Side-by-side comparison of Montgomery, AL and Birmingham, AL — cap rates, rent, prices, and investment metrics.
Cash flow: Montgomery has the edge with an estimated cap rate of 5.67% compared to Birmingham's 5.54%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $165,000 in Montgomery vs $185,000 in Birmingham, while rents come in at $1,020/mo and $1,120/mo respectively.
Growth & appreciation: Birmingham is growing faster at 0.3% annually vs Montgomery's 0.2%. Birmingham leads on home value appreciation at 2.1% per year.
Costs & risk: Property taxes are 0.41% in Montgomery vs 0.42% in Birmingham. Vacancy rates of 7.2% and 7% are mixed — Birmingham has the tighter rental market.
Bottom line: Montgomery edges out Birmingham on most key metrics. With a 5.67% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Montgomery or Birmingham.