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Daphne vs Florence:
Housing Costs in Alabama

Side-by-side comparison of home prices, mortgage payments, and housing costs between Daphne and Florence, Alabama. Using Alabama's 0.41% property tax rate and $1,950/year insurance. Updated for 2026.

MetricDaphneFlorence
Median Home Price$295K$195K
Population28,95140,184
Average Rent$1,280/mo$980/mo
Est. Monthly Mortgage (P&I)$1,678/mo$1,109/mo
Est. Monthly Property Tax$101/mo$67/mo
Est. Monthly Insurance$163/mo$163/mo
Est. Total PITI$2,052/mo$1,412/mo
Price-to-Rent Ratio19.216.6
Verdict

Florence is significantly more affordable than Daphne, with homes priced 34% lower on average. That translates to $640/month in savings on your total housing payment. For budget-conscious buyers in Alabama, Florence offers a much more accessible path to homeownership.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Alabama's 0.41% property tax rate.

Daphne
Home Price$295,000
Down Payment (10%)$29,500
Loan Amount$265,500
Monthly P&I$1,678
Monthly Property Tax$101
Monthly Insurance$163
Monthly PMI$111
Total PITI$2,052/mo
Annual property tax: $1,210
Florence
Home Price$195,000
Down Payment (10%)$19,500
Loan Amount$175,500
Monthly P&I$1,109
Monthly Property Tax$67
Monthly Insurance$163
Monthly PMI$73
Total PITI$1,412/mo
Annual property tax: $800

Buying in Florence saves you approximately $640/month ($7,680/year) compared to Daphne, based on median home prices with identical loan terms.

Which City Is Better For...

First-Time Buyers

Florence is the better choice for first-time buyers, with a median price of $195K versus $295K in Daphne. That's $100K less to save for a down payment. You'd need roughly $7K for an FHA 3.5% down payment in Florence, compared to $10K in Daphne. Alabama offers the Alabama Housing Finance Authority Step Up program (Up to $10,000 DPA) which applies in both cities.

Real Estate Investment

Florence has the better price-to-rent ratio at 16.6x versus 19.2x in Daphne. A lower ratio generally signals better rental income relative to purchase price. Average rent in Florence is $980/month on a $195K median home, making it a stronger candidate for buy-and-rent investors.

Families

Florence (pop. 40,184) offers more amenities, schools, and services typical of a larger city, while Daphne (pop. 28,951) may offer a quieter, more community-oriented lifestyle. Florence offers both more options and lower housing costs, making it attractive for families who want urban amenities without a premium price.

Income Needed to Afford the Median Home

Daphne
$88K
annual household income
Based on $2,052/mo PITI at 28% DTI
Florence
$61K
annual household income
Based on $1,412/mo PITI at 28% DTI

Other Cities in Alabama

Birmingham$215K
Pop. 197,575 · Rent $1,150/mo
Huntsville$295K
Pop. 218,022 · Rent $1,280/mo
Montgomery$175K
Pop. 200,603 · Rent $1,050/mo
Mobile$185K
Pop. 187,041 · Rent $1,080/mo
Tuscaloosa$225K
Pop. 101,129 · Rent $1,120/mo
Hoover$335K
Pop. 92,606 · Rent $1,380/mo
Dothan$175K
Pop. 71,072 · Rent $950/mo
Decatur$195K
Pop. 57,938 · Rent $1,020/mo

Explore Alabama

Alabama Mortgage Guide$230K median →
0.41% tax · $3K closing · $1,950/yr insurance
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