Home Values in Montgomery, Alabama — 2026 Market Report
Updated March 2026 | Balanced Market | +4.9% YoY
The median home value in Montgomery, Alabama is $155,000 as of March 2026, which is below the national median of $400,000. Home values in Montgomery have increased by 4.9% over the past year and 27% over the last five years. With a population of 200,603 and a median household income of $42,500, the price-to-income ratio stands at 3.6x, making Montgomery affordable for the average household.
Montgomery Housing Market Conditions
| Metric | Montgomery | National Avg |
|---|---|---|
| Median Home Value | $155,000 | $400,000 |
| YoY Appreciation | +4.9% | +3.8% |
| 5-Year Appreciation | +27% | +22.4% |
| Price per Sq Ft | $39 | $222 |
| Days on Market | 65 days | 45 days |
| Months of Supply | 4.1 | 3.5 |
| List-to-Sale Ratio | 98.3% | 98.5% |
| Monthly Homes Sold | 100 | — |
| Foreclosure Rate | 0.55% | 0.3% |
Home Value Trends in Montgomery
A homeowner who purchased at the median price of $122,047 five years ago in Montgomery would have gained approximately $32,953 in equity, representing a 27% return on investment. Over the past year alone, the typical homeowner gained $7,240 in home equity.
Affordability in Montgomery, AL
With a median household income of $42,500 and a median home price of $155,000, the price-to-income ratio in Montgomery is 3.6x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $1,218 compared to estimated monthly ownership costs of $790 gives a rent-vs-buy ratio of 0.65. In Montgomery, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Montgomery
The effective property tax rate in Alabama is 0.41%. On a home valued at $155,000, the estimated annual property tax bill is $635, or approximately $53/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Montgomery is 86.5 (100 = national average), indicating living costs are below the national average.
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Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Montgomery, AL?
The median home value in Montgomery, Alabama is $155,000 as of March 2026. Home values have changed +4.9% over the past year, with a 5-year appreciation of 27%.
Is Montgomery a buyer's or seller's market?
Montgomery is currently a balanced market with 4.1 months of housing supply. Homes spend an average of 65 days on market, and the list-to-sale price ratio is 98.3%. Supply and demand are relatively balanced.
Are home values going up in Montgomery?
Yes, home values in Montgomery have increased by 4.9% over the past year. The 5-year appreciation rate is 27%, meaning a home worth $122,047 five years ago is now worth $155,000.
Is it better to rent or buy in Montgomery?
The average monthly rent in Montgomery is $1,218, while estimated monthly homeownership costs are approximately $790. The price-to-rent ratio is 10.6. Based on current conditions, buying may be more cost-effective than renting in this market.
Home Values in Other Alabama Cities
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Disclaimer: Home value data for Montgomery, Alabama is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.