Updated 2026 · Based on median market data for Florence, SC
Home values in Florence, SC have appreciated at 3.4% per year. This is roughly in line with or slightly above the national average, providing steady equity building without the volatility of boom markets. At 3.4% per year, the $185,000 median gains about $6,290 annually in value.
If Florence continues appreciating at 3.4% annually, the current median of $185,000 would reach approximately $218,663 in 5 years — an equity gain of $33,663 on a property purchased at the median. With a 20% down payment of $37,000, that represents a 91% return on invested equity from appreciation alone. Combined with 5 years of NOI totaling approximately $61,038, the projected total return is $94,701 — a 256% cumulative return on the initial investment. That breaks down to roughly 51% per year on your cash invested. Cash flow is the dominant return component, contributing 64% of total returns — a more conservative and predictable return profile.
Florence's population is growing at 1.9% annually — well above the US average of approximately 0.5%. Rapid population growth is the single strongest predictor of sustained home price appreciation because it creates persistent demand pressure. That 1.9% growth adds roughly 950 new residents per year, each needing housing. Local incomes of $49,486 are moderate, meaning appreciation is more likely to be gradual than explosive.
While Florence's 1.9% growth rate is healthy, risks still exist. The $185,000 price point provides some downside protection, as affordable markets historically experience smaller percentage declines during corrections. Interest rate changes also matter: a 2-point rate increase reduces buyer purchasing power by roughly 20%, which directly impacts resale values. Always stress-test your investment against a 15-20% value decline scenario.
The BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) is highly viable in Florence. The low median price of $185,000 means distressed properties can be acquired for $120,250-$138,750, rehabbed for $37,000, and stabilized at an after-repair value near $212,750. If you can refinance at 75% of ARV ($159,563), you recover most or all of your initial investment and retain a cash-flowing rental with strong equity. The 3.4% annual appreciation provides a tailwind — even properties that do not fully cash out at refinance will grow into profitability as values rise.
Over a 10-year hold on a $185,000 Florence rental purchased with 20% down ($37,000), wealth accumulates from three sources. First, appreciation: at 3.4% annually, the property reaches $258,450, producing $73,450 in equity gain. Second, cash flow: after debt service of approximately $11,810/yr, net cash flow totals roughly $3,975 over 10 years (before any rent increases). Third, loan paydown: your tenants' rent payments reduce the mortgage principal by approximately $19,240 over 10 years. Total wealth created: approximately $96,665 on an initial investment of $37,000. That is a 261% total return, or roughly 14% annualized. These returns illustrate how rental property builds wealth through multiple simultaneous channels. These projections assume constant appreciation and do not account for rent growth, which would improve cash flow over time.
Smart investors evaluate both cash flow AND appreciation. In Florence, the 6.60% cap rate provides strong ongoing cash flow, while 3.4% annual appreciation adds an equity component. This is a rare combination — both strong cash flow AND solid appreciation. Markets like this offer the best risk-adjusted total returns because you are paid while you wait for values to rise. The key question for Florence is your time horizon: even a 3-year hold produces positive total returns thanks to strong cash flow.
Florence vs South Carolina state average and national average across key investment metrics. Florence outperforms both benchmarks on cap rate.