Section 8 Rental Investing in Montgomery, Alabama
Montgomery, the seat of Montgomery County, is a B-grade Section 8 market on CloseHound — reliable cash flow with the right property and worth screening regularly. The median 3-bedroom voucher pays $1,190/mo, but the headline here is the low entry point: a $119,000 supported price paired with Alabama's roughly 0.4% property tax across 7 screened ZIP codes.
The catch with a B grade is that the voucher is modest, so the deal lives or dies on buying right — the screened range runs from $1,130 to $1,340, leaving little room for overpaying. Insurance sits near 0.9%. Screen any Montgomery address free on CloseHound to see whether it clears the $119,000 supported price.
Montgomery HUD Section 8 voucher rents by ZIP (FY2026)
Official HUD Small Area Fair Market Rents — the voucher ceiling a landlord can collect in each ZIP, by bedroom count.
| ZIP code | 2-bed | 3-bed | 4-bed |
|---|---|---|---|
| 36104 | $900/mo | $1,130/mo | $1,430/mo |
| 36105 | $930/mo | $1,190/mo | $1,430/mo |
| 36107 | $900/mo | $1,130/mo | $1,430/mo |
| 36108 | $900/mo | $1,130/mo | $1,430/mo |
| 36109 | $1,030/mo | $1,320/mo | $1,560/mo |
| 36110 | $960/mo | $1,230/mo | $1,450/mo |
| 36116 | $1,040/mo | $1,340/mo | $1,570/mo |
Source: HUD FY2026 SAFMR. CloseHound underwrites live listings against these exact ceilings.
More Section 8 markets in Alabama
Montgomery Section 8 FAQ
What's the Section 8 voucher rent for a 3-bed in Montgomery?+
The median 3-bedroom voucher in Montgomery pays about $1,190/mo on FY2026 numbers, with screened ZIPs ranging from $1,130 to $1,340.
Is Montgomery a good Section 8 market?+
CloseHound grades it a B — reliable cash flow with the right property. The low entry (~$119,000) and 0.4% property tax help, but the modest voucher means you have to buy right.
What's the property-tax and insurance cost in Montgomery?+
Montgomery benefits from Alabama's roughly 0.4% property tax, the lowest in the country, with insurance around 0.9%. Low taxes are what keep this lower-rent market viable.
How do I find cash-flowing Section 8 deals in Montgomery?+
Run each address through CloseHound's free screener, which compares the price against the $1,190/mo median 3-bed voucher and the $119,000 1%-rule supported price.
Screen Montgomery deals free
See which Montgomery listings actually cash-flow on the voucher — underwritten and ranked by Deal Score.
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