CALCMONEY // HOME AFFORDABILITY // AL // MONTGOMERY
How much house can you afford in Montgomery? Based on local median home prices, current AL mortgage rates, and Montgomery property tax data.
$185,000
$1,123/mo
$48,131/yr
$184,423
Monthly housing costs of $1,123 represent 28.1% of Montgomery's median gross monthly income ($4,000/mo). At 28.1%, this slightly exceeds the 28% rule. Buyers need above-median income or a 25%+ down payment to qualify comfortably.
| Median Home Price | $185,000 |
| Down Payment (20%) | $37,000 |
| Loan Amount | $148,000 |
| Monthly PI Payment | $980 |
| Monthly Property Tax | $66 |
| Monthly Insurance Est. | $77 |
| Total Monthly PITI | $1,123 |
| Housing Cost % of Income | 28.1% |
| Required Income (28% rule) | $48,131/yr |
| Max Affordable Home | $184,423 |
$6,475
$1,452/mo
Montgomery Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $185,000 | Montgomery city median |
| Down Payment (20%) | $37,000 | Conventional loan |
| Monthly PITI | $1,123 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $48,131 | Annual gross |
| Max Affordable Home | $184,423 | Based on median income |
| FHA Down (3.5%) | $6,475 | Minimum FHA |
| Housing Cost % of Income | 28.1% | Median income: $48,000/yr |
| Property Tax Rate | 0.43% | $796/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Montgomery is $185,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $148,000, generating a monthly P&I payment of $980. Adding property taxes ($66/mo) and homeowners insurance ($77/mo) brings total monthly PITI to $1,123.
Montgomery's property tax rate of 0.43% is among the lower rates in the country, which improves overall affordability by keeping total PITI closer to the principal and interest payment alone. On the Montgomery median home, that is $66/month, or $796 per year.
Alabama levies a state income tax, which affects take-home pay and effective buying power. High-income earners in Montgomery should factor state tax liability into their overall housing budget — mortgage interest may be deductible on both federal and state returns.
Using the 28% rule, a household earning Montgomery's median income of $48,000/year can afford up to $1,120/month in total housing costs. Based on Montgomery's mortgage rate of 6.95% and property tax rate of 0.43%, that translates to a maximum affordable home price of approximately $184,423 with 20% down on a 30-year loan.
To afford the median Montgomery home priced at $185,000, you need an annual gross income of approximately $48,131. Total monthly housing costs (principal and interest of $980, property taxes of $66, and insurance of $77) come to $1,123/month, which equals 28% of the required income.
At the median home price of $185,000 and median household income of $48,000, the total monthly housing cost of $1,123 represents 28.1% of gross monthly income. This slightly exceeds the standard 28% rule. Buyers will need above-median income or a larger down payment to stay within guidelines.
A conventional 20% down payment on the median Montgomery home of $185,000 is $37,000. An FHA loan requires just 3.5% down — $6,475 — but adds mortgage insurance of roughly $126/month, bringing total FHA payments to $1,452/month.
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