12 Best Places to Buy Rental Property in Florida in 2026

What are the best places to buy rental property in Florida?

You’re in the right place.

Lately, a lot of clients have come to me and said, “Ryan, isn’t the Florida market pretty bad right now?” They’ve seen the headlines about rising insurance costs, hurricane risk, and prices cooling off in some cities.

Here’s what I think: those headlines are true, but they don’t apply to every part of the state.

I’ve seen this myself. I own rental property in Florida and have helped clients buy there too. The key is using the right strategy, like my rent-by-the-room student housing approach.

Around the right university, off-campus student demand stays strong no matter what’s happening with the broader housing market. 

So today, I’ll show you exactly where I’d invest in Florida right now and explain why.

I’ll share insights from my experience as a seven-figure real estate investor, along with real client stories and market data.

Want to learn more? Let’s get started.

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Why Florida is one of the best cash-flow states in my experience

When people ask me which states I’d tell a new investor to focus on, Florida is always in my top tier – right up there with Texas, North Carolina, and Ohio. 

That might surprise you if you’ve seen the headlines. But I look at states the same way I look at individual deals.

I’m not chasing whatever is popular right now. I look for markets with strong fundamentals like population growth, job growth, and steady housing demand, so the numbers still work even in tough years.

Florida meets those criteria. Honestly, the recent price correction makes it even more appealing to me.

Here’s why: Recently, prices in Florida have dropped a bit from their peak. Most investors see this correction and get nervous.

I see it differently. A correction lets you buy into a market at a discount, lock in a lower price, and refinance later if rates drop.

You’re not counting on the market staying hot forever. Instead, you’re relying on long-term fundamentals and paying less to get started.

Now, I won’t sugarcoat it. There’s a real tradeoff you need to plan for: insurance.

I’ve seen this play out in other hurricane-prone states too. When I’ve looked at markets like Houston, insurance costs go up because of hurricane risk, and Florida is no different. 

You need to budget for higher premiums than you would in, say, the Midwest. 

So my advice for Florida isn’t to buy without thinking. You need to be very selective about where you invest.

My rule for ruling out a state or city

Before I even get into which Florida cities I like, I want to share the one rule I use to rule places out:

If people are leaving a state or city, I don’t invest there. 

Here’s my reasoning: population outflow is a leading indicator for almost everything else that matters to you as a landlord. 

If people are moving out, demand for housing goes down. If demand goes down, your rent either stagnates or drops. And if fewer people want to live there, it gets harder to keep your units filled – which means more vacancy, which eats directly into your cash flow.

Appreciation usually suffers too, since home values are ultimately driven by how many people want to live somewhere.

So I always check migration patterns first. If a place is losing residents, I don’t care how cheap the houses are—I’m not interested.

Florida passes this test; it’s one of the fastest-growing states in the country. 

For more on how I choose a location, take a look at this quick video:

Why rent-by-the-room student housing works so well in Florida

Once a state passes my population test, I focus on strategy. My favorite approach is rent-by-the-room student housing.

Here’s what that means: Instead of renting a single-family home to one family, I buy a larger home near a university and rent out each bedroom to a different tenant.

Collecting rent from several tenants usually adds up to more than renting to a single family. Since each tenant pays just for their room, rent stays affordable for them, while your total income increases.

That’s why I focus on Florida’s university towns. You get statewide population growth and demand, plus a steady group of renters—students—who need housing no matter what’s happening in the broader market.

The best cities to buy rental property in Florida

Now let’s get into the details. These cities aren’t ranked by hype or tourism numbers. Intead, I’ve ranked the best places to buy rental property in Florida by where I’d actually invest.

1. Gainesville

• Median property sale price: $295,760
• Median rent: $1,600/month
• Home value increase (YoY): -1.2%

One of my students, Benny, is a great example of what’s possible here. About two years ago, he bought a 5-bedroom, 3-bathroom house (1,872 square feet), built in 1960, for $320,500. This year, he bought a second property that he’s set up with 6–7 bedrooms. Both are performing well.

Gainesville is special not just because of the University of Florida, though that’s a big factor. Santa Fe College is also nearby, and many students transfer from Santa Fe to UF, so your tenant pool stays steady even between semesters.

