🌴 What Type of Return Can You Expect on a Florida STR?

Sunshine, sandy beaches, and a stream of steady income — is that what a Florida short-term rental (STR) really delivers?

Well, yes... but let’s not sugarcoat it: STR investing is a business, not a beach vacation. The key to making it work? 👉 Understanding your return on investment (ROI) before you dive in.

Let’s break down what kind of return you can actually expect from a Florida STR — the good, the risky, and the surprising.

☀ Why Florida? A Short-Term Rental Goldmine

Florida isn’t just a vacation destination — it’s an STR powerhouse:

• 🌎 130M+ tourists visit each year

• 🌴 Year-round demand from families, snowbirds, business travelers & event-goers

• 💵 No state income tax = more money in your pocket

• 📜 Flexible STR regulations (varies by city)

📍 Investment opportunities include Disney escapes in Orlando, luxury beachfronts in 30A, stylish condos in Tampa, and more.

💸 What Kind of ROI Can You Really Expect?

The two most common ROI metrics in STR investing:

✅ Cash-on-Cash Return

• Formula: Annual Net Income ÷ Total Cash Invested

• Florida Average: 8% – 15%

• High performers: 20%+

✅ Cap Rate

• Formula: Net Operating Income ÷ Purchase Price

• Florida Average: 6% – 10%

• Emerging/value-add markets: 12%+

🏡 Real Example: Orlando STR

Property: 3-bed, fully furnished home near Disney – $450,000

👉 Cash Invested (down payment + closing + furniture): ~$100,000
👉 Cash-on-Cash ROI: 14.4%

Pretty attractive — and that’s before factoring in appreciation or tax benefits.

📍 Market Breakdown: Florida STR Hotspots

🏰 Orlando

• Constant tourist demand

• Affordable entry points

• Year-round bookings = stable income

• 🔁 Occupancy: 60–80%

• 💸 Nightly Rate: $150–$250

🌊 Destin / 30A

• Luxury coastal demand

• High ADR, but seasonal

• 📅 Best returns: May–August

• 💸 Nightly Rate: $250–$500+

🌇 Tampa / St. Pete

• Urban + beach appeal

• Strong long-term appreciation

• 💸 Nightly Rate: $125–$200

🌴 Miami

• Luxury potential but strict STR rules

• High competition & management costs

• 🚨 Many areas = 30+ day stays only

⚠ Hidden Costs That Hurt ROI

Even in sunny Florida, there are clouds:

• 🧾 Insurance (esp. hurricane-prone areas)

• 💰 Management fees (20–30%)

• 🧽 Turnover costs (cleaning, supplies, maintenance)

• 🏘 HOA/condo restrictions (some ban STRs)

• ⚖ Changing local regulations

💡 Pro Tip: Always add a 20–25% buffer for unexpected costs.

🧠 How to Maximize Your STR Returns

• 🔑 Automate guest experience (smart locks, auto-messaging, dynamic pricing)

• 📸 Invest in professional photography & design → stand out on Airbnb

• 🎯 Target a niche (family-friendly, pet-friendly, remote work-ready)

• 📊 Stay data-driven with tools like AirDNA, Mashvisor, PriceLabs

• 📜 Know local laws before buying

💬 Real Talk: Is a Florida STR Worth It?

• ❌ If you want “passive” income with zero effort → probably not.

• ✅ If you:

  • Understand the numbers

  • Invest in systems or reliable managers

  • Choose the right market
    👉 Then yes, a Florida STR can deliver double-digit returns + long-term equity growth.

✅ Final Takeaways

Expected Returns on Florida STRs:

• 📊 Cash-on-Cash: 8% – 15%

• 🏦 Cap Rate: 6% – 10%

• 📈 Appreciation Potential: Strong in select markets

• 💼 Effort Level: Medium–High (unless outsourced)

Done right, your Florida STR can be both a lifestyle asset and a cash-flowing machine.
But always treat it like a business — because that’s exactly what it is.

📲 Ready to Make Your Move in South Florida?

Whether you’re buying, selling, or exploring short-term rental opportunities, the SoFlo Coastal Group is here to guide you. From Palm Beach County to Southeast Florida, we help you find not just a property — but a lifestyle.

📲 Melissa Naman, REALTOR®
📞 732.754.9323
📱 @melissa.buy.sell.invest

✨ Let’s connect today and make your coastal living dreams a reality!