Home Affordability in Montgomery, AL
The median home price in Montgomery is $155,000 with a median household income of $41,340. Housing is moderately affordable relative to local incomes.
Median Home Price
$155,000
Median Income
$41,340
Price-to-Income Ratio
3.7x
Est. Affordable Home
$161,000
Property Tax Rate
0.40%
Annual Property Tax
$620
Sales Tax Rate
10.00%
Cost of Living Index
82
Buying a Home in Montgomery
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $41,340 in Montgomery can afford a monthly housing payment of approximately $965. This translates to a home price of roughly $161,000, which is at or above the median home price — the typical home is within reach for a median-income household.
Property taxes on a median-priced home in Montgomery would be approximately $620 per year ($52/month) at the effective rate of 0.40%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $4,650 | $150,350 | Yes |
| 5% | $7,750 | $147,250 | Yes |
| 10% | $15,500 | $139,500 | Yes |
| 20% | $31,000 | $124,000 | No |
Use Our Home Affordability Calculator
Get a personalized estimate based on your income, debts, down payment, and credit score.
Calculate Now