Florida has been one of the most active investor markets in the country for years. People keep arriving, there is no state income tax, and the tourism economy supports a short-term rental market that few states can match. Both long-term and vacation rental strategies work here, which is unusual.
The counterweight is insurance. Premiums in parts of Florida have risen sharply, and in some coastal areas they now rival or exceed the property tax bill. Because insurance sits inside PITIA, a Florida deal that pencils on rent alone can still fall under 1.00 once a real quote comes back. Price it before you offer, not after.
Where investors buy in Florida
Tampa and St. Petersburg
Diverse job base and consistent long-term rental demand. A frequent choice for investors who want cash flow rather than a vacation play.
Orlando
The center of the state's short-term rental market, with zoned vacation home communities that are built for it.
Jacksonville
Lower entry prices than South Florida and a large single family rental stock.
Miami and Fort Lauderdale
High prices, high rents, and high insurance. Condos bring association questions that can affect financing.
Cape Coral and Fort Myers
Popular with vacation rental investors, with flood and wind exposure that drives the insurance line.
Insurance decides more Florida deals than rate does
Two identical houses a few miles apart can carry very different premiums depending on flood zone, roof age, and construction. A roof over a certain age can make a policy hard to place at all. Ask the seller for the roof's age and the current policy's declarations page early in the process.
When you run the numbers, treat insurance as a real quote, not a percentage of value. On the payment side of DSCR it has the same weight as principal and interest, and it changes faster.
Condos and association questions
Florida condos come with extra review. Lenders look at the association's reserves, any pending special assessments, and the share of units that are rentals. A building with a large structural assessment can be difficult to finance even when the unit itself is fine. Request the association documents as soon as you are under contract.
Short-term rental programs
Florida is one of the better states for financing a vacation rental on its projected income. Programs may use a platform income history or a third-party rental analysis. Local rules vary a lot between cities and counties, and some communities are zoned specifically for short-term use. Confirm the rules for the exact address.
Before you make an offer in Florida
- Get a bindable insurance quote before you remove contingencies
- Ask for the roof age and the current declarations page
- On a condo, request association reserves and any assessment history
- Confirm short-term rental rules at the city and county level