Quick answer: Gross yield is rent divided by price; net yield subtracts every Florida operating cost first. Always convert both numbers to the same basis before comparing deals.
Every Florida income projection you receive from a broker, property manager, or Airbnb revenue report starts as a gross number. Gross yield is easy to calculate and easy to market. It is also the wrong number to use when you are deciding whether a deal actually pays you.
This page is the calculation layer. It gives you the exact formulas, a repeatable worksheet sequence, and four worked examples you can mirror in a spreadsheet. It does not replace market context, for metro yield ranges, STR regulation, insurance bands, and the full cost stack by county, read the pillar Florida rental yield guide first, then return here to run the math on any specific listing.
If you are new to Florida investing, pair this page with the Florida property investment guide for acquisition framework and the insurance cost guide for the line item that most often breaks net yield models.
Gross yield formula: step-by-step
Gross rental yield is annual gross rent divided by purchase price, multiplied by 100, and it answers one question: what percentage of the price does a year of rent represent? In the Orlando STR example, $36,000 of verified platform payouts on a $450,000 condo gives 8.0%. In the Tampa LTR example, $2,100 per month is $25,200 per year, and on a $380,000 townhome that gives 6.6%. Gross yield is valid for quick screening because it shows whether rent is in the right ballpark for the price, but it ignores management, insurance, tax, HOA, vacancy, and STR remittance, so it never tells you what lands in your account. Closing costs enter the denominator only if you choose to capitalize them. Treat any Florida yield quoted without a cost stack as a gross number.
Gross rental yield measures how much rent a property generates relative to what you paid, before any expenses. It answers one question only: what percentage of the purchase price does annual rent represent?
Formula:
Gross Yield (%) = (Annual Gross Rent ÷ Purchase Price) × 100
Variables:
| Symbol | Meaning |
|---|---|
| Annual Gross Rent | Total rent collected in 12 months (STR guest receipts or LTR lease rent) |
| Purchase Price | Contract price including closing costs only if you choose to capitalize them |
Example A, Orlando STR condo:
| Input | Value |
|---|---|
| Purchase price | $450,000 |
| Annual gross rent (verified platform payouts) | $36,000 |
| Gross yield | ($36,000 ÷ $450,000) × 100 = 8.0% |
Example B, Tampa LTR townhome:
| Input | Value |
|---|---|
| Purchase price | $380,000 |
| Monthly rent | $2,100 |
| Annual gross rent | $2,100 × 12 = $25,200 |
| Gross yield | ($25,200 ÷ $380,000) × 100 = 6.6% |
Gross yield is valid for quick screening. It tells you whether rent is in the right ballpark for the price. It does not tell you what lands in your account. That requires net yield.
Net yield formula: from gross rent to noi
Net yield is Net Operating Income divided by purchase price, multiplied by 100, where NOI is gross rent minus operating expenses and excludes mortgage principal and interest. For a Florida STR the cost stack includes 20-25% management, $3,000-$15,000+ of insurance per year, 1.0-1.5% non-homestead property tax, $200-$1,500+ per month of HOA, 10-13% sales and tourist tax in tourist counties, 5-15% vacancy and turnover, and a 5-10% maintenance and capex reserve. For a Florida LTR the equivalent lines are 8-12% management, $2,000-$10,000+ of insurance, the same property tax, $0-$800+ per month of HOA, 3-5% vacancy, and a 3-5% reserve. The sequence is the same for any property: verified gross rent, then STR tax, then fixed and variable costs, then NOI, then division by price.
Net yield uses Net Operating Income (NOI), the rent left after all operating costs, excluding mortgage principal and interest.
Formula:
Net Yield (%) = (NOI ÷ Purchase Price) × 100
NOI = Gross Rent − Operating Expenses (excluding debt service)
Operating expenses for Florida investment property typically include:
| Category | STR | LTR |
|---|---|---|
| Property management | 20-25% of gross rent | 8-12% of gross rent |
| Insurance (wind + HO-6 + flood if required) | $3,000-$15,000+/yr | $2,000-$10,000+/yr |
| Property tax (non-homestead) | 1.0-1.5% of assessed value/yr | Same |
| HOA / condo fees | $200-$1,500+/mo | $0-$800+/mo |
| STR sales + tourist tax | ~10-13% of gross in tourist counties | N/A |
| Vacancy and turnover | 5-15% of gross (often inside mgmt) | 3-5% of gross |
| Maintenance and capex reserve | 5-10% of gross | 3-5% of gross |
Step sequence for any Florida property:
- Start with annual gross rent (verified, not projected).
