The typical owner-occupied home in Montgomery is worth about $161,900, 23% below the Alabama median of $209,900 and 51% below the national median of $332,700. Owners pay a median $643 a year in property taxes, about 0.40% of their home's value, higher than the Alabama rate of 0.38%. The median household earns $56,811 a year, so the median home costs 2.8 times the median income (3.3 times for Alabama). 54% of occupied homes here are lived in by their owners, and 62% of those owners still have a mortgage.
Montgomery at a glance
| Montgomery | Alabama | U.S. | |
|---|---|---|---|
| Median home value | $161,900 | $209,900 | $332,700 |
| Median property tax paid per year | $643 | $788 | $3,119 |
| Property tax as a share of value | 0.40% | 0.38% | 0.94% |
| Median household income | $56,811 | $63,999 | $80,734 |
| Homes lived in by their owners | 54% | 70% | 65% |
| Owner homes with a mortgage | 62% | 54% | 61% |
| Median monthly costs, owners with a mortgage | $1,307 | $1,433 | $1,963 |
| Those costs as a share of the owners' income | 19.8% | 19.0% | 21.0% |
| Median rent | $1,089 | $1,007 | $1,413 |
| Rent as a share of renters' income | 32.3% | 29.5% | 30.6% |
| Median year homes were built | 1978 | 1986 | 1980 |
| Vacant homes | 14.1% | 14.5% | 10.1% |
| Population | 197,494 | 5,086,768 | 334,922,499 |
What a typical home costs per month in Montgomery
At this week's average 30-year rate of 7.11%, buying the median Montgomery home of $161,900 with 20% down costs about $993 a month, including property taxes and insurance. With an FHA loan and 3.5% down, it's about $1,262, because the loan is bigger and FHA adds mortgage insurance.
Lenders usually want housing costs under about 28% of gross income, which means an income of roughly $42,545 for the 20%-down payment. That payment is 21% of the median Montgomery household income of $56,811; at that income and 20% down, the 28% guideline points to a home of about $216,000.
The median rent here is $1,089 a month, a little more than the monthly cost of owning the median home with 20% down.
| Down payment | $32,380 |
|---|---|
| Loan amount | $129,520 |
| Principal and interest | $871 |
| Property taxes (0.40% a year) | $54 |
| Homeowners insurance (our estimate, 0.5% a year) | $67 |
| PMI | $0 |
| Total per month | $993 |
Change the numbers in the calculator
| Down payment | $5,666 |
|---|---|
| Loan amount | $158,968 |
| Principal and interest | $1,069 |
| Property taxes (0.40% a year) | $54 |
| Homeowners insurance (our estimate, 0.5% a year) | $67 |
| FHA mortgage insurance | $72 |
| Total per month | $1,262 |
Change the numbers in the calculator
Questions about home buying in Montgomery
What is the median home value in Montgomery?
About $161,900 for owner-occupied homes, according to the Census Bureau's 2020–2024 American Community Survey.
How much are property taxes in Montgomery?
Homeowners pay a median $643 a year, which is about 0.40% of the median home value. Your bill depends on your home's assessed value and local rates.
What income do you need to buy a home in Montgomery?
For the median home with 20% down at 7.11%, the payment is about $993 a month. Keeping that under 28% of gross income takes about $42,545 a year.
More about Montgomery
- Mortgage Refinance in Montgomery
- Debt Relief in Montgomery
- Home Equity Loans in Montgomery
- Guides and quotes for mortgage refinance on our sister site, MortgageRefinance.com
Sources: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates; Freddie Mac Primary Mortgage Market Survey, week of November 12, 2026. Estimates for small places have wide margins of error. About our data