Florida still produces short-term rental markets with 15%+ gross yields in late 2026, but only in specific corridors where purchase prices have not fully caught up to revenue. The highest-ROI plays right now are on the Emerald Coast and in select underrated beach markets, not the saturated theme-park or luxury South Florida listings most investors chase.
I'm Troy Nowak, broker of Mangrove Bay Realty (BK3436609). We underwrite STRs daily for clients buying in Pinellas and Tampa Bay. The numbers below come from AirDNA (trailing twelve months through September 2026, published October 20, 2026), BNBCalc (updated October 7, 2026), Rabbu Demand Index (July 2026), and Florida Realtors / local MLS medians as of October 2026. Where sources disagree we show the range.
Highest Gross Yield Markets (Revenue ÷ Purchase Price)
Gross yield is the starting filter. It does not include operating costs, financing, or vacancy beyond the occupancy already baked into the revenue figure.
| Rank | Market | Gross Yield | Median Annual Revenue | Occupancy | ADR | Median Home Value | Source / Date |
|---|---|---|---|---|---|---|---|
| 1 | Fort Walton Beach | 17.0% | $52,056 | 39% | $298 | $317k | BNBCalc Oct 7 2026 |
| 2 | Daytona Beach | 15.4% | (not published) | — | — | ~$270k | Rabbu July 2026 |
| 3 | Orlando / Kissimmee | 12–14% | $48.9k (Orlando) | 61% | $245 | ~$370–400k | AirDNA Oct 20 + Rabbu |
| 4 | Panama City Beach | 12.6% | $51–55k | 60–62% | $289–326 | ~$365k | BNBCalc + AirDNA |
| 5 | Destin / Miramar Beach | 10–13% | $70–76k | 59–62% | $444–449 | $450k+ | AirDNA Oct 20 2026 |
Fort Walton Beach leads because entry prices remain accessible relative to revenue. Actual recent sales medians in Fort Walton Beach are running $350–360k (Momentum Realty / Redfin October 2026 data), so real-world gross yields on recent comps are closer to 14–15% once you use current purchase prices instead of the BNBCalc matched value. Still the strongest pure-yield coastal market in the state.
Daytona Beach is the clearest underrated name: 15.4% median gross yield with a Demand Index of only 15 (Rabbu July 2026). Lower competition, lower entry price, and seasonal but real demand.
Cost Adjustments: From Gross to Net Yield
Gross yield is not what hits the bank account. Typical annual operating costs for a Florida coastal or near-coastal STR in 2026:
- Property insurance + flood (where required): $4,000–$12,000 depending on coastal exposure and wind mitigation. Emerald Coast and Panhandle properties often land in the $5–8k range for a standard single-family.
- Property tax: roughly 1% of assessed value in most counties (non-homestead).
- Property management: 20–25% of gross revenue for full-service STR management.
- Cleaning, supplies, utilities, HOA, tourist development tax: usually 10–15% of gross combined.
- Reserves / CapEx: 3–5% of gross.
A realistic net operating yield after these costs (before debt service) is typically 6–10% in the better markets, not the 15%+ gross number. Markets with high insurance or high HOA fees compress faster.
Cash-on-Cash at Current Investor Rates
As of October 21, 2026 the DSCR Direct Rate Index shows a prime purchase benchmark of 6.624% (75% LTV, strong credit, 1.25 DSCR). Most 25% down investor DSCR loans on Florida STRs are quoting in the 6.75–7.25% range depending on credit and exact DSCR.
Example on a $500,000 purchase (25% down = $125,000 cash in, $375,000 loan at 6.75% 30-year): principal and interest is approximately $2,432/month or $29,187/year.
- Fort Walton-style property generating ~$52k gross: after 40–45% operating cost load, net operating income ~$28–31k. Cash flow after debt service is thin to break-even before any reserves. Cash-on-cash roughly 0–4% in year one at full occupancy assumptions.
- Same $500k in a higher-revenue Destin or Key West listing can produce better absolute cash flow but requires a larger down payment or stronger revenue to clear DSCR.
- Kissimmee / Orlando corridor at $40–49k gross on a $370–400k purchase often clears better CoC because entry prices are still reasonable and demand is year-round.
These are market averages. Individual properties with strong comps, professional pricing, and good reviews routinely outperform the median by 20–40%.
Yield vs. Appreciation Plays
- Pure yield: Fort Walton Beach, Daytona Beach, Panama City Beach, Pensacola. Lower entry, higher percentage return, more seasonality.
- Balanced / appreciation: Orlando–Kissimmee cluster (consistent demand, strong long-term population and tourism growth), St. Petersburg / Clearwater (local demand + events + beach proximity).
- Premium revenue / lower yield: Destin, Key West, Sarasota, Anna Maria. High absolute revenue, compressed yields, higher insurance and entry prices.
Risks to Underwrite
- Insurance cost spikes remain the largest variable in Florida. A 20–30% increase in premium can erase thin cash flow.
- Oversupply: Panama City Beach and parts of the Emerald Coast have seen large listing growth in prior years. AirDNA shows active supply down sharply year-over-year in some markets as of September 2026, which is supportive, but new construction continues.
- Regulatory: State preemption under § 509.032 limits local bans, but registration, minimum stays, occupancy caps, and HOA rules still matter. Always verify Certificate of Use / business tax receipt / DBPR license at the specific property level.
- Seasonality: Gulf Coast markets drop hard in September–October. Theme-park markets are more stable.
Methodology
All revenue, occupancy, and ADR figures are trailing-twelve-month averages from the cited platforms as of the dates listed. Gross yields use the platform’s own median home value or matched purchase price when available. Where AirDNA, BNBCalc, and Rabbu disagree on the same market we report the range rather than pick one number. No figures were invented. Purchase price medians come from Florida Realtors, Momentum Realty MLS analysis, and Redfin as of mid-to-late October 2026.
Frequently Asked Questions
What is the highest-yield STR market in Florida right now? Fort Walton Beach shows the highest published gross yield at 17% (BNBCalc, October 7, 2026) on a ~$317k matched median. Real recent sales medians are closer to $350–360k, which still produces mid-teens gross yields.
Is 20% gross yield realistic? Not on a typical market average in 2026. Top-decile properties in Fort Walton, Daytona, or well-positioned Panama City Beach listings can approach or exceed 15–18% gross before costs. 20%+ is rare and usually requires buying below median or operating above-average revenue.
Which market is best for cash flow versus appreciation? Fort Walton and Daytona for cash-flow percentage. Orlando–Kissimmee for consistency and long-term demand growth. Destin and Key West for absolute revenue and asset quality.
Do I need a license to run an STR in these markets? Yes. Florida requires a DBPR vacation rental license in most cases, plus local business tax receipt and tourist development tax registration. Some cities add Certificate of Use or occupancy limits. Verify at the property level before closing.
Next Steps
We help clients underwrite specific properties against these market numbers, confirm STR eligibility, and model true cash-on-cash after insurance quotes and current DSCR rates. If you are looking at Florida STR inventory in 2026, start with the numbers above and then stress-test the individual listing.
Contact Mangrove Bay Realty for current inventory and underwriting support, or review our Pinellas and Tampa Bay short-term rental resources.
Data current as of October 21, 2026. Markets move. Always re-verify revenue comps, insurance quotes, and local rules on any specific property.