The 10 Best Rental Markets in Florida 2022

Are you a real estate investor looking to buy a rental property in the Sunshine State? Here is a list of the 10 best rental markets in Florida.

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Florida continues to be one of the top US destinations for people who are either going on vacation or looking for a new home. In May, the New York Post reported that the number of Americans moving to Florida from other states increased by 55% in the first four months of 2022. This is compared to the first four months of 2021.

As people’s priorities continue to shift post-pandemic, we believe this relocation pattern will continue in 2023. And because they are moving to smaller, midsized towns and cities, the best Florida rental markets this year are about this size. Real estate investors who want to buy in the Sunshine State will be able to get an affordable home and put it up for rent fast.

Meanwhile, in the travel sector, Florida welcomed 20% more tourists in the first half of 2022 compared to the same period last year. Despite the devastation that Hurricane Ian brought to the Sunshine State, Florida’s tourism agency is working hard to let everyone know that the state is open for business.

If you are a beginner real estate investor or live out of state, you can learn more about the best short term rental markets and traditional rental markets in Florida in 2023. But first, let’s discuss why it is a good idea to buy an investment property in the Sunshine State.

Why Buy an Investment Property in Florida

Why Buy an Investment Property

Buying a rental property in Florida this year is looking more lucrative than before, as analysts think that it will continue to outperform many states in the US. if you have been thinking about whether to invest in this market, now is the perfect time to do so. Here are some reasons why:

Population

Florida’s population ballooned to 22.25 million and is still growing. Economists predict that the Sunshine State’s growth rate will be 1.29% through 2027, as they expect more retirees to move there. As more Americans move to Florida, property prices increase, giving those who have been priced out of the market no other choice but to rent.

Economic Growth

According to the Floridian Governor’s September press release, the state’s labor force grew by 3% between August 2021 and August 2022. This was faster compared to the national rate of 2% in the same period. Wages are growing pretty rapidly in response to more workers quitting their below-minimum-wage jobs in favor of better-paying ones.

The best rental markets in Florida for traditional rent may not be as high compared to other states, but the high returns and steady cash flow are worth it.

Cost of Living

While the average cost of living in Florida is now 1% higher than the national average, it’s still cheaper than certain states like California. According to Mashvisor’s October 2022 data, the median property price in Florida is now $609,000.

Those who are moving to the Sunshine State are more likely to rent than buy a home. Thus, buying rental property in Florida to house these new residents is a great opportunity.

Quality of Life

Florida is known for its warm climate, interesting culture, delicious food, and huge diversity, among others. The great weather, with temperatures ranging from 60 to 81 degrees Fahrenheit, allows residents and tourists to enjoy the many recreational activities available in the state.

The beaches host a variety of events that attract both Floridians and those from out of state. Meanwhile, the inland area provides a quiet retreat to those who are looking for a safe escape. You do not even have to look at popular cities when finding an investment property. In the next two sections, we used Mashvisor’s analytics to find the 10 best rental markets in Florida for traditional and Airbnb rentals.

5 Best Rental Markets in Florida for Traditional Lease

The cities in this section were pulled from Mashvisor’s data as of October 2022. When coming up with this list, we determined that the best investment properties in Florida are priced below $1 million. Thus, we only included local markets with median property prices below this amount.

We also made sure that the price-to-rent ratio is at least 20 to ensure that you will have an easy time finding a tenant. If you are looking for higher-end markets, you may use Mashvisor’s Property Search feature.

1. Vero Beach

Median Property Price: $727,992
Average Price per Square Foot: $294
Days on Market: 91
Number of Traditional Listings: 628
Monthly Traditional Rental Income: $2,618
Traditional Cash on Cash Return: 4.26%
Traditional Cap Rate: 4.37%
Price to Rent Ratio: 23
Walk Score: 78

Vero Beach is a small city in Florida that has luxurious beaches facing the Atlantic Ocean. Even though it has attractions that lure a lot of tourists to visit, this city still maintains a laid-back, small-town vibe. The median property price in Vero Beach is now in the $700,000 range, but the overall cost of living is 3% below the national average.

There are 432 homes for sale in Vero Beach, FL at the time of this writing. Their prices range from $260,705 to $1,654,889. The median property price in this area is $727,992, more than twice as high as October 2021. The average price per square foot is $294. As of September 2022, homes in this city sold for 2.63% below the asking price, according to Realtor.com.

2. Hallandale Beach

Median Property Price: $728,539
Average Price per Square Foot: $415
Days on Market: 92
Number of Traditional Listings: 642
Monthly Traditional Rental Income: $2,853
Traditional Cash on Cash Return: 3.61%
Traditional Cap Rate: 3.72%
Price to Rent Ratio: 21
Walk Score: 79

Hallandale Beach is a city that’s part of Broward County. It offers an urban feel with its many restaurants, coffee shops, and parks. Many of its residents are either young professionals or retirees. Although most of its current residents own their homes, given how high the median property price is in the city, people who’d love to move here would be more willing to rent.

