Clewiston, FL Cap Rate 6.57%
Clewiston is a mid-range market in the South with a small but investable metro of 50,000. At a 6.57% estimated cap rate, this is a solid market where rents of $1,990/mo lag behind home prices. With a median home price of $275,000 and steady population growth supports long-term rental demand, Clewiston stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Clewiston
Clewiston's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $275,000, the $1,990/mo rent produces only $1,506/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
On a conventional loan with 20% down ($55K) at 7%, estimated monthly cash flow is $43 — a thin 0.9% cash-on-cash return. Investors should negotiate below asking price or target properties with above-median rents to build a meaningful cash flow buffer.
With 1.9% annual population growth paired with 3.7% home appreciation, Clewiston offers a rare combination of current cash flow and future equity upside. The 11.5x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Deal Modeling & Scenarios for Clewiston
All figures below are computed from Clewiston's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.86% effective rate on the $275,000 median price, the annual tax bill is $2,365 — that's near national average (-19% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Clewiston continues appreciating at 3.7%/yr while rents grow at a conservative 3%/yr, cap rate compresses as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $275K | $1,990 | 6.6% |
| Year 1 | $285K | $2,050 | 6.5% |
| Year 2 | $296K | $2,111 | 6.5% |
| Year 3 | $307K | $2,175 | 6.4% |
| Year 4 | $318K | $2,240 | 6.4% |
| Year 5 | $330K | $2,307 | 6.4% |
Three Financing Scenarios
Same median-priced Clewiston property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $275K | $1,506 | $18,073 | 6.6% |
| 20% down conventional @ 7% | $63K | $43 | $517 | 0.8% |
| 25% down DSCR @ 8.5% | $80K | $-80 | $-960 | -1.2% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $206K | $1,692 | $13,401 | 6.5% | $1,117 |
| At median | $275K | $1,990 | $15,352 | 5.6% | $1,279 |
| Above median (~125% price) | $344K | $2,289 | $17,314 | 5.0% | $1,443 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Clewiston's historical appreciation rate of 3.7%:
On a $55K down payment, that's a 134.3% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Clewiston
Automated checks against the underlying data — surface only the risks that actually apply to Clewiston, not generic boilerplate:
Cap Rate Calculator — Clewiston
Pre-filled with Clewiston medians. Adjust to match a specific property.
Cash-on-Cash Return — Clewiston
Factor in financing to see your actual return on invested capital in Clewiston.
Is Clewiston a Good Place to Invest in Rental Property?
Clewiston, FL has a population of 50,000 and has been growing at 1.9% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $275,000 paired with median rents of $1,990/mo produces an estimated cap rate of 6.57%.
Property taxes at 0.86% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.4x, homes cost about 5.4 times the local median income of $50,639. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.7% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.
Bottom line: Clewiston offers attractive fundamentals for rental investors. Strong population growth, low taxes, and cap rates above 6% put it in the upper tier of investable markets.