- Subtract STR tax remittance if applicable (collected from guests, paid to state and county).
- Subtract fixed and variable operating costs line by line.
- The remainder is NOI.
- Divide NOI by purchase price and multiply by 100 for net yield.
The Florida rental yield guide documents each cost category with metro-specific ranges. This page applies those ranges in worked arithmetic.
Noi and cap rate: same math, different labels
Professional investors say cap rate. Landlords often say net yield. On the same property they are identical when you use the same NOI and the same value denominator.
Cap rate formula:
Cap Rate (%) = (NOI ÷ Property Value) × 100
If you bought for $450,000 and NOI is $18,000:
- Net yield = ($18,000 ÷ $450,000) × 100 = 4.0%
- Cap rate = 4.0%
Cap rate is used to compare properties with different financing. Two buyers with different down payments share the same cap rate but different cash-on-cash returns after debt service. Net yield and cap rate both stop before the mortgage line, which is why they are the right metrics for comparing Orlando STR against Tampa LTR on equal footing.
Worked example 1: Orlando STR condo at $450,000
The Orlando STR example turns an 8.0% gross yield into a 1.7% net yield. The asset is a 3-bed furnished condo in an Osceola STR overlay, bought for $450,000 with $36,000 of annual gross rent. STR tax at 13% removes $4,680, and the operating lines total $23,520: management at 22% ($7,920), insurance ($4,200), property tax at 1.2% ($5,400), HOA at $350 per month ($4,200), and a 5% capex reserve ($1,800). NOI is $7,800, and the spread between gross and net is 6.3 percentage points because resort-community HOA and full-service management consume a large share of revenue. The same $7,800 of NOI on a $320,000 purchase price would produce a 2.4% net yield, which shows why professional Orlando investors focus on price-to-revenue ratio rather than on brochure gross yield.
This model mirrors the baseline scenario in the Florida rental yield guide but walks every calculation step explicitly so you can paste the structure into Excel or Google Sheets.
Assumptions:
| Field | Value |
|---|---|
| Asset | 3-bed furnished condo, Osceola STR overlay |
| Purchase price | $450,000 |
| Annual gross rent | $36,000 (8.0% gross yield) |
| Management | 22% of gross |
| Insurance | $4,200/yr inland wind + HO-6 |
| Property tax | 1.2% non-homestead = $5,400/yr |
| HOA | $350/mo = $4,200/yr |
| STR taxes | 13% of gross receipts (Osceola) |
| Capex reserve | 5% of gross = $1,800/yr |
Step 1, Confirm gross yield:
Gross Yield = ($36,000 ÷ $450,000) × 100 = 8.0%
Step 2, Calculate STR tax remittance:
STR Tax = $36,000 × 13% = $4,680
Effective receipts after tax pass-through = $36,000 − $4,680 = $31,320
Step 3, Build operating cost table:
| Line Item | Calculation | Annual Cost |
|---|---|---|
| Property management | $36,000 × 22% | $7,920 |
| Insurance | Fixed quote | $4,200 |
| Property tax | $450,000 × 1.2% | $5,400 |
| HOA | $350 × 12 | $4,200 |
| Capex reserve | $36,000 × 5% | $1,800 |
| Subtotal operating (excl. STR tax) | $23,520 |
Step 4, Calculate NOI (two equivalent methods):
Method A, deduct all costs from gross rent:
NOI = $36,000 − $4,680 − $23,520 = $7,800
Method B, deduct operating from effective receipts:
NOI = $31,320 − $23,520 = $7,800
Step 5, Net yield:
Net Yield = ($7,800 ÷ $450,000) × 100 = 1.7%
Step 6, Gross-to-net spread:
Spread = 8.0% gross − 1.7% net = 6.3 percentage points
This spread looks severe because resort-community HOA and full-service STR management consume a large share of revenue. The same $36,000 gross on a $320,000 purchase price produces net yield of 2.4% ($7,800 ÷ $320,000) without any change in NOI, demonstrating why professional Orlando investors focus on price-to-revenue ratio, not brochure gross alone.
