Miami Short-Term Rentals Yield 7.7%, Nearly Double the LTR Return

Estimates for a typical 3-bedroom house. Figures are modelled from market data; not guaranteed outcomes.

Short-term rental grosses roughly 60% more per year than long-term rental in Miami-Dade. However, short-term rental carries significantly higher operating costs (management, cleaning, furnishing, insurance, platform fees) that reduce the effective margin between the two strategies.

Break-even occupancy: Short-term rental only outperforms long-term rental if occupancy exceeds approximately 41%. With the market average sitting around 66%, short-term rental clears this threshold comfortably, but individual properties vary widely.

Occupancy Swings Change the Miami short-term rental Verdict Dramatically

Long-term rental income is essentially locked once a tenant signs. Short-term rental income, by contrast, swings with occupancy. In Miami-Dade, where the average nightly rate sits around $269, the difference is stark:

• At 51% occupancy (below average): STR grosses roughly $45,300 per year, still above the LTR figure of $36,758 but only by around $8,500.
• At 66% occupancy (market average): STR grosses approximately $58,600, a roughly $21,800 advantage over LTR.
• At 76% occupancy (strong performer): STR grosses around $67,500, roughly 84% more than LTR.

The takeaway: at average occupancy, short-term rental wins clearly. But a property that underperforms by even 15 percentage points sees its advantage shrink to a level that may not justify the extra management burden. Your specific suburb, property type, and seasonality pattern matter enormously, which is exactly what the dashboard models at the ZIP code level.

Yields Vary from 4% to 13% Across Miami-Dade's 80 ZIP Codes

The county-wide average masks enormous variation. A 3-bedroom house in one Miami ZIP code can yield three times what a house in another ZIP returns. Here are the top-performing areas by gross rental yield:

The spread is striking. Overtown/Jackson (33136) delivers an estimated 13.1% gross yield at a $308,512 entry point, while the county median sits around 4.3% at $849,514. Lower price points in areas like 33136 and 33128 drive higher yields, while premium waterfront ZIP codes push prices above $2 million with yields closer to 3%.

Hialeah, the county's second-largest city, offers a middle ground. Prices range from around $612,000 to $826,000 across its ZIP codes, with rents between $2,525 and $3,185 per month. Yields there tend to cluster in the 4% to 5% range, broadly in line with the county average.

These are averages per suburb. The dashboard breaks it down further, by bedroom count and property type, so you can model your specific property.

Florida's short-term rental Preemption Law Gives Miami Investors Regulatory Certainty

Miami-Dade benefits from one of the most investor-friendly regulatory environments in the country. Florida state law (F.S. 509.032) preempts local governments from banning vacation rentals that were allowed before June 2011. Cities and counties can regulate safety, noise, and parking, but they cannot prohibit short-term rentals outright.

The practical requirements are straightforward:

• State vacation rental license: Required through the Florida Department of Business and Professional Regulation (DBPR). The application fee is approximately $100.
• Tourist development tax: Miami-Dade levies a tourist development tax (typically 5-6%) on top of Florida's state sales tax. Combined, STR operators should budget for a total lodging tax of around 6.0% plus state sales tax.
• No night cap: There is no regulatory limit on the number of nights you can rent short-term in Miami-Dade.

Compare this to markets like New York City (effectively banned for non-owner-occupied units), Nashville (banned in residential zones), or many California cities with 90-night caps. Miami's regulatory clarity is a significant advantage, particularly for investors who want to switch between short-term rental and long-term rental strategies depending on market conditions.

