Florida investment areas

On gross yield, the lower-entry inland markets lead: Central Florida short-term rental communities and workforce markets such as Lakeland, Ocala and parts of Jacksonville commonly quote 6% to 8% gross. But the highest gross yields correlate with weaker tenant pools and higher expense ratios. An 8% gross property can net 4%, while a 5.5% gross property in a strong location nets 4.5% with far less operational friction.

They answer different questions. Orlando is the cash-flow market: whole-home short-term rental is permitted by zoning in Osceola and Polk counties, entry prices are lower, and yield comes from nightly rates. Miami is the appreciation and liquidity market: most condo associations prohibit rentals under six months, net yields commonly sit between 2% and 3%, and the case rests on international demand and exit liquidity.

Southwest Florida, mainly Fort Myers, Cape Coral, Naples and Sarasota, where condos have seen 8% to 15% peak-to-trough declines and more than 40% of active listings carry a price reduction. The driver is carrying cost rather than demand: SB 4-D reserve funding plus coastal insurance repricing.

No, but it prices into every model through insurance rather than through headline value. Coastal binders commonly run $2,000 to $8,000 or more annually, flood coverage is separate from windstorm, and roof age and wind mitigation features move premiums substantially. The practical question is not whether to accept the risk but whether the specific property is insurable at a price your model survives.