Daytona Beach is the rare Florida market where the dominant brand is a sport — NASCAR's Daytona International Speedway shapes the metro's identity, calendar, and STR demand patterns. Combined with Embry-Riddle Aeronautical University and a deep beach-tourism economy, Daytona produces a rental market with three distinct demand peaks (Daytona 500 week, Bike Week, summer beach season) and a different operational profile than most Florida metros. The 4.61% cap rate at a $325,000 median price keeps the 0.55% rent-to-price ratio closer to functional than coastal Florida metros further south. Population growth at 1.5%/yr is steady.
Employment is anchored by NASCAR's corporate operations and the broader motorsports ecosystem (Daytona International Speedway, the International Speedway Corporation now part of NASCAR Holdings, supplier and broadcasting infrastructure), Embry-Riddle Aeronautical University (the nation's leading aviation-and-aerospace university, with ~7K residential students), AdventHealth and Halifax Health systems, the broader Volusia County government, the Daytona Beach International Airport, Bethune-Cookman University, and a meaningful tourism / hospitality / beach economy. Submarkets stratify around water and event access: beachside / Atlantic Avenue corridor has STR overlay with significant event-week premium pricing; Daytona Beach Shores and Ponce Inlet are premium beachfront; the mainland (Holly Hill, Ormond Beach, Port Orange) draws professional and family rentals; Deltona inland is the larger workforce and family-school submarket; New Smyrna Beach south is a separate higher-end beach submarket.
Florida has no state income tax. Volusia County's property tax at 0.84% is moderate, with sale-triggered reassessment. Insurance is the dominant operational variable — Daytona sits on the Atlantic coast with meaningful hurricane and storm-surge exposure, and the Florida insurance crisis has repriced policies sharply since 2020. Beach properties pay materially more than mainland. Get a binder quote per address. STR regulation has tightened: Daytona Beach proper requires registration with density and zoning limits; Daytona Beach Shores and Ormond Beach have varying rules; verify per parcel. The structural advantages: durable NASCAR + ERAU + healthcare employment; event-driven STR upside math (Daytona 500 weekend rentals routinely run $8K-$15K for a week); year-round beach tourism floor. The structural risk: insurance trajectory and any sustained NASCAR audience decline would ripple to event-week rental demand.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Daytona Beach's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $325,000, the $1,790/mo rent produces only $1,247/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($65K at 7%) would result in approximately $-482/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 15.1x gross rent multiplier and 5.5% vacancy rate position Daytona Beach as a balanced market. With annual appreciation at 3.5%, total returns (cash flow + equity growth) run approximately 8.1% before financing leverage.
All figures below are computed from Daytona Beach's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
At 0.84% effective rate on the $325,000 median price, the annual tax bill is $2,730 — that's below national average (-21% 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.
If Daytona Beach continues appreciating at 3.5%/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 | $325K | $1,790 | 4.6% |
| Year 1 | $336K | $1,844 | 4.6% |
| Year 2 | $348K | $1,899 | 4.6% |
| Year 3 | $360K | $1,956 | 4.5% |
| Year 4 | $373K | $2,015 | 4.5% |
| Year 5 | $386K | $2,075 | 4.5% |
Same median-priced Daytona Beach 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 | $325K | $1,247 | $14,969 | 4.6% |
| 20% down conventional @ 7% | $75K | $-482 | $-5,779 | -7.7% |
| 25% down DSCR @ 8.5% | $94K | $-627 | $-7,525 | -8.0% |
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) | $244K | $1,522 | $11,315 | 4.6% | $943 |
| At median | $325K | $1,790 | $12,832 | 3.9% | $1,069 |
| Above median (~125% price) | $406K | $2,059 | $14,358 | 3.5% | $1,197 |
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 Daytona Beach's historical appreciation rate of 3.5%:
On a $65K down payment, that's a 79.4% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Automated checks against the underlying data — surface only the risks that actually apply to Daytona Beach, not generic boilerplate:
Pre-filled with Daytona Beach medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Daytona Beach.
Daytona Beach, FL has a population of 76,200 and has been growing at 1.5% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $325,000 paired with median rents of $1,790/mo produces an estimated cap rate of 4.61%.
Property taxes at 0.84% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 7.6x, homes cost about 7.6 times the local median income of $42,800. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Daytona Beach presents moderate opportunities. Cap rates near 4.61% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.