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Cap Rate Analysis: Fort Lauderdale, FL

Investment metrics, interactive calculators, and data-driven analysis for Fort Lauderdale rental properties.

◇
Challenging for pure cash flow
Based on $445,000 median price and $2,000/mo median rent
Est. Cap Rate
3.45%
1% Rule
0.45%
Fails
GRM
18.5x
Price / Income
8.5x

Market Data

Median Home Price$445,000
Median Monthly Rent$2,000
Property Tax Rate0.88%
Population186,220
Population Growth1.1% / yr
Median Household Income$52,400
Vacancy Rate4.9%
Annual Appreciation4.3%

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
2.88%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,816
net operating income
Gross Rent Multiplier
18.5x
High (>15)
1% Rule
0.45%
✗ Fails
Monthly Cash Flow
$1,068
before debt service
Annual Breakdown
Gross Rental Income$24,000
Less Vacancy−$1,176
Effective Income$22,824
Less Operating Expenses−$10,008
Net Operating Income$12,816

Cash-on-Cash Return — Fort Lauderdale

Factor in financing to see your actual return on invested capital in Fort Lauderdale.

$
$111,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.78%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$124,600
$111,250 down + $13,350 closing
Monthly Mortgage
$2,176
on $334K loan
Monthly Cash Flow
$-1,016
after all expenses
Annual Cash Flow
$-12,190
before taxes
Cash Flow Breakdown
Monthly Rent$2,000
Less Expenses−$840
Less Mortgage−$2,176
Monthly Cash Flow$-1,016

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 $445,000 paired with median rents of $2,000/mo produces an estimated cap rate of 3.45%.

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 8.5x, homes cost about 8.5 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: At current median prices, Fort Lauderdale is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

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