East Montgomery
Desirable, family renters, low vacancy.
Montgomery, AL
Is Montgomery a good place to buy rental property in 2026?
Short answer: yes — for cash-flow investors. Montgomery's median cap rate runs about 8.0% (Alabama state median), above the ~6.5% national median, with typical rent at $1,016–$1,304/mo and Alabama property tax near 0.41%.
Montgomery, Alabama's capital, pairs government and military (Maxwell AFB) employment with very low prices — a dependable cash-flow market.
Montgomery market snapshot
Cash-flow marketHigher typical cap rates — built for monthly cash flow more than price growth.
Typical cap rate
8.0%
Alabama state median
Typical rent
$1,016–$1,304/mo
HUD FMR · 2–3BR · 2026
Typical price
$140,000–$220,000
est., all-in
Property tax
0.41%
Alabama effective
Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.
Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.
Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated July 2026
Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.
What rents actually look like in Montgomery
One number never tells the story — HUD publishes ZIP-level Small Area Fair Market Rents for the Montgomery, AL metro area, the metro-wide FMR region that includes Montgomery, and the spread across its ZIP codes is where deals are won or lost. Same purchase price, different ZIP, very different rent.
| ZIP code | 2BR rent | 3BR rent |
|---|---|---|
| 36113 | $1,520/mo | $1,950/mo |
| 36112 | $1,290/mo | $1,620/mo |
| 36025 | $1,080/mo | $1,390/mo |
| 36051 | $1,020/mo | $1,310/mo |
| 36121 | $1,010/mo | $1,300/mo |
| 36043 | $1,000/mo | $1,280/mo |
| 36036 | $960/mo | $1,200/mo |
| 36105 | $930/mo | $1,190/mo |
| 36029 | $900/mo | $1,130/mo |
| 36069 | $900/mo | $1,130/mo |
| 36701 | $900/mo | $1,180/mo |
| 36785 | $900/mo | $1,150/mo |
Showing 12 of 66 ZIP codes in the Montgomery, AL metro area — the HUD FMR region that includes Montgomery — sampled highest to lowest across the rent range. Source: HUD FY2026 Small Area Fair Market Rents. TrueCap auto-fills the exact ZIP-level figure when you enter a Montgomery address.
Why Montgomery works for rental investors
Government and military demand plus cheap entry drive strong cash-on-cash. Modest appreciation; reserve for older stock.
See the full Alabama investing guide — taxes, landlord law & top metros →
Neighborhoods to look at in Montgomery
Cloverdale
Historic, walkable, steady demand.
Neighborhood notes are starting points, not recommendations — always underwrite the specific property.
Run a Montgomery deal in 60 seconds
Paste a Montgomery address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Alabama tax and HUD rent so you start from the right assumptions.
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