Florida Cap Rate Calculator

Calculate cap rates using Florida market data. Property tax, insurance, vacancy rates, and other defaults are pre-filled with current Florida averages. Net Operating Income ÷ Property Price

Market

Browse calculators by state

Property Details

Property Price

Annual Gross Rental Income

Operating Expenses(Florida defaults)

Total Annual Expenses$14,682

Property Tax(0.8% avg in FL)

Insurance($3,815 avg in FL)

Maintenance & Repairs

Management Fee(8% of rent)

Vacancy Rate($1,573/yr)

Florida Market Context

Avg Cap Rate

5.5%

Median Price

$415K

Property Tax

0.8%

Vacancy Rate

6.9%

Local Factors

-No state income tax, no capital gains tax, no estate tax — rental income taxed at federal level only
-Homestead exemption ~$51K (owner-occupied only, does NOT apply to investment properties)
-Investment properties capped at 10% annual assessed value increase (vs 3% for homestead)
-Hurricane impact windows/shutters required in High-Velocity Hurricane Zones (Miami-Dade, Broward) — $8K–$25K installed, but can reduce insurance 15–45%
-Flood insurance required in FEMA Special Flood Hazard Areas (avg $878/yr, high-risk zones $2,200+)
-Landlord/dwelling insurance avg ~$3,815/yr — roughly 2x the national average
-Vacancy rates rising statewide (6.9%, up from 5.8%) — supply glut in some metros (Tampa 10.3%)
-No rent control statewide — landlords can set market rates

Sources

Tax Foundation — FL Effective Property Tax Rate 2025 Insurify — FL Landlord Insurance 2025 Florida Realtors — 2025 Year-End Housing Data FLA Landlord — FL Rental Market & Vacancy 2026 Largo Capital — FL Cap Rates Q2 2025 FEMA — Flood Insurance Risk Rating

Cap Rate

2.0%

Low

Net Operating Income$8,118

Gross Income$22,800

Total Expenses$14,682

Florida Avg Cap Rate5.5%

NOI$8,118

Property Tax$3,320

Insurance$3,815

Maintenance$4,150

Management$1,824

Vacancy$1,573

What does this mean?

A cap rate below 4% is typical for premium locations with lower risk but limited cash flow. Common in Class A properties in major metros.

Keep running the numbers

One calculator rarely tells the whole story.

Cap rate tells you the return without financing. Now see what happens when you add a mortgage with Florida rates.

Cash on Cash Return

Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.

Calculate

NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

Calculate

Gross Rent Multiplier

Quickly screen and compare rental properties by how many years of gross income cover the purchase price.

Calculate