6 Best Real Estate Markets in Florida for Investors Today

Florida’s mix of tourist attractions, beautiful beach towns, and growing population makes it an attractive prospect for real estate investors. Like any state, there are areas where the market is cooling, while other cities are heating up. As an investor, you may be wondering, “What are the best real estate markets in Florida right now?” To help you, we’ve rounded up the top six cities to check out.

We hope the information below helps new and experienced investors make an informed decision about their next investment, be it a single family rental, duplexes, or multi-family property in Florida.

Before we dive into the best areas in Florida to invest in real estate, it’s important to note that Florida’s housing market dynamics are shifting. In December 2024, there was a 4.7 months’ supply of single-family homes in Florida. This is much closer to the 6 months required for a balanced market.

Investors who are keen to start investing in Florida real estate must be highly selective and strategic in their location choices and rental property selections to achieve good returns.

Real estate investing in Florida appeals to investors because of its strong growth potential. In July 2024, the population reached 23.37 million, a growth of 467,347 people compared to 2023. The state continues to attract new residents due to its warm climate and abundant job opportunities, but there’s more to it. The state’s laws also make it an attractive and potentially more profitable place to invest in real estate.

• No state income tax: Taxes directly affect your bottom line as an investor. And the lack of state income tax in Florida is a fundamental financial advantage that makes every dollar earned through rent or appreciation go further than in many other states. Additionally, property taxes in Florida are relatively low.
• Favorable landlord-tenant laws: Florida is a landlord-friendly state. Evictions are easy, and there is no rent control in place. Landlords can issue a notice within three days for unpaid rent, and lease violations require only a seven-day notice.
• Strong population growth: Another reason investors are drawn to investing in Florida real estate is its strong population growth. This is driven by its diverse job market and thriving tourism industry. On top of that, the state’s attractions, including Disney World Resort and its beautiful beaches, bring approximately 120 million visitors annually. This faster-than-average population growth rate creates solid demand for short-term and long-term rentals, with certain cities becoming some of the best areas in Florida to invest in real estate.
• Job market diversification: While tourism drives short-term rental demand, Florida’s strong job market creates consistent demand for long-term rentals. Industries such as healthcare, technology, aerospace, tourism, and finance contribute to a strong, well-diversified economy that attracts a skilled workforce. This diversification, which translates to less volatility and more predictable returns, creates solid opportunities for real estate investing in Florida.

Florida offers numerous investment opportunities, ranging from long-term growth prospects in urban hubs such as Miami, Jacksonville, and Orlando to solid cash flow potential in emerging markets like Ocala and Cape Coral. Here are six of the best rental markets in Florida in 2025.

Jacksonville isn’t a flashy, hyper-growth market, but one that offers investors solid, steady, and reliable returns. That’s due to its diversified economy, which includes key sectors such as healthcare, logistics, and financial services, as well as its steady job growth, a rate of 1.6% from January 2024 to January 2025.

The area also has a strong military presence, as it is home to three Navy bases. This creates a dependable demand for rental housing, making it an attractive choice for those interested in investing in Florida real estate.

Major infrastructure projects, including the $176.4 million I-10 expansion and the $1.4 billion NFL stadium renovation, indicate potential for appreciation. All these make Jacksonville one of the best real estate markets in Florida for long-term investors. In Jacksonville, SFR (single-family rentals) property prices average $250,000 or more, MFR (multi-family rentals) average $450,000 or more, and estimated rents range between $1,500 and $1,800 per unit.

The Jacksonville housing market is stabilizing, with a projected home price increase of just 0.1% by September 2025; however, the market has a strong track record of appreciating home values. Between 2014 and 2023, home prices in Jacksonville grew by a remarkable 114%, 23% higher than the national average.

Although the market is stabilizing, Jacksonville remains a solid choice for reliable, long-term home appreciation, making it one of the best areas in Florida to invest in real estate.

With a median home price of $295,990 in January 2025 and an uptick in available listings, Jacksonville offers a good balance of accessibility and choice for investors.

Not only is Jacksonville more affordable than other major Florida cities, but the recent surge in homes for sale in Northeast Florida (69.9% increase in February 2025) means the market has transitioned into one that’s more buyer-friendly. This offers investors more options and negotiation leverage.

In the Jacksonville metro area, over 48,000 people are employed in the healthcare sector, and there remains a high demand for healthcare workers. Moreover, companies like Amazon, DHL, and FreezPak Logistics have invested in large-scale facilities in Jacksonville, creating jobs in warehousing and distribution. Tech companies such as Revalize, Black Knight, FIS, and Dun & Bradstreet also have their headquarters here.

