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Overview of Florida
While California and New York shed residents, people are flocking to Florida for its good weather and growing economy. The state is one of the fastest-growing in the country, taking on roughly 250,000 new residents per year and adding new jobs at an annual rate of 4.4%.
Whether you’re looking for a multiplex in a major metro area,
a vacation rental property by the beach, or an income property you can also live in, you’ll find a profitable investment in Florida.
Quick stats
Florida real estate investing statistics
Benefits of real estate investing in Florida
Florida is booming. With one of the fastest-growing populations in the country and an excellent job outlook, the Sunshine State is a popular spot to invest. If you’re thinking about investing in rental property in Florida, this guide will show you why you’re looking in the right place.
A growing population
Florida is one of the fastest-growing states in the country. It added an estimated 467,000 new residents in a recent year, and projections show the population effortlessly passing 26 million by 2030.
Whether you’re looking for a change of scenery, are in the fair market value to purchase a new home, or want an investment property that you can rent, Florida is certainly a state worth your consideration.
Florida is also attractive to immigrants from other countries. This isn't just one type of resident—Florida attracts retirees, families leaving high-tax states, and a huge immigrant population, ensuring a broad and steady supply of potential tenants. Roughly 4 million Floridians are foreign-born, the majority of whom come from Latin America.
As the population grows, so too does the demand for housing. Booming demand is already putting upward pressure on property values and rents, which bodes well for your return on investment.
Plenty of jobs
Florida’s employment outlook is almost as sunny as its beaches. It boasts an unemployment rate of just 3.7%, noticeably below the national average of 4.2%. This is a clear indicator of a strong local economy. The state has maintained a steady pace, adding over 100,000 net new jobs in recent periods, putting it among the fastest-growing job markets nationwide.
The state is projected to add 858,000 jobs by the year 2030, with hospitality, trades, education and health services leading the demand. The cities of Jacksonville, Orlando and Tampa are all expected to experience employment growth of 9% or more over the coming decade.
Employment growth is a sign of a healthy economy and a leading indicator for real estate demand.
No state income tax
While California and New York have some of the highest state income tax rates in the country, Florida has no personal income tax at the state level. This means more capital stays in your pocket for passive income and is available to fund your next investment.
The state’s property tax rate, averaging about 0.82%, is below the national average of 0.90%. Every percentage point saved here adds up quickly across a multi-unit portfolio.
The tax-friendly environment is a huge advantage. It ensures that when you see portfolio growth, more of those earnings can be immediately funneled into new deals, compounding your generational wealth plan.
Multiple major transportation hubs
As the gateway to Latin America, Florida is well-positioned for logistics and accessibility. The state boasts 15 deepwater ports, including the country's closest to the Panama Canal. Orlando and Miami are two of the busiest airports by passenger volume, and the interstate highway system keeps all of the state's largest hubs within a 6-hour drive of each other.
Oh, and in case you ever need them, Florida has not one, but two spaceports connecting Planet Earth with wherever else you might want to go.
Shipping and logistics are vital for trade, keeping jobs local and property values high. And if you plan to live elsewhere while investing in Florida, you’ll be able to get in and out easily when you need to.
Rising rents
As of 2025, rental prices reflect the tension between strong demand and growing supply:
- Fort Lauderdale/Miami area: Average rents stand at $2,500-$2,600 per month.
- Fort Myers: The market experienced a -5.7% year-over-year decrease in average rent to approximately $1,514/month as of November 2025, driven by elevated new construction pushing vacancy rates to 17.9%—more than double the national average.
- Tampa: Average rents reached around $1,974 for one-bedrooms and $2,397 for two-bedrooms as of 2025.
- Orlando: One-bedroom averages were approximately $1,823 and two-bedrooms $2,225 as of 2025.
Rising rents in key markets continue to support investment returns. However, you should evaluate specific submarket dynamics, as some areas (like Fort Myers) are experiencing rent moderation due to new construction and elevated vacancy rates.
Low vacancy rates
The average rental vacancy rate in Florida is just 6.5%, meaning the average rental property is vacant for just 24 days per year.
Vacancy rates are inversely proportional to demand for rental housing. A low vacancy rate means you’ll have fewer vacancies, find new tenants faster, and be able to charge higher rent than in an area with a higher vacancy rate.
Top cities in Florida to invest in real estate
Miami
The Miami-Fort Lauderdale-West Palm Beach metropolitan area is the largest in the state and attracts residents and tourists from around the world. Miami, in particular, has the strongest property values and rent prices of any major market in the state.
