Best Florida Rental Markets for Property Investment

Gone are the days when Florida was just a tourist destination. In addition to being a popular tourist destination, Florida is also a haven for people looking for a safe property investment or new homes. Many people prefer it as their retirement destination, while others want to move here to improve their quality of life.



If you are interested in buying property here for living or renting purposes, read on to know the best Florida rental markets for property investment.

1.       Old Town, Dixie County

The traditional rental income in this coastal unincorporated community is $1,395, and the Traditional Cash on Cash Return is 5.71%. The Price to Rent Ratio is 14 (medium), and the Median Property Price is $231,709. The Average Price per Square Foot is $177. As the population density is low, this place is fairly quiet and good for investment.

2.       Suwannee, Dixie County

With a traditional Rental Income of $1,373, Traditional Cash on Cash Return of 5.46%, and Price to Rent Ratio of 24 (high), this unincorporated community is right for investment. The Median Property Price is $392,445, and the Average Price per Square Foot is $294. This fishing village offers an excellent investment opportunity.

3.       Florahome, Putnam County

Another unincorporated community, this place has a Traditional Rental Income of $1,614, Traditional Cash on Cash Return of 5.03%, and Price to Rent Ratio of 12 (medium). It also has a median Property Price of $235,980, and the Average Price per Square Foot is around $132. It is the right place to own rental property as it has a decent cash-on-cash return.

Other Options

Some other Florida rental markets for property investment options you need to consider are:

·       Margate, Broward County

·       South Palm Beach, Palm Beach County

·       Jacksonville

·       Orlando

·       Ocala

·       Palm Bay

·       Palm Coast

·       Tampa

·       St. Augustine

Why are People Moving to Florida?



When scouting Florida rental markets for property investment, you should also know why more and more people are moving to this state. Here are the top reasons we think are important.

Ø  Decent Population Growth

The population growth in the state is decent. It has gained over 2.7 million new residents since 2010. Now, the state is the third most populous after California and Texas. It is a home for more than 21 million people. Over the next few years, the state is expected to gain over 800 new residents per day.

Ø  Business Friendly

Florida is a good option for business owners as the government is quite business-friendly. It also attracts new high-wage jobs for workers capable of competing on a global scale.

Ø  Rising Home Sales

Home sales and prices are soaring in the state. The inventory is going down, but the number of buyers willing to pay in cash for single-family homes has increased quickly. Every metropolitan area in the state saw home prices rise by double digits in Q3 of 2021.



Ø  Strong Renters’ Market

Rents in some areas have risen by as high as 24% thanks to the constant incoming of newcomers. New migrations are allowing property owners to increase the rents to lavish levels. The thriving job market of the state is the key reason many people are migrating from the Northeast and West Coast. Lack of state income taxes and sunshine are two other reasons for the increased levels of migration.

Ø  Quality of life

The state offers an almost ideal work-life balance, many job opportunities, great culture, several recreational activities, and almost always has near-perfect weather conditions.

Sources:

https://www.mashvisor.com/blog/best-rental-markets-in-florida/

https://realwealth.com/learn/best-places-to-buy-rental-property/

https://learn.roofstock.com/blog/florida-real-estate-market

 

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