Places to Invest in Real Estate in Florida 2025

Wondering if buying a house in Florida is profitable? This covers everything about the topic as well as the best places for investment.

Table of Contents

1. What Makes Florida an Attractive Investment Location
2. Best Places to Invest in Florida Real Estate for Long Term Rentals
3. Best Places to Invest in Florida Real Estate for Short Term Rentals

Purchasing real estate properties for short-term or long-term investment can be a rewarding experience. But like any other business venture, you need to know how to play your cards right; otherwise, you’ll end up frustrated. Successful investors in the Sunshine State share one thing in common—they know where to find the best places to invest in real estate in Florida.

Although finding the right location is key to profitable real estate investing, you also need to put in a lot of hard work. You are expected to do a lot of research to know which property will give you your desired profit. Honing your marketing skills can be beneficial when you’re ready to put your property on the market for rentals.

If you are looking to invest in real estate and are ready to put your heart into it, now is a good time to start looking for the best places to invest in real estate in Florida.

The Florida real estate market flourished in 2022 and is one of the most profitable in the US. Due to various economic factors, population trends, and interest rates, it is expected to experience a blend of moderate growth and adjustments in 2025.

In this article, we will help you choose between long term and short term rentals and assist you in finding the best places to invest in real estate in Florida.

What Makes Florida an Attractive Investment Location

Despite rising home prices in recent years, the Florida housing market predictions show no indications of slowing in the near future. Whether you want to invest in a rental property, a vacation house, or relocate to Florida permanently, now is the time.

Before making a Florida real estate investment, let’s take a look at why real estate in Florida remains attractive and how the factors influence real estate trends in 2025.

Vacation Way of Life

Florida is often regarded as one of the most pleasant and relaxed states in the United States. While the state is still extremely successful in commerce and trade, tourism is its main draw. Florida is home to several big theme parks, the most well-known of which is Disney World.

The vacation feeling, on the other hand, can be felt across the state. Whether you’re drinking coffee or going for a walk down the street, Florida’s way of life is very different from the rest of the state. This makes it an ideal spot to unwind, rest, and start a family in peace.

Cultural Diversity

Florida is a state with a wide range of cultures. Many individuals move to Florida from other regions of the country, and the state is packed with people from all over the world. This implies that in Florida, you’ll be able to experience and taste languages from all around the world.

This variety also demonstrates the state’s embrace of other cultures. This is why people from different backgrounds feel at ease when they relocate to Florida. Whether you’re visiting or relocating to Florida, Floridians are among the friendliest and most welcome individuals in the country.

Florida’s Real Estate Market

Even though the market is slowing down, home prices. in Florida are still expected to rise slightly, with an increase of 1% to 4.4%. This shows that there is still a strong demand for homes, but not enough houses are available.

Rent prices are also going up driven by the growing population and many people choosing to rent because they can’t afford to buy a home due to high mortgage rates. According to Mashvisor’s data from September 29, 2024, the median rent in the Sunshine State is $3,002.

Florida’s Affordability

The fact that the state does not gather personal income tax is the largest savings someone may expect if they relocate to Florida. This implies that simply going to Florida can save you hundreds of dollars every year.

Florida is one of a few states in the country that produces enough revenue from the commercial industry to avoid collecting personal income tax.

Although the state does not charge personal income tax, the cost of living in Florida is also low. Many expenditures are cheaper than the national average, allowing you to enjoy a nicer life in Florida than in many other regions of the country.

The median cost of living in Florida is roughly $60,204 per year. This equates to approximately $12,191 for housing and utilities, $8,996 for healthcare coverage, $4,736 for food, $1,168 for gas and electricity, and approximately $33,112 for miscellaneous personal costs.

Wages and Workforce

The Florida workforce is highly qualified, technically proficient, culturally and linguistically diversified, and recognized for its outstanding work ethic. Globally renowned academic institutions and cutting-edge scientific and technological courses make it simple to discover the skilled workforce required by practically any type of organization.

Meanwhile, labor expenses in Florida are extremely competitive. This is especially true when compared to other top-tier business destinations in the United States and most major economies.

