Updated 2026 · Based on median market data for Florence, AL
The median monthly rent in Florence, AL is $1,170, translating to $14,040 in annual gross rental income per unit. The rent-to-price ratio is 0.56% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Florence spend approximately 28% of the local median household income ($49,614) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units.
The vacancy rate in Florence is 6.4%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.8% annually provides stable demand.
Florence's GRM (price divided by annual rent) is 15.0x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,170/mo, a single-family rental in Florence generates approximately $14,040 in gross annual income. After accounting for 6.4% vacancy ($899 lost), property taxes of $882, insurance (~$840), and maintenance (~$840), the estimated NOI is $10,579 per year, or $882/mo.
Florence vs Alabama state average and national average across key investment metrics. Florence beats the national average but trails the Alabama average on cap rate.