If you're a property investor wondering what the best rental income properties in Florida are, read on! My firm, Media Realty and I work in middle-core investments in the South Florida metro area. Our exclusive focus is family-owned investment properties from duplexes and triplexes, all the way up to 50-unit apartments. Middle Core investment properties are varied... in fact, nearly 75% of all multifamily housing inventory would be categorized as small or mid-cap properties, which means Middle Core properties. These types of properties are growing exponentially. Did you know that Class “C” apartment building’s occupancy and rent growth now outpace luxury Class “A” rent growth?
Most American families who own rental property start their portfolios with this type of income-producing property. I'm proud to represent them and their interests no matter whether they're buying or selling. For those looking to start their investment journey, I'll use this article to profile cities in the south metro area that offer opportunities to acquire some of the best rental income properties in Florida. I'll be focusing on cities in the South Florida metro area around Fort Lauderdale and Miami. In general, these are small cities and markets clustered around the major hubs where inventory is low and demand is high.
Read on as I share the knowledge gathered from years of experience representing family investors in this beautiful part of the country.
What to Look For
There are plenty of articles around the web about what precisely to look for in a neighborhood before making an investment purchase, so I won't cover that in this article. Instead, I'll briefly list the key contributors to a strong investment property. Then I'll weigh in on where South Florida cities stand in these respects. Key factors are:
1. Neighborhood
2. Property Taxes
3. Schools
4. Crime
5. Job Market/ Local Economy
6. Amenities
7. Future Development
8. Number of listings and vacancies
9. Average Rents
The Cities in Which to Find some of the Best Rental Income Properties in Florida
Hallandale Beach
Keywords: Restaurants, amenities, spacious beach, pets.
Hallandale Beach is within commuting distance to hubs like Hollywood and Fort Lauderdale and even Miami. While the city itself contains limited employment opportunities, its distance from these hubs allows for a commute on par with what most workers in Florida will undergo. This short commute allows me to include Hallandale beach in my list of cities for best rental income properties in Florida.
The city has plenty of amenities for its population of small, maturing families. The average age in Hallandale beach is 46.5, which translates to single individuals or families with grown children who might enjoy the restaurants and lively beach actives. Hallandale Beach has been named a "better city for pets" which suggests a strong population of pet owners. This is important to keep in mind when considering investing in Hallandale beach, and possibly developing a pet policy for your investment property.
At $5.90 per 1,000 of property owned, the property taxes for Hallandale beach are slightly cheaper than those of surrounding cities. Meanwhile, at the time of writing major development projects in Hallandale beach contain a good mix of commercial, recreational, and residential projects. These include a golf course, new schools, and fire stations. That being said, the number of new apartments on the planning docket could suggest a surge in inventory soon.
The median rent in Hallandale beach is $1,123 and with 46.8% of buildings being renter-occupied in Hallandale beach.
Sum up: There are a fair number of rental opportunities but a decent level of competition for your tenant's dollar.
Oakland Park
Keywords: young families, centrally-located, growing downtown
Oakland Park has built a reputation by promoting its downtown culinary arts district. This well-appointed district is slowly transforming the rest of the city. Because of the success of this downtown area, the nearby retail scenes are gaining traction and success as well.
The amenities in Oakland Park are incredible and the location even better. Commuters from Oakland park face a shorter commute than most Florida residence. Meanwhile the city offers affordable residential and commercial space while being just minutes away from the ocean.
At $6.10 for every $1000 of property, Oakland Park's property taxes are on par with the cities around them but the city has reduced property tax rates many times in the past five years.
The city has made great strides in preparing for growth with significant investment in infrastructure, identifying the retail gaps, and branding its downtown.
At the time of writing, the median rent price in Oakland Park is $1,115 and 47.1% of Oakland park homes are renter-occupied as opposed to owner-occupied. New zoning has been implemented to provide for residential mixed-use development, so there may be some greater inventory in the Oakland Park market shortly.
Sum Up: Oakland Park is a good choice if you'd like to get started investing in Florida multi-family properties. Home values are likely to increase due to the city's sound planning and city branding.
Dania Beach
Keywords: outdoor recreation options, marinas
Dania Beach is a culturally diverse community with the appeal of small-town living. The city offers a luxurious ocean view and tons of activities to pass the time including fishing, windsurfing, snorkeling, kiteboarding many immaculate parks. With impressive shopping options, including a historic antiquities district and local art galleries. Dania Beach's great location means that commuters from Dania face a shorter commute than most Florida residents, while its beach-side location ensures great fun for its residents.
The City’s extensive recreation program includes a beach and fishing pier, pools, tennis courts, neighborhood parks, and community centers that provide a wide variety of programs for youth, adults, and senior citizens. The Dania beach casino is a strong employer for service-type jobs.
At $5.90 per 1,000 of property owned the property taxes for Dania beach are slightly cheaper than some of the surrounding cities and its schools tend to be slightly stronger than neighboring towns.
At the time of writing, Dania Beach approved projects were mostly in the commercial space, indicating that multi-family inventory won't increase too greatly over the next few years. Currently, the median rent is $1,209 and renter-occupied households comprise a massive 50.5% of Dania beach households.
Sum Up: Dania Beach is a strong consideration for an investment location because of its inexpensive tax rate and strong local economy.
Cooper City
Keywords: great schools, family-friendly, less rental inventory, high tax
It has been rated as one of the top 10 towns for families by Family Circle magazine. School test scores can be a helpful metric to see if local area schools can provide a solid educational system for children. The schools in Cooper City have a test score average of 72%, which is well above the US average.
The town boasts a low crime rate which has been decreasing year over year. Meanwhile, Cooper City's location means that commuters headed into one of the nearby hubs will spend an average of 27 minutes commuting, which is on par with the Florida average
The average rent is currently at $1,768, which is much higher than our comparable neighborhoods. That being said, this is a difficult market to enter, with just 40 multifamily unit properties within its city limits ranging between 2-10 units and a total of 13.9% of homes in Cooper City being renter-occupied. In addition, Cooper City's property tax rate is much higher than cities around it at $7.00 per $1000 of owned property.
Sum Up: Cooper City can be a difficult market to enter, but its safety and strong schools ensure that your investment will appreciate over time.
Sum Up - Best Rental Income Properties in Florida
Florida is a fabulous state to invest in, and the South Metro area has a strong economy that can stand the test of time. I hope you've enjoyed reading my personal opinion on these great cities for rental investment. As always, if there's any way I can be of service, please don't hesitate to reach out. For now, I'll leave you with my current listings - available in the above-mentioned cities and more, for you to explore.
*Note: All investment strategies and investments involve the risk of loss. Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
