Montgomery, NJ real estate: the numbers, explained.

Home values in Montgomery

The NJ Division of Taxation’s 2026 Average Residential Statistics show an average residential sale price of $986,195 across 212 sales used in that report.

The Census Bureau’s survey puts the median value of owner-occupied homes, as estimated by owners, at $795,200 (2020–2024 average), compared with a Somerset County town median of $547,600.

Montgomery property taxes

Montgomery’s 2025 general tax rate was 3.438 per $100 of assessed value, and its effective tax rate was 2.06%, about the same as the Somerset County town median of 2.030% and lower than the statewide municipal median of 2.141%. That ranks it #13 lowest of 21 Somerset County municipalities by effective rate. The average residential tax bill was $17,373 on an average assessment of $505,324 across 7,016 residential properties.

Applied to the average sale price of $986,195, the effective rate implies roughly $20,316 a year ($1,693 a month) in property tax. The Division publishes the effective rate for comparing towns, not for computing a specific bill, so use it as a ballpark.

What it costs to own vs. rent

For a $986,195 home with 20% down ($197,239) and a 30-year fixed loan at 7.18%, Freddie Mac’s national average for the week of November 5, 2026, principal and interest come to about $5,345 a month. With estimated property tax that’s about $7,038, before insurance, any HOA fee and utilities. For comparison, the Census median gross rent in Montgomery is $2,188.

Run my numbers for MontgomeryRent vs buy here

Who lives in Montgomery

About 23,841 people live in Montgomery. 84.6% of occupied homes are owner-occupied (county town median 79.6%). 70.7% of housing units are single-family detached houses. The median resident age is 43.1, and 80.4% of adults 25 and older hold a bachelor’s degree or higher. Median household income is $226,771, higher than the county town median of $148,056.

The median home in Montgomery was built in 1994. Newer housing stock usually means fewer legacy issues like buried oil tanks or lead paint, but still inspect roofs, HVAC age and drainage, and check any HOA’s finances.

Commuting from Montgomery

Workers in Montgomery average 37.1 minutes each way (those who don’t work from home), longer than the Somerset County town median of 30.4 minutes. 5.5% commute by public transportation, so most commuters drive and 32.9% work from home.

Schools

I don’t republish unofficial school scores. For Montgomery, start with the New Jersey Department of Education’s School Performance Reports, then confirm the exact school assignment for any address with the district, since some NJ towns send students to regional or neighboring high schools. See how to research NJ schools.

Downtown, food and things to do

The best way to judge Montgomery’s restaurants, parks and weekend life is in person. Visit on a weeknight and a Saturday morning, check the town recreation calendar and walk the blocks you’d live on. My town scouting checklist shows what to look for.

My take for buyers, sellers and renters

• Buyers: taxes run above the county median, so budget on the tax bill, not just the price. Ask for the current bill on every listing.
• Sellers: with fewer public market indexes for Montgomery, a comparable-sales analysis matters more. Get a free home value.

Nearby towns at a similar price