Fort Lauderdale, FL Cap Rate: 4.75% — Rental Property Analysis
Fort Lauderdale is a higher-priced market in the South with a mid-sized city of 186,220. At a 4.75% estimated cap rate, this is a moderate market where rents of $2,650/mo lag behind home prices. With a median home price of $470,000 and steady population growth supports long-term rental demand, Fort Lauderdale 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 $470,000 median price and $2,650/mo median rent
Est. Cap Rate
4.75%
1% Rule
0.56%
Fails
GRM
14.8x
Price / Income
9.0x
Market Data
Median Home Price$470,000
Median Monthly Rent$2,650
Property Tax Rate0.88%
Population186,220
Population Growth1.1% / yr
Median Household Income$52,400
Vacancy Rate4.9%
Annual Appreciation4.3%
2026 Market Update: Fort Lauderdale
Fort Lauderdale's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $470,000, the $2,650/mo rent produces only $1,862/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 ($94K at 7%) would result in approximately $-638/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 14.8x gross rent multiplier and 4.9% vacancy rate position Fort Lauderdale as a balanced market. With annual appreciation at 4.3%, total returns (cash flow + equity growth) run approximately 9.1% before financing leverage.
Cap Rate Calculator — Fort Lauderdale
Pre-filled with Fort Lauderdale medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.88% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.93%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$18,494
net operating income
Gross Rent Multiplier
14.8x
Good (<15)
1% Rule
0.56%
✗ Fails
Monthly Cash Flow
$1,541
before debt service
Annual Breakdown
Gross Rental Income$31,800
Less Vacancy−$1,558
Effective Income$30,242
Less Operating Expenses−$11,748
Net Operating Income$18,494
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Factor in financing to see your actual return on invested capital in Fort Lauderdale.
$
$117,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.94%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$131,600
$117,500 down + $14,100 closing
Monthly Mortgage
$2,298
on $353K loan
Monthly Cash Flow
$-761
after all expenses
Annual Cash Flow
$-9,132
before taxes
Cash Flow Breakdown
Monthly Rent$2,650
Less Expenses−$1,113
Less Mortgage−$2,298
Monthly Cash Flow$-761
Is Fort Lauderdale a Good Place to Invest in Rental Property?
Fort Lauderdale, FL has a population of 186,220 and has been growing at 1.1% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $470,000 paired with median rents of $2,650/mo produces an estimated cap rate of 4.75%.
Property taxes at 0.88% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.9% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 9.0x, homes cost about 9.0 times the local median income of $52,400. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 4.3% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.
Bottom line: Fort Lauderdale presents moderate opportunities. Cap rates near 4.75% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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