What's a good cap rate in Montgomery?

In Montgomery, cap rates typically run around 8.0% (Alabama state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Montgomery deal lands versus this benchmark.

What's the average rent for a rental in Montgomery?

A typical rental in Montgomery runs about $1,100–$1,500/mo (estimate; varies by neighborhood, size, and condition). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Alabama?

Alabama's effective property tax rate is about 0.41% of value per year — the figure TrueCap applies by default for Montgomery deals. You can override it with the exact local rate.

Montgomery, AL

Montgomery rental property analysis

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 market

Higher typical cap rates — built for monthly cash flow more than price growth.

Typical cap rate

8.0%

Alabama state median

Typical rent

$1,100–$1,500/mo

est., SFR / small multi

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 June 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.

Is Montgomery a good place to buy rentals?

Government and military demand plus cheap entry drive strong cash-on-cash. Modest appreciation; reserve for older stock.

See the full Alabamainvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Montgomery

East Montgomery

Desirable, family renters, low vacancy.

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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