For overlay eligibility, DBPR licensing, and community-level STR rules, see the pillar Florida rental yield guide Orlando section and the Orlando vacation rental investment guide.
Worked example 2: Tampa bay LTR townhome at $380,000
The Tampa Bay LTR example shows a thinner cost stack. The asset is a 3-bed, 2-bath Hillsborough County townhome bought for $380,000 and rented at $2,100 per month, which is $25,200 per year and a 6.6% gross yield. Operating costs total $14,316: management at 10% ($2,520), insurance ($3,200), property tax at 1.1% ($4,180), HOA at $200 per month ($2,400), vacancy at 4% ($1,008), and a maintenance reserve at 4% ($1,008). NOI is $10,884, which gives a 2.9% net yield and a 3.7 point spread. Tampa LTR carries a lower gross yield than Orlando STR but often delivers a higher net yield per unit of operational risk, because there is no 13% tourist tax layer and management runs at roughly half the STR rate.
Long-term rentals use the same formulas with a thinner cost stack, no tourist tax, lower management percentage, and typically lower turnover.
Assumptions:
| Field | Value |
|---|---|
| Asset | 3-bed/2-bath townhome, Hillsborough County |
| Purchase price | $380,000 |
| Monthly rent | $2,100 |
| Annual gross rent | $25,200 |
| Management | 10% of gross |
| Insurance | $3,200/yr |
| Property tax | 1.1% = $4,180/yr |
| HOA | $200/mo = $2,400/yr |
| Vacancy allowance | 4% of gross = $1,008/yr |
| Maintenance reserve | 4% of gross = $1,008/yr |
Step 1, Gross yield:
Gross Yield = ($25,200 ÷ $380,000) × 100 = 6.6%
Step 2, Operating costs:
| Line Item | Calculation | Annual Cost |
|---|---|---|
| Property management | $25,200 × 10% | $2,520 |
| Insurance | Fixed quote | $3,200 |
| Property tax | $380,000 × 1.1% | $4,180 |
| HOA | $200 × 12 | $2,400 |
| Vacancy | $25,200 × 4% | $1,008 |
| Maintenance reserve | $25,200 × 4% | $1,008 |
| Total operating costs | $14,316 |
Step 3, NOI:
NOI = $25,200 − $14,316 = $10,884
Step 4, Net yield:
Net Yield = ($10,884 ÷ $380,000) × 100 = 2.9%
Step 5, Spread:
Spread = 6.6% − 2.9% = 3.7 percentage points
Tampa LTR carries lower gross than Orlando STR but often delivers a higher net yield per unit of operational risk because there is no 13% tourist tax layer and management runs at roughly half the STR rate. The Florida rental yield guide STR vs LTR comparison table frames when that trade-off favors your portfolio.
Worked example 3: miami-dade coastal condo at $600,000
The Miami-Dade coastal condo example produces a negative net yield. The asset is a 2-bed Brickell-area condo bought for $600,000 and rented at $2,800 per month, which is $33,600 per year and a 5.6% gross yield. Operating costs total $34,412: insurance for wind, HO-6, and flood at $9,500, HOA at $950 per month ($11,400), property tax at 1.3% ($7,800), management at 10% ($3,360), vacancy at 4% ($1,344), and a 3% maintenance reserve ($1,008). NOI is -$812, a net yield of -0.14%. Reaching a 2.0% net yield would need $12,000 of NOI, which means roughly $47,400 of annual rent, a 41% increase, or a purchase price near $480,000. Investors in this market underwrite appreciation and dollar-denominated safe-haven demand, not current cash flow.
Coastal South Florida compresses net yield through insurance and HOA even when gross rent looks acceptable on a luxury condo.
