mo, the market offers reasonable fundamentals for rental investors.
What monthly rent should investors expect in Montgomery, AL?
Montgomery, AL rentals go for roughly $1,407/mo a month. That puts gross yield in solid territory relative to $150K acquisition costs.
Is AL a landlord-friendly state?
AL law landlord-friendly for landlords, and Montgomery inherits those rules. Investors should still review local ordinances for rental licensing.
Are there empty rentals in Montgomery, AL?
Vacancy risk in Montgomery, AL is elevated. That supports steady cash flow for typical rental holds.
Is the tenant base reliable in Montgomery, AL?
Tenant quality in Montgomery, AL ranks as solid. Landlords generally report measured occupancy at market rents of $1,407/mo.
You know 36116 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 36116 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 36116 ranks in Montgomery, AL
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