Operating Costs Take a Larger Bite from Miami's short-term rental Revenue

The roughly $21,800 gross revenue advantage short-term rental holds over long-term rental shrinks considerably once operating costs are factored in. Here is where the money goes for each strategy on a typical $849,514 property:

Costs common to both strategies:

• Property tax: $6,416 per year (0.8% of sale price)
• Maintenance: Estimated at around $8,283 per year
• Closing costs and transfer taxes apply at purchase; check current rates with your attorney

Long-term rental costs:

• Management fee: 9% of rent (roughly $3,300/year)
• Insurance: Approximately $1,674 per year

Short-term rental costs:

• Management fee: 20% of revenue (roughly $11,700/year)
• Airbnb host fee: 15.5% of booking revenue (roughly $9,400/year)
• Insurance: Approximately $3,788 per year
• Cleaning: $111 per turnover (at average occupancy, this adds up quickly)
• Furnishing: One-time cost of approximately $20,250
• Lodging tax: 6.0% plus state sales tax on all bookings

Short-term rental management, platform fees, and cleaning alone can consume $25,000 or more per year, compared to roughly $3,300 for long-term rental management. After these costs, the net gap between the two strategies narrows substantially. Whether short-term rental still wins on a net basis depends heavily on your occupancy rate and whether you self-manage (cutting the 20% fee) or use a property manager.

After Tax, Florida's Zero State Income Tax Boosts Both Strategies

Florida levies no state income tax, which is a meaningful advantage for rental investors. All rental income, whether from short-term rental or long-term rental, is taxed only at the federal level. For investors coming from states like California (up to 13.3%) or New York (up to 10.9%), this alone can shift the math by several thousand dollars per year.

Key federal tax considerations for Miami rental property:

• Depreciation: The 27.5-year schedule lets you deduct approximately 3.6% of the building's value annually. On an $849,514 property (assuming roughly 80% of value is in the structure, not land), that creates a paper deduction of around $24,700 per year, which can offset rental income and potentially create a paper loss even when the property cash-flows positively.
• Mortgage interest: Fully deductible on Schedule E for rental properties (the $750,000 personal residence mortgage limit does not apply to investment property mortgage interest).
• STR material participation: If you materially participate in managing your short-term rental (average stay under 7 days), losses may be deductible against ordinary income rather than limited to passive income rules. This is a significant advantage for hands-on STR operators.
• 1031 exchange: When selling, a like-kind exchange allows you to defer capital gains by rolling proceeds into another investment property.

The combination of Florida's zero state income tax and federal depreciation benefits is particularly powerful for high-income investors looking to shelter other income through rental property losses.

Miami Yields Less Than Florida's Average, but the Premium Has Its Reasons

Comparison of key investment metrics.

Miami-Dade's 4.3% gross yield trails the Florida state average of 5.2% and the national average of 4.9%. The culprit is obvious: prices. At $849,514 for a typical 3-bedroom house, Miami costs nearly twice the state average and more than three times the national average. Rents are high in absolute terms ($3,063 versus $1,936 statewide), but not high enough to offset the premium entry price.

For pure cash-flow seekers, other Florida markets offer better numbers. Markets like Key Largo (Monroe County) deliver gross yields above 13% at a fraction of Miami's price point. Osceola County near Orlando offers short-term rental-friendly properties under $200,000 with strong vacation rental demand.

Miami's case rests on appreciation and demand resilience. International capital flows, population growth, and constrained land supply support long-term price growth. Investors here are typically buying for total return (yield plus appreciation) rather than cash flow alone. Check our data sources for detail on how yields and prices are calculated.

Investment Bottom Line: short-term rental Wins on Gross, but Miami Is a Total-Return Play

Miami-Dade's short-term rental market outperforms long-term rental on gross revenue by a wide margin, and Florida's regulatory environment provides the certainty investors need. But the premium price point means gross yields trail state and national averages, and short-term rental operating costs are substantial.

The real question is not "short-term rental or long-term rental" at the county level; it is which specific ZIP code and property type align with your strategy. With yields ranging from roughly 4% to over 13% across Miami-Dade's 80 ZIP codes, the suburb-level data matters far more than the county average. Explore the full breakdown in the dashboard.

Data reflects market conditions as of March 2026. Explore the market score methodology for detail on how scores are calculated.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.