Assumptions:
| Field | Value |
|---|---|
| Asset | 2-bed Brickell-area condo, LTR tenant |
| Purchase price | $600,000 |
| Monthly rent | $2,800 |
| Annual gross rent | $33,600 |
| Management | 10% of gross |
| Insurance (wind + HO-6 + flood) | $9,500/yr |
| Property tax | 1.3% = $7,800/yr |
| HOA | $950/mo = $11,400/yr |
| Vacancy | 4% = $1,344/yr |
| Maintenance reserve | 3% = $1,008/yr |
Step 1, Gross yield:
Gross Yield = ($33,600 ÷ $600,000) × 100 = 5.6%
Step 2, Operating costs:
| Line Item | Annual Cost |
|---|---|
| Property management (10%) | $3,360 |
| Insurance | $9,500 |
| Property tax | $7,800 |
| HOA | $11,400 |
| Vacancy (4%) | $1,344 |
| Maintenance reserve (3%) | $1,008 |
| Total | $34,412 |
Step 3, NOI:
NOI = $33,600 − $34,412 = −$812
Step 4, Net yield:
Net Yield = (−$812 ÷ $600,000) × 100 = −0.14%
This negative NOI is not a modeling error. It reflects 2026 reality for many Miami-Dade condos bought at median pricing with full insurance and luxury HOA loaded in. Investors in this market typically underwrite for appreciation and dollar-denominated safe-haven demand, not current cash flow, a thesis the Florida rental yield guide covers in the Miami-Dade section.
Sensitivity, what would it take to reach 2.0% net yield?
Required NOI for 2.0% net = $600,000 × 2.0% = $12,000
Required gross rent at same cost ratio ≈ $47,400/yr ($3,950/mo), a 41% rent increase from the base case, or purchase price must fall toward $480,000 with rent held constant. This is the kind of stress test you should run before accepting any yield claim on a coastal condo.
Worked example 4: Jacksonville sfh at $285,000
Inland single-family homes in Jacksonville often produce the cleanest net yield arithmetic in Florida because entry price is lower and HOA is frequently zero.
Assumptions:
| Field | Value |
|---|---|
| Asset | 3-bed/2-bath SFH, Duval County |
| Purchase price | $285,000 |
| Monthly rent | $1,850 |
| Annual gross rent | $22,200 |
| Management | 9% of gross |
| Insurance | $2,400/yr |
| Property tax | 1.0% = $2,850/yr |
| HOA | $0 |
| Vacancy | 4% = $888/yr |
| Maintenance reserve | 4% = $888/yr |
Step 1, Gross yield:
Gross Yield = ($22,200 ÷ $285,000) × 100 = 7.8%
Step 2, Operating costs:
| Line Item | Annual Cost |
|---|---|
| Management (9%) | $1,998 |
| Insurance | $2,400 |
| Property tax | $2,850 |
| Vacancy (4%) | $888 |
| Maintenance (4%) | $888 |
| Total | $9,024 |
Step 3, NOI:
NOI = $22,200 − $9,024 = $13,176
Step 4, Net yield:
Net Yield = ($13,176 ÷ $285,000) × 100 = 4.6%
Step 5, Spread:
Spread = 7.8% − 4.6% = 3.2 percentage points
Jacksonville demonstrates why net yield can exceed Orlando STR net even when gross is lower: fixed costs (insurance, tax, HOA) consume a smaller share of rent when the denominator (purchase price) is lower and the HOA line is zero.
Side-by-side comparison: four properties, one worksheet
| Property | Type | Price | Gross Rent | Gross Yield | NOI | Net Yield | Spread |
|---|---|---|---|---|---|---|---|
| Orlando STR | STR | $450,000 | $36,000 | 8.0% | $7,800 | 1.7% | 6.3 pts |
| Tampa LTR | LTR | $380,000 | $25,200 | 6.6% | $10,884 | 2.9% | 3.7 pts |
| Miami condo | LTR | $600,000 | $33,600 | 5.6% | −$812 | −0.1% | 5.7 pts |
| Jacksonville SFH | LTR | $285,000 | $22,200 | 7.8% | $13,176 | 4.6% | 3.2 pts |
Reading the table:
- Highest gross yield: Orlando STR at 8.0%
- Highest net yield: Jacksonville SFH at 4.6%
- Largest spread (where gross misleads most): Orlando STR at 6.3 points
- Negative NOI possible even at 5.6% gross: Miami condo
The takeaway is not that Jacksonville always wins. It is that gross ranking does not equal net ranking. Your job as an investor is to run every candidate through the same worksheet before comparing.
