Miami-Dade County, FL Cap Rates by Neighborhood

Why the County-Level Gross Yield Misleads

Miami-Dade's aggregate gross yield sits at 6.62%, computed from a $521,999 median home price and $2,879 monthly median rent. That number is accurate and nearly useless for underwriting a specific deal.

The county contains two parallel markets operating under different physics. Single-family homes carry a 6.5-month supply with prices up 3.3% year-over-year as of November 2025, while condos sit at 14.1 months of supply with the median condo price down 9.5% over the same period. A gross yield blended across those two asset types produces a figure that accurately describes neither. Add in a 40-percentage-point spread in cash-buyer penetration between the condo and SFR segments, and the aggregate yield becomes a starting point, not an answer.

The more useful frame: net operating income per dollar of acquisition cost, segmented by asset type and submarket. Everything below works toward that number.

Asset Segment Breakdown

Single-Family Residential

SFR in Miami-Dade is the tightest segment in the county. Active single-family listings fell 14.55% year-over-year in April 2026 to 4,723 units, while SFR dollar volume rose 8.63% over the same month. That combination, rising sales and falling inventory, means buyers are not finding pricing relief.

Gross yields in inland SFR corridors are compressed by acquisition prices but supported by occupancy. County-wide appreciation since May 2015 is 139.4% (from $282,000 to $675,000), which means entry prices have outrun rent growth over the cycle. Investors buying SFR today at or near the county median of $522,000 are underwriting a gross yield closer to the stated 6.62%, before expenses.

Little Haiti and Allapattah are the two named neighborhoods with the clearest value gap. Little Haiti posted about 67% five-year appreciation through Q3 2025; Allapattah, 58%. Both still trade at 40–50% discounts to adjacent submarkets like Wynwood and the Design District. For a long-horizon holder, that discount creates a higher entry yield and a larger pool of potential appreciation before prices reach parity with adjacent markets.

Condos

The condo segment is the most distressed in the county by any structural measure. Fourteen-plus months of supply, a 9.5% year-over-year price decline, and only 21 of 2,397 tri-county condo buildings approved for FHA financing have converged to produce a de facto all-cash market: 82% of $1M-plus condo sales in 2025 were all-cash.

That financing constraint is the key dynamic. First-time buyer demand has been mechanically eliminated from most of the condo stock, which widens the spread between asking price and clearing price. For an all-cash or conventional buyer with no FHA dependency, this creates a discount entry point. Gross yields on condo acquisitions are rising as prices fall faster than rents in the same submarkets.

Miami Beach (ZIP 33141) is down 5.9% year-over-year. Brickell and Edgewater are also showing extended days-on-market in the 70–116 day range. Brickell's estimated rental yield is about 5.8%; Wynwood's is about 5.2%. Neither figure is strong at face value, and both are gross numbers. Net yield depends entirely on the HOA reserve burden, which the Champlain Towers legislation has made structurally higher for any pre-2000 building.

Neighborhood Comparison Table

Property Tax Drag on Net Cap Rate

Miami-Dade carries the highest effective property tax rate of any Florida county at 1.94% of assessed fair market value. On a $522,000 acquisition, that produces annual taxes of about $10,127. Against a gross annual rent of $34,548 (the ZORI figure annualized), the tax line alone consumes 29.3% of gross rent before any insurance, vacancy, maintenance, or management cost.

Two amplifying factors for investors:

First, Florida's Amendment 5 (passed November 2024) indexes the homestead exemption to CPI, but investment properties receive no such protection. Assessments reset to full market value on every sale. A property where the prior owner held a Save Our Homes cap could have an assessed value well below market. After closing, the county reassesses at the purchase price, and the tax line resets upward immediately in Year 1. That step-up must be modeled explicitly; it is not gradual.

Second, the 1.94% rate applies to assessed value with no deferred-assessment protection for non-homestead properties. In a county where the tax base grew about 10% in FY 2024-25 despite flat millage, assessment creep is a recurring budget line, not a one-time event.

A reasonable net cap rate estimate for an income property at the county median requires subtracting: 1.94% in taxes (reduces gross yield by about 194 basis points), insurance (see below), vacancy, management, and maintenance. A 6.62% gross yield net of taxes alone approaches 4.7%.

Insurance and Flood Adjustment

Miami-Dade insurance costs are the most severe net-yield compressor in the stack. Coastal insurance premiums rose an average 38% year-over-year, with some zones seeing 65% increases. First Street analysis finds 62% of all county properties face severe flooding risk over a 30-year hold, and 100% face extreme wind risk.

FEMA's pending flood map revisions add 45,420 structures to the Special Flood Hazard Area above prior maps, reaching a total of 252,015 county structures in the SFHA. Newly mapped properties with federally-backed mortgages will face mandatory NFIP or private flood insurance, estimated at $1,200–$3,000-plus annually per property.

The one structural offset: unincorporated Miami-Dade County achieved CRS Class 3 rating effective April 1, 2024, providing a 35% NFIP premium discount for properties in the UMSA. For an investor buying in unincorporated areas, that discount is real and worth quantifying at acquisition. Properties in incorporated municipalities (Miami Beach, Coral Gables, Hialeah) carry independent CRS ratings that vary and must be verified separately.

On a mid-priced asset, stacking taxes and insurance realistically compresses net yields to the 3.5–4.5% range in coastal or flood-exposed locations, and to 4.5–5.5% in inland SFR corridors with lower flood exposure and UMSA CRS eligibility.

Cap Rate Outlook

Two forces are working in opposite directions heading into 2026 and beyond.

Decompression pressure on condos: The multifamily pipeline is the most immediate headwind. Miami-Dade had about 25,000 units under construction as of early 2025, equal to roughly 20% of existing multifamily stock. With 10,695 units permitted in the year ending August 2025 (a 43.9% increase year-over-year), Downtown, Edgewater, and Brickell will absorb concessions pressure through at least 2026. Rents near new deliveries will soften before stabilizing, and gross yields on new condo acquisitions in those submarkets will drift higher as prices fall further than rents.

Compression pressure on SFR: Falling inventory, employment growth ranked first among the 10 largest US counties at 1.7%, and a 40% cash-buyer market insulate SFR pricing from rate movements. As the South Dade BRT TransitWay generates 4,400 units of approved affordable housing along 14 stations, demand density along that 20-mile corridor builds a floor under SFR rents in an underbuilt suburban segment.

The Live Local Act, now on its fourth legislative amendment through HB 1389 (2026), remains the most actionable tool for value-add investors: qualifying projects can bypass rezoning entirely, reaching 250 units per acre in Metropolitan Urban Centers with 40% of units at or below 120% AMI. For investors with the capacity to execute on commercially-zoned parcels near transit, entitlement risk is structurally lower than it was three years ago.

For a long-horizon SFR or transit-adjacent land play, the structural case rests on sustained employment growth, constrained SFR supply, and infrastructure catalysts that are already funded and partially open. For a near-term condo yield play, the case rests on discount acquisition, all-cash capacity, and precise underwriting of the HOA reserve and insurance cost stack.

Model your specific deal with our investment property calculator to build a full NOI schedule incorporating Miami-Dade's 1.94% tax rate, your submarket's CRS flood discount, and current insurance quotes before committing to any acquisition.