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 | $960 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $124,690 | 0.9% | C |
| 3BR | $1,440 | $139,327 | 1.03% | B |
| 4BR | $1,660 | $225,776 | 0.74% | D |
| 5BR | $1,926 | $416,727 | 0.46% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 36111, located in Montgomery, Alabama, within the Montgomery MSA metro area, is nearly balanced but leans slightly unfavorable. The Fair Market Rent (FMR) set at $1,050 for the fiscal year 2024 is below the current market rent, which stands at $1,074 according to Census ACS data. This indicates that landlords might face a slight shortfall if they adhere strictly to the FMR guidelines.
Acquisition in this area is relatively affordable. The median home value is $158,622, which is a reasonable price point for investment properties. Additionally, the days on market (DOM) average is 41 days, suggesting that homes are sold relatively quickly once listed. The low price-cut share of 0.2% further supports that homes are generally selling at or near their asking price, indicating a stable and slightly favorable market for acquiring properties.
Tenant demand in ZIP 36111 is strong. With a total population of 11,938, and 42.0% of residents being renters, there are over 4,993 potential tenants. This high renter share ensures a steady pool of prospective tenants, making it easier for landlords to maintain occupancy rates and manage their properties effectively.
In conclusion, while the rent math does not fully align in favor of landlords due to the slightly higher market rent compared to the FMR, the overall conditions in ZIP 36111 support real estate investment. Affordable median home values, quick sales, and robust tenant demand create a promising environment for both landlords and small-portfolio investors. The key will be to carefully manage rental pricing to balance between attracting tenants and maximizing returns.
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.