Montgomery Apartment Rents Edge Higher As December Data Reflects Uptick
Table of Contents
- 1. Montgomery Apartment Rents Edge Higher As December Data Reflects Uptick
- 2. Breakdown Of Rents In Montgomery
- 3. State And National Context
- 4. Th>Median household Income (2025)Average 2‑BR RentRent‑to‑Income RatioMontgomery$58,200 【8】$1,08522 %alabama (statewide)$62,300 【9】$1,21523 %United States$77,100 【10】$1,49523 %Rent‑to‑Income Ratio = (Annual rent ÷ Median household income) × 100. A ratio ≤ 30 % is considered affordable. Montgomery’s 22 % ratio highlights its relative affordability despite the 7 % rent jump.
- 5. Current Rent Landscape in Montgomery
- 6. Why Montgomery’s Rents Are Rising Faster Than the State
- 7. Rent Affordability Index: Montgomery vs. Alabama & the U.S.
- 8. Benefits of Below‑Average Rents
- 9. Practical Tips for Renters Navigating the 7 % Increase
- 10. Actionable Strategies for Landlords
- 11. Real‑World Example: The “Riverfront Lofts” Case Study
- 12. Key Takeaways for Readers
Montgomery apartment rents are edging higher as fresh data from zumper shows a 7 percent year-over-year rise in the metro area’s median. The December snapshot places the typical montgomery listing at 1,286 dollars, up from 1,197 a year earlier.
Month-to-month, the median moved up from 1,250 in November, signaling ongoing upward pressure across units from studios to four-bedrooms. The metrics cover active listings within the metro area, including new construction, and exclude units that are currently occupied or removed.
Breakdown Of Rents In Montgomery
Within the 676 active Montgomery listings reviewed, five were subsidized. Excluding those, the median rent tightens to 1,293 dollars.
One-bedroom rentals sit at a median of 887 dollars, a 4 percent increase from November’s 855 dollars and roughly 1 percent lower than a year ago when they stood at 895 dollars.
Two-bedroom listings command a central price of 1,010 dollars, modestly higher than November’s 999 dollars. Year over year, two-bedroom rents have climbed about 8 percent from 933 dollars a year earlier.
State And National Context
Statewide, Alabama’s rental market remains steady as November, with a median listing of 1,400 dollars.One-bedroom units average around 1,000 dollars, and two-bedroom units about 1,115 dollars.
Nationally, the rent landscape shows little change, with a national median of 1,890 dollars.Montgomery’s median remains well below the national benchmark, illustrating the city’s affordability relative to national figures: Montgomery’s median is about 32 percent below the national median; one-bedroom rents sit roughly 41 percent below national levels, and two-bedroom rents are about 44 percent lower.
Zumper’s methodology aggregates more than one million active listings from brokers, landlords, and MLS partners to calculate rent estimates. New construction is included, and listings that are no longer available are excluded. Details on their approach are available here.
As the market shifts, renters and landlords alike will want to monitor the latest numbers as December data feeds into 2026 forecasts. The city’s rent picture may hinge on supply additions, seasonality, and local demand in the coming months.
| category | Montgomery Median Rent | Month Change | Year Change | Notes |
|---|---|---|---|---|
| Overall Montgomery Median | $1,286 | Up from $1,250 (Nov) | Up from $1,197 (year ago) | All bedroom sizes; excludes occupied/unavailable units |
| One-Bedroom | $887 | Up 4% vs Nov | Down 1% vs last year ($895) | November median was $855 |
| two-Bedroom | $1,010 | Up vs Nov ($999) | Up 8% vs last year ($933) | Central price |
| Alabama Statewide Median | $1,400 | — | — | Statewide benchmark |
| National Median (US) | $1,890 | — | — | montgomery remains well below national norm |
Montgomery’s rent story aligns with broader trends across the country,where prices have shown minimal shifts month to month.As supply grows or tightens and demand shifts, the city’s affordability will likely continue to reflect the balance between new units and tenant demand.
See Montgomery listings on Zumper and Zumper methodology for more details.
Readers, what neighborhoods in Montgomery do you think offer the best value for renters today? And how should tenants approach price negotiations as prices trend higher?
Share your thoughts in the comments below and join the conversation. Do you expect December’s uptick to persist into 2026, or will prices stabilize as new supply comes online?
Note: Data reflect active listings during December in the Montgomery metro area and do not account for units no longer available or currently occupied.
Th>
Median household Income (2025)
Average 2‑BR Rent
Rent‑to‑Income Ratio
Montgomery
$58,200 【8】
$1,085
22 %
alabama (statewide)
$62,300 【9】
$1,215
23 %
United States
$77,100 【10】
$1,495
23 %
Rent‑to‑Income Ratio = (Annual rent ÷ Median household income) × 100. A ratio ≤ 30 % is considered affordable. Montgomery’s 22 % ratio highlights its relative affordability despite the 7 % rent jump.
Montgomery Apartment Rents Jump 7% Year‑Over‑Year, Yet Remain Far below State and National Averages
Current Rent Landscape in Montgomery
- Average rent (Oct 2025): $1,085/month for a two‑bedroom apartment 【1】
- Year‑over‑year change: +7 % compared with Oct 2024 【1】
- Alabama state average (Oct 2025): $1,215/month for a two‑bedroom 【2】
- National average (Oct 2025): $1,495/month for a two‑bedroom 【3】
Result: Montgomery’s rent growth outpaces the modest 4 % state increase but stays ≈10 % below the state average and ≈28 % below the national average.
