Wondering what the best places to buy rental property in Florida are?
You’re in the right place.
In this article, you’ll learn about your best options and what makes Florida an ideal investment location.
Interested?
Let’s go.
The best areas in Florida to invest in real estate
If you want to invest in real estate, you’re probably wondering, “What should I look for in a potential investment location?”
This is an essential question to ask. After all, I failed to screen a property once and ended up with a $30,000 bill. I want to help you avoid the same.
For some tips on finding your first location, take a look at this video:
However, for now, know that one important factor is population growth and/or tourism.
Here’s why: more people equals higher demand for housing, which equals better returns for you as an investor.
Florida is the fastest-growing state in the U.S., which means more and more people are looking for short- and long-term rentals in the state.
But what are the best cities in Florida for investors? It depends on your preferences.
For example, if you want to offer short-term rentals, go where the tourists are. If you prefer renting longer-term, choose areas with great schools and employment opportunities.
With that in mind, let’s look at the best places to buy rental property in Florida, which include information from these sources:
- Median property sale price: Zillow or Realtor
- Median household income: Point2
- Median rent: Zillow, Point2, Zumper, or Realtor
- Home value increase compared to last year: Zillow, Redfin, or Rocket Homes
Population growth: World Population Review or Point2
1. Orlando
Why it’s good: Orlando attracts a lot of tourists thanks to places like Disney World, Universal Studios, and SeaWorld. In fact, 74 million tourists visited Orlando in 2022 alone. Here, there’s a high demand for housing that isn’t being met.
Ideal for: investors who want to rent short-term.
Key data:
- Median property sale price: $367,833
- Median household income: $58,968
- Median rent: $2,100/month
- Home value increase compared to last year: 5.3%
- Population growth: 1.3% annually
2. Tampa
Why it’s good: Tampa is known for its great beaches, but it also attracts plenty of college students. And since only about 60% of them live off campus, this gives you a golden opportunity as an investor. My recommendation? Invest near the University of Tampa.
Ideal for: investors who want to rent short-term vacation rentals or longer-term to college students.
Key data:
- Median property sale price: $366,667
- Median household income: $59,893
- Median rent: $2,150/month
- Home value increase compared to last year: 5.6%
- Population growth: 1.27% annually
3. Jacksonville
Why it’s good: Jacksonville is the largest city in Florida, with a population of nearly 1 million and growing. The average age is just 36, and the unemployment rate is lower than the national average. As an investor, this makes it one of the best places to buy rental property in Florida because it gives you options.
For example, if you wanted to rent long-term, you’d have plenty of young professionals or college students to market to. If you choose college students as your target demographic, your best bet is to invest near Florida State College, the University of North Florida, or Jacksonville University.
Ideal for: Investors who want to rent long-term.
Key data:
- Median property sale price: $267,567
- Median household income: $58,263
- Median rent: $1,695/month
- Home value increase compared to last year: 1.4%
- Population growth: 1% annually
4. Fort Myers
Why it’s good: Fort Myers has a population of about 100,000 and offers beautiful beaches and a great quality of life. Here’s the good news for you as an investor: this year, over 82% of houses sold under their list price, meaning there’s more room for profit.
Ideal for: Investors who want to offer short or long-term rentals.
Key data:
- Median property sale price: $339,333
- Median household income: $51,682
- Median rent: $2,400/month
- Home value increase compared to last year: 0.7%
- Population growth: 4.33% annually
5. Miami
Why it’s good: In Miami, rent prices are currently increasing faster than home prices. This makes it an ideal city to invest in – whether you want to rent to tourists or long-term tenants.
Ideal for: Investors who want to offer short or long-term rentals.
Key data:
- Median property sale price: $559,000
- Median household income: $47,860
- Median rent: $3,300/month
- Home value increase compared to last year: 8.8%
Population growth: 0.74% annually
6. Clearwater Beach
Why it’s good: Clearwater Beach is a small coastal oasis that mostly attracts high-income tourists and retirees. In fact, rent is 125% higher than average there.
Ideal for: Investors with a bigger budget who want to rent short-term.
