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Tallahassee vs Pensacola for Rental Property Investing

Side-by-side comparison of Tallahassee, FL and Pensacola, FL — cap rates, rent, prices, and investment metrics.

Pensacola wins 4–3 across key metrics
Tallahassee leads on cash flow (4.45% vs 4.41% cap rate) · Pensacola leads on population growth
Metric
Tallahassee, FL
Pensacola, FL
Est. Cap Rate
4.45%
4.41%
Median Home Price
$245,000
$255,000
Median Monthly Rent
$1,320
$1,350
1% Rule
0.54%
0.53%
GRM
15.5x
15.7x
Price / Income
5.0x
5.3x
Property Tax Rate
0.84%
0.79%
Vacancy Rate
5.8%
5.6%
Population Growth
0.9% / yr
1% / yr
Annual Appreciation
2.9%
3.3%
Population
202,221
55,480
Median Income
$48,600
$48,200

Tallahassee vs Pensacola: Which Is Better for Investors?

Cash flow: Tallahassee has the edge with an estimated cap rate of 4.45% compared to Pensacola's 4.41%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $245,000 in Tallahassee vs $255,000 in Pensacola, while rents come in at $1,320/mo and $1,350/mo respectively.

Growth & appreciation: Pensacola is growing faster at 1% annually vs Tallahassee's 0.9%. Pensacola leads on home value appreciation at 3.3% per year.

Costs & risk: Property taxes are 0.84% in Tallahassee vs 0.79% in Pensacola. Vacancy rates of 5.8% and 5.6% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Pensacola edges out Tallahassee on most key metrics. While cap rates are moderate at 4.41%, Pensacola's overall profile is stronger. Use our free calculators to model specific deals in Tallahassee or Pensacola.

Tallahassee, FL
4.45% cap rate · $245,000 median · $1,320/mo
Full analysis →
Pensacola, FL
4.41% cap rate · $255,000 median · $1,350/mo
Full analysis →
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