Montgomery, AL Housing Market
AI-powered market intelligence for the Montgomery, AL metro area.
PropertyIQ Scores
Montgomery, AL Market Analysis
Market Overview
Montgomery, Alabama, has a PropertyIQ Score of 54 out of 100, placing it in moderate territory. Top score drivers include 12-month home value momentum of 6.48%, 3-month home value momentum of -0.02%, a median days on market of 64 days, and a share of listings with a price cut of 18.6%. These inputs show some medium-term price momentum but very little short-term upward pressure, alongside steady selling times and a meaningful share of price reductions.
Against state averages, Montgomery presents a mixed profile. Its median home value of $214,925 is about $26,084 below the state average of $241,009. However, its rent index of $1,420 is well above the state average of $963. The unemployment rate of 2.7% is below the state average of 3.2%, and median household income of $62,746 is slightly above the state average of $62,027. These comparisons point to household economic indicators that are somewhat stronger than the state benchmark even though home values are lower.
There are 1,355 homes for sale, and the median days on market is 64 days. With 18.6% of listings carrying a price cut, sellers are adjusting to attract buyers. The median home value year over year is -$5, essentially flat in dollar terms. Population growth data is not available, so demographic momentum cannot be incorporated.
Key Trends
First, home values are lower than the state average while rents are considerably higher. The median home value of $214,925 compares with the state average of $241,009, a gap of roughly $26,000. In contrast, the rent index of $1,420 compares with the state average of $963, a difference of $457. This creates a local profile where rental income potential relative to the state benchmark is stronger than home price levels relative to the state benchmark.
Second, price momentum has cooled in the near term. The 12-month home value momentum reading is 6.48%, but the 3-month momentum is -0.02%, and the median home value year over year is -$5. These figures indicate that the 12-month momentum reading has not been sustained by recent monthly movement, pointing to a flattening price environment.
Third, market conditions give buyers time and negotiating room. The median days on market is 64 days, and 18.6% of listings have a price cut. With 1,355 homes for sale, inventory is not negligible. These conditions suggest a market where buyers can compare options and sellers are willing to negotiate on a notable share of listings.
Fourth, local economic fundamentals are slightly stronger than the state average. The unemployment rate is 2.7% compared with 3.2% statewide, and median household income is $62,746 compared with $62,027 statewide. Because the local median home value is below the state average while local income is slightly above, the local price-to-income relationship is more favorable than the state benchmark.
Who Is This Market For
This market may suit first-time buyers because the median home value of $214,925 is below the state average, while median household income of $62,746 is slightly above the state average. The 64-day median time on market and the 18.6% share of listings with price cuts also suggest room to negotiate.
Rental-focused investors may find the rent index of $1,420 compelling relative to the state average of $963, especially because the median home value is lower than the state average. However, the score of 54 and flat short-term price momentum do not point to rapid appreciation, making this profile more consistent with buy-and-hold rental investing than with short-term flipping. The available data do not include operating costs, cap rates, or rent growth, so investors would need to evaluate those separately.
Move-up buyers may find opportunity in the current inventory of 1,355 homes for sale and the fact that 18.6% of listings have a price cut. At the same time, sellers should expect a median of 64 days on market, meaning patience is likely required.
Outlook
The near-term outlook appears to be flat or modest price movement. The 3-month home value momentum of -0.02% and the year-over-year median home value change of -$5 do not support rapid appreciation. The 12-month momentum of 6.48% indicates that the market has not been uniformly weak over the past year. Median days on market of 64 days and the 18.6% share of listings with a price cut suggest sellers will need to remain realistic on pricing. Inventory of 1,355 homes for sale gives buyers options. Local economic fundamentals, including a 2.7% unemployment rate and median household income slightly above the state average, may support demand, but the absence of population growth data limits longer-term demand assessment. The rent index of $1,420 relative to the state average of $963 may continue to attract rental-focused buyers, although the data provided do not support projecting future rent growth.
AI-generated analysis based on current market data. Last updated August 17, 2026.
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Montgomery, AL market data
Montgomery, AL Housing Market Overview
Montgomery, AL's median home value is $215K, up 6.5% over the past year. Homes here sell in a median 64 days. Its PropertyIQ Score of 54 sits right around the state average of 50.
The Montgomery, AL metropolitan area represents a distinct segment of AL's housing landscape. The PropertyIQ Score combines price momentum — how Zillow home values have trended over the past 3 and 12 months — with market-flow signals from Realtor.com that track how fast homes sell and how often sellers cut prices. The result is a single measure of how this market is positioned to outperform or lag its state over the next three years.
Southeastern markets benefit from manufacturing investment, logistics infrastructure, and relative affordability compared to national averages. The region's population growth — driven by both domestic migration and natural increase — supports sustained housing demand across metro and suburban areas. Within the Southeast, Montgomery, AL's PropertyIQ Score of 54 tracks near the Southeast norm.
For the Montgomery, AL market, PropertyIQ calculates a single score each month from four inputs: twelve-month Zillow home-value momentum, three-month Zillow home-value momentum, median days on market from Realtor.com, and the Realtor.com price-reduced share. The score is computed nationally across all metros and calibrated so 50 equals the state average. Across the validation history, metro markets in the top score band have outperformed their state by roughly 1.7 percentage points more per year than bottom-band markets. Momentum here has been positive, with home values up 6.5% over the past year.
View Montgomery, AL's complete market profile including historical price trends, score history, and AI-generated analysis. Compare this market against any other US metro to find the best opportunities for your investment strategy.
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Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Montgomery, AL a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Montgomery, AL currently scores 54, a steady-momentum reading that leaves it tracking close to its state average. For buyers, a balanced market means neither side holds a decisive edge, giving you time to shop carefully without racing the clock. Backing that up, the median home value here is $215K, up 6.5% over the past year. So whether Montgomery, AL is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Montgomery, AL?
Montgomery, AL's PropertyIQ Score is 54, indicating steady momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 54 places Montgomery, AL above its state benchmark.
Are home prices in Montgomery, AL rising or falling?
Home prices in Montgomery, AL are rising. Over the past year, the median home value increased 6.5%, reaching $215K. Over the latest three months, values slipped 0.0%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Montgomery, AL's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Montgomery, AL?
In Montgomery, AL, homes sell in a median of 64 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 19% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Montgomery, AL market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.