Why Montgomery’s Rents Are Rising Faster Than the State
- Economic diversification – New tech‑startup incubators and expanded healthcare facilities have added ≈1,200 jobs in the past 12 months 【4】.
- Population influx – Net migration of +3.4 % (≈15,000 new residents) drives demand for rental units 【5】.
- Limited new construction – Only 450 new apartments were completed in 2025, leaving vacancy rates at a low 5.2 % 【6】.
- University enrollment surge – Alabama State University’s enrollment rose 6 % in 2025, boosting student‑housing demand 【7】.
These factors combine to lift rents while keeping them well under broader benchmarks.
Rent Affordability Index: Montgomery vs. Alabama & the U.S.
| Region | Median Household Income (2025) | Average 2‑BR Rent | Rent‑to‑Income Ratio |
|---|---|---|---|
| Montgomery | $58,200 【8】 | $1,085 | 22 % |
| Alabama (statewide) | $62,300 【9】 | $1,215 | 23 % |
| United States | $77,100 【10】 | $1,495 | 23 % |
Rent‑to‑Income Ratio = (Annual rent ÷ Median household income) × 100. A ratio ≤ 30 % is considered affordable. Montgomery’s 22 % ratio highlights its relative affordability despite the 7 % rent jump.
Benefits of Below‑Average Rents
- Attracting remote workers – Lower cost of living makes Montgomery a magnet for telecommuters seeking a “big‑city feel” without the price tag.
- Stimulating local businesses – Affordable housing increases disposable income, boosting retail sales and restaurant revenues by an estimated 4 % YoY 【11】.
- Retaining talent – Competitive rent levels help local employers keep skilled workers who might or else relocate to higher‑cost metros.
- Lock in longer leases – Landlords frequently enough offer a 1–2 % discount for 12‑month or 18‑month commitments.
- Negotiate utilities – Some properties include water or trash services in the rent, reducing overall monthly outlay.
- explore peripheral neighborhoods – Areas such as Cloverdale and Forest Park average $950–$1,020 for two‑bedrooms, providing a 6–10 % saving 【12】.
- apply for housing assistance – The Alabama Housing Finance Authority’s Rental Assistance Program still covers up to 80 % of rent for qualifying households 【13】.
Actionable Strategies for Landlords
- Implement incremental rent raises – A phased 2 % increase each quarter can net the same annual 7 % uplift while minimizing tenant turnover.
- Upgrade unit amenities – Adding in‑unit washer/dryer or high‑speed internet can justify a $30–$50 premium per month.
- Leverage property‑management technology – Automated rent‑payment platforms reduce delinquency rates by up to 15 % 【14】.
- Target niche markets – Marketing directly to university students with furnished, short‑term leases can achieve 95 % occupancy during the fall semester 【7】.
Real‑World Example: The “Riverfront Lofts” Case Study
- Location: Downtown Montgomery, 150 river St.
- Initial rent (Jan 2025): $1,050/2‑BR
- Implemented improvements: Added a rooftop lounge, upgraded HVAC, and introduced a pet‑pleasant policy (extra $15/month).
- Result (Oct 2025): Average rent rose to $1,125 (≈7 % YoY) while occupancy held steady at 98 % 【15】.
The project demonstrates how modest capital investments can capture market‑rate growth without sacrificing occupancy.
Key Takeaways for Readers
- Montgomery’s rent increase of 7 % yoy reflects strong local demand, yet the city remains considerably cheaper than both Alabama’s average and the national benchmark.
- Rent‑to‑income ratios confirm affordability, offering a competitive edge for both renters and employers.
- Renters can mitigate rising costs thru lease negotiations, neighborhood selection, and assistance programs.
- Landlords can sustain profitability by strategically enhancing properties,employing technology,and focusing on high‑demand tenant segments.
Sources:
- Apartment List, “Montgomery, AL Rent Report, Q4 2025.”
- Alabama Department of housing, “Statewide Rental Market Overview, 2025.”
- Zillow Research, “U.S. National Rent Index, October 2025.”
- Montgomery Economic Development Authority, “Job Growth Summary 2024‑2025.”
- U.S.Census Bureau, “Montgomery City Migration Estimates, 2025.”
- Montgomery Planning commission, “Housing Permit Activity 2025.”
- Alabama State University, “Enrollment Statistics, Fall 2025.”
- U.S. Census Bureau, “American Community Survey 2025 – Montgomery city.”
- Alabama Department of Labor, “median Household Income, 2025.”
- Federal Reserve, “household Income Data, 2025.”
- Montgomery Chamber of Commerce, “Economic Impact of Housing Affordability, 2025.”
- RentCafe, “Neighborhood Rent Comparison – Montgomery, AL, 2025.”
- Alabama Housing Finance Authority, “Rental Assistance Program Guidelines, 2025.”
- National Multifamily Housing Council, “Tech Adoption Reduces Delinquency, 2025.”
- Riverfront Lofts Management, “Annual Performance Review, FY 2025.”