1st Advantage MortgageIn Florence, KY, rental investors qualify on the property's rent instead of personal income. The market data behind that: $1,329 median rent, $210,700 median home value and 42% of households renting.
Florence rental market at a glance
Median gross rent in Florence: $1,329, well above the Kentucky median of $967. Median owner-occupied home value: $210,700, close to the Kentucky median of $205,600. Those are citywide medians, so an individual address can sit well on either side of them. By the simple measure of annual rent over home value, Florence sits at 7.6%, on the high side, which usually points to lower purchase prices relative to rent. Lenders do not underwrite a ratio like that, but investors use it to decide where to look first.
| Indicator | Kentucky | Florence | Difference |
|---|---|---|---|
| Tax as a share of home value | 0.75% | 0.87% | +16% |
| Annual property tax bill, median | $1,544 | $1,842 | +19% |
| Household income, median | $63,726 | $71,003 | +11% |
| Typical monthly rent | $967 | $1,329 | +37% |
| Persons per household | 2.43 | 2.31 | |
| Share in 2-4 unit buildings | 7.1% | 6.1% | -14% |
| Share of homes detached | 67.5% | 44.5% | -34% |
| Long commuters, 45 min plus | 12.5% | 11.1% | -11% |
| Degree holders, age 25+ | 27.6% | 26.4% | -4% |
| Renters paying 30%+ of income | 45.4% | 40.7% | -10% |
| Units sitting vacant | 10.3% | 4.0% | -62% |
| Typical construction year | 1982 | 1985 | |
| Annual rent divided by value | 5.6% | 7.6% | +34% |
| Households that rent | 31.7% | 42.5% | +34% |
| Residents (Census estimate) | 4,534,824 | 32,803 |
About 42.5% of occupied homes in Florence are renter-occupied, well above the Kentucky median of 32%, a balanced mix of owners and tenants. Incomes matter for rent growth: the median household earns $71,003, about 11% above the Kentucky median of $63,726, and 41% of renters are already cost-burdened at 30 percent of income or more.
What Florence investors are buying
The housing stock in Florence leans toward shared walls: 47% of units are in multi-unit buildings, and 6% sit in small two to four unit properties. The median structure went up in 1985, so request ages for the roof, HVAC and water heater on any rental you consider.
Use vacancy as a reality check: 4% of all units are vacant in Florence, and the rental vacancy rate is 3.3%.
What stands out in Florence
With a gross rent-to-value ratio of 7.6%, Florence is the kind of market where a modest purchase price can still clear a 1.0 ratio, so the work is mostly in confirming the rent and the insurance. With a 1985 median build year, the question for each property is when the roof and HVAC were last replaced. With about 42% of households renting, Florence has enough tenants to support investors without being dominated by them.
Taxes and risk in Florence
The Census reports median real estate taxes paid of $1,842 in Florence, about 19% above the Kentucky median of $1,544. Against the median value that is an effective rate of roughly 0.87%, compared with 0.75% for Kentucky as a whole. That is about 12% of a year of median rent gone to taxes before the loan is even counted.
For hazards, FEMA's National Risk Index puts Boone County at a relatively low overall rating, and its top-ranked hazards are strong wind (relatively high), tornadoes (relatively high) and cold waves (relatively high).
| Hazard in Boone County, FEMA index | Level |
|---|---|
| Lightning exposure | Relatively Moderate |
| Cold waves exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Strong wind exposure | Relatively High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Low |
A Florence landlord policy is priced on roof, age, wiring and location, and the annual premium divided by twelve lands in the payment the lender tests.
A worked DSCR test for Florence
For a rough fit test, treat $1,329 as the rent and $154 as the monthly tax. The payment cannot exceed $1,329 at a 1.00 ratio, so $1,176 is left after taxes for interest, principal, insurance and any association dues, shrinking to $910 if the lender wants 1.25.
Rental rules for Florence, KY
We have not confirmed a city-specific rental registration or nightly-stay permit program for Florence, so check with the city and with Boone County before you buy, and look at any HOA or condominium rules that can be stricter than the city's. For Florence short-term hosts, one state-level point stands out. Kentucky applies sales tax and a statewide transient room tax to short-term rentals, exempts stays of 30 continuous days or more, and requires platforms that facilitate bookings to collect and remit both state and local transient taxes.
Entry rules: At least 2 days' notice, except in an emergency or where impracticable (URLTA areas).
Neighbors of Florence by the numbers
Looking across the table, values run from $165,200 (Hamilton) up to $265,400 (Georgetown), and Florence lands at $210,700.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Georgetown | 38% | $1,839 | $265,400 | 39,117 | $1,255 |
| Hamilton | 46% | $1,761 | $165,200 | 63,468 | $1,007 |
| Cincinnati | 60% | $3,169 | $230,900 | 311,224 | $1,001 |
| Covington | 48% | $2,085 | $187,300 | 41,110 | $1,006 |
| Florence | 42% | $1,842 | $210,700 | 32,803 | $1,329 |
Employers and institutions near Florence rentals
Roughly 4.2% of employed people in Florence are self-employed, a base of investors and landlords for whom a rent-based loan is a practical option. Looking at who fills the rentals, government workers are about 7% of employment, 26% of adults hold a bachelor's degree or higher and 11% of commuters travel 45 minutes or more.
Higher education in and around Florence includes Gateway Community and Technical College, which feeds demand for student, staff and faculty housing near campus.
From a Florence listing to a loan
Before you offer on a Florence property, test the ratio in the calculator, then apply now or request a DSCR quote.
More Kentucky markets
- All Kentucky DSCR loans
- DSCR loans in Covington, KY
- DSCR loans in Cincinnati, OH
- DSCR loans in Hamilton, OH
- DSCR loans in Georgetown, KY
- Every market we cover
Sources
- Wikipedia article, Florence, Kentucky
- Deposit statute: KRS 383.580
- State rule cited for Florence hosts: Kentucky Department of Revenue, transient room tax
- U.S. Census Bureau data for Florence
- FEMA county hazard table
We took the Florence data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. The Kentucky legal summaries are from the RedFlagLease dataset, licensed CC BY 4.0, with statute links. Our check date is October 2026, so look for newer Florence rules before you commit.
Before you make an offer
For a Florence rental, request the current lease, the last tax bill and the insurance declarations page early, and confirm which utilities the tenant pays, because each one changes the monthly figure a lender compares with the rent.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent do DSCR lenders use for a Florence rental?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Florence median is $1,329.
Does the ratio in Florence include taxes and dues?
They do. Rent of $1,329 divided by 1.25 gives about $1,063 as the payment ceiling, and $154 of that is spoken for by the median Florence tax bill.
How much real estate tax do Florence homeowners pay a year?
The Census reports a median of $1,842 a year for Florence owners, about 0.87% of median value against 0.75% for Kentucky. The county reassesses after a sale, so ask the tax office for an estimate on your purchase price.
Do DSCR lenders count short-term rental income in Florence?
Often, with conditions: legal use under city and association rules, documented income and an insurance policy that covers guests. Florence owners should check all three first.
How exposed is Florence to natural hazards?
The county scores relatively low overall in FEMA's index, with strong wind leading. Parcel-level flood maps and a real insurance quote give the answer that counts.
Should a Florence rental be bought in an LLC?
No, but it is common. Entity borrowers supply articles, an operating agreement and an EIN letter, and the owners typically guarantee the loan. A Kentucky attorney can advise on structure.