Montgomery, AL

Montgomery, AL Rental Market Data (2026)

By TrueCap · built by a Philadelphia rental investor

HUD Fair Market Rent (FY2026) for the Montgomery, AL MSA, the HUD area that includes Montgomery County, AL: $1,016 a month for a 2-bedroom unit and $1,304 for a 3-bedroom unit. Fair Market Rent is HUD's estimate of the 40th-percentile gross rent for standard-quality rental units in an area, used to determine payment standard amounts for the Housing Choice Voucher program: a percentile, not an average of current asking rents (HUD). HUD's page for the Montgomery, AL MSA says all Housing Choice Voucher programs operated there will use ZIP-level Small Area FMRs instead of this area figure (HUD FY2026). At a stated $265,000 price with the 3-bedroom FMR as a placeholder rent, TrueCap's sample underwrite below comes to −$788/mo cash flow, a 2.9% cap rate, and a 0.47 DSCR. A specific Montgomery property runs on its own price, rent, tax bill, and insurance.

Montgomery HUD Fair Market Rent (FY2026)

HUD Fair Market Rent (FY2026) for the Montgomery, AL MSA, the HUD area that includes Montgomery County, AL. It is an area benchmark, not what a specific unit rents for: compare it with current leases for the address. HUD's FY2026 page for this area shows every bedroom size.

HUD Fair Market Rent (FY2026) by bedroom count, Montgomery, AL MSA
Bedrooms	FY2025 / month	FY2026 / month
2 bedrooms	$1,055	$1,016
3 bedrooms	$1,345	$1,304

By ZIP code: HUD Small Area Fair Market Rent (FY2026)

HUD also publishes ZIP-level Fair Market Rents for the Montgomery, AL metro area, the region that includes Montgomery. They vary by ZIP and bedroom count. HUD's ZIP table lists every ZIP.

HUD Small Area Fair Market Rent (FY2026) by ZIP code, Montgomery, AL metro area
ZIP code	2BR / month	3BR / month
36113	$1,520	$1,950
36112	$1,290	$1,620
36025	$1,080	$1,390
36051	$1,020	$1,310
36121	$1,010	$1,300
36043	$1,000	$1,280
36036	$960	$1,200
36105	$930	$1,190
36029	$900	$1,130
36069	$900	$1,130
36701	$900	$1,180
36785	$900	$1,150

12 of 66 ZIP codes in the Montgomery, AL metro area, sampled highest to lowest.

What the HUD FMR pencils to

Sample underwrite at a stated $265,000 price with the HUD 3-bedroom FMR as a placeholder rent — not a listing. TrueCap ran its sample deal with $1,304/mo of rent and every other assumption unchanged.

Monthly cash flow: −$788/mo
Cap rate: 2.9%
DSCR: 0.47

Assumptions: $265,000 price, $1,304/mo rent (HUD FMR, 3 bedrooms), 20% down, 6.6% rate, 30-year loan, 3% closing costs, 1.49% property tax, 0.5% insurance, 5% vacancy, 8% management, 5% maintenance, 5% CapEx reserve. Change any of them in the analyzer and the numbers move with you.

Montgomery rental data: common questions

What is HUD's Fair Market Rent for Montgomery, AL in FY2026?

HUD's FY2026 Fair Market Rent for the Montgomery, AL MSA, the HUD area that includes Montgomery County, AL, is $1,016 a month for a 2-bedroom unit and $1,304 for a 3-bedroom unit.

Source: HUD FY2026 Fair Market Rent documentation: Montgomery, AL MSA, retrieved September 28, 2026

How did Montgomery's HUD Fair Market Rent change from FY2025 to FY2026?

For the Montgomery, AL MSA, the 2-bedroom figure went from $1,055 in FY2025 to $1,016 in FY2026 (−$39, −3.7%), and the 3-bedroom figure went from $1,345 in FY2025 to $1,304 in FY2026 (−$41, −3.0%).

Source: HUD FY2026 Fair Market Rent documentation: Montgomery, AL MSA, retrieved September 28, 2026

How much does HUD's Fair Market Rent vary by ZIP code around Montgomery?

HUD's FY2026 Small Area Fair Market Rents for the Montgomery, AL metro area put a 2-bedroom unit between $900 a month (ZIP 36785) and $1,520 (ZIP 36113) across the area's 66 ZIP codes.

Source: HUD FY2026 Small Area Fair Market Rents by ZIP code: Montgomery, AL MSA, retrieved July 14, 2026

What do 12 months of HUD Fair Market Rent come to in Montgomery?

At HUD's FY2026 Fair Market Rent for the Montgomery, AL MSA, 12 months come to $12,192 for a 2-bedroom unit and $15,648 for a 3-bedroom unit.

Source: HUD FY2026 Fair Market Rent documentation: Montgomery, AL MSA, retrieved September 28, 2026

Sources & methodology

Data as of HUD FY2026 (retrieved July 13, 2026).

HUD figures come from HUD's published tables for the area. The sample underwrite runs TrueCap's sample deal through the analyzer's own math.

HUD FY2026 Fair Market Rent documentation: Montgomery, AL MSA, retrieved September 28, 2026
HUD FY2026 Small Area Fair Market Rents by ZIP code: Montgomery, AL MSA, retrieved July 14, 2026
HUD Fair Market Rents: definition and uses (huduser.gov), retrieved September 27, 2026

Reviewed by the TrueCap team. See our full methodology.

Three things to verify locally

Property tax bill. Pull the parcel's current bill from the county assessor or treasurer, and check whether a sale changes the assessment. The sample above uses 1.49% of price; enter the Montgomery bill instead.
Rental licensing and permits. Check whether Montgomery requires a rental license, registration, inspection, or certificate of occupancy for the address, and budget any fees before you close.
Insurance quotes. Get a written landlord-policy quote for the specific property, with wind, hail, or flood coverage where the property needs it, and enter that premium instead of a default.

For Alabama data, see the Alabama guide.

The terms behind the numbers

Cap Rate DSCR (Debt Service Coverage Ratio)Cash-on-Cash Return