Insurance is the dealbreaker — quote it BEFORE you offer
Appreciation market · FL
Investing in Florida rental property
No state income tax, massive population inflow, year-round rental demand. The catch: insurance pricing has reshaped which deals pencil — coastal Florida is harder to make work than at any point in the last decade.
Property tax
0.91%
effective rate
State income tax
0%
no state tax
Eviction timeline
21-30 days
filing → writ
Landlord friendliness
Strong
based on law
Why investors choose Florida
- No state income tax
- Population growth from domestic migration + retirees
- Strong landlord-friendly law and fast eviction (~21-30 days)
- Short-term rental potential in vacation markets (Orlando, Panhandle)
- Year-round rental season — minimal seasonal vacancy in most metros
The honest caveats
- Insurance up 35-50% since 2020 in coastal zones; some carriers exiting entirely
- Hurricane risk = mandatory windstorm + flood insurance in many areas
- Condo associations face post-Surfside reserve requirements → 20-40% HOA hikes coming
- Sun Belt overbuilding (Tampa, Cape Coral, Sarasota) has flattened rent growth
- Older properties (1970s-1980s) often have insurance-disqualifying roof issues
Best cities for rental investing in Florida
Jacksonville
Lower insurance risk than peninsula FL, strong jobs growth
Orlando
STR demand + tourism economy, but condo HOAs are a landmine
Gainesville
Student-housing market with steady University of FL demand
Best strategies for Florida
- Short-term rental in true vacation markets
- Long-term hold in Jacksonville / Tallahassee (lower insurance risk)
- Avoid coastal condos until HOA reserve picture clears
Insurance note for Florida
Florida is the single most-changed insurance market in the US. Annual premiums of $3,500-7,500 on a $350k SFR are now common in coastal counties. Always quote insurance yourself before signing a contract.
Run the math on a Florida deal
Paste an address into TrueCap and get cap rate, cash-on-cash, DSCR, and 10-year projection in 60 seconds. State-specific property tax + insurance estimates included.
Try TrueCap freeOther states