Palatka is a budget-friendly market in the South with a small but investable metro of 50,000. At a 5.76% estimated cap rate, this is a solid market where rents of $1,370/mo lag behind home prices. With a median home price of $210,000 and steady population growth supports long-term rental demand, Palatka stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Palatka's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $210,000, the $1,370/mo rent produces only $1,008/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 ($42K at 7%) would result in approximately $-109/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 1.9% annual population growth paired with 3.7% home appreciation, Palatka offers a rare combination of current cash flow and future equity upside. The 12.8x gross rent multiplier suggests the market hasn't fully priced in this growth trajectory.
Pre-filled with Palatka medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Palatka.
Palatka, FL has a population of 50,000 and has been growing at 1.9% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $210,000 paired with median rents of $1,370/mo produces an estimated cap rate of 5.76%.
Property taxes at 0.86% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.1x, homes cost about 4.1 times the local median income of $50,639. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 3.7% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.
Bottom line: Palatka presents moderate opportunities. Cap rates near 5.76% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.