Department of Numbers

Florence, Alabama Home Affordability

The data below measures home affordability for the Florence-Muscle Shoals, Alabama metropolitan area using price-to-income and price-to-rent metrics.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Florence home affordability to other cities.

Florence, Alabama Home Price-to-Income Ratios

The second chart shows a history of the ratio as an index calculated from the Federal Housing Finance Agency's Florence HPI series. Median household income data for Florence is from the Census American Community Survey.

Price-to-Income Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Florence, Alabama Home Price-to-Income Ratio History

Date FHFA (Index Ratio)
September 2011 122.1
June 2011 125.1
March 2011 120.9
December 2010 123.6
September 2010 123.7
June 2010 123.1
March 2010 121.3
December 2009 125.3
September 2009 121.5

Florence, Alabama Home Price-to-Rent Ratios

The chart below shows an index of the rent ratio calculated from the metro FHFA HPI series and the Florence median contract rent data from the Census ACS.

Price-to-Rent Index Ratio: FHFA

Note: Index set to 100 in Q1 of 2000

Florence, Alabama Home Price-to-Rent Ratio History

Date FHFA (Index Ratio)
September 2011 111.1
June 2011 113.8
March 2011 110.0
December 2010 112.4
September 2010 112.5
June 2010 112.0
March 2010 110.4
December 2009 125.0
September 2009 121.2

Florence, Alabama Inferred Affordable Mortgage

The inferred affordable mortgage value is determined by taking the median household income for Florence, Alabama and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from ACS median household income and average monthly mortgage rates.

Inferred Affordable Mortgage

Florence, Alabama Inferred Affordable Mortgage History

Date Inferred Mortgage
November 2011 $197,330
October 2011 $195,436
September 2011 $194,500
August 2011 $190,818
July 2011 $184,622
June 2011 $185,489
May 2011 $182,695
April 2011 $178,519
March 2011 $178,519
February 2011 $176,283
January 2011 $180,172
December 2010 $181,217
November 2010 $190,140

1. Specifically, home prices are from the non seasonally adjusted FHFA all-transactions quarterly series. Dollar ratios are calculated using NAR metro prices when available. Rent and income data are from the Census ACS and are carried forward into the following year prior to release of the new data. ↩

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