The neighborhood was originally, in the 1890s, named Mount Tabor Village, and was a stopping point for travelers going from Hood River into Portland.

Chinese Village, a longtime neighborhood landmark, was demolished in July 2018; it was located on 82nd Avenue between SE Washington and Stark Streets.

A 1934 redlining map of Portland assigned the areas within current Montavilla boundaries with a yellow grade, or "Definitely Declining.

"[7] In 1947, a racist covenant placed restrictions on the Park Terrace Homes development (along NE Pacific Street between 82nd and 87th Avenues), declaring, "No race or nationality other than those of the Caucasian or White race shall occupy any dwelling on any lot except this Covenant shall not prevent occupancy by domestic servants of a different race or nationality employed by an owner or tenant.”[8] Founded in 2010, the Montavilla Food Co-op is working to bring a cooperative grocery to the neighborhood, though it currently does not have a storefront.

[9] Montavilla is home to the community organization Pollinator Parkways, which converts parking strips to wildlife habitat.

The Montavilla Emergency Warming Shelter[11] and Rahab's Sisters[12] both operate from St. Peter and Paul Church, located on SE 82nd Avenue.

Clark Elementary K-5 school located immediately west of 92nd Avenue and north of SE Hawthorne Boulevard.

Portland Community College Southeast campus is located at the southwest boundary of the neighborhood at 82nd Avenue and Division Street.

As a neighborhood center, SE Stark Street between 75th and 82nd Avenues provides a mix of commercial and retail services to residents and visitors.

The street also contains dispensaries, medical offices, gift stores, salons, auto shops, and religious institutions.

Three roads bounding Montavilla—Division, I-84, and I-205—are major transportation arteries, giving the neighborhood easy automobile access to the city center and outlying areas.