Florida’s Hot Residential Rental Market is Now Sizzling
In the high-end rental sector, and as one of the nine states that have the most expensive zip codes markets in the nation—Florida boasts fifteen zip codes, following New York with 44 and California with 28, according to RentHop’s annual analysis.
Yes, owning a rental property continues to be très chic in Florida, And, whether you are an agent shopping for an investment client or a resident looking for additional revenue streams, it’s likely you don’t need a Florida real estate lawyer to explain why—majorly, it’s because our state’s unstoppable flow of new residents, no income tax, and historically modest property taxes, the profitability for rental income and capital gains reporting remains exceptionally attractive.
This is especially true in South Florida, whose rental-property owners are currently enjoying a surge in demand for rentable houses and apartments, in both the long-term and short-term categories. Which South Florida communities have the brightest rental futures? Let’s look at the numbers.
South Florida’s Rental Market is Poised for Profitability
According to a study conducted by apartment search website RentCafe, South Florida boasts the hottest rental market in the U.S. During the pandemic, people flocked to Florida for its looser COVID restrictions, lack of a state income tax, and year-round sunny weather. Post COVID, the number of incoming new residents remained strong, which created a housing shortage that is just now beginning to be corrected for, thanks to the construction boom.
How to Identify Property with Potential
How do you zero in on communities with the most lucrative rental income potential? Demographics for any zip code are readily available, and so easy—thank you Google! Key demographics to check regarding a rental community’s potential include the area’s population growth, resident age range, and household income, and diversity.
Healthy population growth suggests a consistent pool of tenants, less vacancy time, and competitive rents. When reviewing age-range, a wide-age range can indicate a healthy community overall, but keep in mind, in general, Gen Z and Millennials (adults under 35) represent over 50% of the rental population, and in South Florida the largest age-groups of renters are 20-34 and 35-44. A look at their average incomes will suggest what they can afford in housing expenses.
According to Miami Realtors, the 2024 median single-family asking price for rent in these South Florida Beach towns saw these increases: Stuart—8.1%, Hialeah—98%, and Fort Pierce—4%.
Beach-town Neighborhoods Ripe for Rentals
The rental market in South Florida’s beach towns continues to experience a burgeoning of new construction and rents remain significantly higher than average. And while there is a wide range of rental price points and revenue potential, here’s a breakdown of some of South Florida’s most bustling salt-life loving rental communities.
- Deerfield Beach / Lighthouse Point area: Deerfield Beach, a small coastal town in Broward County, is known for its award-winning “Blue Wave”’ beach, and the longest cable ski courses in the country. The population of Deerfield Beach grew from 81.3K in 2019 to 87.5K in 2025.* Currently the average rent is $2,619.6. This popular destination for tourists and long-term renters offers affordable rental homes with high occupancy rates and great weekend revenue potential. Nearby, another small coastal town, Lighthouse Point is also known for its very desirable waterfront life stye. With Pompeno beach to the south, Hillsborough Beach to the north, and the white sands of Lighthouse Point Park in between, this exclusive city has a small town feel and its rental availabilities have long been sought after. The number of canals offers easy access to the Intracoastal and the Atlantic, and many properties have private docks, attracting affluent renters and short-term vacationers.
- Fort Lauderdale area: In general, the 190,000-plus population-strong city of oceanside Fort Lauderdale boasts renter-welcoming schools for young families and a diverse population. Very desirable suburban rental neighborhoods include Los Olas—which has a strong rental market thanks to high demand and good appreciation potential; Coral Ridge, one of the city’s most upscale communities, has a strong real estate market with properties that range from high-rise condos to elegant estates; and Lighthouse Point—with Pompeno beach to the south, Hillsborough Beach to the north, and the white sands of Lighthouse Point Park in between, this exclusive city has a small town feel and its rental availabilities have long been sought after.
- Miami area: Brickell, an area considered to be one of the best neighborhoods for investment properties in the county, rocks tropical urban sophistication amid luxury living. The area boasts a steady stream of potential tenants, from professionals to young families and foreign expats. Downtown Miami can’t be beat for jetsetting action. From a world-renowned nightlife to its international business district, move over NYC—here is another city that never sleeps. It’s also an area where the majority of residents rent. In fact, renters outnumber homeowners three to one! And it would be remiss not to mention celebrity-laden South Beach. Here, many properties have luxe amenities, making them highly attractive to affluent tenants. Miami’s population rose from 441.9k in 2021 to 482.1k in 2024*.
