What is the cap rate in Miami, FL?

The median cap rate in Miami, FL is 3.9%. This is based on HUD Fair Market Rents and current home values.

Is Miami a good place to buy rental property?

Miami has a cap rate of 3.9% and estimated cash flow of -$1,206/month. Cash flow is challenging at current prices. Median home price is $588,740 with average 3BR rent of $3,220/month.

What is the average rent in Miami, FL?

The HUD Fair Market Rent for a 3-bedroom in Miami, FL is $3,220/month. This represents the estimated rent for standard-quality housing in the area.

Miami, FL — Rental Investment Analysis

🔴WEAK— appreciation play only

Data: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.

Investment Summary

As of 2026, Miami, FL has a 3.9% cap rate, indicating limited cash flow potential at current prices of $588,740 median.

Miami is primarily an appreciation play with limited cash flow potential. At $588,740 median home price, Miami requires significant capital. A 20% down payment alone is $117,748. With 3-bedroom rents around $3,220/month, the 3.9% cap rate tells the story. Cash flow is deeply negative at -$1,206/month with standard assumptions. This market requires appreciation to justify the investment.

At 0.57% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of 0.61 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.

Bottom line: Consider Miami only if you believe in long-term appreciation. The numbers don't support cash flow at today's prices and rates.

Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.

Cap Rate

3.9%

Below average

Monthly Cash Flow

-$1,206

After all expenses

Price-to-Rent

14.7

Investor-friendly

DSCR

0.61

Fails

Key Metrics

Median Home Price: $588,740
Average Rent (3BR): $3,220/mo
Price-to-Rent Ratio: 14.7(good)
1% Rule: 0.57%(fails — need 1%+)
Cash-on-Cash Return: -10.9%
Vacancy Rate: 8.0%

Market Strength

Unemployment Rate: 4.8%(+0.5% vs national)
Rent Growth (YoY): +2.9%(national avg)
Population Growth: +5.6% YoY

Assumptions Used

20% down, 6.52% rate, 30yr, 8% vacancy, 10% maintenance

Customize these numbers →

Property Tax Rate

0.86%

of assessed value (FL avg)

Median Income

$63,062

household (FL avg)

Rent-to-Income

61.3%

Stretched

Section 8 Max Rent

$3,220/mo

3BR voucher payment

FL Investor Climate

Landlord Friendly

8/10

State Income Tax

None

Property Tax

0.86% effective

Population Trend

+5.6% (3yr)

Population Movement (Tax Year 2021→2022)

Net Migration

-8,384 households

SHRINKING

Total Inflow

1,151,413

households moved in

Avg Income (New Residents)

$100,270

per household

Where they're coming from:

1.Miami-Dade Non-migrants, FL1,119,068 households · avg $98,065

2.Broward, FL10,323 households · avg $63,988

3.New York, NY1,873 households · avg $856,941

4.Los Angeles, CA1,166 households · avg $176,591

5.Kings, NY1,107 households · avg $153,437

Where residents are leaving to:

1.Miami-Dade Non-migrants, FL1,119,068 households

2.Broward, FL17,387 households

3.Lee, FL2,187 households

4.Orange, FL2,037 households

5.Hillsborough, FL1,550 households

Net outflow may indicate weakening demand — but can mean lower prices and higher cap rates.

Best Zip Codes in Miami for Investors

33126

Cap Rate: 8.4%Cash Flow: +$500/mo$301,783

33132

Cap Rate: 6.8%Cash Flow: +$161/mo$529,723

33183

Cap Rate: 6.3%Cash Flow: -$23/mo$395,277

All Zip Codes in Miami

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
33126	8.4%	+$500	$301,783	$3,090/mo	1.31
33132	6.8%	+$161	$529,723	$4,550/mo	1.06
33183	6.3%	-$23	$395,277	$3,220/mo	0.99
33131	5.9%	-$237	$588,740	$4,550/mo	0.92
33194	5.7%	-$314	$570,993	$4,310/mo	0.90
33136	5.5%	-$254	$324,841	$2,360/mo	0.85
33193	5.1%	-$461	$444,388	$3,090/mo	0.81
33185	4.9%	-$815	$674,531	$4,550/mo	0.77
33129	4.6%	-$1,043	$687,646	$4,380/mo	0.72
33173	4.5%	-$877	$569,427	$3,610/mo	0.71
33177	4.5%	-$890	$573,700	$3,630/mo	0.71
33187	4.3%	-$1,247	$717,926	$4,380/mo	0.67
33137	4.2%	-$1,206	$660,793	$3,960/mo	0.66
33125	4.1%	-$884	$459,772	$2,700/mo	0.64
33130	3.9%	-$1,057	$507,206	$2,880/mo	0.61
33128	3.4%	-$1,101	$440,768	$2,280/mo	0.53
33155	3.2%	-$1,870	$713,043	$3,580/mo	0.51
33176	3.1%	-$1,706	$629,114	$3,090/mo	0.49
33144	3.1%	-$1,698	$619,471	$3,020/mo	0.48
33135	3.0%	-$1,459	$524,385	$2,530/mo	0.48
33170	2.9%	-$1,642	$572,191	$2,700/mo	0.46
33145	2.7%	-$2,208	$725,512	$3,270/mo	0.43
33127	2.7%	-$1,611	$521,336	$2,320/mo	0.42
33157	2.4%	-$2,071	$628,559	$2,640/mo	0.38
33143	1.8%	-$3,679	$951,075	$3,330/mo	0.27
33138	1.4%	-$3,269	$789,231	$2,500/mo	0.22
33122	1.3%	-$6,415	$1,505,538	$4,550/mo	0.20
33031	1.1%	-$3,994	$907,840	$2,590/mo	0.17
33133	0.8%	-$6,101	$1,302,043	$3,260/mo	0.12