Investor commentary
Investors who buy in Miami today are typically underwriting for appreciation and short-term rental income rather than month-one cash flow. Stress-test insurance at 1.5x today's quote and verify HOA reserves before closing on any condo.
How to interpret Miami's rental yield
A 6.2% rental yield in Miami compares favorably to coastal gateway markets (typically 4–5%) and signals an appreciation-tilted market where cash flow requires careful operations. Always underwrite with the property's actual taxes and insurance — both can swing materially in this state.
Recommended underwriting adjustments
- Reset property taxes to your purchase price, not the seller's basis.
- Add 5% vacancy as baseline; stress to 8% in worst case.
- Budget 8–10% management plus 8% maintenance + capex reserves.
- Verify insurance quotes from at least two carriers before closing.