Florence is a budget-friendly market in the South with a small but investable metro of 50,000. At a 6.60% estimated cap rate, this is a solid market where rents of $1,300/mo lag behind home prices. With a median home price of $185,000 and steady population growth supports long-term rental demand, Florence stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Florence's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $185,000, the $1,300/mo rent produces only $1,017/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
On a conventional loan with 20% down ($37K) at 7%, estimated monthly cash flow is $33 — a thin 1.1% cash-on-cash return. Investors should negotiate below asking price or target properties with above-median rents to build a meaningful cash flow buffer.
With 1.9% annual population growth paired with 3.4% home appreciation, Florence offers a rare combination of current cash flow and future equity upside. The 11.9x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Pre-filled with Florence medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Florence.
Florence, SC has a population of 50,000 and has been growing at 1.9% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $185,000 paired with median rents of $1,300/mo produces an estimated cap rate of 6.60%.
Property taxes at 0.57% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 3.7x, homes cost about 3.7 times the local median income of $49,486. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 3.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Florence offers attractive fundamentals for rental investors. Strong population growth, low taxes, and cap rates above 6% put it in the upper tier of investable markets.