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Montgomery vs Huntsville for Rental Property Investing

Side-by-side comparison of Montgomery, AL and Huntsville, AL — cap rates, rent, prices, and investment metrics.

Montgomery wins 4–3 across key metrics
Montgomery leads on cash flow (5.67% vs 4.29% cap rate) · Huntsville leads on population growth
Metric
Montgomery, AL
Huntsville, AL
Est. Cap Rate
5.67%
4.29%
Median Home Price
$165,000
$285,000
Median Monthly Rent
$1,020
$1,380
1% Rule
0.62%
0.48%
GRM
13.5x
17.2x
Price / Income
3.7x
4.6x
Property Tax Rate
0.41%
0.43%
Vacancy Rate
7.2%
5%
Population Growth
0.2% / yr
2.4% / yr
Annual Appreciation
1.9%
3.4%
Population
200,603
225,054
Median Income
$44,600
$62,400

Montgomery vs Huntsville: Which Is Better for Investors?

Cash flow: Montgomery has the edge with an estimated cap rate of 5.67% compared to Huntsville's 4.29%. 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 $285,000 in Huntsville, while rents come in at $1,020/mo and $1,380/mo respectively.

Growth & appreciation: Huntsville is growing faster at 2.4% annually vs Montgomery's 0.2%. Huntsville leads on home value appreciation at 3.4% per year. Strong population growth typically translates to sustained rental demand and long-term price support.

Costs & risk: Property taxes are 0.41% in Montgomery vs 0.43% in Huntsville. Vacancy rates of 7.2% and 5% are mixed — Huntsville has the tighter rental market.

Bottom line: Montgomery edges out Huntsville 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 Huntsville.

Montgomery, AL
5.67% cap rate · $165,000 median · $1,020/mo
Full analysis →
Huntsville, AL
4.29% cap rate · $285,000 median · $1,380/mo
Full analysis →
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