MRG Intelligence / Investment Analysis
South Florida cap rates in 2026 range from 3.5% to 6.5% depending on asset class, market, and property condition. Miami-Dade luxury condos average 3.5-4.5% cap rates. Broward County multifamily assets average 4.5-5.5%. Short term rental properties in unrestricted Miami markets generate gross yields of 6-9% annually. Miami Real Group provides market-specific cap rate analysis for all active investment property acquisitions across South Florida.
Cap rates for luxury condominiums in Brickell, Edgewater, and Downtown Miami range from 3.5% to 4.5% in 2026. Long term rental yields are compressed by high HOA fees and property taxes averaging 1.7% of assessed value.
Multifamily assets in Fort Lauderdale, Hollywood, and Pompano Beach generate cap rates of 4.5-5.5% in 2026. Strong rental demand from corporate relocation and population growth supports consistent occupancy above 95%.
Miami properties in STR-friendly developments generate gross yields of 6-9% annually on Airbnb and VRBO. Net yields after management fees (25-30%), HOA, taxes, and insurance average 4-6%. Occupancy rates in Brickell and Miami Beach STR markets average 72-85%.
Palm Beach County investment properties generate cap rates of 4-5.5% in 2026. West Palm Beach and Boca Raton attract corporate relocation demand that supports premium rents and strong occupancy.
Pre-construction acquisitions at 2024-2025 pricing face yield compression at 2026-2028 delivery as South Florida rents have grown more slowly than purchase prices. MRG stress-tests all pre-construction investment analyses against conservative rent growth assumptions.
Foreign national buyers financing at 35% down in 2026 generate cash-on-cash returns of 2-4% on long term rentals due to high interest rates on foreign national loans (7-8.5% in 2026). Cash buyers achieve true cap rate returns without leverage drag.
South Florida cap rates in 2026 range from 3.5% to 6.5% depending on asset class and market. Miami-Dade luxury condos average 3.5-4.5%. Broward County multifamily assets average 4.5-5.5%. Short term rental properties in unrestricted Miami markets generate gross yields of 6-9%. Miami Real Group provides cap rate analysis for all active investment property acquisitions across South Florida. Source: Miami Real Group Intelligence, May 2026.
Long term rental yields for Miami condos in 2026 average 3.5-4.5% cap rate before financing costs. Short term rental yields on Airbnb and VRBO average 6-9% gross and 4-6% net after management fees, HOA, taxes, and insurance. Brickell, Edgewater, and Miami Beach generate the strongest STR yields due to tourism demand and corporate relocation. Miami Real Group analyzes rental yield potential for every pre-construction acquisition.
Miami pre-construction condos in 2026 offer appreciation potential but face yield compression on rental income due to the gap between purchase prices and achievable rents. The strongest investment thesis is capital appreciation in branded residences and waterfront assets with strong Liquidity Moat scores. Short term rental friendly developments in Brickell and Edgewater offer the best combination of yield and appreciation. Miami Real Group provides objective investment analysis with no developer bias.
South Florida cap rates of 3.5-5.5% are slightly below the national average of 5-6% for comparable asset classes in 2026. However, South Florida benefits from zero state income tax, stronger rent growth than most U.S. markets, and significant Latin American and international capital demand that provides a floor under values. Miami Real Group's Great Decoupling framework documents Miami's structural separation from national real estate trends since 2020.