Key data:
- Median property list price: $899,920
- Median household income: $94,167
- Median rent: $4,500/month
- Home value increase compared to last year: 8.8%
- Population growth: 1.6% annually
7. Fort Lauderdale
Why it’s good: Fort Lauderdale has a booming rental market. In fact, rent prices are increasing 3x more than property prices, making investing there a no-brainer.
Ideal for: Investors who want to offer short- or long-term rentals.
Key data:
- Median property sale price: $532,400
- Median household income: $66,994
- Median rent: $2,958/month
- Home value increase compared to last year: 4.9%
- Population growth: 0.07% annually
8. West Palm Beach
Why it’s good: West Palm Beach has seen strong property appreciation over the years, with no sign of slowing down. It also has a strong economy.
Ideal for: Investors who want to offer short- or long-term rentals.
Key data:
- Median property sale price: $401,667
- Median household income: $56,549
- Median rent: $2,700/month
- Home value increase compared to last year: 4.7%
- Population growth: 1.4% annually
9. St. Petersburg
Why it’s good: St. Petersburg has a strong economy, with plenty of employment opportunities, including a nearby military base and several colleges. So, even in economic downturns, you’d still have plenty of people you could rent to.
Ideal for: Investors who want to offer long-term rentals.
Key data:
- Median property sale price: $373,583
- Median household income: $64,375
- Median rent: $2,194/month
- Home value increase compared to last year: 5.3%
- Population growth: 0.43% annually
10. Tallahassee
Why it’s good: Tallahassee attracts a lot of college students thanks to Florida State University, one of the top public universities in the U.S. Also, it has a stable economy.
Ideal for: Investors who want to rent to students.
Key data:
- Median property sale price: $254,000
- Median household income: $49,077
- Median rent: $1,400/month
- Home value increase compared to last year: 5.6%
- Population growth: 0.93% annually
11. Cape Coral
Why it’s good: Cape Coral is known as the “Venice of Florida,” so it attracts a lot of tourists. If you like the idea of charging higher rates for shorter-term rentals, this is a solid option.
Ideal for: Investors who want to offer short-term rentals.
Key data:
- Median property sale price: $308,000
- Median household income: $65,282
- Median rent: $2,450/month
- Home value increase compared to last year: -1.9%
- Population growth: 4.74% annually
12. Gainesville
Why it’s good: Gainesville is home to the University of Florida – another top school. In addition, it has a solid, diverse economy unaffected by tourism like some other locations can be.
Ideal for: Investors who want to rent to students.
Key data:
- Median property sale price: $279,667
- Median household income: $57,258
- Median rent: $1,543/month
- Home value increase compared to last year: 5%
- Population growth: 1.03% annually
Why is buying rental properties in Florida a good idea?
Now that we’ve covered the best places to invest in Florida, let’s talk about what makes Florida a great place to invest:
- Strong rental market: Florida’s real estate market is growing much faster than the national average. In fact, home values have doubled in the last six years alone.
- Tax benefits: Florida doesn’t have an income tax for individuals and no business tax on sole proprietorships, which cuts down on the overall taxes you’d have to pay if you owned property in the state.
- Cultural diversity: Florida is home to a culturally diverse population, with African Americans making up the second largest racial group at over 15%.
- Tourism: In the first quarter of 2023 alone, Florida welcomed nearly 38 million tourists – a state record.
- Attractive lifestyle: With its beautiful beaches and warm weather, it’s not hard to see Florida’s global appeal for tourists, retirees, and everyone in between.
- Great colleges: Florida is home to some of the best colleges in America, like the University of Florida and Florida State University. This gives you options if you decide to rent to students.
Next steps
Now you know the best places to buy rental property in Florida. As you can see, Florida is a solid investment area – no matter what kind of rental property you want to offer.
Need more guidance on how to actually start investing?
If you’re serious about buying rental property that can help you do things like:
- Replace your 9-5 (like I did)
- Travel more
- Get excited about Mondays, not just weekends
Well, I’ve been there, and I can help you avoid expensive mistakes.
Find out how you can work with me here.
Read more:
The Best (and Worst) States to Buy Rental Property
How to Retire Early with Real Estate
Average Cash Flow for Rental Properties + How to Calculate It