At the time of this writing, there are 84 homes for sale in Hallandale Beach, FL. their prices range from $114,000 to $2,702,242. The median property price in this area is $728,539, up 143% from last year. The average price per square foot is $415. As of September 2022, homes in this city sold for 3.08% below the asking price.

3. Stuart

Median Property Price: $719,961
Average Price per Square Foot: $361
Days on Market: 68
Number of Traditional Listings: 376
Monthly Traditional Rental Income: $2,931
Traditional Cash on Cash Return: 3.57%
Traditional Cap Rate: 3.62%
Price to Rent Ratio: 20
Walk Score: 42

Stuart is a city situated on Florida’s Atlantic coast. It offers a mix of urban and suburban feel with its many restaurants, historic buildings, and nature parks. Sports enthusiasts will have no problem finding a place to watch or play their favorite sport here, as well. With a total of 50 schools, the educational system in this city is relatively good.

There are 201 homes for sale in Stuart, FL at the time of this writing. Their prices range from $349,421 to $1,738,333. The median property price in this area is $719,961, which is 97% higher than last year. The average price per square foot is $361. As of September 2022, homes in this city sold for 2.1% below the asking price.

4. Dania Beach

Median Property Price: $609,500
Average Price per Square Foot: $376
Days on Market: 63
Number of Traditional Listings: 238
Monthly Traditional Rental Income: $2,404
Traditional Cash on Cash Return: 3.37%
Traditional Cap Rate: 3.45%
Price to Rent Ratio: 21
Walk Score: 86

Dania Beach is a suburb near Fort Lauderdale and is part of Broward County. It offers a mix of urban and suburban atmosphere, and most of its residents rent their homes. The city offers a lot of bars, restaurants, and other amenities, which are perfect for families and young professionals who live there.

At the time of this writing, there are 20 homes for sale in Dania Beach, FL. Their prices range from $294,667 to $724,000. The median property price in this area is $609,500, up 82% from last year. The average price per square foot is $376. As of September 2022, homes in this suburb sold for 2.32% below the asking price.

5. North Miami

Median Property Price: $829,727
Average Price per Square Foot: $392
Days on Market: 31
Number of Traditional Listings: 248
Monthly Traditional Rental Income: $3,224
Traditional Cash on Cash Return: 3.31%
Traditional Cap Rate: 3.40%
Price to Rent Ratio: 21
Walk Score: 52

North Miami is a suburban city that’s part of Miami-Dade County. It maintains a small-town vibe despite being close to Miami, which is known for its non-stop nightlife, among others. It is close to beautiful beaches like Bal Harbor Beach and Hallandale Beach, making it easy for residents to go on a quick getaway.

There are 9 homes for sale in North Miami, FL at the time of this writing. Their prices range from $269,000 to 3,400,000. The median property price in this area is $829,727, an increase of 177% from last year. The average price per square foot is $392. As of September 2022, homes in this city sold for 2.94% below the asking price.

5 Best Rental Markets in Florida for Airbnb

Airbnbs have been shown to generate a higher return on investment compared to traditional rentals. For this list, we focused on cities that meet the following criteria:

Median property price below $1 million
Has at least 100 Airbnb listings
Airbnb rental income above $2,000
Highest Airbnb cash on cash returns
Airbnb occupancy rate 50% and up

Note that we did not look into each city’s short-term rental regulation. We encourage you to double-check with the local government or HOA to make sure that you can put up a short-term rental in the area. You may also refer to our Short Term Regulations page to look up the specific laws in your chosen locality.

1. Brandon

Median Property Price: $423,933
Average Price per Square Foot: $253
Days on Market: 53
Number of Airbnb Listings: 117
Monthly Airbnb Rental Income: $3,830
Airbnb Cash on Cash Return: 5.72%
Airbnb Cap Rate: 5.84%
Airbnb Daily Rate: $172
Airbnb Occupancy Rate: 55%
Walk Score: 74

Brandon is an unincorporated community in Hillsborough County and is ideal for a quick weekend getaway. Those who are traveling with children will have a lot of things to do in this area, such as visiting playgrounds and parks. The Westfield Brandon shopping mall has everything that your guests might need in case they forgot to bring something for their trip.

At the time of this writing, there are 94 homes for sale in Brandon, FL. Their prices range from $267,425 to $805,000. The median property price in this area is $423,933, which is 13% higher than last year. The average price per square foot is $253. As of September 2022, homes in this community sold for 1.22% below the asking price.

