Daytona Beach, FL Cap Rate: 4.61% — Rental Property Analysis
Daytona Beach is a mid-range market in the South with a smaller market with 76,200 residents. At a 4.61% estimated cap rate, this is a moderate market where rents of $1,790/mo lag behind home prices. With a median home price of $325,000 and steady population growth supports long-term rental demand, Daytona Beach offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $325,000 median price and $1,790/mo median rent
Est. Cap Rate
4.61%
1% Rule
0.55%
Fails
GRM
15.1x
Price / Income
7.6x
Market Data
Median Home Price$325,000
Median Monthly Rent$1,790
Property Tax Rate0.84%
Population76,200
Population Growth1.5% / yr
Median Household Income$42,800
Vacancy Rate5.5%
Annual Appreciation3.5%
2026 Market Update: Daytona Beach
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.
Cap Rate Calculator — Daytona Beach
Pre-filled with Daytona Beach medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.84% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.82%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,403
net operating income
Gross Rent Multiplier
15.1x
High (>15)
1% Rule
0.55%
✗ Fails
Monthly Cash Flow
$1,034
before debt service
Annual Breakdown
Gross Rental Income$21,480
Less Vacancy−$1,181
Effective Income$20,299
Less Operating Expenses−$7,896
Net Operating Income$12,403
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Factor in financing to see your actual return on invested capital in Daytona Beach.
$
$81,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.27%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$91,000
$81,250 down + $9,750 closing
Monthly Mortgage
$1,589
on $244K loan
Monthly Cash Flow
$-551
after all expenses
Annual Cash Flow
$-6,613
before taxes
Cash Flow Breakdown
Monthly Rent$1,790
Less Expenses−$752
Less Mortgage−$1,589
Monthly Cash Flow$-551
Is Daytona Beach a Good Place to Invest in Rental Property?
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.
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