On top of that, Shands Hospital brings in medical residents and healthcare workers who need housing too. That gives you a secondary tenant pool of working professionals who tend to be reliable renters.

Ideal for: Investors who want a proven rent-by-the-room market with a diversified tenant base.

2. Tampa

• Median property sale price: $377,566
• Median rent: $1,995/month
• Home value increase (YoY): 10%

Tampa is another market I like, and one of my coaching clients, Chetan, is proof it works. Chetan built a 6-property out-of-state portfolio, and three of those properties are in Tampa.

The University of Tampa is the main draw here, with about 8,700 students. But it’s not just about the number of students. UT has strong business, nursing, and graduate programs, so many tenants are older, more serious students—like grad students and professionals-in-training—who usually take better care of the property and stay longer than typical undergrads.

When I first recommended Tampa, prices were lower than they are now. Median prices have risen toward $400,000, which means cash flow isn’t as high as it was a few years ago. I still like Tampa—Chetan’s results show it works—but expect tighter margins than in Gainesville, and make sure to run your own numbers before you commit.

Ideal for: Investors who want a track record to point to and are comfortable paying a higher entry price in exchange for a strong, stable tenant pool.

3. Tallahassee

• Median property sale price: $294,444
• Median rent: $1,500/month
• Home value increase (YoY): 7.1%

If your budget is tight, Tallahassee is the most affordable market I’d recommend in Florida. Florida State University keeps demand steady, and since home prices haven’t climbed like they have in Tampa or Orlando, you can buy at a lower cost and still get solid rents.

To give you a real benchmark: off-campus rentals near FSU typically go for $800 to $1,300 per bedroom per month, depending on the property and how close you are to campus.

I don’t have a client case study in Tallahassee yet, like I do for Gainesville and Tampa. I’m including it because the fundamentals—affordability and steady student demand—match what I look for.

Think of Tallahassee as an emerging pick rather than a proven one. That’s a good reason to do some extra research before you buy.

Ideal for: Investors who want a good deal on a rent-by-the-room property.

Tier 2 cities to buy rentals in Florida

Florida has plenty of other good markets besides the ones above. Here are a few more I’d consider as the best places to buy rental property in Florida:

Orlando

This market is more driven by tourism. 74 million visitors came through in 2022 alone, and short-term rental demand hasn’t caught up with supply.

• Median property sale price: $367,833
• Median rent: $2,100/month
• Home value increase (YoY): 5.3%
• Ideal for: Short-term rental investors

Jacksonville

Florida’s largest city, with a young population (average age 36) and unemployment below the national average. Good optionality between young professionals and students near Florida State College, UNF, or Jacksonville University.

• Median property sale price: $267,567
• Median rent: $1,695/month
• Home value increase (YoY): 1.4%
• Ideal for: Long-term rentals

Fort Myers

A smaller market (around 100,000 population) with beaches and a solid quality of life. Over 82% of homes sold under list price recently, which means more negotiating room for buyers.

• Median property sale price: $339,333
• Median rent: $2,400/month
• Home value increase (YoY): 0.7%
• Ideal for: Short or long-term rentals

Miami

Rent prices have been climbing faster than home prices, which is a good sign for investors chasing cash flow rather than just appreciation.

• Median property sale price: $559,000
• Median rent: $3,300/month
• Home value increase (YoY): 8.8%
• Ideal for: Short or long-term rentals

Clearwater Beach

A small, high-income coastal market that draws retirees and well-off tourists. Rent runs 125% above the state average.

• Median property list price: $899,920
• Median rent: $4,500/month
• Home value increase (YoY): 8.8%
• Ideal for: Investors with a bigger budget who want short-term rentals

Fort Lauderdale

Rent prices have been rising roughly 3x faster than property prices, which is a strong signal for cash flow.

• Median property sale price: $532,400
• Median rent: $2,958/month
• Home value increase (YoY): 4.9%
• Ideal for: Short or long-term rentals

West Palm Beach

Steady, strong appreciation over the years, backed by a healthy local economy.

• Median property sale price: $401,667
• Median rent: $2,700/month
• Home value increase (YoY): 4.7%
• Ideal for: Short or long-term rentals

St. Petersburg

A diversified local economy – a nearby military base plus several colleges – means demand tends to hold up even in downturns.

