Did you know that Florida consistently ranks as one of the top states for real estate investments in the U.S.? With its booming economy, sunny climate, and a steady influx of new residents, it's no wonder investors are flocking to the Sunshine State. But when it comes to making a smart investment, one number stands out: cash on cash return (COC).
Cash on cash return is a powerful metric that tells you how much profit you’re making compared to your initial investment. It’s crucial for assessing the profitability of rental properties, especially in a competitive market like Florida. But with so many cities to choose from, how can you pinpoint the best places to invest?
In this article, we’ll explore Florida’s top cities for real estate investors, focusing on those with the highest average cash on cash return. You’ll learn how cities like Lawtey, McAlpin, and Lulu offer attractive returns and what the numbers really mean for your bottom line. With average property prices and rental incomes laid out clearly, this guide will help you navigate the state’s lucrative market and find opportunities that suit your investment goals.
Understanding these numbers is more than just knowing where the best returns are—it’s about making data-driven decisions that give you an edge in today’s competitive real estate market. Let’s dive in and discover which Florida cities are the best for maximizing your cash flow in 2024.
| City | State | Highest COC Return | Average COC Return | Lowest Price | Average Price | Highest Rental Income | Average Rental Income | Lowest Payment | Average Payment |
|---|---|---|---|---|---|---|---|---|---|
| Lawtey | Florida | 1977.6% | 68.1% | $5,000 | $564,166 | $3,072 | $2,024 | $33 | $3,275 |
| Daytona Beach | Florida | 830.0% | 37.6% | $15,000 | $338,866 | $3,112 | $2,383 | $90 | $2,109 |
| Astor | Florida | 537.0% | 46.1% | $18,000 | $298,752 | $5,180 | $2,145 | $107 | $1,785 |
| McAlpin | Florida | 201.5% | 13.5% | $79,400 | $489,083 | $3,295 | $2,114 | $491 | $2,916 |
| Wellborn | Florida | 167.5% | 10.9% | $79,000 | $390,993 | $2,853 | $2,026 | $464 | $2,287 |
| Lulu | Florida | 161.0% | 17.7% | $43,500 | $273,073 | $3,149 | $1,941 | $263 | $1,598 |
| Crescent City | Florida | 152.2% | 13.4% | $49,900 | $324,351 | $4,836 | $2,003 | $298 | $1,920 |
| Green Cove Springs | Florida | 150.1% | 3.1% | $32,500 | $426,915 | $4,400 | $2,305 | $215 | $2,516 |
| Florahome | Florida | 136.9% | 14.7% | $39,000 | $272,614 | $4,947 | $1,779 | $230 | $1,607 |
| Yulee | Florida | 118.6% | 3.8% | $59,900 | $384,931 | $3,844 | $2,146 | $358 | $2,338 |
| Fort McCoy | Florida | 111.6% | 21.7% | $79,000 | $197,759 | $2,678 | $1,587 | $469 | $1,188 |
| Lee | Florida | 106.5% | 9.6% | $55,000 | $310,366 | $2,630 | $1,763 | $364 | $1,905 |
| Citra | Florida | 105.7% | 6.7% | $80,000 | $500,685 | $3,213 | $2,224 | $474 | $2,971 |
| O'Brien | Florida | 99.8% | 7.4% | $60,000 | $428,966 | $3,295 | $1,874 | $398 | $2,535 |
| Branford | Florida | 86.2% | 19.3% | $100,000 | $237,225 | $2,051 | $1,660 | $614 | $1,411 |
| East Palatka | Florida | 77.9% | 13.4% | $80,000 | $318,835 | $3,175 | $2,065 | $476 | $1,887 |
| Hastings | Florida | 73.4% | 14.1% | $125,000 | $340,417 | $4,040 | $2,277 | $734 | $2,045 |
| Macclenny | Florida | 71.3% | 0.5% | $100,000 | $449,451 | $4,013 | $2,229 | $608 | $2,647 |
| Sanderson | Florida | 71.3% | 4.0% | $100,000 | $444,694 | $4,326 | $2,282 | $608 | $2,599 |
| Flagler Beach | Florida | 70.2% | 1.5% | $149,990 | $522,744 | $6,751 | $2,699 | $884 | $3,136 |
