Thinking about buying a rental in Orlando but not sure how to tell if the numbers work? You’re not alone. With prices, rents, and operating costs moving in different directions, a clear process helps you separate solid opportunities from costly guesses. In this guide, you’ll get a simple, investor-tested framework tailored to Orlando so you can screen deals fast, underwrite with confidence, and move forward wisely. Let’s dive in.
Orlando rental snapshot: what the numbers say
Orlando’s median home value sits around $368,000, based on city-level data from Zillow. That gives you a quick sense of price context before you run comps on a specific property. See the current median on the Zillow Orlando home values page.
Typical asking rents across recent indexes range about $1,785 to $1,900 per month, depending on unit mix and source. Use the range for early screening, then confirm with local comps. For a metro view of asking trends, review RentCafe’s Orlando rent overview.
Vacancy has moved up with new supply in recent years. Industry coverage suggests Orlando multifamily vacancy commonly in the 6 to 9 percent range through late 2025 into 2026, with variation by submarket and class. See a summary of that trend in ConnectCRE’s Orlando vacancy outlook.
For yield context, national cap rate surveys show multifamily cap rates in the mid 5 percent band in late 2025, with local variation by market and asset type. Use that as a reference point when you calculate your going-in cap rate. Review the CBRE U.S. Cap Rate Survey (H2 2025).
Bottom line: Orlando can work for long-term rentals, but you need disciplined screening and property-specific underwriting to account for taxes, insurance, HOA costs, and vacancy risk.
Step 1: Clarify your strategy
Before you look at listings, define what “good” looks like for you.
- Objective: cash flow, appreciation, or a hybrid.
- Hold period and leverage: how much debt and for how long.
- Return metrics: cash-on-cash, cap rate, or IRR.
- Time budget: how much time you can spend per property each month.
A clear strategy keeps you focused when you compare tradeoffs between price, rent, and risk.
Step 2: Run a first-pass screen
Use fast, simple filters to triage listings before you spend time on full underwriting.
Rent-to-price (1 percent rule)
As a quick check, see if monthly rent is near 1 percent of the purchase price. It is a crude rule of thumb, not a final answer, but it helps you spot higher-yield candidates. Learn more about the heuristic in Investopedia’s 1 percent rule explainer.
- Orlando illustration using city medians: $1,900 rent on a $368,000 home is about 0.52 percent. That is below a strict 1 percent screen, so expect fewer easy cash-flow deals. You can still make a deal work with a lower price, higher achievable rent, or value-add improvements.
GRM quick compare
Gross Rent Multiplier (GRM) equals price divided by annual gross rent. Lower is usually better for cash returns. Use GRM to compare similar properties within the same submarket to spot relative value.
Quick expense screen (50 percent rule)
For early triage, assume 40 to 60 percent of gross rent goes to operating expenses. This sets expectations before you gather line items. See a practical overview in the BiggerPockets rental calculator.
Step 3: Underwrite your short list
When a property passes your first screen, build a one-page pro forma with local inputs.
Revenue assumptions
- Gross scheduled rent: base this on local listing comps and leases for the same unit type and quality.
- Vacancy and turnover: subtract a vacancy allowance. Recent Orlando multifamily coverage commonly cites 6 to 9 percent. Use the higher end in pockets with new supply or fast turnover. See ConnectCRE’s summary of Orlando vacancy.
Expense line items to verify
- Property taxes: millage varies by municipality and special districts. Use the Orange County tax estimator with parcel specifics for accuracy.
- Insurance: Florida landlord policies tend to cost more than the national average. Many rentals fall in the low to mid $2,000s per year for a DP-3 policy, with wind or flood coverage adding more depending on exposure. Get property-specific quotes early. For a statewide view, see Insurance.com’s guide to Florida landlord insurance.
- Property management: full-service management often runs about 8 to 12 percent of collected rent, with a separate leasing fee. Confirm exact pricing with local managers. See a Florida fee overview from HomeRiver Group.
- Maintenance and reserves: set aside 1 percent of property value per year or 5 to 10 percent of gross rent as a starting reserve, then refine after inspection.
- HOA dues, utilities you pay, advertising, legal, and licensing or registration fees: verify each item for the specific property and city.
Returns to calculate
- Net Operating Income (NOI): effective gross income minus operating expenses.
- Cap rate: NOI divided by purchase price. Compare to published benchmarks like the CBRE national cap rate survey and to your target returns.
- Cash-on-cash: your annual pre-tax cash flow divided by total cash invested under likely financing terms.
Sensitivity tests to run
- Rents down 5 to 10 percent.
- Vacancy up to 12 percent in pockets with heavier new supply.
- Insurance or property tax increases.
Use these scenarios to set your maximum offer and to plan adequate reserves.
Step 4: Diligence before an offer
Protect your downside by confirming these items early.
- Rents: validate with active listings and recent leases, not just indexes.
- Title and compliance: review title commitment, easements, code violations, and any special assessments.
- Flood exposure: check flood maps and whether NFIP or private flood coverage is required.