Best Places to Invest in Florida Real Estate for Long Term Rentals

The combination of economic opportunities, affordable living costs, favorable weather conditions, retirement-friendly amenities, and quality of life factors makes Florida an attractive place to live in. This provides investors with more opportunities for long term rental.

Long term rental assures you of a fixed monthly income for the duration of the lease, which lasts for 12 months or more. The tenant is also responsible for paying the utilities, so you need not worry about the monthly bills.

If you’d like to have more time for yourself, then investing in a long term rental might be a good idea.

There are downsides to it, though. If you need to convert your property into cash, you cannot do so until the lease with your current tenant expires. If you are unlucky to have a tenant who does not care about maintaining the property, you could be spending so much on the property’s upkeep though landlord insurance in Florida generally covers unintentional tenant damage.

Worse, your tenant could be a neighborhood bully, and dealing with them and alleviating the situation might pose a challenge.

Looking for the best rental market in Florida is no easy task, but there is hope. If you want to know where to find the best investment properties in Florida, Mashvisor’s data can easily provide you with the answer.

The data below, coming from various reliable sources, is a result of Mashvisor’s latest Florida real estate market analysis. The long term cash on cash return used in our analysis was applied to develop the following list (from highest to lowest), showing you where to buy property in Florida.

1. West Palm Beach

• Number of Listings for Sale: 888
• Median Property Price: $947,714
• Average Price per Square Foot: $473
• Days on Market: 115
• Number of Long Term Rental Comps: 2,725
• Monthly Long Term Rental Income: $3,386
• Long Term Rental Cash on Cash Return: 3.66%
• Long Term Rental Cap Rate: 3.74%
• Price to Rent Ratio: 23
• Walk Score: 44

2. Tampa

• Number of Listings for Sale: 2,464
• Median Property Price: $766,987
• Average Price per Square Foot: $356
• Days on Market: 101
• Number of Long Term Rental Comps: 3,222
• Monthly Long Term Rental Income: $3,107
• Long Term Rental Cash on Cash Return: 3.50%
• Long Term Rental Cap Rate: 3.55%
• Price to Rent Ratio: 21
• Walk Score: 46

3. Nokomis

• Number of Listings for Sale: 186
• Median Property Price: $847,526
• Average Price per Square Foot: $413
• Days on Market: 105
• Number of Long Term Rental Comps: 129
• Monthly Long Term Rental Income: $3,095
• Long Term Rental Cash on Cash Return: 3.03%
• Long Term Rental Cap Rate: 3.06%
• Price to Rent Ratio: 23
• Walk Score: 31

4. St. Petersburg

• Number of Listings for Sale: 788
• Median Property Price: $770,176
• Average Price per Square Foot: $429
• Days on Market: 172
• Number of Long Term Rental Comps: 1,111
• Monthly Long Term Rental Income: $2,756
• Long Term Rental Cash on Cash Return: 2.90%
• Long Term Rental Cap Rate: 2.96%
• Price to Rent Ratio: 23
• Walk Score: 3

5. Winter Park

• Number of Listings for Sale: 161
• Median Property Price: $936,768
• Average Price per Square Foot: $385
• Days on Market: 95
• Number of Long Term Rental Comps: 267
• Monthly Long Term Rental Income: $3,191
• Long Term Rental Cash on Cash Return: 2.79%
• Long Term Rental Cap Rate: 2.82%
• Price to Rent Ratio: 24
• Walk Score: 25

6. Fort Walton Beach

• Number of Listings for Sale: 208
• Median Property Price: $588,698
• Average Price per Square Foot: $390
• Days on Market: 119
• Number of Long Term Rental Comps: 333
• Monthly Long Term Rental Income: $2,284
• Long Term Rental Cash on Cash Return: 2.50%
• Long Term Rental Cap Rate: 2.53%
• Price to Rent Ratio: 21
• Walk Score: 62

