How much income can people get from renting real estate in Florida?

How much income can people get from renting real estate in Florida?

Real estate in Florida can be not only a good start for moving to the United States of America (USA) but also a profitable investment tool. Let's analyze all the nuances of buying an apartment or house in Florida for rent and find out what income the owner of a rental business in this region can receive.


Real estate in Florida

Florida is a southeastern US state with a subtropical climate in the north of the region, where the capital city of Tallahassee is located, and tropical in the south, where Miami is located. The state is a peninsula washed by the waters of the Atlantic Ocean and the Gulf of Mexico. Both in winter and in summer, the climate here is comfortable for living. The tourist influx does not decrease year-round. Florida has several international airports and three of the largest cruise ports in the world. There is a developed infrastructure, a high level of medicine and education. At the same time, real estate prices in Florida are still significantly lower than, for example, in New York or California. All this indicates the high potential of the local housing market.

In the state, tenants can choose from the following types of housing:

  • apartments in a condo
  • villas or houses
  • townhouses
  • a part of the house

Apartments in multi-storey complexes are less popular with long-term tenants than houses in low-rise buildings and private sectors. Detached houses or villas in Florida are more in demand.

One of the most common types of real estate in the United States are "single-family houses", located on a small private plot. The rental price depends on both the location and the internal equipment of the house. The availability of furniture, a complete set of equipment, and several parking spaces all contribute to a favorable price for the owner when renting out.

Let's look at the average prices in different cities for a better understanding of the issue.

How much income can people get from renting real estate in Florida?

Average rental cost of real estate in popular Florida cities

Miami-Dade County became the most popular in terms of real estate rentals in Florida in 2022. The demand for housing in South Florida has grown so much that tenants have been forced to extend the term of the rental agreement, even if they would like to change their place of residence: it has become difficult to look for a new option. Apartments and apartments in Orlando are also popular. Despite the increase in housing supply (1.5% higher than in 2022), the demand for rent is still higher.

At the end of 2022, the average monthly rent for a 1-bedroom apartment in Miami was $2,520, which is 34% more than in 2021. Renting a 2-bedroom apartment in Miami cost the tenant an average of $2,970.

In Fort Lauderdale, which is part of Greater Miami, the average price for a 1-bedroom apartment is slightly lower – $2,000 per month, which is still 20% higher than in 2021. It is more profitable for the landlord to rent 2-bedroom apartments here, since the average market rental value of such objects has increased by 26% over the year and averaged $3,000 per month.

Tampa is the third largest city in Florida. It is considered a center of education, tourism and trade, with high economic indicators and comfortable living conditions. The average cost of renting an apartment of the "bedroom + kitchen-living room" type is $1,800 per month. At the same time, in the period 2021-2022, the cost of renting housing increased by 35%. The rental rate for apartments in Florida with two bedrooms in this location increased slightly less over the same period, by 28%. The average cost at which you can rent an apartment in Tampa has reached $2,000 per month.


The owner of real estate in Florida needs to pay taxes, which should not be forgotten. The conditions of taxation in the United States vary depending on the state. In Florida, they are among the lowest. For example, there is no income tax in the state, and the property tax is only 1.1% per year.

As for taxes from the rental business, everything is quite strict here, and it is better to conclude an agreement with an agency so as not to engage in renting real estate and filing a tax return. A citizen who purchases real estate in the United States with its subsequent lease and receives income from it is obliged to pay a tax of 30%. At the same time, there are penalties for non-payment of taxes. The amount of the fine is from 0.5% to 1% of the tax amount and depends on the duration of the delay.

How much income can people get from renting real estate in Florida?

Expenses of the owner when renting out real estate

The landlord of an apartment or house in Florida should be prepared for a number of housing maintenance costs. On average, utilities for a 1-bedroom apartment will cost the owner $140–160 per month. This amount is affected by electricity consumption and the conditions set by the management company.

In addition to electricity and water supply, the landlord will have to pay for Internet and television services on his own – about $130 more per month. The owner also needs to pay for the maintenance of the territory in cleanliness and garbage collection. Most homeowners' associations and cooperatives, in addition, collect a certain amount annually as a membership fee.

In the search for tenants, you should use the help of professional realtors. They help not only in finding clients, but also in paperwork. One of the important stages of the rental business in the USA is the conclusion of an agreement between the tenant and the landlord. The contract stipulates the lease term, the amount of payment, payment terms, penalties for late payment, etc.

The best Florida locations for long-term rentals

The highest ROI from a long-term lease should be counted on in the following locations in Florida:

The best Florida locations for long-term rentals
LocationAverage cost of real estateMonthly income from long-term rentalReturn on Investment (ROI)Price-to-rent ratio
Vero Beach $734,654 $2,592 4,3% 24
Naples $992,412 $3,986 3,62% 21
North Miami $771,038 $3,155 3,43% 20
Lantana $903,306 $2,672 3,35% 28
Tampa $594,095 $2,444 3,34% 20
Punta Gorda $647,447 $2,713 3,29% 20
Melbourne $481,727 $2,037 3,26% 20
West Рalm Beach $712,559 $2,828 3,13% 21
Pompano Beach $729,416 $2,879 3,13% 21
Miami $810,450 $3,277 2,94% 21

Real estate rental in Florida: net profit

If we calculate the projected income using the example of a 1-bedroom apartment in Miami, we get the following. With an average rental price in Miami equal to $2,520, we have about $1,500 left, minus taxes and electricity costs. The amount of the membership fee and garbage collection usually cost the owner less than $100 per month (usually this expense column is even lower).

It turns out $1,400 per month — such a net income can be obtained from renting real estate in Florida, if you choose Miami as a location. This is for a 1-bedroom apartment, while a 2-bedroom apartment can bring an income 20% higher. When buying a home in less popular regions, the income will be somewhat less, but you can still count on a profit of $900–1000.

How much income can people get from renting real estate in Florida?

Short-term rental in Florida

The best thing in terms of profit is with short-term rentals. Since the region is a resort, there is an increased demand for daily real estate for those who come to Florida to rest.

The ROI for the best Florida locations for short-term rental property is as follows:

The best Florida locations for short-term rentals
LocationAverage cost of real estateMonthly income from short-term rentalsDaily income from short-term rentalsReturn on Investment (ROI)
Brandon $405,206 $3,567 $167 5,38%
Inverness $317,473 $2,670 $168 5,25%
Fort Pierce $808,460 $2,623 $172 5,19%
Palm Bay $336,657 $2,840 $142 5,09%
Winter Haven $333,617 $2,832 $137 5,01%
Lakeland $373,746 $3,014 $213 4,76%
Sweetwater $475,800 $3,507 $181 4,66%
Crystal River $403,874 $2,891 $199 4,65%
University Park $607,548 $4,514 $171 4,51%
Sebring $309,484 $2,278 $129 4,33%

There is an obvious advantage to short-term rentals, but it is worth considering that this type of business will take more time. If you have it, then there are no problems; however, busy people can also engage in daily rental business by hiring an agent.

Our assistance in finding and renting real estate in Florida

If you want to have a passive income and decide to choose an apartment or a house in one of the sunny cities of Florida, contact professionals of Florida.Realestate. On our website, you will find a huge number of offers for the sale of real estate. If you have an individual request, contact our specialists, and they will pick up a real estate object with good investment potential for you, answer all your questions, and help with the search for rental applicants. Go to the official website and get a free consultation right now!

How much income can people get from renting real estate in Florida?

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