Real Estate Investing in Montgomery, Alabama (36117)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36117 (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.
- Elevated vacancy: 9.6% vacancy may signal weakening demand.
What’s happening in Montgomery, AL (36117)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 36117 Montgomery
ZIP 36117 in Montgomery, AL carries a substantial set of headwinds. Home values near $259K and rents of $1,427/mo sit inside a market where underwriting has to be tight.
For an experienced owner, 36117 can be a worth a close look for hunting ground — but the discount at $259K reflects genuine risk that outside investors often underestimate.
ZIP 36117's metrics run below Montgomery County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
The demographic picture in 36117 includes headwinds that any investor should price in. Income distribution skews lower than Montgomery averages, and tenant stability requires active management.
Experienced landlords with local relationships tend to find 36117 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Montgomery:
Property Strategy for 36117
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $147,382 | $1,300 | 6.4% | +7.3% | $73,691 |
| 3BR | $213,509 | $1,670 | 5.6% | +6.9% | $71,170 |
| 4BR | $324,257 | $1,970 | 4.4% | +5.6% | $81,064 |
| 5BR | $480,767 | — | — | +5.1% | $96,153 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 36117 Compare?
| Metric | 36117 | Montgomery | Montgomery, AL | Alabama |
|---|---|---|---|---|
| Home Value | $258,993 | $46,686 | N/A | $231,003 |
| 5-Year CAGR | 5.2% | 3.0% | N/A | 5.6% |
| Avg Rent | $1,427 | $1,204 | N/A | - |
| Cap Rate | 4.3% | 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 36117 (Montgomery, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $258,993 |
| Monthly Rent | $1,427 |
| Price-to-Rent | 15.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.6% |
| Cap Rate | 4.3% |
| 5-Year IRR | 9.5% |
📈 Home Appreciation
| 1-Year | +3.5% ▲ |
| 3-Year CAGR | +2.4% ▲ |
| 5-Year CAGR | +5.2% ▲ |
| 10-Year CAGR | +4.3% ▲ |
🏠 Rent Trends
| 1-Year | -2.5% ▼ |
| 3-Year CAGR | +2.1% ▲ |
| 5-Year CAGR | +4.0% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.3%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 36117
Population: 52,608
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 36117
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 high is vacancy risk in Montgomery, AL?
Vacancy risk in Montgomery, AL is elevated. That supports reliable cash flow for typical rental holds.
Is rental property easy to operate in Montgomery, AL?
The landlord environment in Montgomery, AL is landlord-friendly. Statewide rules shape most day-to-day operations for rental owners.
Is Montgomery, AL suited for a house hack?
The a challenging house-hack environment in Montgomery, AL reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
What is the average monthly rent in Montgomery, AL?
Expect rents around $1,427/mo per month in Montgomery, AL. With home values at $259K, the yield math works out to reasonable levels for rental investors.
How expensive is real estate in Montgomery, AL?
Median home price in Montgomery, AL is near $259K, with a 5-year CAGR of 0.0%. Prices have been consistent and supportive of buy-and-hold strategies.
You know 36117 now. You don’t know where it ranks.
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How 36117 ranks in Montgomery, AL
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