7. St. Augustine

• Number of Listings for Sale: 1,118
• Median Property Price: $653,782
• Average Price per Square Foot: $345
• Days on Market: 109
• Number of Long Term Rental Comps: 834
• Monthly Long Term Rental Income: $2,503
• Long Term Rental Cash on Cash Return: 2.42%
• Long Term Rental Cap Rate: 2.45%
• Price to Rent Ratio: 22
• Walk Score: 72

8. Gulf Breeze

• Number of Listings for Sale: 311
• Median Property Price: $724,135
• Average Price per Square Foot: $376
• Days on Market: 114
• Number of Long Term Rental Comps: 251
• Monthly Long Term Rental Income: $2,595
• Long Term Rental Cash on Cash Return: 2.38%
• Long Term Rental Cap Rate: 2.41%
• Price to Rent Ratio: 23
• Walk Score: 56

9. Indialantic

• Number of Listings for Sale: 57
• Median Property Price: $741,023
• Average Price per Square Foot: $344
• Days on Market: 105
• Number of Long Term Rental Comps: 113
• Monthly Long Term Rental Income: $3,005
• Long Term Rental Cash on Cash Return: 2.32%
• Long Term Rental Cap Rate: 2.35%
• Price to Rent Ratio: 21
• Walk Score: 57

10. Ponte Vedra

• Number of Listings for Sale: 225
• Median Property Price: $797,045
• Average Price per Square Foot: $315
• Days on Market: 131
• Number of Long Term Rental Comps: 113
• Monthly Long Term Rental Income: $3,203
• Long Term Rental Cash on Cash Return: 2.26%
• Long Term Rental Cap Rate: 2.28%
• Price to Rent Ratio: 21
• Walk Score: 41

Are you interested in searching for profitable long term rentals in Florida? Start here.

Best Places to Invest in Florida Real Estate for Short Term Rentals

Florida remains a popular vacation destination for Americans and foreigners alike. The state continues to draw vacationists like a magnet because of its tropical climate, scenic spots, and tourist attractions.

The Sunshine State has consistently seen record-breaking tourism numbers. In 2023, it welcomed about 140.6 million visitors, surpassing pre-pandemic numbers. The influx of tourists provides plenty of opportunities to earn through short term rental investment strategy.

Short term rentals offer higher income because you can charge twice the average long term rental rate, especially if your property is in a prime vacation location. And the bonus? If your family needs a vacation place, you can use your rental property to save on the cost of paying for a hotel.

Are you interested in investing in short term rentals? Check out the list below for some of the best cities to invest in real estate in Florida, based on Mashvisor’s latest real estate data. The list is organized by the highest to the lowest short term rental cash on cash return.

1. Carrollwood

• Number of Listings for Sale: 5
• Median Property Price: $338,960
• Average Price per Square Foot: $190
• Days on Market: 147
• Number of Short Term Rental Comps: 1,251
• Monthly Short Term Rental Income: $4,101
• Short Term Rental Cash on Cash Return: 8.18%
• Short Term Rental Cap Rate: 8.30%
• Short Term Rental Daily Rate: $124
• Short Term Rental Occupancy Rate: 62%
• Walk Score: 68

2. Sweetwater

• Number of Listings for Sale: 24
• Median Property Price: $526,871
• Average Price per Square Foot: $371
• Days on Market: 13
• Number of Short Term Rental Comps: 466
• Monthly Short Term Rental Income: $5,562
• Short Term Rental Cash on Cash Return: 7.17%
• Short Term Rental Cap Rate: 7.25%
• Short Term Rental Daily Rate: $194
• Short Term Rental Occupancy Rate: 70%
• Walk Score: 82

3. Palm Springs

• Number of Listings for Sale: 74
• Median Property Price: $273,581
• Average Price per Square Foot: $232
• Days on Market: 98
• Number of Short Term Rental Comps: 1,073
• Monthly Short Term Rental Income: $3,395
• Short Term Rental Cash on Cash Return: 6.88%
• Short Term Rental Cap Rate: 7.07%
• Short Term Rental Daily Rate: $193
• Short Term Rental Occupancy Rate: 64%
• Walk Score: 29

