Total monthly cost of ownership
Cost to Own a Home in Montgomery, Alabama
A $149,000 home here costs
$1,257per month, all in — with 20% down at today's 6.66% 30-year fixed rate.
A standard mortgage calculator would have told you $766. The real number is $491 higher every month — 64% more than the payment most buyers budget for.
Where every dollar goes
Only the first line is a mortgage payment. Change any assumption above and every figure below recalculates.
Montgomery against Montgomery County and Alabama
| Measure | Montgomery | Montgomery County |
|---|---|---|
| Median home value | $148,500 | $160,100 |
| Median property tax | $558 | $598 |
| Effective tax rate | 0.376% | 0.374% |
| Median gross rent | $1,059 | $1,061 |
| Population | 198,440 | 227,197 |
The weather behind that power bill
Montgomery sits in Montgomery County, which averages a high of 94.2°F in its hottest month and a low of 40.0°F in its coldest, with 51.77" of precipitation a year and 29% of it in a single three-month stretch. That climate drives 2,847 cooling and 1,755 heating degree days, which is what sets the $151 electricity line above.
See the full climate breakdown for Montgomery County — month by month temperatures, rainy season timing, snowfall and heating and cooling costs.
Other cities in Montgomery County
Full Montgomery County cost breakdown · Every county in Alabama
Common questions
How much does it cost to own a home in Montgomery?
A $149,000 home in Montgomery, Alabama costs approximately $1,257 per month with 20% down at 6.66%. That is $766 principal and interest, $47 property tax, $102 homeowners insurance, $219 utilities and $124 set aside for maintenance.
What is the property tax rate in Montgomery?
Montgomery has an effective property tax rate of 0.376%, based on a median home value of $148,500 and median real estate taxes of $558. That is in line with the Montgomery County average of 0.374%.
What is the average home price in Montgomery?
The median owner-occupied home value in Montgomery, Alabama is $148,500, against $160,100 across Montgomery County.
Is it cheaper to rent or buy in Montgomery?
Median gross rent in Montgomery is $1,059 a month, against $1,257 to own the median home all in. Renting costs less month to month here, though renting builds no equity.
Sources & methodology
- Median home value, real estate taxes, gross rent and population for Montgomery — US Census Bureau, American Community Survey ACS 2023 5-Year, place-level tables.
- Homeowners insurance — NAIC average premium for Alabama.
- Electricity price — EIA Electric Power Monthly Table 5.6.A.
- Mortgage rate — Freddie Mac PMMS, refreshed weekly.
- Maintenance (1%/yr) and water and sewer ($68/mo) are national estimates. Every assumption above is editable.