Location: Montgomery, AL | Metro: Montgomery, AL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $291,965 | 0.32% | F |
| 3BR | $1,180 | $341,677 | 0.35% | F |
| 4BR | $1,370 | $692,723 | 0.2% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 36024 (Eclectic, AL) presents a nuanced picture that reflects both stability and potential for growth, particularly on the rental side. The median home value stands at $360,732, indicating a relatively stable housing market. This figure has seen minimal fluctuation, with only 0.2% of listings experiencing reductions in price. The median days on market (DOM) being listed as N/A suggests either very quick sales or a low volume of transactions, which can imply strong demand or limited supply.
The combination of a stable median home value and a negligible percentage of price reductions signals that landlords and small-portfolio investors in Eclectic have significant pricing power. Homeowners are unlikely to be forced into selling due to financial distress, as evidenced by the low rate of price reductions. This scenario typically translates into a seller's market where properties sell quickly, often at or above asking prices. Consequently, for those looking to capitalize on short-term gains through flipping or rapid turnover, the current conditions suggest a favorable environment.
However, for long-term investors, the appreciation thesis is less clear-cut. While the current market signals strength, the lack of significant price reductions and the stable median home value suggest a slow-growth environment rather than a rapid appreciation phase. Long-term investors should focus on other factors such as rental income and property management costs to gauge potential returns.
Renting in ZIP 36024 offers a compelling opportunity. The Fair Market Rent (FMR) for the area is set at $880 for fiscal year 2024, while the current market rent is estimated at $791. This gap between the FMR and the actual market rent indicates a potential upward pressure on rental prices. Landlords can expect to see gradual increases in rental rates, aligning with the FMR, as demand for affordable housing remains steady.
In summary, the current setup in ZIP 36024 favors sellers and provides a solid foundation for long-term investors interested in leveraging rental income. The market's stability, combined with the potential for rental rate increases, supports a conservative but positive outlook for the next 12-24 months.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.