4. Florida City

• Number of Listings for Sale: 55
• Median Property Price: $493,493
• Average Price per Square Foot: $269
• Days on Market: 119
• Number of Short Term Rental Comps: 100
• Monthly Short Term Rental Income: $5,459
• Short Term Rental Cash on Cash Return: 6.85%
• Short Term Rental Cap Rate: 6.92%
• Short Term Rental Daily Rate: $162
• Short Term Rental Occupancy Rate: 63%
• Walk Score: 67

5. Kenneth City

• Number of Listings for Sale: 21
• Median Property Price: $333,862
• Average Price per Square Foot: $265
• Days on Market: 107
• Number of Short Term Rental Comps: 1,827
• Monthly Short Term Rental Income: $3,644
• Short Term Rental Cash on Cash Return: 6.62%
• Short Term Rental Cap Rate: 6.76%
• Short Term Rental Daily Rate: $179
• Short Term Rental Occupancy Rate: 61%
• Walk Score: 51

6. Lauderdale Lakes

• Number of Listings for Sale: 110
• Median Property Price: $195,775
• Average Price per Square Foot: $187
• Days on Market: 107
• Number of Short Term Rental Comps: 1,188
• Monthly Short Term Rental Income: $2,848
• Short Term Rental Cash on Cash Return: 6.51%
• Short Term Rental Cap Rate: 6.72%
• Short Term Rental Daily Rate: $194
• Short Term Rental Occupancy Rate: 60%
• Walk Score: 61

7. Shalimar

• Number of Listings for Sale: 35
• Median Property Price: $732,354
• Average Price per Square Foot: $262
• Days on Market: 108
• Number of Short Term Rental Comps: 1,169
• Monthly Short Term Rental Income: $5,370
• Short Term Rental Cash on Cash Return: 6.51%
• Short Term Rental Cap Rate: 6.58%
• Short Term Rental Daily Rate: $238
• Short Term Rental Occupancy Rate: 59%
• Walk Score: 45

8. Homosassa

• Number of Listings for Sale: 226
• Median Property Price: $444,180
• Average Price per Square Foot: $252
• Days on Market: 109
• Number of Short Term Rental Comps: 175
• Monthly Short Term Rental Income: $3,960
• Short Term Rental Cash on Cash Return: 6.48%
• Short Term Rental Cap Rate: 6.57%
• Short Term Rental Daily Rate: $201
• Short Term Rental Occupancy Rate: 57%
• Walk Score: 38

9. Hialeah Gardens

• Number of Listings for Sale: 16
• Median Property Price: $483,649
• Average Price per Square Foot: $363
• Days on Market: 103
• Number of Short Term Rental Comps: 313
• Monthly Short Term Rental Income: $4,297
• Short Term Rental Cash on Cash Return: 6.26%
• Short Term Rental Cap Rate: 6.36%
• Short Term Rental Daily Rate: $166
• Short Term Rental Occupancy Rate: 67%
• Walk Score: 66

10. Dunnellon

• Number of Listings for Sale: 251
• Median Property Price: $381,727
• Average Price per Square Foot: $214
• Days on Market: 95
• Number of Short Term Rental Comps: 181
• Monthly Short Term Rental Income: $3,338
• Short Term Rental Cash on Cash Return: 6.21%
• Short Term Rental Cap Rate: 6.32%
• Short Term Rental Daily Rate: $195
• Short Term Rental Occupancy Rate: 53%
• Walk Score: 59

Are you ready to search for profitable short term rentals in Florida? Start here.

Conclusion

Florida continues to be a prime location for real estate investment, whether you’re considering long term or short term rentals. Its diverse economy, attractive lifestyle, and steady demand make it a lucrative market for both seasoned investors and newcomers.

However, you need to arm yourself with the right real estate investment tools to find the best places to invest in Florida real estate. Whether you are looking for Florida investment properties for sale or the best place to buy a rental property in the state, Mashvisor’s real estate market analysis and investment property analysis will help you get there.

To start searching for and analyzing houses in Florida for sale, sign up for Mashvisor now.