The Cape Coral market is currently one of the best areas in Florida to invest in real estate, offering better value than in recent years. The average home price in Cape Coral ranges from $350,000 to $385,000, which is lower than the Florida average. The average monthly rent also ranges from $2,100 to $2,400.

While the market has shifted into a buyer’s market, steady rental demand is driven by tourism and the migration of retirees. Cape Coral’s reputation as the “Waterfront Wonderland,” with its over 400 miles of navigable canals and natural attractions, helps keep rental property demand robust.

Cape Coral has demonstrated a strong historical appreciation over the last decade. Between 2014 and 2023, home values in the area increased by 95%. But beyond past momentum, large-scale development projects are underway that would enhance Cape Coral’s economic resilience and appreciation potential. One noteworthy example is the $1.3 billion Cape Coral Grove development, which includes retail, entertainment, and residential spaces on a 131-acre site.

Despite recent declines in rental rates and an oversupply of short-term rentals in Cape Coral, median rents are projected to rise by 10.5% on average from 2024 to 2025. In other words, demand for rentals in Cape Coral this year is expected to be robust enough to drive substantial rent increases, from a median of $1,956 in 2024 to $2,162 in 2025.

With 10-11 months of housing supply, it’s clear that Cape Coral’s real estate market currently favors buyers. As an investor, you can take your time, explore options, and negotiate favorable prices and terms. This is why Cape Coral is gaining traction as one of the best real estate markets in Florida for value-seeking investors.

Palm Coast is a market that is growing and diversifying beyond its traditional tourism appeal. With projects like the University of North Florida (UNF) MedNexus campus and ongoing investments in roads, utilities, and public services, Palm Coast is positioning itself for long-term growth in real estate investing in Florida.

Situated conveniently between St. Augustine and Daytona Beach, Palm Coast offers easy access to some of Florida’s major cities. It is also relatively affordable, with a median home price of $ 360,000.

Palm Coast offers a clear value proposition in terms of home purchase prices. Its median price of $360,000 as of January 2025 was 14.1% below Florida’s statewide median ($410,600). The overall cost of living here is low, a huge draw for renters and investors. Rentcafe reports that the cost of living in Palm Coast is around 12% lower than the state average and 13% lower than the national average.

Palm Coast was the 18th fastest-growing city in the US between 2020 and 2022. And the area’s strong population growth is expected to continue, with an estimated population of 109,700 this year. This rapidly increasing population indicates strong rental demand, a crucial factor when investing in Florida real estate.

Palm Coast is currently a balanced market. The housing supply in the area stands at 7.6 months, giving buyers and investors more negotiating power and a wider range of options. If you’re looking to invest in Palm Coast, this is a more opportune time to enter the real estate market.

Ocala offers a good blend of relative affordability (the median home price of $266K is well below the state average), solid economic fundamentals, and, since it is inland, Ocala is usually out of the path of hurricanes. This combination makes it one of the best areas in Florida to invest in real estate. The market is currently balanced, with a 7.4-month supply, creating reasonable conditions for investing. Ocala’s economic growth and job creation, particularly in sectors like healthcare and equine services, create a reliable base of potential tenants, making it one of the best real estate markets in Florida.

Neighborhoods like Historic Downtown and Marion Oaks are key growth areas in Ocala, offering entry-level homes below $ 300,000.

When it comes to real estate investing in Florida, you can enter the Ocala real estate market at a significantly lower price than the rest of the state. As of January 2025, Ocala’s median home sale price was around $266,000, making it an attractive entry point for investors.

Besides its affordability, Ocala has delivered exceptional long-term growth in property values over the years. NeighborhoodScout reports that, over the past decade (from Q3 2014 to Q3 2024), home prices have appreciated by approximately 155% in the area.

Ocala offers a stable renter base. Approximately one-third (34.4%) of Ocala residents rent their homes. More significantly, the relationship between property prices and rents in Ocala suggests a price-to-rent ratio that favors buying. A price-to-rent ratio of 15 or less usually means positive cash flow potential. The average rent in Ocala is $1,740, and you can easily find homes for less than $250k. This suggests potential for good cash flow opportunities for investors.

Ocala is clearly on an upward economic path, reinforcing its position as one of the best real estate markets in Florida. In the 2025 Milken Institute Best Performing Cities report, the city ranked 36th out of 200 large metro areas, an improvement from its prior rankings (54th in 2023 and 57th in 2024).

