Montgomery Home Prices: $119K, Up 0.8% — 10 ZIPs Analyzed (2026)
$118,542. That’s what a typical home costs in Montgomery, Alabama’s capital city. Prices inched up 0.8% over the past year — modest growth, but growth nonetheless in a market where you can still find homes under $50,000.
Quick answer: The average home price in Montgomery, AL is $118,542 as of February 2026, up 0.8% year over year according to Zillow.
Current Home Prices in Montgomery
Montgomery remains one of the most affordable state capitals in the country. Here’s the snapshot:
| Metric | Value |
|---|---|
| Median Home Price | $118,542 |
| Year-over-Year Change | +0.8% |
| Lowest ZIP Price | $46,231 |
| Highest ZIP Price | $253,954 |
| ZIP Codes Tracked | 10 |
| Data As Of | February 2026 |
That 0.8% annual gain works out to roughly $950 in added value over 12 months. Not exactly a gold rush. But for buyers, the story is more about affordability than appreciation. The citywide median sits well below six figures when you strip out the most expensive neighborhoods.
The spread between the cheapest and priciest ZIP codes is massive — $207,723. That gap tells you Montgomery is not one market. It’s several, stacked on top of each other. A buyer in ZIP 36105 and a buyer in 36117 are shopping in completely different worlds.
Montgomery Home Prices by Neighborhood
All 10 tracked ZIP codes ranked by home value:
| ZIP Code | Median Home Price | Avg. Monthly Rent |
|---|---|---|
| 36117 | $253,954 | $1,411 |
| 36106 | $190,413 | $1,259 |
| 36111 | $153,235 | $1,363 |
| 36109 | $150,540 | $1,301 |
| 36116 | $145,025 | $1,358 |
| 36107 | $67,063 | $975 |
| 36108 | $66,840 | N/A |
| 36104 | $58,971 | $1,461 |
| 36110 | $53,145 | $1,130 |
| 36105 | $46,231 | $1,227 |
Most Expensive ZIPs
36117 leads at $253,954 — more than double the city median and home to Montgomery’s east-side suburbs with rents at $1,411/month. 36106 comes in at $190,413, sitting 61% above the citywide average with relatively moderate rents of $1,259. 36111 rounds out the top three at $153,235, where rents run $1,363/month.
Most Affordable ZIPs
36105 is Montgomery’s cheapest at $46,231 — just 39% of the city median. Despite low home prices, rents still hit $1,227/month. 36110 at $53,145 offers the second-lowest entry point with $1,130 rents. 36104 at $58,971 is a standout oddity: the third-cheapest ZIP to buy in, yet it carries the city’s highest average rent at $1,461/month.
Rent vs Buy in Montgomery
The math here isn’t close. Buying wins.
Take the citywide median of $118,542. Put 20% down, and you’re financing $94,834. At a 7% rate over 30 years, your principal and interest payment comes to roughly $631 per month.
The average rent across Montgomery’s nine ZIPs with rental data is approximately $1,276 per month.
| Monthly Cost | Amount |
|---|---|
| Estimated Mortgage (P&I) | ~$631 |
| Average Rent (ZORI) | ~$1,276 |
| Monthly Savings (Buying) | ~$645 |
Even adding property taxes and insurance — call it $250 to $300 per month — you’re still paying well under $1,000 to own. That’s $300+ less than renting.
The weirdest ZIP is 36104. Homes there cost $58,971 but rent averages $1,461. A mortgage on that home runs about $313/month. Someone renting in 36104 pays nearly five times what an owner pays in principal and interest. That’s the kind of gap that screams buying opportunity — if the neighborhood fits your needs.
Population Growth and Migration
Montgomery is losing people. Slowly, but consistently.
| Year | Population |
|---|---|
| 2020 | 200,048 |
| 2021 | 198,310 |
| 2022 | 197,126 |
| 2023 | 196,107 |
| 2024 | 195,818 |
The city shed 4,230 residents between 2020 and 2024, a 2.1% decline. The bleeding slowed in 2023-2024 — just 289 people left — but the direction hasn’t reversed.
Compare that to other Alabama cities:
| City | 2024 Population | 4-Year Growth |
|---|---|---|
| Huntsville | 230,402 | +6.5% |
| Tuscaloosa | 114,288 | +8.2% |
| Auburn | 83,757 | +8.7% |
| Madison | 64,029 | +11.7% |
| Decatur | 57,974 | +1.5% |
| Montgomery | 195,818 | -2.1% |
Every comparable city in Alabama is growing. Montgomery is the outlier. Huntsville has already passed Montgomery in population. This matters for housing because fewer residents means softer demand. It’s one reason prices are only creeping up 0.8% while places like Madison and Auburn see stronger gains.
