The average rent for apartments in Montgomery is around $929 per month as of July 2026 (source: Apartment List). This is a decrease of 3.35% from the previous month and down 1.56% compared to the same month last year (source: Zumper). While the numbers suggest a reduction in rental burden, a closer look at the market reveals a different picture.

Recent examples of remodeled older apartments highlight this trend. Buildings constructed in the 1980s and 1990s may only have updated kitchens and bathrooms while keeping rents stable, whereas others have completely renovated plumbing and electrical systems, reappearing at prices comparable to new constructions. Not all older buildings are affordable, and whether they have been remodeled is becoming a key factor in determining actual prices.

The situation for new constructions is even clearer. In Montgomery, recent developments have mostly focused on luxury apartments and commercial spaces, with the number of single-family home building permits falling below levels seen before 2020 (source: James Hawkins Montgomery Rental Market Outlook, 2026). Notably, there is a lack of affordable new rental homes priced below $1,200 per month, as large construction companies are essentially not building them. The recent listings on Apartments.com show only about 54 available units in Montgomery.

This trend indicates that demand continues steadily while supply remains limited. In markets with insufficient new supply, vacancy rates tend to stay low, and rents often exhibit downward rigidity, which seems to be the case in Montgomery. However, recent statistics show a slight decline in monthly and annual rents, suggesting that tenants may have some room for negotiation in the short term.

So, what should you choose between older and new constructions? Well-remodeled older apartments offer the appeal of larger spaces and lower initial rents, but buildings that haven't been remodeled may face significant repairs soon, such as plumbing or roofing issues. New constructions often come with a rent premium of 10-20% compared to older ones on a national average (source: RentCafe, Apartment List), but they tend to have lower heating and cooling costs due to modern insulation and energy-efficient systems (source: NAR, Angi Guide).

If you are a Korean family, it's important to consider school districts along with property tax burdens. Alabama has varying tax rates by county, so if you are moving from another state, you might miss some details if you base your estimates on your previous residence. Check school ratings on GreatSchools or state education department resources, but be aware that boundaries change frequently, so verify the assigned school for the specific address before signing a lease.

For investors looking for rental income, older buildings with a history of remodeling are worth considering. They are typically priced lower than new constructions, and if plumbing and electrical systems have already been updated, you can expect rental income without significant repair expenses in the initial years. However, the quality of remodeling can vary greatly from building to building, so it's crucial to inspect the actual condition before purchasing. Rather than assuming guaranteed profits, you should calculate the actual yield, including vacancy rates and management costs.

With mortgage rates remaining high, more families are opting to rent instead of buy, which may keep competition in the limited Montgomery rental market strong for the foreseeable future. If you are relocating from another state, be sure to carefully check the rental contract duration and renewal terms in light of this trend.

Ultimately, in Montgomery, well-maintained older buildings and scarce new constructions each have their unique appeal. This article does not constitute investment or legal advice, and it's advisable to review conditions with a professional before finalizing any agreements.