For metro selection based on your goals, cash flow vs appreciation vs foreign-buyer liquidity, use the best areas to invest in Florida 2026 guide alongside the pillar Florida rental yield guide.
Spreadsheet methodology: copy-paste worksheet structure
Build a simple five-tab or five-section model for any Florida listing:
Section 1, Acquisition
| Cell | Field |
|---|---|
| A1 | Purchase price |
| A2 | Closing costs (optional, if capitalized) |
| A3 | Total basis (A1 + A2) |
Section 2, Income
| Cell | Field |
|---|---|
| B1 | Monthly rent OR annual gross STR receipts |
| B2 | Annual gross rent (= B1 × 12 for LTR, or verified STR total) |
| B3 | Gross yield % = (B2 ÷ A1) × 100 |
Section 3, Operating costs (annual)
| Cell | Field |
|---|---|
| C1 | Management fee (= B2 × mgmt %) |
| C2 | Insurance (binding quote) |
| C3 | Property tax (= assessed value × millage) |
| C4 | HOA (= monthly × 12) |
| C5 | STR tax (= B2 × combined % if STR) |
| C6 | Vacancy (= B2 × vacancy %) |
| C7 | Capex reserve (= B2 × reserve %) |
| C8 | Total costs = SUM(C1:C7) |
Section 4, NOI and net yield
| Cell | Field |
|---|---|
| D1 | NOI = B2 − C8 |
| D2 | Net yield % = (D1 ÷ A1) × 100 |
| D3 | Spread = B3 − D2 |
Section 5, Sensitivity
Run three scenarios on purchase price (base, +10%, −10%) and on gross rent (base, −15%, +15%). Florida deals often fail or pass only in the downside rent scenario; if net yield goes negative when rent drops 15%, you know the margin of safety is thin.
Adjusting gross yield claims: the 60-second conversion
When a broker quotes gross yield but you need a quick net estimate before building a full model, use a cost ratio shortcut, then verify with full line items before offer.
| Strategy | Typical cost ratio (operating costs ÷ gross rent) | Net yield shortcut |
|---|---|---|
| Orlando STR | 55-65% | Gross × (1 − 0.60) ÷ price × 100 |
| Tampa LTR | 45-55% | Gross × (1 − 0.50) ÷ price × 100 |
| Miami coastal LTR | 60-75% | Gross × (1 − 0.68) ÷ price × 100 |
| Jacksonville inland LTR | 38-48% | Gross × (1 − 0.43) ÷ price × 100 |
Shortcut example, Orlando 8% gross on $450,000:
Estimated NOI ≈ $36,000 × (1 − 0.60) = $14,400
Estimated net yield ≈ ($14,400 ÷ $450,000) × 100 ≈ 3.2%
The shortcut is useful for screening. The worked examples above show why full line-item math matters, our detailed Orlando model landed at 1.7% net because HOA and management sat at the high end of the range. Never make an offer on shortcut math alone.
Cash-on-cash return: the layer below net yield
Net yield and cap rate intentionally exclude financing. Cash-on-cash return adds the mortgage back in, it is what you care about if you lever the purchase.
Formula:
Cash-on-Cash (%) = (Annual Pre-Tax Cash Flow ÷ Total Cash Invested) × 100
Pre-Tax Cash Flow = NOI − Annual Debt Service (principal + interest)
Example, Jacksonville SFH with 25% down DSCR loan:
| Field | Value |
|---|---|
| Purchase price | $285,000 |
| Down payment (25%) | $71,250 |
| Loan amount | $213,750 |
| NOI (from Example 4) | $13,176 |
| Estimated annual debt service (7.5% rate, 30-yr) | ≈ $17,940 |
| Pre-tax cash flow | $13,176 − $17,940 = −$4,764 |
| Cash-on-cash | (−$4,764 ÷ $71,250) × 100 = −6.7% |
Even a property with 4.6% net yield can show negative cash-on-cash when levered at 75% LTV in a 7%+ rate environment. That does not automatically kill the deal, it means you are betting on amortization, appreciation, or future rate refinance. DSCR lenders require rent to cover PITIA; see the DSCR loans Florida guide for how the ratio is calculated with Florida insurance and HOA inside the payment stack.
