Purchasing rental property in Florida is an excellent way to invest, considering that the state continues to be a popular destination among Americans looking to go on vacation. With more visitors in Florida, there is a possibility you can make money if you buy rental property there.
If you are considering investing in Florida’s real estate market, read this guide to learn everything you need to know before buying rental property.
The Florida Real Estate Market
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Florida hosts all kinds of properties. Whether you are looking for an apartment or a multi/single-family home, there is something for you here. Despite the economic downturn in recent years, Florida’s real estate market has remained relatively stable, thus attracting investors.
Here are some facts about the Florida real estate market:
- The market is now the 4th most lucrative rental market in the United States.
- In places like Miami, tenants pay over 20% more than the national average rental rate. This means investors earn good rental income.
- Florida is considered the fastest-growing state, having recorded an increase of about 450,000 residents between September 2022 and September 2023. The growing population could lead the demand to surge massively in the coming years.
Best Places to Purchase Rental Property in Florida
Miami is ideal for both long-term and short-term rentals. The city has seen its housing market thrive in recent years, thanks to favorable laws and growing demand due to the rising tech industry. The average housing price in Miami is $570,000. You can expect $3,600 in monthly rental income.
In Orlando, you can find both low and high-value rental properties. The city is popular for its lively entertainment scene. Moreover, its job market is huge. It will cost you around $390,000 to buy a rental property in Orlando. The expected rental income is roughly $2,100.
An average of 4 million visitors arrive in Clearwater every year to explore the city. The growing population, affordable housing, and the booming technology sector have made Clearwater popular among real estate investors. As of January 2024, the average housing price in this city is $380,000, and the rental income stands at $2,400.
Fort Lauderdale is one of the real estate markets doing well in Florida. The city’s rapid growth in recent years has attracted families from the southern United States. The average housing price in Fort Lauderdale is $530,000, and you can earn up to $2,500 in rental income.
The average housing price in Jacksonville is lower than in most cities. The best part is that the city offers solid rental income for investors. For this reason, Jacksonville has become among the leading cities in the United States that offer some of the highest rental yields. The city’s healthcare sector is thriving, with over 25 modern hospitals. Buying a rental property in Jacksonville will cost you about $300,000. The rental income to expect is approximately $1,800.
If you are looking to buy a multifamily house, then you should consider exploring the Tampa real estate market. The growing population and employment opportunities have led to the development of new units. The average housing price here is $450,000. You can pocket about $2,300 in rental income.
West Palm Beach
Are you looking to buy rental property located along the beach? Check out West Palm Beach. This place boasts a strong job market and a growing population. You will pay an average housing price of $470,000 to acquire a rental property in West Palm Beach. The expected rental income is $2,700.
Cape Coral attracts millennials because of its proximity to recreational hubs and employment. Moreover, the city is ideal for vacation rentals, given the millions of tourists who arrive there every year. When buying a rental property in Cape Coral, expect to spend at least $430,000. You can earn up to $2,600 in rental revenue.
Is Investing in Rental Property in Florida Recommended?
If you wish to diversify your investment portfolio, you can consider exploring the Florida real estate market. We recommend working with an experienced real estate agent to help you select the right location and rental property.