- Median Listed Home Price: $625,000
- Median Price Per Square Foot: $482
- Rental Vacancy Rate: 7.8%
- Median Rent: $2,743
- Median Income: $62,500
- Average Property Tax: 1.02%
- Rent-to-Price Ratio: 15.2
Tampa
Tampa is a big city with a small-town feel. It consistently outperforms other parts of Florida in quality of life rankings, and U.S. News ranks it the 6th-safest place to live in America.
- Median listed home price: $430,000
- Median Price Per Square Foot: $267
- Rental Vacancy Rate: 8.5%
- Median Rent: $1,974 (1-bed); $2,397 (2-bed)
- Median Income: $66,000
- Average Property Tax: 0.91%
- Rent-to-Price Ratio: 19.8
Orlando
Orlando is known for theme parks and tourism, but the Orlando Economic Partnership says 80% of local jobs are outside of tourism and hospitality. Other major drivers for the area include Orlando International Airport, which directly employs over 25,000 people and supports almost 350,000 jobs according to the Florida Statewide Aviation Economic Impact Study.
- Median Listed Home Price: $390,000
- Median Price Per Square Foot: $233
- Rental Vacancy Rate: 7.0%
- Median Rent: $1,823 (1-bed); $2,225 (2-bed)
- Median Income: $64,000
- Average Property Tax: 0.94%
- Rent-to-Price Ratio: 18.5
Jacksonville
The state capital is an excellent choice for investors looking for a lower price point without compromising on potential.
- Median Listed Home Price: $320,000
- Median Price Per Square Foot: $196
- Rental Vacancy Rate: 7.7%
- Median Rent: $1,445-$1,701
- Median Income: $68,000
- Average Property Tax: 0.85%
- Rent-to-Price Ratio: 20.5
Sarasota
Sarasota has been one of Florida’s biggest beneficiaries of the post-pandemic trend of young people moving to small- and medium-sized cities. According to Zumper, rents in Sarasota are up 12% year-over-year and have risen 47% since November 2020.
- Median Listed Home Price: $545,000
- Median Price Per Square Foot: $313
- Rental Vacancy Rate: 6.6%
- Median Rent: $2,118
- Median Income: $65,000
- Average Property Tax: 0.89%
- Rent-to-Price Ratio: 15.9
Life in Florida
Florida has great weather, lots of diversity, and a low cost of living. No matter where you are in Florida, you’re never far from a beach, golf course, or your new favourite restaurant.
Jobs are plentiful in Florida, and the state is projected to grow its workforce by close to a million over the next ten years. In addition to its venerable tourism industry, Florida’s growth will be driven by education and health services, financial activities, and information work.
Quality of life
Florida is known for its quality of life and is renowned for its good weather and beautiful beaches. The website USA.com says Florida has the warmest average annual temperature out of the lower 48 states. And it would take the average person almost two full weeks to walk the state’s 825 miles of sandy beaches.
A study by WalletHub ranks Florida 4th for quality of life, factoring in quality of transportation, access to amenities, arts & culture, and physical fitness. The same study ranks Florida 11th for economy, 12th for safety, and 26th for education & health.
Residents also enjoy the absence of any state income tax. According to another WalletHub study, Florida has the 6th-lowest overall tax burden in the country.
Education
Florida has an excellent school system, and according to Education Week, the state ranks above average in 15 of 18 K-12 achievement measures. Florida ranked 3rd for improving the high school graduation rate and 2nd for proficiency in grade 4 math.
For higher education, Florida is home to three of the country’s best schools: the University of Miami, the University of Florida, and Florida State University. U.S. News ranks Florida first in the country for higher education, accounting for attainment, graduation rates, tuition costs, and student debt.
Sports & culture
Few places in the world have more to offer than Florida when it comes to professional sports. The state boasts three NFL teams, as well as two teams each in the NBA, MLB, and NHL. And for baseball fans, Florida is the home of spring training’s “Grapefruit League,” playing host to juggernauts including the Yankees, Red Sox, Phillies, and Astros.
College sports fans are spoiled for choice in Florida as well. The state’s best-known college team, the Florida Gators, has won three national football titles and two basketball championships. According to FloridaSmart.com, the state has 13 Division 1 colleges offering a full suite of sports.
And if you’re into golf, Florida hosts 5 PGA Tour events, including the Players Championship, or you can hit the links yourself at one of the state’s more than 1,250 courses.
State comparison: Real estate investing in Florida vs. Ohio vs. Indiana
Florida, Ohio, and Indiana real estate markets all have attractive investment opportunities. If you’re deciding between Florida and comparable states, like Indiana and Ohio, we have some stats that can help you decide.
Learn more about investing in Florida real estate
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