Florida Rental Property ROI Calculator
Free Florida rental property ROI calculator. Analyze cash flow, cap rate, and cash-on-cash return using Florida's 0.89% property tax rate.
How This Calculator Works
Calculation methodology and assumptions
This calculator uses standard real estate investment analysis to determine the return on a rental property in Florida. It factors in the mortgage payment (using a standard amortization formula), property taxes at Florida's effective rate of 0.89%, insurance, vacancy loss, maintenance reserves, and property management fees. The cap rate is calculated as Net Operating Income divided by purchase price. Cash-on-cash return measures annual cash flow relative to total cash invested (down payment + estimated closing costs). The 10-year projection assumes 3% annual appreciation and 2% annual rent increases.
Key State Information
Florida has an effective property tax rate of 0.89%, which is below the national average of 1.10%. Florida has no state income tax, which can improve your net rental income. Florida offers a homestead exemption of up to $50,000 (applies to primary residence, not investment properties).
Frequently Asked Questions
What is the average property tax rate in Florida?
Florida's effective property tax rate is 0.89%, which means on a $400,000 home, you'd pay approximately $3,560 per year in property taxes.
Is Florida a good state for rental property investment?
Florida offers a median home price of $400,000 with 2BR rents averaging $1567/month. Property tax rates are moderate. Use this calculator with your specific numbers to determine the actual ROI.
What is a good cap rate for rental property in Florida?
A cap rate of 5-8% is generally considered good for rental properties. In Florida, cap rates vary significantly by market. Urban areas tend to have lower cap rates (3-5%) but more consistent appreciation, while rural areas may offer higher cap rates (7-10%) with less growth potential.
How much do I need to invest in a rental property in Florida?
For a median-priced home in Florida ($400,000), a 20% down payment would be $80,000. Including estimated closing costs of $12,000, you'd need approximately $92,000 in cash.
Does Florida have landlord-friendly laws?
Florida is generally considered landlord-friendly with relatively streamlined eviction processes.
Related Calculators
More Rental Property Calculators
More Calculators for Florida
Explore related financial tools with Florida data