This isn’t just hype. Ocala is emerging as a regional hub for healthcare and logistics. Significant investments, such as the expansions at AdventHealth Ocala and Ocala Regional Medical Center, as well as Dollar Tree’s mega facility, drive job growth and, consequently, rental demand in the area.

With 209,686 residents, the city’s steady growth (1.72% in 2024) and high percentage of renters (39%) create opportunities for rental property investors. Average rents in Port Charlotte currently range from $1,670 to $2,100 per month, depending on the property type, offering good rental income prospects.

Unlike nearby coastal cities like Sarasota, Port Charlotte offers a much more affordable entry point when investing in Florida real estate. The city’s median sale price as of February 2025 was around $285,000.

Port Charlotte is making tangible investments in its future. Immediate infrastructure upgrades are ongoing, such as Comcast’s $15 million investment to expand its high-speed network across Charlotte County, including Port Charlotte.

Another reason Port Charlotte made it onto our list of the best real estate markets in Florida is the city’s comprehensive 20-year infrastructure development roadmap, which will improve essential services such as roads and utilities, thereby attracting new businesses and additional investments. This suggests that property values in Port Charlotte are going to rise over the long haul.

The current market conditions in Port Charlotte favor buyers and investors. Homes spend longer on the market (72 days on average, according to Redfin), which means sellers may be more willing to be flexible with pricing.

Fort Myers presents a solid opportunity for real estate investment in Florida, thanks to its steady population growth and job market. Resilient sectors, such as healthcare, logistics, and manufacturing, drive Fort Myers’ economy and job growth, creating sustainable demand for housing. Combining its affordability (average home price of $345,000) with an attractive lifestyle, you get a market likely to offer consistent rental demand and good potential for long-term value appreciation.

You might find a higher-than-usual number of distressed properties (foreclosures, short sales, as-is properties) in Fort Myers due to the impact of recent hurricanes. The opportunity here is that you can acquire these properties for less than their market value, making Fort Myers an attractive destination for investors seeking value-add opportunities or lower entry costs.

Investors can capitalize on the reliable, peak season demand in Fort Myers, typically between October and April, from “snowbirds,” i.e., retirees from colder northern states and Canada who migrate south for the winter months. This makes Fort Myers an ideal choice if you’re considering short-term rentals.

Beyond this, there is a strong demand for long-term rentals from retirees who opt to live here permanently due to the warm climate and lifestyle amenities, such as beaches, golf courses, and outdoor activities.

Fort Myers’ population has grown by 16.7% since 2020, largely driven by net migration. And it’s not just people who are moving here. Major companies and infrastructure projects are following suit, a sign of economic growth.

Substantial investments are coming to Fort Myers, including Amazon’s new Robotics Distribution center, a new hospital by Lee Health, the expansion of Southwest Florida International Airport, and commercial projects along the Alico Road corridor, which is expected to host 150,000 jobs.

That wraps up our best real estate markets in Florida. Now, let’s cover some risks and questions about investing in Florida real estate.

Insurance costs have generally increased across the United States, but more significantly in Florida. Coverage is becoming harder to secure due to some insurers, such as State Farm and Allstate, leaving the state due to storm risks and litigation costs. Therefore, it’s absolutely critical to factor insurance costs into your calculations before investing in Florida real estate.

You should also carefully evaluate your properties for their vulnerability to natural disasters. You should consider investing in protective measures, such as fortified roofs and flood prevention projects like installing a sump pump and French drain, that may qualify for premium discounts.

Hurricanes and flooding pose significant threats to properties in Northwest and Southwest Florida. You must actively plan for this if you want to invest in these areas. These natural occurrences impact the safety of your investment and inflate insurance costs.

You must perform thorough due diligence on a property’s specific vulnerabilities and be prepared to invest more in making it resilient, including impact-resistant windows, reinforced roofs, and possibly elevation to reduce flood risk. If you plan to invest in Florida’s coastal areas, you should also budget for those high insurance premiums.

Zoning regulations are highly localized in Florida. Each municipality imposes its own rules on residential, commercial, industrial, and agricultural uses. You can’t assume a property can be used the way you intend just because it’s for sale. Before purchasing any property, it is essential to research local zoning laws. This is why you should work with an experienced real estate agent or a trusted property team, such as those RealWealth recommends.

Now that you’ve learned about the best real estate markets in Florida, you may be ready to look at potential turnkey investment properties. At RealWealth, we connect our members to vetted turnkey real estate companies selling off-market single family and multi-family investment properties in top Florida real estate markets. If you are ready to view properties and more, join RealWealth—it’s 100% free!