St. Petersburg, FL Cap Rate: 4.76% — Rental Property Analysis
St. Petersburg is a higher-priced market in the South with a mid-sized city of 266,390. At a 4.76% estimated cap rate, this is a moderate market where rents of $1,980/mo lag behind home prices. With a median home price of $355,000 and steady population growth supports long-term rental demand, St. Petersburg 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
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Moderate — source deals carefully
Based on $355,000 median price and $1,980/mo median rent
Est. Cap Rate
4.76%
1% Rule
0.56%
Fails
GRM
14.9x
Price / Income
6.3x
Market Data
Median Home Price$355,000
Median Monthly Rent$1,980
Property Tax Rate0.82%
Population266,390
Population Growth1.4% / yr
Median Household Income$56,800
Vacancy Rate4.7%
Annual Appreciation4.1%
2026 Market Update: St. Petersburg
St. Petersburg's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $355,000, the $1,980/mo rent produces only $1,408/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 ($71K at 7%) would result in approximately $-481/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 14.9x gross rent multiplier and 4.7% vacancy rate position St. Petersburg as a balanced market. With annual appreciation at 4.1%, total returns (cash flow + equity growth) run approximately 8.9% before financing leverage.
Cap Rate Calculator — St. Petersburg
Pre-filled with St. Petersburg 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
3.95%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$14,039
net operating income
Gross Rent Multiplier
14.9x
Good (<15)
1% Rule
0.56%
✗ Fails
Monthly Cash Flow
$1,170
before debt service
Annual Breakdown
Gross Rental Income$23,760
Less Vacancy−$1,117
Effective Income$22,643
Less Operating Expenses−$8,604
Net Operating Income$14,039
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Factor in financing to see your actual return on invested capital in St. Petersburg.
$
$88,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.10%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$99,400
$88,750 down + $10,650 closing
Monthly Mortgage
$1,736
on $266K loan
Monthly Cash Flow
$-588
after all expenses
Annual Cash Flow
$-7,053
before taxes
Cash Flow Breakdown
Monthly Rent$1,980
Less Expenses−$832
Less Mortgage−$1,736
Monthly Cash Flow$-588
Is St. Petersburg a Good Place to Invest in Rental Property?
St. Petersburg, FL has a population of 266,390 and has been growing at 1.4% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $355,000 paired with median rents of $1,980/mo produces an estimated cap rate of 4.76%.
Property taxes at 0.82% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 4.7% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 6.3x, homes cost about 6.3 times the local median income of $56,800. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 4.1% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.
Bottom line: St. Petersburg presents moderate opportunities. Cap rates near 4.76% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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