Common calculation errors Florida investors make
Error 1, Comparing US gross to European net
A 7% gross Orlando projection is not comparable to a 4% net yield on a Berlin apartment without converting both to NOI basis. Always normalize before cross-border comparison.
Error 2, Ignoring STR tax remittance
Tourist development tax and Florida sales tax apply to short-term stays. On $36,000 gross in Osceola, roughly $4,680 leaves before other costs. Listing sites often display pre-tax nightly rates.
Error 3, Using seller’s historical insurance premium
Florida insurance repriced sharply after 2022. A seller paying $2,800/yr in 2021 may face $5,500/yr at renewal in 2026. Get a binding quote, the insurance cost guide explains Citizens, flood zones, and HO-6 requirements.
Error 4, Excluding HOA special assessment risk
SB 4-D milestone inspections triggered special assessments of $20,000-$80,000+ per unit in some condo buildings. That is not an annual operating line item but it can wipe out years of NOI. Review reserves in due diligence Florida real estate.
Error 5, Projecting AirDNA revenue as achieved gross
Market analytics tools show potential, not guaranteed receipts. Lenders and serious buyers want 12-24 months of actual statements or a conservative vacancy-adjusted projection.
Error 6, Double-counting or omitting management
Clarify whether the management fee is calculated on gross receipts before or after platform fees, and whether cleaning is included in the percentage or billed separately.
How to Stress-Test a Broker Yield Claim in Five Steps
- Ask for gross rent source: trailing 12-month bank deposits or platform payouts, not a pro forma.
- Rebuild gross yield yourself: (annual rent ÷ price) × 100.
- Insert binding insurance quote: not the seller’s policy.
- Pull county property appraiser assessed value: recalculate tax at non-homestead millage.
- Compute NOI and net yield: compare to the broker’s figure and to the ranges in the Florida rental yield guide.
If the broker’s “net” figure is within 0.5 points of gross, they are almost certainly still quoting gross or using an incomplete cost stack.
Foreign buyers: one extra layer on net yield
Net yield formulas are the same for US and foreign investors. Tax outcomes are not. Federal rental income tax, FIRPTA withholding on sale, and US estate tax exposure on directly held property can reduce after-tax cash flow below NOI, without changing the net yield percentage itself.
Foreign nationals should model entity structure (LLC, foreign corporation) before purchase. The Florida property for foreign buyers guide covers ITIN, FIRPTA, and estate tax mitigation. Depreciation can offset a meaningful share of taxable rental income for properties where structure value supports a large depreciable basis.
When to Use Gross vs Net in Conversations
| Audience | Metric to lead with | Why |
|---|---|---|
| Broker / seller screening | Gross yield | Fast comparison of rent-to-price |
| Your own buy decision | Net yield / cap rate | Reflects actual operating economics |
| DSCR lender | DSCR on PITIA | Rent must cover payment including tax and insurance |
| Partner or LP reporting | NOI in dollars + net yield % | Transparent operating profit |
| Cross-metro comparison | Net yield on same worksheet | Removes marketing bias |
Lead every external conversation with gross if you want speed. Lead every internal capital allocation decision with net.