2. Dunnellon

Median Property Price: $357,114
Average Price per Square Foot: $202
Days on Market: 65
Number of Airbnb Listings: 122
Monthly Airbnb Rental Income: $2,819
Airbnb Cash on Cash Return: 5.29%
Airbnb Cap Rate: 5.44%
Airbnb Daily Rate: $175
Airbnb Occupancy Rate: 50%
Walk Score: 42

Dunnellon is a small town that’s part of Marion County, with a population of 1,928 according to the 2020 US Census. Situated on the Rainbow and Withlacoochee rivers, it is the ideal destination for tourists who want to reconnect with nature. Those who want to have a bit more urban feel could stroll down Dunnellon Historic District’s tree-lined streets.

There are 127 homes for sale in Dunnellon, FL at the time of this writing. Their prices range from $304,584 to $404,632. The median property price in this area is $357,114, up 32% from last year. The average price per square foot is $202. As of September 2022, homes in this town sold for 1.64% below the asking price.

3. Palm Bay

Median Property Price: $347,786
Average Price per Square Foot: $208
Days on Market: 80
Number of Airbnb Listings: 126
Monthly Airbnb Rental Income: $2,936
Airbnb Cash on Cash Return: 5.15%
Airbnb Cap Rate: 5.28%
Airbnb Daily Rate: $141
Airbnb Occupancy Rate: 53%
Walk Score: 45

Palm Bay is a city in Brevard County and is dubbed to be one of Florida’s “best-kept secrets.” It has over 29 parks to choose from, making it a dream destination for all kinds of outdoor enthusiasts. The city also offers fine dining, scenic waterfront views, and memorable shopping experiences. Be sure to provide a welcome letter and guide for your guests to introduce them to Palm Bay.

As of this writing, there are 258 homes for sale in Palm Bay, FL. Their prices range from $197,480 to $739,712. The median property price in this area is $347,786, an increase of 23% from last year. The average price per square foot is $208. As of September 2022, homes in this city sold for approximately the asking price.

4. Lakeland

Median Property Price: $381,454
Average Price per Square Foot: $207
Days on Market: 64
Number of Airbnb Listings: 170
Monthly Airbnb Rental Income: $3,243
Airbnb Cash on Cash Return: 5.11%
Airbnb Cap Rate: 5.19%
Airbnb Daily Rate: $129
Airbnb Occupancy Rate: 57%
Walk Score: 36

Lakeland is the largest city in Polk County is home to the largest one-site collection of Frank Lloyd Wright’s works. Fans of this renowned architect could see the buildings he designed at Florida Southern College, Circle B Bar Reserve, Detroit Tigers Spring Training, and Safari Wilderness. Tourists would have no trouble finding a place to eat and enjoy downtown.

There are 343 homes for sale in Lakeland, FL at the time of this writing. Their prices range from $97,450 to $650,000. The median property price in this area is $381,454, up 31.58% from last year. The average price per square foot is $207. As of September 2022, homes in this city sold for 1.12% below the asking price.

5. Inverness

Median Property Price: $335,732
Average Price per Square Foot: $202
Days on Market: 60
Number of Airbnb Listings: 120
Monthly Airbnb Rental Income: $2,663
Airbnb Cash on Cash Return: 4.92%
Airbnb Cap Rate: 5.07%
Airbnb Daily Rate: $166
Airbnb Occupancy Rate: 53%
Walk Score: 34

Inverness is the county seat of Citrus County and is notably near the Flying Eagle Preserve. It is known for its fun festivals, easy access to nature, and rich history. Just like most of the top markets mentioned in this list, the city attracts outdoor enthusiasts. But history buffs would also find something to appreciate in its historic buildings, like the Courthouse Square.

At the time of this writing, there are 109 homes for sale in Inverness, FL. Their prices range from $300,914 to $363,231. The median property price in this area is $335,732, an increase of 56.15% from last year. The average price per square foot is $202. As of September 2022, homes in this city sold for 2.88% below the asking price.

Learn More: The 2022 Guide to Investing in Airbnb Florida

Find the Best Rental Markets in Florida on Mashvisor

The great climate, endless activities, and low cost of living make Florida a great place to live in or visit. So if you are a real estate investor looking for a new investment opportunity, you should consider the Sunshine State. We hope our list of the 10 best rental markets in Florida helps you start your search.

But if none of these areas meet your investment criteria, you can do your own research in 15 minutes with the help of Mashvisor. Type in any city of your choice on our Property Search page and you will get a quick overview of the available properties for sale in the area. You can turn on the heatmap to highlight the parts that have the highest rental income, cash on cash returns, or occupancy rates.

When you click on a property that catches your interest, our listing page provides not just the description of the house but also our comprehensive analytics and calculator. These features will help you analyze the property and determine if it is worth investing in.

To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.

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The 10 Best Rental Markets in Florida