• Median property sale price: $373,583
• Median rent: $2,194/month
• Home value increase (YoY): 5.3%
• Ideal for: Long-term rentals

Cape Coral

Known as the “Venice of Florida” for its canals – a strong draw for tourists and short-term rental guests willing to pay a premium.

• Median property sale price: $308,000
• Median rent: $2,450/month
• Home value increase (YoY): -1.9%
• Ideal for: Short-term rentals

How I vet cities in Florida

People often ask me, “Ryan, how do you decide if a city is worth investing in?” Here’s how I do it:

Step 1: Check the county ordinance

This is one of the biggest mistakes I see new investors make. If you’re doing rent-by-the-room, your whole strategy depends on how many unrelated tenants you’re legally allowed to have living in one house. 

If there are any limitations on how many bedrooms you can rent out, you can’t use this strategy. 

But most people just check the city website, see a number, and stop there.

In many Florida markets, the county has its own rules for this. These can be different from, or add to, what the city says.

For example, in Gainesville, you can’t just look at city rules. You need to check Alachua County’s occupancy ordinance. These limits can change over time, so even if you found a number last year, don’t assume it’s still correct.

Call the county planning or zoning office directly and get the information in writing if possible. It takes about 20 extra minutes, but it can save you from buying a property you can’t rent the way you want.

Step 2: Get real rent numbers from real people

Median rent data from Zillow is a good starting point, but it’s just an average. It won’t tell you what a room rents for two blocks from campus versus two miles away. For that, I go straight to the source—Facebook or Reddit groups.

Search for groups like “University of Florida Housing” or the equivalent for your target school. You’ll see students posting things like “Looking for a roommate, $650/month, 5 min walk to campus.” That’s real, current pricing from actual renters in that neighborhood. You’ll also learn what tenants care about, which streets are walkable, which landlords have a bad reputation, and what amenities students expect.

I go through both steps—checking ordinances and researching Facebook groups—for every city before I recommend it to a client or invest myself.

FAQs

Is buying a rental property in Florida a good investment?

Yes, Florida is one of the best states for out-of-state cash-flow investing, especially in university towns like Gainesville, Tampa, and Tallahassee where student and healthcare-worker demand stays strong regardless of broader market swings. 

That said, whether it’s a good investment depends on where and how you buy. Florida has no state income tax, strong population growth, and steady rental demand, but it also has real costs, like higher property insurance because of hurricane risk. Successful investors here don’t buy blindly in tourist hotspots—they focus on specific areas, like college towns, where demand is more stable.

Is now a good time to buy an investment property in Florida?

For cash-flow investors with a long-term view, the recent price correction in Florida is actually an opportunity. Prices have dropped from their peak in many markets, so you can buy at a lower price now and refinance later if rates go down.

The catch is that “now” only works if you buy in the right city or area. Not every city or neighborhood is a good deal. Run your own numbers, include current insurance costs, and check local rental demand. I’d start with county ordinances and Facebook housing groups, not just Zillow averages, before you commit.

How to invest in your first rent-by-the-room property

So there you have it—my take on the best places to buy rental property in Florida, based on what I’ve actually seen work.

Florida isn’t a place where you can invest just anywhere. But if you combine strong population fundamentals with the right strategy—like targeting university towns and renting by the room instead of to a single family—you get a model that works even when the broader housing market doesn’t.

If you’re serious about buying your first rent-by-the-room property, here’s what I’d do next:

• Pick a university town with steady enrollment and a secondary tenant pool (grad students, hospital staff, and young professionals) 
• Check the county ordinance, not just the city code, on unrelated-tenant occupancy limits before you fall in love with a property
• Join the local Facebook housing groups to see what rooms are actually renting for right now, block by block
• Underwrite insurance costs into your numbers from the start

This is the same process I use with my coaching clients—the one that helped Benny grow to two properties in Gainesville and Chetan build a portfolio in Tampa and Atlanta.

If you want help doing the same—replacing your 9-5, traveling more, and actually looking forward to Mondays instead of dreading them—I’ve been where you are, and I can help you avoid the costly mistakes I had to learn the hard way.

Find out how you can work with me here.