Is Montgomery, AL a Good STR Investment in 2026?
966 active listings
Top Market
Median Price
$201,133
STR Revenue/mo
$2,290
Cap Rate
5.9%
1Y Appreciation
1.1%
Avg Nightly Rate
$137
Market Score
99.9/100
Market Overview
Montgomery, AL presents a strong opportunity for real estate investors in 2026, with a market score of 99.9 out of 100. The median home price sits at $201,133 with average short-term rental revenue of $2,290 per month, yielding a 5.9% cap rate.
Short-Term Rental Performance
Short-term rental hosts in Montgomery average $2,290 in monthly revenue with a 63.3% occupancy rate. This translates to approximately $27,480 in annual gross revenue for a typical listing. The average nightly rate is $137.
Investment Analysis
Assuming a 20% down payment at 7% interest on a $201,133 property, your monthly mortgage would be approximately $1,071. After accounting for mortgage, taxes, and insurance, the estimated monthly cash flow for an STR is -$73.
The long-term rental market shows potential with median rents at $1,308 per month. Year-over-year home value appreciation of 1.1% adds equity growth to your total return.
Our Verdict
Montgomery ranks among the top investment markets with a score of 99.9/100.