Cap rates 4.2–5.0% · Median price $350,000 · Median rent $1,800/mo · Population 310K
Orlando is the US's top tourist destination, creating exceptional short-term rental demand. Disney, Universal, and a growing tech sector (Lake Nona medical city) drive both LTR and STR markets.
Here's what the numbers look like on a typical Orlando rental at current market rates (20% down, 7.5% rate, standard expenses):
| Metric | As-Is (Current Rents) | Stabilized (Market Rents) |
|---|---|---|
| Purchase Price | $350,000 | $350,000 |
| Down Payment (20%) | $70,000 | $70,000 |
| Monthly Rent | $1,620 | $1,800 |
| Monthly Mortgage | $1,958 | $1,958 |
| Monthly OpEx (est 35%) | $567 | $630 |
| Est. Monthly Cash Flow | $-905/mo | $-788/mo |
| Cap Rate | 3.6% | 4.0% |
* Estimates only. Uses 20% down, 7.5% rate, 30yr term, 35% expense ratio, 5% vacancy. Run your own numbers with the calculator below.
Best for cash flow: Focus on workforce housing in established neighborhoods with strong employer anchors. Avoid chasing the highest raw yield numbers — the 10% cap rate in a declining neighborhood often means vacancy and management headaches that destroy returns.
Best for appreciation: Target neighborhoods within 2 miles of job centers, universities, or transit that are in the early stages of gentrification. Look for the coffee shop / yoga studio signal — amenities follow renters, and renters follow amenities.
Best for STR: Tourism-driven markets near {name}'s key attractions offer 2–3× LTR revenue but require professional management and local regulatory compliance.
DSCR Loans: Most Orlando properties qualify for DSCR financing with a 1.0+ ratio. Use our DSCR Calculator to check qualification before making an offer.