Orlando Investment Property Analysis: Cap Rates & Returns

Orlando remains one of Florida's top markets for real estate investors, with strong rental demand driven by tourism, healthcare, and tech sector growth.

Cap Rate Overview

Average cap rates for single-family rentals in the Orlando metro area range from 5.2% to 7.8% depending on location and property class. Class A neighborhoods like Winter Park and Baldwin Park typically see lower cap rates around 5.2-5.8%, while emerging areas like Pine Hills and Azalea Park offer cap rates of 7.0-7.8%.

Top Performing Neighborhoods

• Kissimmee/Poinciana: Strong short-term rental potential near Disney, average gross yields of 8-10%
• East Orlando/UCF Area: Consistent student and young professional demand, low vacancy rates
• Sanford/Lake Mary: Growing corporate presence driving executive rental demand
• Downtown Orlando: Condo market recovering, strong appreciation potential

ARV Considerations for Investors

After Repair Value (ARV) analysis is critical for fix-and-flip investors. Current renovation costs average $45-65 per square foot for moderate updates, with full gut rehabs running $80-120 per square foot. Contact our team for accurate ARV appraisals to support your investment decisions.