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Ocala, FL Cap Rate: 5.09% — Rental Property Analysis

Ocala is a mid-range market in the South with a smaller market with 68,800 residents. At a 5.09% estimated cap rate, this is a moderate market where rents of $1,600/mo lag behind home prices. With a median home price of $270,000 and rapid population growth is driving housing demand, Ocala 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

Moderate — source deals carefully
Based on $270,000 median price and $1,600/mo median rent
Est. Cap Rate
5.09%
1% Rule
0.59%
Fails
GRM
14.1x
Price / Income
6.7x

Market Data

Median Home Price$270,000
Median Monthly Rent$1,600
Property Tax Rate0.82%
Population68,800
Population Growth2.4% / yr
Median Household Income$40,200
Vacancy Rate5.6%
Annual Appreciation3.4%

2026 Market Update: Ocala

Ocala's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $270,000, the $1,600/mo rent produces only $1,146/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 ($54K at 7%) would result in approximately $-290/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.

With 2.4% annual population growth paired with 3.4% home appreciation, Ocala offers a rare combination of current cash flow and future equity upside. The 14.1x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.

Cap Rate Calculator — Ocala

Pre-filled with Ocala medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.82% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.21%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,369
net operating income
Gross Rent Multiplier
14.1x
Good (<15)
1% Rule
0.59%
✗ Fails
Monthly Cash Flow
$947
before debt service
Annual Breakdown
Gross Rental Income$19,200
Less Vacancy−$1,075
Effective Income$18,125
Less Operating Expenses−$6,756
Net Operating Income$11,369
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Cash-on-Cash Return — Ocala

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

$
$67,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-6.22%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$75,600
$67,500 down + $8,100 closing
Monthly Mortgage
$1,320
on $203K loan
Monthly Cash Flow
$-392
after all expenses
Annual Cash Flow
$-4,706
before taxes
Cash Flow Breakdown
Monthly Rent$1,600
Less Expenses−$672
Less Mortgage−$1,320
Monthly Cash Flow$-392

Is Ocala a Good Place to Invest in Rental Property?

Ocala, FL has a population of 68,800 and has been growing at 2.4% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $270,000 paired with median rents of $1,600/mo produces an estimated cap rate of 5.09%.

Property taxes at 0.82% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.6% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 6.7x, homes cost about 6.7 times the local median income of $40,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Ocala presents moderate opportunities. Cap rates near 5.09% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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