Jacksonville, FL Cap Rate: 3.84% — Rental Property Analysis
Jacksonville is a mid-range market in the South with a major metro of 985,843 residents. At a 3.84% estimated cap rate, this is a appreciation-focused market where rents of $1,670/mo lag behind home prices. With a median home price of $345,000 and steady population growth supports long-term rental demand, Jacksonville is primarily an appreciation play that requires creative strategies to generate positive cash flow.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
◇
Challenging for pure cash flow
Based on $345,000 median price and $1,670/mo median rent
Est. Cap Rate
3.84%
1% Rule
0.48%
Fails
GRM
17.2x
Price / Income
5.9x
Market Data
Median Home Price$345,000
Median Monthly Rent$1,670
Property Tax Rate0.86%
Population985,843
Population Growth1.7% / yr
Median Household Income$58,200
Vacancy Rate5.4%
Annual Appreciation3.6%
2026 Market Update: Jacksonville
Jacksonville's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $345,000, the $1,670/mo rent produces only $1,103/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 ($69K at 7%) would result in approximately $-732/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 17.2x gross rent multiplier and 5.4% vacancy rate position Jacksonville as a balanced market. With annual appreciation at 3.6%, total returns (cash flow + equity growth) run approximately 7.4% before financing leverage.
Cap Rate Calculator — Jacksonville
Pre-filled with Jacksonville medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.86% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.19%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,002
net operating income
Gross Rent Multiplier
17.2x
High (>15)
1% Rule
0.48%
✗ Fails
Monthly Cash Flow
$917
before debt service
Annual Breakdown
Gross Rental Income$20,040
Less Vacancy−$1,082
Effective Income$18,958
Less Operating Expenses−$7,956
Net Operating Income$11,002
Sponsored
Analyze Deals Faster with DealCheck
Import any property, get instant investment analysis — cap rates, cash flow, rehab estimates, and offer calculations. Used by 350,000+ investors.
Factor in financing to see your actual return on invested capital in Jacksonville.
$
$86,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.92%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$96,600
$86,250 down + $10,350 closing
Monthly Mortgage
$1,687
on $259K loan
Monthly Cash Flow
$-718
after all expenses
Annual Cash Flow
$-8,614
before taxes
Cash Flow Breakdown
Monthly Rent$1,670
Less Expenses−$701
Less Mortgage−$1,687
Monthly Cash Flow$-718
Is Jacksonville a Good Place to Invest in Rental Property?
Jacksonville, FL has a population of 985,843 and has been growing at 1.7% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $345,000 paired with median rents of $1,670/mo produces an estimated cap rate of 3.84%.
Property taxes at 0.86% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.4% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.9x, homes cost about 5.9 times the local median income of $58,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.6% 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, Jacksonville 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.
Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.