Mortgage payment estimates, closing cost breakdowns, and homebuying data for Florence, Alabama.
Median Home Price
$195K
Population
40K
Avg Monthly Rent
$980
Property Tax Rate
0.41% *
* Property tax shown is the Alabama state average effective rate. Actual rates vary by county, city, and school district — check with your local assessor for exact rates in Florence.
Florence vs Alabama Median
The median home price in Florence is $195,000, which is 15% below the Alabama state median of $230,000.
Mortgage Calculator — Florence, AL
Pre-filled with Florence median home price and Alabama tax/insurance rates. Adjust for your property.
Three down payment scenarios for a $195K home using Alabama's 0.41% tax rate and $1,950/yr insurance.
5% Down
$1,508/mo
Down: $9,750
Loan: $185K
P&I: $1,171
Tax: $67
Insurance: $163
PMI: $108
10% Down
$1,441/mo
Down: $19,500
Loan: $176K
P&I: $1,109
Tax: $67
Insurance: $163
PMI: $102
20% Down (No PMI)
$1,215/mo
Down: $39,000
Loan: $156K
P&I: $986
Tax: $67
Insurance: $163
Income needed (28% rule): $52K/year with 20% down, $62K/year with 10% down.
Rent vs Buy in Florence
Rent
$980/mo
vs
Buy (10% down)
$1,441/mo
Price-to-rent ratio: 16.6 — A ratio between 15-20 means the rent vs buy decision in Florence depends heavily on your timeline. If you plan to stay 5+ years, buying likely wins. For shorter stays, renting preserves flexibility.
The median home price in Florence is $195,000, 15% below the Alabama state median of $230,000. With a population of 40,184, Florence is a smaller market where home prices tend to be more accessible than in many parts of Alabama.
Property taxes in Alabama average 0.41% annually. This low property tax rate is a significant advantage for Florence buyers, keeping your monthly costs well below what you'd pay in higher-tax states. Homeowners insurance in Alabama runs approximately $1,950 per year. This is within the normal range nationally.
Average rent in Florence is $980/month. The price-to-rent ratio in Florence is moderate, meaning the buy-vs-rent decision depends heavily on how long you plan to stay.
Florence offers strong affordability. With median prices under $250K, first-time buyers have realistic paths to homeownership, especially combined with Alabama's Alabama Housing Finance Authority Step Up program.
Run a Rent vs Buy analysis
Compare total costs of renting vs buying in Florence.