Miami Short-Term Rentals Yield 8.6%, but Costs Halve the Margin

Miami-Dade Is a Premium Coastal Market with Suburban Yield Pockets

Miami-Dade County sits at the higher end of US coastal property prices, with a median 3-bedroom house at $696,814, well above the national median of $242,500 and the Florida state median of $384,493. The premium reflects waterfront access, year-round tourism demand, and continued in-migration. The investor's question is whether that premium price absorbs too much of the rental income to leave a usable return, or whether short-term rental revenue stretches far enough to make the math work.

The headline answer: short-term rental gross yield of 8.6% comfortably beats long-term rental at 4.8%, but Miami's tourist tax, higher insurance (hurricane exposure), and platform fees mean the net comparison is much tighter. Yields vary widely across the 79-zip county, ranging from below 5% in waterfront enclaves to above 10% in inland, suburban-balance neighborhoods.

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

Annual long-term rental revenue is monthly rent × 12 × tenanted occupancy (95%). Annual short-term rental revenue is nightly rate × occupancy × 330 available nights. Both match the Dashboard's calculation.

Short-term rental grosses roughly 80% more than long-term rental at market-average occupancy, but operating costs for short-term rental are about double, narrowing the net advantage.

Short-Term Rental Only Beats Long-Term Rental on Gross Revenue Above 29% Occupancy

Short-term rental only outperforms long-term rental on gross revenue if occupancy exceeds 29%. Below that threshold, the steady tenanted income from a long-term lease beats the variable, costlier short-term model. Miami's market average sits at 53%, so the typical operator is comfortably above break-even, but underperformers in shoulder neighborhoods or off-season periods can quickly fall below it.

Occupancy is the single biggest variable in short-term rental returns. At 38% occupancy, gross revenue drops to roughly $42,992, which is barely above the long-term rental annual figure of $33,307. At 63% occupancy, gross revenue climbs to about $71,299, decisively beating long-term rental even after the cost differential. The verdict is conditional on execution, not guaranteed by location.

Suburban-Balance neighborhoods Lead Miami-Dade Yields

Yields vary dramatically across Miami-Dade. The strongest suburbs are inland, mid-density neighborhoods that combine enough demand for short-term rental with property prices low enough to deliver strong long-term rental yields too. Waterfront and luxury enclaves (Coral Gables, Key Biscayne, much of South Beach) sit at the bottom on yield because the price premium is not matched by proportional rent growth.

Top-yielding suburbs in Miami-Dade County. Long-term rental yield shown.

North Miami/Opa-locka (33167) leads at 10.3%, with a sale price of $408,000 and rent of $3,510. The pattern across the top suburbs is consistent: comparatively affordable prices combined with solid rents produce yields well above the county-wide 4.8%. These are not the postcards on tourism brochures; they are the workforce neighborhoods where suburban demand and affordability intersect.

These are averages per suburb. Bedroom-count and property-type detail are available at suburb level if you want to model your specific property.

View Miami in the dashboard → Free preview · every bedroom count and property type

Operating Costs Take a Bigger Bite from Short-Term Rental in Miami

Short-term rental gross revenue of $59,976 is reduced to net operating income of $18,975 once costs are deducted, a 2.7% net yield against the $696,814 sale price. Long-term rental net income runs to $12,888, or a 1.8% net yield. The gross gap is wide; the net gap is much narrower because short-term rental costs roughly double those of long-term rental.

The default short-term rental cost stack for Miami includes Airbnb host fees of 15.5% on gross revenue (around $9,296 annually), insurance at $9,862 (hurricane exposure pushes Florida insurance well above national norms), maintenance and furnishing replacement at $6,794, utilities at $2,964, property tax at $5,263 (0.8% of sale price), and the 6% state sales tax plus 2-6% county tourist tax on bookings. These line items sum to $41,001, which is the figure used for the net yield calculation. These figures assume self-managed short-term rental; if you hire a professional manager instead, add roughly $11,995 annually, which would compress the net yield further.

Long-term rental costs are simpler: insurance at $8,362, maintenance at $6,794, and property tax at $5,263, totalling $20,419. No platform fees, no tourist tax, no utilities (tenant pays), and no furnishing replacement. The simplicity is one reason long-term rental closes most of the net gap despite a lower gross yield.

Florida's No Income Tax Status Boosts After-Tax Returns for Miami Investors

Florida is one of nine US states with no state personal income tax, which makes Miami investment returns noticeably better after tax than equivalent yields in California, New York, or Illinois. Federal tax treatment still applies, but the absence of a state layer means more of the net rental income reaches the investor.

Depreciation is the other major lever. The IRS allows residential rental property to be depreciated over 27.5 years on a straight-line basis. For a typical Miami 3-bedroom at $696,814, the depreciable building value is roughly $557,451 (80% of price, with land as the non-depreciable remainder), generating around $20,271 in annual paper deductions. That deduction often turns a positive cash-flow property into a paper loss for tax purposes, which can offset other rental income or, for material participants in short-term rental, potentially offset active income subject to passive activity rules.

Mortgage interest is fully deductible on Schedule E with no SALT cap, and 1031 exchanges allow tax-deferred swaps when investors sell. Material participation in short-term rental (averaging stays under 7 days with substantial personal involvement) can reclassify the activity as non-passive, opening active loss treatment that long-term rental cannot match. Confirm specifics with a CPA; the rules are fact-specific.

Miami Yields Sit Below Florida and National Averages on Long-Term Rental

Miami-Dade's long-term rental gross yield of 4.8% is below the Florida state average of 6.1% and below the national average of 5.3%. The gap reflects the premium price of Miami property; rents are higher than state or national medians but not proportionally higher than the prices.

Comparison of key investment metrics.

Miami trades current yield for appreciation potential and short-term rental upside. Investors prioritising cash flow alone could find higher gross yields in inland Florida markets like Bay, Holmes, or Hernando counties at half the price, but those markets lack Miami's tourism demand, language-of-business international buyer base, and long-run population growth. Miami is a premium-market trade-off: pay more, accept lower current yield, take the appreciation and short-term rental optionality.

Regulations Are Permissive County-Wide, with One Sharp Exception

Permit required ($100) in Miami. City of Miami allows short-term rentals with a permit. No night cap. State vacation rental license and local certificate of use required. Tourist development tax applies.

Outside Key Biscayne, short-term rental is broadly permitted across Miami-Dade. Florida's 2011 state preemption prevents most municipalities from outright banning short-term rental, although cities can regulate registration, occupancy, and parking. Operators must collect 6% state sales tax plus a 2-6% county tourist development tax on each booking, both of which Airbnb and similar platforms can collect and remit on the host's behalf. Condo and HOA rules can be more restrictive than city law; check the declaration before buying.

Investment Bottom Line

Miami-Dade is a viable short-term rental market for hands-on operators willing to manage the cost stack, with gross yields of 8.6% and a gross premium over long-term rental once occupancy clears the 29% gross break-even (the after-costs break-even sits higher because short-term rental costs are roughly double). Long-term rental is the safer default at 4.8% gross and 1.8% net, suited to investors who want predictable income without operational complexity. Florida's no-income-tax status amplifies the after-tax math for both strategies relative to higher-tax states.

Data reflects market conditions as of May 2026. For a wider Florida view, see Florida rental market insights, and compare with Fort Lauderdale Apartments Outperform Houses on Rental Yield, Fort Lauderdale Real Costs: House vs Apartment After Airbnb Feesand West Palm Beach Airbnb Nets $25,953 After Costs on a House. Methodology details are in our market score methodology and data sources pages.

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.