Is Florence, AL a good place to invest in rental property?

Florence, AL has a median modeled monthly cash flow of $-608 and a median cap rate of 3.6%, on a median sold price of $235,000. Prices changed +3.0% year over year.

What is the average cap rate in Florence, AL?

The median cap rate across recently sold homes in Florence, AL is 3.6%, based on CashFlowRE's rent and expense modeling.

What is the median home price in Florence, AL?

The median sold price in Florence, AL is $235,000 (about $139 per square foot).

Investing in Florence, AL Real Estate

A data-driven snapshot of the Florence, AL rental-property market, built from recently sold homes and CashFlowRE's per-listing investment modeling — median price, cap rate, monthly cash flow, appreciation and inventory — so you can judge the market before you ever open a listing.

$235,000Median sold price

$139Median $/sqft

3.6%Median cap rate

$-608Modeled cash flow / mo

+3.0%Appreciation YoY

8.5Months of supply

535Active listings

755Sold (last 12 mo)

What the Florence numbers say

In Florence, AL, the median home sold for $235,000 (about $139 per square foot), and the typical deal models out to a 3.6% cap rate with a median $-608 of monthly cash flow. Sold prices moved +3.0% over the past year. Inventory sits at about 8.5 months of supply — a looser, buyer-friendly market. These are medians across recorded sales; individual properties vary widely, which is exactly what CashFlowRE scores listing by listing.

🔨 See 3 fix-and-flip deals in Florence — listings where the estimated after-repair value beats list price + rehab.

Other Alabama markets to compare

See Florence cash-flowing listings

CashFlowRE ranks every for-sale home in Florence, AL by cap rate, cash-on-cash return, DSCR and monthly cash flow — so the best rental deals rise to the top. Create a free account to screen Florence deals, or browse the national market data.