| Palm Coast | Florida | 70.2% | 2.5% | $149,990 | $521,204 | $6,751 | $2,682 | $884 | $3,124 |
| Jasper | Florida | 64.6% | 6.9% | $99,900 | $340,388 | $2,493 | $1,796 | $610 | $2,002 |
| Glen Saint Mary | Florida | 63.3% | 2.4% | $100,000 | $460,336 | $4,326 | $2,332 | $608 | $2,719 |
| Port Orange | Florida | 63.1% | 6.8% | $140,000 | $422,126 | $5,415 | $2,690 | $838 | $2,593 |
| Edgewater | Florida | 63.1% | 8.3% | $130,000 | $431,767 | $5,415 | $2,689 | $778 | $2,572 |
| Starke | Florida | 60.8% | 9.4% | $89,000 | $325,034 | $2,865 | $1,983 | $525 | $1,920 |
| Saint Augustine | Florida | 60.7% | 4.5% | $129,000 | $440,145 | $5,129 | $2,566 | $757 | $2,697 |
| Raiford | Florida | 56.4% | 7.6% | $89,000 | $300,249 | $3,158 | $1,873 | $590 | $1,788 |
| Elkton | Florida | 55.9% | 5.6% | $129,000 | $417,322 | $5,104 | $2,588 | $860 | $2,534 |
| Live Oak | Florida | 55.9% | 2.7% | $150,000 | $350,193 | $3,025 | $2,001 | $886 | $2,102 |
| Penney Farms | Florida | 53.7% | 3.9% | $97,850 | $370,427 | $4,785 | $2,157 | $592 | $2,165 |
| White Springs | Florida | 50.7% | 2.5% | $79,000 | $653,358 | $3,014 | $1,837 | $464 | $3,845 |
| Middleburg | Florida | 50.3% | 3.9% | $97,850 | $341,931 | $3,368 | $2,091 | $648 | $2,027 |
| Georgetown | Florida | 47.0% | 4.4% | $105,000 | $363,903 | $4,836 | $2,057 | $624 | $2,165 |
| Fort White | Florida | 37.4% | 5.0% | $129,000 | $379,504 | $3,757 | $2,315 | $803 | $2,275 |
| Lake City | Florida | 35.7% | 5.8% | $87,000 | $347,670 | $3,379 | $2,037 | $525 | $2,031 |
| De Leon Springs | Florida | 34.9% | 5.3% | $149,000 | $396,408 | $4,803 | $2,400 | $893 | $2,352 |
| Day | Florida | 32.4% | 5.2% | $130,000 | $354,766 | $3,766 | $1,934 | $800 | $2,115 |
| Hilliard | Florida | 31.3% | -2.1% | $154,900 | $458,599 | $4,877 | $2,270 | $958 | $2,716 |
| Orange Park | Florida | 31.2% | 3.9% | $155,000 | $352,905 | $3,368 | $2,196 | $894 | $2,078 |
| Jennings | Florida | 29.8% | -0.6% | $125,000 | $374,716 | $2,630 | $1,847 | $819 | $2,256 |
| Lake Butler | Florida | 23.4% | 0.1% | $140,000 | $354,870 | $2,881 | $1,907 | $812 | $2,136 |
| Hampton | Florida | 21.3% | -1.6% | $184,000 | $400,783 | $3,247 | $2,043 | $1,109 | $2,386 |
| Eastlake Weir | Florida | 20.8% | 4.9% | $160,000 | $338,160 | $3,657 | $2,220 | $951 | $2,052 |
| Fernandina Beach | Florida | 17.4% | -3.2% | $180,000 | $1,135,409 | $7,959 | $2,902 | $1,107 | $6,725 |
| Bryceville | Florida | 16.6% | -2.0% | $200,000 | $430,433 | $2,834 | $2,246 | $1,162 | $2,533 |
| Mayo | Florida | 14.1% | 0.5% | $190,000 | $460,333 | $3,766 | $2,273 | $1,113 | $2,740 |
| Callahan | Florida | 13.6% | 8.4% | $239,000 | $351,333 | $3,974 | $2,626 | $1,385 | $2,131 |
| Bunnell | Florida | 10.2% | -1.1% | $265,000 | $384,425 | $2,822 | $2,081 | $1,572 | $2,281 |
| Fleming Island | Florida | 10.0% | -4.9% | $235,000 | $516,609 | $4,688 | $2,431 | $1,600 | $3,124 |
| Ponte Vedra | Florida | 5.0% | -7.9% | $235,000 | $1,724,142 | $76,808 | $7,813 | $1,997 | $10,342 |
| Ponte Vedra Beach | Florida | 4.9% | -8.3% | $285,000 | $1,460,160 | $76,808 | $6,484 | $2,003 | $8,771 |
Florida’s real estate market is a hotspot for investors looking for high returns and growth potential. With its combination of booming tourism, increasing population, and steady economic growth, the Sunshine State offers a wealth of opportunities. Whether you’re looking to invest in urban areas or quieter rural regions, Florida has something for everyone.
