FLORIDA · DSCR, HARD MONEY AND BRIDGE LOANS
Florida DSCR loans
What investors need to know. Florida is one of our leading states. Here’s what actually makes or breaks a rental deal here, from insurance and taxes to short-term rental rules, with the numbers for the markets where we close.
The short answer
- In Florida, insurance and taxes decide the DSCR as much as the rent does. Without the rents, the deal is dead. Run all three first.
- The insurance market is loosening: Citizens has shrunk from about 1.4 million policies to about 270,000, and 20 new insurers have entered since the reforms. Reach out for an insurance referral.
- State law blocks cities from banning vacation rentals, but older local rules, HOAs and condo associations can still restrict them.
- Florida is generally landlord-friendly, and home values are up about 120% over 10 years statewide.
WHERE INVESTORS BUY
Florida markets at a glance
Here’s the honest answer on where to buy: most investors buy near where they live, so they can take care of the property. There’s no one-size answer, so here’s the data for the Florida markets where we close the most loans. Rural properties usually take an LTV adjustment down.
| City | Typical home value | Typical rent | Price-to-rent | Renter share | 10-yr appreciation |
|---|---|---|---|---|---|
| St. Petersburg | $351,862 | $2,039 | 14.4 | 37% | +103% (Tampa metro) |
| Tampa | $375,619 | $1,930 | 16.2 | 50% | +103% (Tampa metro) |
| Bradenton | $351,538 | $1,768 | 16.6 | 44% | +101% (Sarasota-Bradenton metro) |
| Port St. Lucie | $384,099 | $2,356 | 13.6 | 16% | +129% |
| Fort Myers | $304,566 | $1,719 | 14.8 | 51% | +84% (Cape Coral-Fort Myers metro) |
| Cape Coral | $334,660 | $1,953 | 14.3 | 23% | +84% (Cape Coral-Fort Myers metro) |
| Port Charlotte | $268,275 | $1,741 | 12.8 | 17% | +88% (Punta Gorda metro) |
| Punta Gorda | $334,685 | $2,041 | 13.7 | 18% | +88% (Punta Gorda metro) |
| Ocala | $263,895 | $1,584 | 13.9 | 48% | +128% |
| Orlando | $372,775 | $1,889 | 16.4 | 61% | +121% |
| Jacksonville | $284,832 | $1,589 | 14.9 | 42% | +110% |
| St. Augustine | $432,603 | $1,982 | 18.2 | 37% | +110% (Jacksonville metro) |
Home values and rents: Zillow, through September 30, 2026. Price-to-rent = value ÷ annual rent (U.S.: 15.8; lower is better for cash flow). Renter share: U.S. Census ACS 2020–2024. 10-year appreciation: FHFA house price index, Q2 2016 to Q2 2026 (Tampa and St. Petersburg: S&P Case-Shiller Tampa index), metro level. Florida statewide: +120% vs. +93% U.S.
INSURANCE
Insurance is the number one DSCR killer in Florida
Homeowners insurance is part of the payment your rent has to cover, and in Florida it’s the line item that breaks the most deals. In a September 2026 sample, Florida homeowners insurance quoted about $8,471 a year at $300K of dwelling coverage, versus $2,872 nationally.
The good news: the market is opening up. Citizens, the state-backed insurer of last resort, has dropped from about 1.4 million policies in 2023 to about 270,000 in 2026, and Florida’s insurance regulator reports 20 new insurers entering the state since the 2022–2023 reforms. More competition means more room to bring premiums down.
Flood: standard homeowners policies don’t cover flood. If you’re insured through Citizens, flood coverage is being phased in as a requirement for all policies by January 1, 2027. Florida also now requires landlords to disclose flood risk and past flooding to tenants.
Need help with insurance? Reach out. We refer clients to insurance agents who can help reduce the cost of coverage.
Sources: Insurance.com (September 2026); Citizens Property Insurance policy reports; Florida Office of Insurance Regulation (May 2026); Florida Senate, SB 948 (2025).
TAXES
Property taxes on a Florida rental
Florida’s average effective property tax rate is about 0.78% for owner-occupied homes, and there’s no state income tax. A rental is different: it gets no homestead exemption, it’s reassessed at market value after you buy, and its assessed value can rise up to 10% a year (excluding school taxes), versus 3% for a homestead. Budget for a rental to run above the average.
Sources: Tax Foundation; Palm Beach County Property Appraiser (assessment caps).
FLORIDA VS. TENNESSEE
Same house, same rent, different DSCR
Here’s what Florida’s insurance and taxes do to a deal. Same $350,000 single-family rental, same $2,600 rent, same $1,800 principal and interest:
| Florida | Tennessee | |
|---|---|---|
| Property taxes / month | $228 | $152 |
| Insurance / month | $706 | $267 |
| Taxes + insurance / month | $933 | $418 |
| Total PITI | $2,733 | $2,218 |
| DSCR | 0.95 | 1.17 |
The Florida version costs about $515 a month more and falls below a 1.00 DSCR, while the same deal in Tennessee qualifies. That’s why we run insurance and taxes before anything else on a Florida deal.
