Investor commentary
Tampa is one of the most attractive Sun Belt markets, but insurance underwriting is the single biggest factor that can break a deal here.
How to interpret Tampa's rental yield
A 6.5% rental yield in Tampa compares favorably to coastal gateway markets (typically 4–5%) and signals meaningful month-one cash flow potential. 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.