Miami, FL Rental Market Report — Q1 2026
Targeted question: What does the Miami, FL rental market look like in 2026?
Short answer: Median single-family Cap Rate in Miami-Dade is 5.4% in Q1 2026, with median rent at $2.15/sqft. Rent growth has moderated to +3.1% year-over-year from the 2021–2023 peak. Insurance premiums remain the single biggest expense driver (+18% YoY).
What does the Miami, FL rental market look like in 2026?
Median single-family Cap Rate in Miami-Dade County is 5.4% as of Q1 2026. Median gross rent is $2.15/sqft/mo. Year-over-year rent growth has slowed to +3.1% from the double-digit 2021–2023 peak. The dominant expense headwind is insurance — premiums are up +18% YoY driven by coastal hurricane exposure.
Key metrics — Q1 2026
| Metric | Value |
|---|---|
| Median list price (SFH) | $675,000 |
| Median rent per sqft | $2.15 |
| Median single-family Cap Rate | 5.4% |
| Median Cash-on-Cash (25% down, 7%) | 4.1% |
| Rent growth YoY | +3.1% |
| Vacancy rate | 5.6% |
| Insurance cost YoY | +18.0% |
| Months of supply | 4.8 |
Which sub-markets lead on Cap Rate?
- North Miami Beach (33162, 33179) — Cap Rate 6.1–6.8%, limited new supply.
- Hialeah (33012, 33013) — Cap Rate 5.9–6.4%, strong tenant demand.
- Homestead (33030, 33033) — Cap Rate 6.4–7.2%, longest vacancy durations.
Class A downtown Brickell/Edgewater condos trade at 3.5–4.5% Cap Rate and are appreciation-driven, not cash-flow-driven.
Decision framework for investors in 2026
- Target Cap Rate ≥ 6% — that limits you to North Miami Beach, Hialeah and Homestead.
- Budget real insurance: request quotes, not estimates; expect $4,500–$7,500/yr for a coastal SFH.
- Layer the 6-month rent-trend filter — with growth at +3.1%, downward-trending ZIPs should be avoided.
- Reassess property taxes post-close: Miami-Dade reassessments often lift taxes 20–30% after sale.
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