Illustration only, not a quote. Taxes: Tax Foundation average effective rates (Florida 0.78%, Tennessee 0.52%) applied to $350,000. Insurance: Insurance.com sample quotes at $300K dwelling coverage, September 2026 (Florida $8,471, Tennessee $3,198). Landlord policies and rental-property taxes typically run higher than these averages.
SHORT-TERM RENTALS
Airbnb and VRBO rules in Florida
Florida law stops cities and counties from banning vacation rentals or regulating how long or how often they rent, except for local rules adopted on or before June 1, 2011. Short-term rentals need a state vacation rental license and collect 6% state sales tax plus a 4–6% county tourist development tax.
The hoops are real. Fire inspections, permit reviews and rising fees: Sarasota’s annual vacation rental renewal fee went from $150 to $350, up more than 130%. Florida cities aren’t making it easier, that’s for sure. But that also means the competition is thinning out. If you can check the boxes and deal with all the Airbnb rule changes, you may win by holding out.
- Miami Beach: short-term rentals are prohibited in single-family homes and many multifamily buildings.
- St. Petersburg: in residential zoning, stays under 30 days are limited to 3 rentals a year.
- Orlando (city): whole-home rentals aren’t allowed unless the host lives on site.
- Cape Coral: all rentals register annually; short-term registration is $350.
- Hillsborough County (unincorporated): short-term rental registration starts January 1, 2027.
HOAs and condo associations can restrict rentals regardless of city rules, so check the documents before you buy. See how we qualify STR income in our short-term rental loans.
Sources: Florida Statutes 509.032; Florida DBPR; Florida Department of Revenue (DR-15TDT); City of Miami Beach; City of St. Petersburg; City of Orlando; WGCU (Cape Coral, 2026); Avalara (Hillsborough County, 2026).
CONDOS
Florida condos
Florida condos are facing rising HOA dues as associations fund newer safety and reserve requirements, so put the full HOA number into your DSCR before you buy. If you own or are buying one, we also have non-warrantable condo programs, which can help when the association’s documents or project review won’t pass a standard lender.
LANDLORD-TENANT
A generally landlord-friendly state
- 3-day notice for unpaid rent, excluding weekends and holidays
- 7 days to cure a lease violation
- A tenant raising defenses other than payment must deposit the rent with the court
- Tenant regulation is set statewide; cities and counties can’t add their own rules
Sources: Florida Statutes 83.56, 83.60 and 83.425. This is general information, not legal advice.
STRAIGHT ANSWERS
Florida DSCR loan questions
Can I get a DSCR loan in Florida?
Yes. Florida is one of our leading states. We close DSCR, hard money and bridge loans for investors across Florida, qualified on the property’s rent instead of your income.
How does Florida insurance affect my DSCR?
A lot. Insurance is part of the payment the rent has to cover. In a September 2026 sample, Florida homeowners insurance quoted about $8,471 a year at $300K of dwelling coverage, versus $2,872 nationally. On the same house, that can be the difference between a 1.17 DSCR and a 0.95. Reach out for an insurance referral.
Are short-term rentals allowed in Florida?
Florida law stops cities and counties from banning vacation rentals or regulating how long or how often they rent, except for local rules adopted on or before June 1, 2011. Some cities still have older rules, and HOAs and condo associations can restrict rentals.
How much are property taxes on a Florida rental property?
Florida’s average effective rate is about 0.78% for owner-occupied homes. Rental property gets no homestead exemption, is reassessed at market value after you buy, and is capped at 10% a year in increases (excluding school taxes), so expect a rental to run higher than the average.
Do you lend on Florida condos?
Yes, including non-warrantable condo programs that can help when a condo association’s documents or project review won’t pass a standard lender. Factor in rising HOA dues when you run the numbers.
Is Florida landlord-friendly?
Generally, yes. Florida uses a 3-day notice for unpaid rent (excluding weekends and holidays), and a tenant who wants to raise defenses other than payment must deposit the rent with the court. Tenant regulation is set statewide.
DSCR KINGS · FLORIDA
Run your Florida deal with real insurance and tax numbers
Send us the property, the rent and the insurance quote. We’ll show you where the DSCR lands and how to structure it. No credit pull to start.
Market data is for general information, comes from the third-party sources named on this page and changes over time. Business-purpose loans for investment properties only; not for owner-occupied homes. Lending guidelines, leverage and loan programs vary by lender and by state and are subject to change. Terms and approval depend on the property, the borrower’s credit and capital-partner guidelines and are not guaranteed. Examples are for illustration only.