The state has seen an influx of new residents, which continues to drive up demand for housing and rental properties. In addition, Florida's favorable tax structure, low property taxes, and no state income tax provide an added advantage for real estate investors. Whether you’re interested in single-family homes, manufactured homes, or multi-family units, there’s plenty of inventory available for purchase, making Florida an attractive place to build wealth through real estate.
In terms of property types, Florida has a variety of options, including affordable manufactured homes and higher-end single-family homes. The availability of diverse property types means that investors can select investments that align with their financial goals and preferred investment strategies, whether you're focused on long-term rentals or seeking properties for quick flips.
When investing in Florida, understanding the key metrics is essential to evaluating your potential return on investment. Let’s break down the numbers for cities with the highest cash on cash return in the state:
With an average cash on cash return of 68.1%, Florida’s real estate market offers attractive opportunities for investors looking to maximize their profits. Even though property prices may vary, the return on investment across the state remains strong, with rental income supporting steady cash flow. Whether you’re buying a property for $5,000 in Lawtey or a higher-priced property in McAlpin, the potential for solid returns is substantial.
The affordable property prices combined with strong rental income create a solid foundation for any investor looking to dive into the Florida market. Understanding these figures will help you navigate potential investment opportunities and make more informed decisions moving forward.
Florida offers diverse opportunities for real estate investors seeking high returns. Based on the latest data, here are the top 5 cities for the best returns on investment in the state:
Lawtey stands out as the city with the highest cash-on-cash (COC) return in Florida, offering investors an incredibly high return for relatively low initial investments. This city is perfect for investors looking for maximum profitability with an affordable entry point.
With a solid COC return and reasonable property prices, McAlpin offers a strong balance of affordability and profitability for long-term real estate investors.
Lulu offers high COC returns with affordable property prices, making it an attractive option for investors looking for value and high rental income relative to property cost.
Green Cove Springs offers great rental income potential and a decent COC return, making it a solid choice for investors interested in cash flow and long-term stability.
Lee offers good returns on investment with a healthy rental income stream and an affordable average price. It’s a great location for investors seeking reliable returns with manageable upfront costs.
Cash on cash return (COC) measures how much profit you’re generating relative to the cash you’ve invested in a property. A high COC return means you’re getting significant profit from your investment. For example, Lawtey offers a stunning 1977.6% COC return, demonstrating how affordable properties with high rental yields can generate impressive returns.
The capitalization rate (Cap Rate) and gross rent multiplier (GRM) are two other crucial metrics for evaluating a property’s performance. The cap rate measures the return on investment based on the property’s value and net operating income (NOI). GRM, on the other hand, is a simple calculation used to assess the price relative to the income generated by the property. Higher cap rates and lower GRMs generally indicate better investment opportunities.
Cash flow is the income generated by the property after all expenses have been paid, including mortgage payments, property taxes, insurance, and maintenance costs. Positive cash flow is essential for ensuring that your investment generates steady income. In Florida, properties with strong rental income often lead to consistent and favorable cash flow, making them ideal for investors focused on long-term wealth building.
Florida’s real estate market offers unique advantages for investors looking to maximize their returns. Here are some of the key reasons why Florida is a top choice for real estate investment:
If you’re ready to start investing in Florida, here are a few tips to help you get started:
Florida is an exceptional market for real estate investors, offering high cash on cash returns, affordable properties, and strong rental income potential. With the right strategy and knowledge of key investment metrics, you can maximize your returns and build long-term wealth in this thriving market.
If you're ready to explore properties in Florida, now is the perfect time to get started. Take the next step and start investing in one of the most promising real estate markets in the country today!