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Cap Rate Analysis: Orlando, FL

Investment metrics, interactive calculators, and data-driven analysis for Orlando rental properties.

Challenging for pure cash flow
Based on $360,000 median price and $1,680/mo median rent
Est. Cap Rate
3.63%
1% Rule
0.47%
Fails
GRM
17.9x
Price / Income
6.5x

Market Data

Median Home Price$360,000
Median Monthly Rent$1,680
Property Tax Rate0.89%
Population322,587
Population Growth2% / yr
Median Household Income$55,100
Vacancy Rate5%
Annual Appreciation4%

Cap Rate Calculator — Orlando

Pre-filled with Orlando medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.89% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.02%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,884
net operating income
Gross Rent Multiplier
17.9x
High (>15)
1% Rule
0.47%
✗ Fails
Monthly Cash Flow
$907
before debt service
Annual Breakdown
Gross Rental Income$20,160
Less Vacancy−$1,008
Effective Income$19,152
Less Operating Expenses−$8,268
Net Operating Income$10,884

Cash-on-Cash Return — Orlando

Factor in financing to see your actual return on invested capital in Orlando.

$
$90,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.36%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$100,800
$90,000 down + $10,800 closing
Monthly Mortgage
$1,760
on $270K loan
Monthly Cash Flow
$-786
after all expenses
Annual Cash Flow
$-9,434
before taxes
Cash Flow Breakdown
Monthly Rent$1,680
Less Expenses−$706
Less Mortgage−$1,760
Monthly Cash Flow$-786

Is Orlando a Good Place to Invest in Rental Property?

Orlando, FL has a population of 322,587 and has been growing at 2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $360,000 paired with median rents of $1,680/mo produces an estimated cap rate of 3.63%.

Property taxes at 0.89% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 6.5x, homes cost about 6.5 times the local median income of $55,100. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 4% annually. Above-average appreciation adds an equity component to total returns, though deals should still pencil on cash flow alone.

Bottom line: At current median prices, Orlando is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

Run a BRRRR analysis for Orlando
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