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Best Cities for Rental Property in Florida

31 Florida cities ranked by estimated cap rate. The average cap rate across Florida markets is 4.6%, with median home prices averaging $364K and rents averaging $1,950/mo. Clewiston leads with a 6.6% cap rate at a $275K median price. Property taxes average 0.86% across Florida markets.

4.6%
Avg Cap Rate
$364K
Avg Price
$1,950/mo
Avg Rent
31
Cities Tracked

Florida Rental Market Analysis

Florida offers 31 investable rental markets tracked by CapRateCity. The state average cap rate of 4.6% is above the 3.81% national average, making Florida an attractive state for cash flow investors. No cities pass the 1% rule at median prices, so value-add strategies are essential.

Prices and rents: Florida home prices average $364K, which is 9% above the national average of $333K. Rents average $1,950/mo. The most affordable entry point is Palatka at $210K, while Clewiston offers the highest cap rate at 6.6%.

Taxes and costs: Property taxes average 0.86% across Florida, below the 1.08% national average — a meaningful cash flow advantage that adds roughly $805 per year to NOI on an average-priced property. Pensacola has the lowest rate at 0.79%.Vacancy averages 5.2%, tighter than the national average — favorable for landlords.

Growth outlook: Population growth across Florida averages 1.89% per year, led by Port St. Lucie at 3.5%. Home values are appreciating at 3.7% annually on average. Strong population growth is driving housing demand and supporting both rent increases and price appreciation across the state.

Bottom line: Florida offers moderate opportunities for rental investors. The best deals are in cities at the top of the ranking — use the calculators on each city page to model specific properties.

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How Florida Compares to National Averages

Metric
Florida
National Avg
Avg Cap Rate
4.6%
3.8%
Avg Home Price
$364K
$333K
Avg Rent
$1,950/mo
$1,524/mo
Property Tax
0.86%
1.08%
Vacancy Rate
5.2%
5.6%
Pop. Growth
1.89%/yr
0.92%/yr

Florida Cities by Cap Rate Tier

6% – 7% (2)5% – 6% (7)4% – 5% (14)3% – 4% (7)Below 3% (1)

All 31 Florida Cities Ranked

1
Clewiston, FL6.6% cap rate
$275K median$1,990/mo rent0.86% tax1.9% growth
2
Sebring, FL6.0% cap rate
$230K median$1,550/mo rent0.86% tax1.9% growth
3
Palatka, FL5.8% cap rate
$210K median$1,370/mo rent0.86% tax1.9% growth
4
Punta Gorda, FL5.6% cap rate
$295K median$1,870/mo rent0.86% tax1.9% growth
5
Homosassa Springs, FL5.5% cap rate
$270K median$1,690/mo rent0.86% tax1.9% growth
6
Lakeland, FL5.4% cap rate
$295K median$1,830/mo rent0.86% tax2.1% growth
7
Port St. Lucie, FL5.2% cap rate
$380K median$2,300/mo rent0.91% tax3.5% growth
8
Ocala, FL5.1% cap rate
$270K median$1,600/mo rent0.82% tax2.4% growth
9
Sebastian, FL5.0% cap rate
$360K median$2,110/mo rent0.86% tax1.9% growth
10
Lake City, FL4.9% cap rate
$265K median$1,520/mo rent0.86% tax1.9% growth
11
Pensacola, FL4.8% cap rate
$305K median$1,720/mo rent0.79% tax1% growth
12
St. Petersburg, FL4.8% cap rate
$355K median$1,980/mo rent0.82% tax1.4% growth
13
Fort Lauderdale, FL4.8% cap rate
$470K median$2,650/mo rent0.88% tax1.1% growth
14
Tampa, FL4.7% cap rate
$355K median$1,980/mo rent0.83% tax1.9% growth
15
Miami, FL4.7% cap rate
$470K median$2,650/mo rent0.89% tax1.2% growth
16
Palm Bay, FL4.6% cap rate
$340K median$1,890/mo rent0.88% tax2.2% growth
17
Daytona Beach, FL4.6% cap rate
$325K median$1,790/mo rent0.84% tax1.5% growth
18
Deltona, FL4.6% cap rate
$325K median$1,790/mo rent0.87% tax2% growth
19
Gainesville, FL4.5% cap rate
$300K median$1,630/mo rent0.85% tax1.3% growth
20
Cape Coral, FL4.5% cap rate
$340K median$1,840/mo rent0.87% tax3.2% growth
21
Tallahassee, FL4.5% cap rate
$275K median$1,490/mo rent0.84% tax0.9% growth
22
Sarasota, FL4.3% cap rate
$400K median$2,090/mo rent0.86% tax1.8% growth
23
North Port, FL4.3% cap rate
$400K median$2,090/mo rent0.86% tax1.9% growth
24
Orlando, FL4.0% cap rate
$385K median$1,920/mo rent0.89% tax2% growth
25
Kissimmee, FL4.0% cap rate
$385K median$1,920/mo rent0.88% tax2.8% growth
26
Panama City, FL3.9% cap rate
$340K median$1,670/mo rent0.86% tax1.9% growth
27
Naples, FL3.9% cap rate
$555K median$2,690/mo rent0.86% tax1.9% growth
28
Jacksonville, FL3.8% cap rate
$345K median$1,670/mo rent0.86% tax1.7% growth
29
The Villages, FL3.4% cap rate
$385K median$1,700/mo rent0.86% tax1.9% growth
30
Crestview, FL3.4% cap rate
$435K median$1,920/mo rent0.86% tax1.9% growth
31
Key West, FL2.6% cap rate
$935K median$3,530/mo rent0.86% tax1.9% growth

Other South States

Mississippi (9 cities · 6.3% avg)Louisiana (13 cities · 5.9% avg)West Virginia (10 cities · 5.9% avg)Alabama (18 cities · 5.7% avg)Oklahoma (18 cities · 5.7% avg)Georgia (26 cities · 5.0% avg)

Frequently Asked Questions

Is Florida a good state for rental property investing?
Florida has an average cap rate of 4.6% across 31 cities, which is above the national average of 3.81%. The best-performing city is Clewiston at 6.6%. Average home prices of $364K are above the national average. Property taxes at 0.86% are investor-friendly.
What is the best city to buy rental property in Florida?
Clewiston leads Florida with a 6.6% cap rate, $275K median price, and $1,990/mo rent. The best city depends on your strategy — cash flow investors should look at the top of this ranking, while growth-focused investors may prefer Port St. Lucie (3.5% population growth). Use the calculators on each city page to model specific deals.
What are property taxes like in Florida?
Property taxes in Florida average 0.86%, which is below the 1.08% national average. The lowest rate is in Pensacola at 0.79%. On an average-priced home of $364K, annual taxes are approximately $3,123.
How many Florida cities pass the 1% rule?
0 of 31 Florida cities (0%) pass the 1% rule at median prices. None pass at median prices, meaning investors should target below-median properties or use value-add strategies to improve returns. The 1% rule says monthly rent should be at least 1% of purchase price.

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