Markets/Alabama/Montgomery

Montgomery, AL Real Estate Market 2026

Investor-grade market analytics for Montgomery, Alabama. Data from Zillow ZHVI, FRED, Census ACS, and FEMA NRI. Data through August 2026.

Median Home Price

$214,806

+3.8% year-over-year

Est. Rental Yield

7.8%

gross annual

12-Month Forecast

+3.8%

base case (Zillow ZHVF)

+3.8% year-over-year

Climate Risk

28/100

Low

Market Momentum

➡️
Neutral
3.9mo supply · Score 0/7

Net migration: Bottom 5% nationally

Income Migration

📉 Wealth Drain0.80x

In-migrants avg $53,137 AGI vs out-migrants $66,347

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Opportunity Zone Market

14 ZIP codes in Montgomery are designated Qualified Opportunity Zones (IRC 1400Z-2), eligible for capital gains tax deferral on qualifying investments. Learn more →

Montgomery Market Summary

Montgomery, AL shows steady growth at 3.8% year-over-year appreciation, reflecting balanced market conditions with moderate demand. Affordability remains favorable with a price-to-income ratio of 3.42x, below the national average of 4.8x. Climate risk remains low (28/100), favorable for long-term investment stability. Rental yield of 7.85% is strong, making this market attractive for buy-and-hold investors.

Affordability

Affordability Score94/100
Price-to-Income Ratio3.4x (national avg 4.8x)
Median Household Income$62,746

Price Forecast Scenarios

12-month projection (Zillow ZHVF model)

Bear Case+1.9%
Base Case+3.8%
Bull Case+5.6%

Climate & Natural Hazard Risk

Montgomery, AL's primary climate exposure is tornadoes (55/100). The composite climate risk score of 28/100 (Low) indicates overall risk reflecting favorable conditions for long-term real estate investment. This market benefits from relatively low natural hazard exposure compared to coastal and wildfire-prone regions.

Source: FEMA National Risk Index

Get the full Montgomery dataset

Migration flows, ZIP-level neighborhood data, full demographics, price history, and the Market Screener.