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Cap Rate Analysis: Palm Bay, FL

Investment metrics, interactive calculators, and data-driven analysis for Palm Bay rental properties.

Challenging for pure cash flow
Based on $295,000 median price and $1,420/mo median rent
Est. Cap Rate
3.79%
1% Rule
0.48%
Fails
GRM
17.3x
Price / Income
5.6x

Market Data

Median Home Price$295,000
Median Monthly Rent$1,420
Property Tax Rate0.88%
Population121,700
Population Growth2.2% / yr
Median Household Income$52,400
Vacancy Rate5.3%
Annual Appreciation3.6%

Cap Rate Calculator — Palm Bay

Pre-filled with Palm Bay 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
3.15%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,297
net operating income
Gross Rent Multiplier
17.3x
High (>15)
1% Rule
0.48%
✗ Fails
Monthly Cash Flow
$775
before debt service
Annual Breakdown
Gross Rental Income$17,040
Less Vacancy−$903
Effective Income$16,137
Less Operating Expenses−$6,840
Net Operating Income$9,297

Cash-on-Cash Return — Palm Bay

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

$
$73,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.98%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$82,600
$73,750 down + $8,850 closing
Monthly Mortgage
$1,442
on $221K loan
Monthly Cash Flow
$-618
after all expenses
Annual Cash Flow
$-7,421
before taxes
Cash Flow Breakdown
Monthly Rent$1,420
Less Expenses−$596
Less Mortgage−$1,442
Monthly Cash Flow$-618

Is Palm Bay a Good Place to Invest in Rental Property?

Palm Bay, FL has a population of 121,700 and has been growing at 2.2% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $295,000 paired with median rents of $1,420/mo produces an estimated cap rate of 3.79%.

Property taxes at 0.88% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.3% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 5.6x, homes cost about 5.6 times the local median income of $52,400. 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, Palm Bay 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.

Run a BRRRR analysis for Palm Bay
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