Pensacola is a mid-range market in the South with a smaller market with 55,480 residents. At a 4.80% estimated cap rate, this is a moderate market where rents of $1,720/mo lag behind home prices. With a median home price of $305,000 and steady population growth supports long-term rental demand, Pensacola 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
Pensacola's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $305,000, the $1,720/mo rent produces only $1,220/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 ($61K at 7%) would result in approximately $-403/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 14.8x gross rent multiplier and 5.6% vacancy rate position Pensacola as a balanced market. With annual appreciation at 3.3%, total returns (cash flow + equity growth) run approximately 8.1% before financing leverage.
Pre-filled with Pensacola medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Pensacola.
Pensacola, FL has a population of 55,480 and has been growing at 1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $305,000 paired with median rents of $1,720/mo produces an estimated cap rate of 4.80%.
Property taxes at 0.79% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.6% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 6.3x, homes cost about 6.3 times the local median income of $48,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 3.3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Pensacola presents moderate opportunities. Cap rates near 4.80% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.