Calculate using real Montgomery data. Median home price: $155,000. Property tax rate: 0.39%.
With the median household income of $43,310 in Montgomery, AL, following the 28% rule, you could afford a monthly payment of about $1,011.
The cost of living index in Montgomery, AL is 82 (national average = 100). A home at the median price of $155,000 would require roughly 3.6x the median income.
A conventional 20% down payment on the median Montgomery, AL home ($155,000) would be $31,000. FHA loans may require as little as 3.5% ($5,425).