Advantages and disadvantages of each metric
| Metric | Advantages | Disadvantages |
|---|---|---|
| Gross yield | Fast to calculate from listing data; requires only price and rent; useful for screening across dozens of listings in a single session | Ignores every operating cost; misleads on coastal condos where HOA and insurance dominate; most common source of overpaying in Florida |
| Net yield / Cap rate | Reflects actual operating economics; comparable across metros and asset types on equal footing; reveals deals that gross ranking misses | Requires verified cost data most brokers do not provide upfront; sensitive to insurance repricing and HOA special assessments |
| Cash-on-cash return | Shows levered return on equity deployed; relevant for DSCR borrowers comparing financing scenarios against all-cash baselines | Changes with rate environment; not comparable to unlevered metrics; masks negative cash flow when appreciation is the real thesis |
Gross yield advantages collapse the moment you move from screening to commitment. Net yield advantages compound the more properties you compare, a consistent worksheet across all candidates eliminates marketing bias from the decision. The worked examples on this page and the metro context in the Florida rental yield guide give you both layers.
Summary: the Florida gross-to-net framework
- Gross yield = annual rent ÷ purchase price. Use for screening only.
- Net yield = NOI ÷ purchase price. Use for decisions.
- NOI = gross rent minus management, insurance, property tax, HOA, STR taxes, vacancy, and reserves. Mortgage is excluded.
- Florida STR typically erodes 2-4 percentage points from gross; coastal condos can erode more.
- Four worked examples on this page: Orlando STR 8.0% gross → 1.7% net; Tampa LTR 6.6% → 2.9%; Miami condo 5.6% → negative; Jacksonville 7.8% → 4.6%.
- Full metro context, STR overlays, and strategy tables live in the pillar Florida rental yield guide.
Florida Estate’s insider tip
Insider tip: Run the 2.0% net yield test before you accept any coastal condo claim. On the $600,000 Miami-Dade example, 2.0% net needs $12,000 of NOI, which is about $47,400 of annual rent, a 41% increase, or a price near $480,000. Compare that with the Jacksonville house at 4.6% net on $285,000 with no HOA, where the gross-to-net spread is only 3.2 points.
Frequently Asked Questions
Gross rental yield equals annual gross rent divided by purchase price, multiplied by 100. On a $400,000 Florida condo generating $32,000 in annual rent, gross yield is ($32,000 ÷ $400,000) × 100 = 8.0%. Gross yield ignores operating costs and is the number most often quoted in marketing materials.
Net rental yield equals Net Operating Income divided by purchase price, multiplied by 100. NOI is gross rent minus all operating expenses excluding mortgage payments: management, insurance, property tax, HOA, STR taxes, vacancy, and reserves. On the same $400,000 property with $18,000 in annual costs, NOI is $14,000 and net yield is 3.5%.
Florida STR properties typically see a 2-4 percentage point gap between gross and net yield. Long-term rentals often see 1.5-3 points. A Kissimmee STR at 8% gross may net 4-5% after management, insurance, tourist taxes, and HOA when cost assumptions are moderate. Coastal Miami at 4% gross may net under 2% after high HOA and wind insurance.
Florida STR tourist development tax and state sales tax are collected from guests and remitted by the owner or manager. They reduce effective rental income available for NOI. On $36,000 gross rent in Osceola County at roughly 13% combined tax, approximately $4,680 is remitted, leaving $31,320 in effective receipts before other operating costs.
Net yield and cap rate use the same NOI numerator and property value denominator, so they produce the same percentage when calculated on the same basis. Cap rate is the professional investor term; net yield is the landlord-facing term. Both exclude debt service. A property with $18,000 NOI on a $450,000 value shows 4.0% whether you call it cap rate or net yield.
Start with verified annual gross receipts, subtract STR tax remittance, then subtract management (typically 20-25% of gross), insurance, non-homestead property tax, HOA, and a 5% capex reserve. Divide the remaining NOI by purchase price. Example: $36,000 gross on a $450,000 Orlando condo with $28,200 in total costs including STR tax yields NOI of $7,800 and net yield of 1.7% under high HOA assumptions.
Jacksonville and inland Tampa Bay long-term rentals typically produce the strongest net yield arithmetic because entry prices are lower and insurance plus HOA costs are moderate. Orlando STR can match or exceed them only when purchase price is discounted relative to achievable gross rent. Miami-Dade prioritizes appreciation over net yield in most 2026 scenarios.
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Florida Estate publishes independent research, not legal or tax advice. Formulas and examples are illustrative. Verify all cost inputs with licensed brokers, insurers, and CPAs before acquisition. For full market context see the Florida rental yield guide.