Housing inventory in Montgomery remains at historic lows, with demand up 12% and supply down 38% year over year, according to the Alabama Center for Real Estate (ACRE).
Montgomery is the capital of Alabama and home to nearly 390,000 residents in the metropolitan area. The city is located along the Alabama River and lies roughly midway between Birmingham to the north and Mobile to the south. Montgomery is home to a diverse economy, several state and local universities, and Maxwell Air Force Base.
Although home prices in Montgomery are relatively affordable compared to other cities in the South, many households in the metro area are occupied by renters. Home values in Montgomery have increased by more than 17% over the past year, while median rents for 3-bedroom homes have grown by 12%.
If you’ve been thinking about investing in Alabama, now just might be the ideal time. Here are 15 areas in and around Montgomery in which to look for rental property, beginning with Montgomery itself.
Key takeaways
- The largest suburbs near Montgomery include Millbrook, Prattville, and Wetumpka.
- Some towns near Montgomery with the largest percentages of renter-occupied households are Wetumpka, Tallassee, and Tuskegee.
>>Explore Roofstock's Montgomery investment properties.
Why invest in Montgomery, Alabama?
About 40% of households in Montgomery are occupied by renters, due in part to the area’s large military presence from Maxwell Air Force Base and public universities like Alabama State University and Troy University.
Over the next 10 years, the job market in Montgomery is predicted to increase by more than 30%. As the Bureau of Labor Statistics reports, unemployment in Montgomery is down to 3.5% (December 2021), with employment sectors such as trade, transportation, and information showing the strongest growth.
Military and student renters, and a growing job market, are all helping to keep the demand for rental housing in Montgomery strong and steady. According to Zumper, 3-bedroom rentals in metropolitan Montgomery have grown by more than 12% year over year, while the typical value of a middle-price-tier home increased by 17.6% over the past year (Zillow through January 31, 2022).
15 great areas in Montgomery for investment properties
The median listing price of a home in Montgomery, Alabama, is $90 per square foot, making Montgomery an affordable real estate market.
It’s important to know where to look for investment property in Montgomery. The city is home to 18 neighborhoods, plus dozens of surrounding towns and cities in the metro area, with median listing prices ranging from $41,500 to $405,500.
Here are 15 areas in and around Montgomery to consider, with neighborhood-level data from Realtor.com and Niche.com.
Montgomery
Montgomery is the capital city of Alabama and home to over 200,000 people, and it has a sparse suburban feel. Over 40% of city residents rent their homes, and median rents for 3-bedroom properties in Montgomery have increased by more than 12% year over year, according to Zumper (February 2022):
- Population: 200,603
- Median listing price: $154,900
- Change in listing price (year over year): 4.0%
- Days on market: 59
- Median rent: $881
- Renter-occupied households: 45%
- Median household income: $48,011
- ZIP codes: 36043, 36102, 36107, 36110
Pike Road
Pike Road is ranked as the best place to live in the Montgomery area by Niche.com, and it’s also the fastest-growing city in Alabama. Located about 30 minutes southeast of Montgomery, Pike Road has a rural feel and a good section of restaurants, bars, and coffee shops:
- Population: 9,320
- Median listing price: $349,900
- Change in listing price (year over year): 4.5%
- Days on market: Not available
- Median rent: $1,239
- Renter-occupied households: 16%
- Median household income: $102,734
- ZIP code: 36064
Millbrook
The suburb of Millbrook is 9 miles north of Montgomery along I-65, near Coosada and Deatsville. Millbrook is also rated as one of the best places to live in the Montgomery area, and it has a sparse suburban feel:
- Population: 15,645
- Median listing price: $179,900
- Change in listing price (year over year): 4.7%
- Days on market: Not available
- Median rent: $951
- Renter-occupied households: 31%
- Median household income: $62,839
- ZIP codes: 36022, 36025, 36054
Prattville
Prattville is 20 minutes northwest of Montgomery via I-65 North. The city has a sparse suburban feel, and more than one in 3 residents rent:
- Population: 35,925
- Median listing price: $215,000
- Change in listing price (year over year): 8.2%
- Days on market: Not available
- Median rent: $1,046
- Renter-occupied households: 37%
- Median household income: $61,110
- ZIP codes: 36066, 36067, 36068