Montgomery Housing Market Trends
Here’s how the median home price moved month by month:
| Month | Median Price | Low | High |
|---|---|---|---|
| Feb 2026 | $118,542 | $46,231 | $253,954 |
| Jan 2026 | $118,103 | $45,540 | $253,672 |
| Dec 2025 | $117,772 | $45,042 | $253,614 |
| Nov 2025 | $117,421 | $44,879 | $253,234 |
| Oct 2025 | $117,083 | $44,865 | $252,820 |
| Sep 2025 | $116,630 | $44,627 | $252,108 |
| Aug 2025 | $116,302 | $44,337 | $251,289 |
| Jul 2025 | $116,132 | $44,517 | $250,419 |
| Jun 2025 | $116,092 | $44,738 | $249,636 |
| May 2025 | $116,280 | $45,136 | $248,850 |
| Apr 2025 | $116,840 | $45,688 | $248,358 |
| Mar 2025 | $117,622 | $46,494 | $248,249 |
The trend tells a clear story. Prices dipped slightly from March through June 2025, bottoming at $116,092 in June. Since then, it’s been a steady climb — eight consecutive months of gains through February 2026.
The high end of the market has climbed more aggressively. The most expensive ZIP went from $248,249 in March 2025 to $253,954 in February 2026, a gain of $5,705 (2.3%). Meanwhile, the cheapest ZIP barely moved in dollar terms.
Is Montgomery a Good Place to Buy in 2026?
The numbers favor buyers here. A median price under $120,000, mortgage payments well below average rent, and price growth so slow it’s almost flat.
If you’re looking for appreciation, Montgomery won’t excite you. A 0.8% annual gain doesn’t build wealth quickly. But if you’re looking for a place where owning costs less than renting by hundreds of dollars per month, the math is hard to argue with.
The population decline is the red flag. Fewer people means less competition for homes, which keeps prices low. That’s good for buyers today but means you shouldn’t expect rapid gains. Montgomery is a place to buy for cost-of-living savings, not speculation.
The wide price range — $46K to $254K — means there’s room for almost any budget. First-time buyers can find entry points in the $50,000-$60,000 range that simply don’t exist in most American cities.
Montgomery Housing Market Outlook for 2026-2027
The 8-month upward streak from June 2025 through February 2026 shows steady momentum. Monthly gains have been modest — around $300 to $500 per month — but consistent.
If the current pace continues, Montgomery’s median could reach the $120,000 mark by mid-2026. The gains are not accelerating, though. Each month’s increase has been roughly the same size as the one before it.
The 3-month trend from December 2025 to February 2026 shows an average monthly increase of about $385. At that rate, you’re looking at roughly 3-4% annualized growth — a slight uptick from the current 0.8% YoY figure.
Population loss could put a ceiling on how far prices climb. But with buying still far cheaper than renting, demand from cost-conscious buyers should keep the floor firm.
Similar Markets in AL
Montgomery buyers comparing options across the state might consider:
- Birmingham — Alabama’s largest city with a broader job market and similar affordability.
- Mobile — Gulf Coast location with port economy and comparable price points.
- Huntsville — Fast-growing tech hub, likely pricier but with stronger appreciation potential.
- Tuscaloosa — University town with growing population and steady housing demand.
- Dothan — Smaller southeast Alabama market for buyers wanting even lower prices.
Frequently Asked Questions
What is the average home price in Montgomery?
The average home price in Montgomery is $118,542 as of February 2026. That figure represents the citywide median across 10 tracked ZIP codes. Prices within the city range from $46,231 in ZIP 36105 to $253,954 in ZIP 36117.
Are home prices going up or down in Montgomery?
Prices are up 0.8% year over year. After a small dip in mid-2025, prices have risen for eight straight months. The gains are modest — a few hundred dollars per month — but the direction is consistently upward.
Is it cheaper to rent or buy in Montgomery?
Buying is significantly cheaper. The estimated mortgage payment on the median home is around $631/month (principal and interest with 20% down at 7%). Average rent across the city is approximately $1,276/month. Even after adding taxes and insurance, ownership costs run $300 or more below typical rent.
What is the most affordable neighborhood in Montgomery?
ZIP code 36105 has the lowest median home price at $46,231. That’s less than 40% of the citywide median. ZIP 36110 ($53,145) and ZIP 36104 ($58,971) are the next most affordable options.
Methodology
Home values are based on the Zillow Home Value Index (ZHVI), a smoothed measure of typical home values in the 35th to 65th percentile range. Rent estimates use the Zillow Observed Rent Index (ZORI). Population figures come from the U.S. Census Bureau Population Estimates Program (2020-2024 vintage). All datasets are publicly available. Housing data updated 2026-02-28.