- HOA: confirm leasing rules, minimum lease length, guest policies, and assessments.
- Inspection: get a full property inspection and a contractor estimate for deferred maintenance.
- Insurance: request binder terms and a replacement cost estimate from multiple carriers.
- Legal and registration: Florida’s residential landlord-tenant law is governed by Chapter 83. Municipal registration rules vary, so check the specific city. Review Florida Statutes Chapter 83.
How to compare Orlando submarkets
Focus on consistent, comparable metrics across neighborhoods.
What to measure
- Current asking rent for your unit type and six to twelve month rent trend.
- Vacancy and nearby supply pipeline.
- Commute patterns and proximity to major employers or institutional anchors.
- Price per square foot, days on market, and sales velocity.
- Lease turnover expectations for the likely tenant profile.
- Property-level risks: HOA lease limits, flood exposure, and insurance cost drivers.
Example areas to study
- Lake Nona and Medical City: anchored by healthcare, research, and university facilities that support steady, year-round housing demand for staff and students.
- Downtown, College Park, and Creative Village: close to employment and amenities with demand from renters who prefer short commutes and walkability. Review the local pipeline of new apartments when you underwrite here.
- Dr. Phillips: proximity to major retail and the tourist corridor with pricing that can command a premium in some pockets.
- Outer suburbs like Oviedo, Apopka, and Winter Garden: often a lower price basis for single-family rentals. Evaluate commute patterns to job centers and review HOA leasing rules by community.
Worked example: screen to quick underwrite
Use this as a template, then replace with parcel-specific numbers.
- Price: $367,868 (illustrative, near the Zillow city median; check the latest on the Zillow Orlando page).
- Expected monthly rent: $1,900 (illustrative within recent Orlando asking ranges; confirm with local comps and active listings, and review RentCafe’s market overview for city-level context).
Quick filters:
- 1 percent rule: 1,900 ÷ 367,868 ≈ 0.52 percent. Below a strict cash-flow screen, so look for price improvement, rent upside, or value-add.
- GRM: 367,868 ÷ (1,900 × 12) ≈ 16.1. Compare to GRM ranges for similar properties in the same submarket.
Quick NOI with conservative heuristics:
- Annual gross rent: $22,800.
- Vacancy allowance: 8 percent. Effective gross income: $22,800 × 0.92 = $20,976.
- Operating expenses (50 percent rule): about $11,400.
- NOI: $20,976 − $11,400 = $9,576.
- Going-in cap rate: $9,576 ÷ $367,868 ≈ 2.6 percent.
Interpretation: At city-level medians, Orlando often pencils as appreciation- or leverage-driven unless you buy below market, target submarkets with stronger achievable rents, or improve NOI. Replace these heuristics with line items for taxes, insurance, HOA, and management specific to the actual parcel.
Action plan: your next 30 days
- Week 1: Define your strategy and return targets. Build a simple analyzer with the 1 percent rule, GRM, and a 50 percent expense screen.
- Week 2: Pick two to three submarkets and gather rent comps for your target bedroom count and property type.
- Week 3: Shortlist three to seven properties. For top candidates, pull the Orange County tax estimator, request insurance quotes, and schedule inspections.
- Week 4: Build base, stressed, and upside scenarios. If a property still clears your hurdles, prepare an offer with protective contingencies.
Ready to invest with a local advisor?
If you want neighborhood-level comps, targeted submarket guidance, and senior-level representation on your next Orlando rental, our team is here to help. Start a focused conversation with John R Gordon PA to align your strategy, identify the right properties, and move from analysis to action with confidence.
FAQs
What is a good cap rate for Orlando long-term rentals in 2026?
- National surveys placed stabilized multifamily cap rates in the mid 5 percent range in late 2025, with local variation by market and asset type. Underwrite property-specific NOI and compare your going-in cap rate to that benchmark and to your target returns.
How much vacancy should I underwrite for an Orlando rental?
- Recent industry coverage cites Orlando multifamily vacancy commonly around 6 to 9 percent, with variation by submarket and class. Use higher assumptions in areas with heavier new supply and validate with local leasing data.
How do I estimate my Orange County property taxes accurately?
- Use the county’s parcel-specific tool to model taxes for the address, since millage varies by city and special districts. Start with the Orange County tax estimator.
What should I budget for landlord insurance in Orlando?
- Florida landlord policies are generally higher than the national average. Many rentals fall in the low to mid $2,000s per year, plus possible wind or flood coverage based on exposure. Get quotes specific to the property. See Insurance.com’s Florida landlord overview.
Do I need a rental license to lease a home in Orlando?
- Florida’s residential landlord-tenant rules are set by Chapter 83 statewide, while municipalities can have their own registration requirements. Check the city where the property sits and review Florida Statutes Chapter 83.
Are Orlando rentals supported by year-round demand or mostly tourism?
- Long-term demand is supported by major job centers and institutional anchors, including healthcare, education, and corporate employers. Tourism adds economic activity, but underwrite long-term rentals using employment clusters, commute patterns, and local rent comps first.