Wetumpka
Located northeast of the city near the town of Blue Ridge, Wetumpka is another suburb of Montgomery popular with renters. Wetumpka has a suburban-rural feel, and 41% of the households are occupied by renters:
- Population: 8,243
- Median listing price: $270,900
- Change in listing price (year over year): 23.3%
- Days on market: Not available
- Median rent: $792
- Renter-occupied households: 41%
- Median household income: $42,820
- ZIP codes: 36092, 36093
Deatsville
The small town of Deatsville is about 25 minutes north of Montgomery, east of Elmore and Coosada, and has a rural feel:
- Population: 1,679
- Median listing price: $245,000
- Change in listing price (year over year): 20.5%
- Days on market: Not available
- Median rent: $1,394
- Renter-occupied households: 18%
- Median household income: $79,243
- ZIP code: 36022
Pine Level
Pine Level is ranked as the #1 place to buy a house in the Montgomery area by Niche.com. The town is located 20 minutes northwest of Montgomery along I-65 North, and it has a suburban-rural feel:
- Population: 4,484
- Median listing price: $225,000
- Change in listing price (year over year): 23.4%
- Days on market: Not available
- Median rent: $862
- Renter-occupied households: 6%
- Median household income: $70,952
- ZIP code: 36022
Coosada
The small, suburban town of Coosada is located 15 minutes north of Montgomery along I-65 North, between Elmore and Millbrook, and has a suburban-rural feel:
- Population: 1,112
- Median listing price: $158,500
- Change in listing price (year over year): -11.0%
- Days on market: Not available
- Median rent: $771
- Renter-occupied households: 21%
- Median household income: $186,912
- ZIP codes: 36020, 36025, 36054
Tallassee
Tallassee is 40 minutes northeast of Montgomery, west of Franklin and Tuskegee. Tallassee has a sparse suburban feel, and nearly half of residents rent:
- Population: 4,743
- Median listing price: $143,500
- Change in listing price (year over year): -18.0%
- Days on market: Not available
- Median rent: $735
- Renter-occupied households: 47%
- Median household income: $48,511
- ZIP code: 36078
Blue Ridge
Located 20 minutes northeast of Montgomery near Wetumpka, the small town of Blue Ridge is ranked as one of the best places to live in Alabama by Niche.com:
- Population: 1,490
- Median listing price: $267,000
- Change in listing price (year over year): 2.7%
- Days on market: Not available
- Median rent: Not available
- Renter-occupied households: 2%
- Median household income: $92,250
- ZIP code: 36093
Tuskegee
Tuskegee is a suburb of Montgomery where more than half of residents rent their homes. Tuskegee is 40 minutes east of Montgomery, along I-85 and near Franklin, and it has a sparse suburban feel:
- Population: 8,486
- Median listing price: $125,000
- Change in listing price (year over year): 92.3%
- Days on market: Not available
- Median rent: $608
- Renter-occupied households: 52%
- Median household income: $28,016
- ZIP codes: 36083, 36087, 36088
Elmore
Elmore is another suburb of Montgomery popular with renters. The small town is located 20 minutes north of the city via the Coosada Parkway, between Millbrook and Deatsville, and has a suburban-rural feel:
- Population: 1,137
- Median listing price: $180,000
- Change in listing price (year over year): 2.1%
- Days on market: Not available
- Median rent: $826
- Renter-occupied households: 37%
- Median household income: $32,386
- ZIP code: 36025
Eclectic
Eclectic is located 40 minutes northeast of Montgomery near Lake Martin. The town has a suburban-rural feel, and more than one in 3 residents rent:
- Population: 1,309
- Median listing price: $282,000
- Change in listing price (March 2021 to January 2022): 12.8%
- Days on market: Not available
- Median rent: $913
- Renter-occupied households: 35%
- Median household income: $41,563
- ZIP code: 36024
Notasulga
The small town of Notasulga is one hour northeast of Montgomery, near Tallassee and Tuskegee, and has a suburban-rural feel:
- Population: 1,011
- Median listing price: $199,000
- Change in listing price (March 2021 to January 2022): 28.4%
- Days on market: Not available
- Median rent: $588
- Renter-occupied households: 18%
- Median household income: $36,970
- ZIP code: 36866
Holtville
Holtville is about 30 minutes north of Montgomery and is located along the western shore of Jordan Lake. The town has a suburban-rural feel, and nearly one in of 3 residents rents:
- Population: 4,449
- Median sale price: $306,700
- Change in sales price (year over year): 46.0%
- Days on market: 20
- Median rent: $809
- Renter-occupied households: 28%
- Median household income: $63,059
- ZIP code: 36022
>>Explore Roofstock's Montgomery investment properties.
