Side-by-side comparison of Mobile, AL and Montgomery, AL — cap rates, rent, prices, and investment metrics.
Cash flow: Montgomery has the edge with an estimated cap rate of 6.29% compared to Mobile's 6.18%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $190,000 in Mobile vs $205,000 in Montgomery, while rents come in at $1,270/mo and $1,380/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.
Growth & appreciation: Montgomery is growing faster at 0.2% annually vs Mobile's 0.1%. Montgomery leads on home value appreciation at 1.9% per year.
Costs & risk: Property taxes are 0.44% in Mobile vs 0.41% in Montgomery. Vacancy rates of 7.5% and 7.2% are both elevated, warranting conservative cash flow projections.
Entry point: Mobile offers a lower entry at $190K vs Montgomery's $205K — a difference of $15K. With a 20% down payment, that's $38K vs $41K. Montgomery's higher price may be justified by stronger growth.
Bottom line: Montgomery edges out Mobile on most key metrics. With a 6.29% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Mobile or Montgomery.