*According to World Population Review 2024
Florida Bar Board-Certified Attorneys David E. Klein, Esq. and Guy Rabideau at Rabideauklein.com have the expertise and experience you need to ensure that your interests are protected throughout your real estate transactions across the Palm Beaches and throughout Florida. You are welcome to contact Rabideau Klein to discuss the legal implications of your next Florida property transaction.
- West Palm Beach area: Right out of the starting gate, West Palm Beach is a most provocative bet. It has undergone a major growth spurt thanks to a massive influx of wealth from other areas of the country, particularly in the financial and banking industries. This transfer of major movers and shakers has earned the area the nickname “Wall Street South.” As confirmed by the U.S. census, it’s one of the fastest growing cities in the nation. It’s also the largest metropolitan area in Palm Beach County and is conveniently situated just across the bridge from neighboring Palm Beach island. The recent growth and investment in the area ensures a healthy number of incoming young upwardly-mobile professionals needing homes including long-term family-community rentals, luxe-cribs suitable for executive entertaining, as well as efficient singles-vibe condos. West Palm Beach’s population has grown from 117,900 in 2021 to its current 126,300 residents.*
- Boca Raton area: From being the topic of several Seinfeld, episodes, to a favored reference at comedy clubs, Boca Raton has long been famously associated with leisure minded retirees. And, while there is a recent statewide surge of more senior renters—specifically those in their 70’s—Boca is also known for its art and culture and enjoys a robust rental community overall. The Downtown Boca rental market sports properties ranging from luxury homes to Manhattan-sized studios, while Beachside Boca boasts two miles of pristine, lifeguard-protected beaches offering both short- and long-term rental investment opportunities. Boca Raton’s current population has risen to 100,550, up from 98.2k in 2020.*
- Deerfield Beach / Lighthouse Point area: Deerfield Beach, a small coastal town in Broward County, is known for its award-winning “Blue Wave”’ beach, and the longest cable ski courses in the country. The population of Deerfield Beach grew from 81.3K in 2019 to 87.5K in 2025.* Currently the average rent is $2,619.6. This popular destination for tourists and long-term renters offers affordable rental homes with high occupancy rates and great weekend revenue potential. Nearby, another small coastal town, Lighthouse Point is also known for its very desirable waterfront life stye. With Pompeno beach to the south, Hillsborough Beach to the north, and the white sands of Lighthouse Point Park in between, this exclusive city has a small town feel and its rental availabilities have long been sought after. The number of canals offers easy access to the Intracoastal and the Atlantic, and many properties have private docks, attracting affluent renters and short-term vacationers.
- Fort Lauderdale area: In general, the 190,000-plus population-strong city of oceanside Fort Lauderdale boasts renter-welcoming schools for young families and a diverse population. Very desirable suburban rental neighborhoods include Los Olas—which has a strong rental market thanks to high demand and good appreciation potential; Coral Ridge, one of the city’s most upscale communities, has a strong real estate market with properties that range from high-rise condos to elegant estates; and Lighthouse Point—with Pompeno beach to the south, Hillsborough Beach to the north, and the white sands of Lighthouse Point Park in between, this exclusive city has a small town feel and its rental availabilities have long been sought after.
- Miami area: Brickell, an area considered to be one of the best neighborhoods for investment properties in the county, rocks tropical urban sophistication amid luxury living. The area boasts a steady stream of potential tenants, from professionals to young families and foreign expats. Downtown Miami can’t be beat for jetsetting action. From a world-renowned nightlife to its international business district, move over NYC—here is another city that never sleeps. It’s also an area where the majority of residents rent. In fact, renters outnumber homeowners three to one! And it would be remiss not to mention celebrity-laden South Beach. Here, many properties have luxe amenities, making them highly attractive to affluent tenants. Miami’s population rose from 441.9k in 2021 to 482.1k in 2024*.
*According to World Population Review 2024
Florida Bar Board-Certified Attorneys David E. Klein, Esq. and Guy Rabideau at Rabideauklein.com have the expertise and experience you need to ensure that your interests are protected throughout your real estate transactions across the Palm Beaches and throughout Florida. You are welcome to contact Rabideau Klein to discuss the legal implications of your next Florida property transaction.