Florida ownership costs diverge from national averages in two directions at once. Property tax is held down by the homestead exemption and the Save Our Homes assessment cap, while homeowners insurance runs well above the national norm and is the line most calculators understate. Model both before judging what a Florida home costs to carry.
Price a property from a target cap rate, or get the cap rate from value and income. Fill any two fields and the rest computes; there is no mode switch.
What the property is worth in the market. In the cap rate formula it is the price NOI is measured against: value equals NOI divided by cap rate.
All income the property collects in a year before any expenses: rent plus parking, laundry, storage, and other fees.
The recurring costs of running a property: property taxes, insurance, maintenance, utilities, and property management fees. Debt service, depreciation, capital expenditures, and income taxes are not operating expenses.
The share of rental income lost to empty units and turnover, expressed as a percent of potential rental income.
Effective gross income minus all operating expenses for one year. NOI excludes debt service, depreciation, capital expenditures, and income taxes.
Net operating income divided by property value, expressed as a percent. It states the unlevered annual return a property’s income produces at a given price.
The same 296,960 of net income, priced across a range of yields. The marker is your 5.71% rate.
$512,000 gross → $296,960 NOI
Illustrative calculation only. Not advice and not a valuation.
Save it for later, share it with others, or export it as a report to get estimates before you buy.
One click sets every field.
The rest of this suite. Each answers one question.
It lowers the assessed value your property tax is calculated on, which lowers the tax portion of the payment. Up to $50,000 comes off assessed value for an eligible primary residence, with the second $25,000 not applying to school taxes. The exemption applies only to a primary residence, so an investment property or second home does not get it.
Plain-language definitions of every term this calculator uses.
Net operating income divided by property value, expressed as a percent. It states the unlevered annual return a property’s income produces at a given price.
Effective gross income minus all operating expenses for one year. NOI excludes debt service, depreciation, capital expenditures, and income taxes.
All income the property collects in a year before any expenses: rent plus parking, laundry, storage, and other fees.
The recurring costs of running a property: property taxes, insurance, maintenance, utilities, and property management fees. Debt service, depreciation, capital expenditures, and income taxes are not operating expenses.
The share of rental income lost to empty units and turnover, expressed as a percent of potential rental income.
Going-in uses today’s NOI and today’s price. Exit is the rate assumed at a future sale. Buyers underwrite exit rates above going-in rates to stay conservative.
What the property is worth in the market. In the cap rate formula it is the price NOI is measured against: value equals NOI divided by cap rate.