Rent vs buy calculator — Florida

Frequently asked questions

How does this rent vs buy calculator find break-even?

It compares cumulative renting cost to cumulative owning cost net of equity (principal paydown plus appreciation). Break-even is the first year owning costs less than renting.

Does this include opportunity cost of the down payment?

Yes. The rent path includes foregone investment returns by compounding the down payment at your chosen investment return assumption.

Can I save rent vs buy scenarios?

This calculator does not save your session. Use a free Veld account to save assumptions, compare scenarios, and track your property decisions over time.

Does this include hurricane or flood insurance?

No. Add expected insurance and reserves in your expense inputs. The calculator does not model hazard zones or carrier requirements for you.

What is a good cap rate in Florida?

Residential cap rates in Florida markets like Tampa, Orlando, and Jacksonville typically run 5–7% as of 2024–2025. South Florida and beach markets compress toward 4–5% due to appreciation expectations and higher prices. Wind and flood insurance costs reduce effective NOI—use your actual carrier quotes in the expenses line.

What DSCR do Florida lenders typically require?

Most DSCR lenders in Florida require a minimum of 1.0, with many preferring 1.20–1.25 for lower rates and better terms. Given Florida's higher insurance costs—especially in coastal counties—underwriting at 1.25 or above leaves room for insurance premium increases without failing coverage thresholds. Confirm requirements with your specific lender.

How should I evaluate rent vs buy in Florida?

Use local rent near about $1,700/month, purchase levels around $433,600 median home prices, and realistic mortgage assumptions. Break-even timing changes quickly when appreciation, rent growth, and opportunity cost assumptions shift.