How Much Is Rent for a Million-Dollar House in South Florida?

How much is rent for a million-dollar house in South Florida? The answer depends on the county, the property type, and whether you are renting long-term or short-term. The more useful question for investors, though, is whether a $1M+ home makes financial sense as a rental. That answer is more complicated than the rent figure alone.

Luxury rental rates by South Florida market

Here is what million-dollar homes rent for on the long-term market (12-month leases) across South Florida:

• Palm Beach County (Palm Beach, Boca Raton, Jupiter): A $1M to $1.5M single-family home typically rents for $6,000 to $10,000 per month. Waterfront or gated community properties at $1.5M to $2.5M run $9,000 to $16,000 per month.
• Broward County (Fort Lauderdale, Weston, Plantation): $1M to $1.5M homes typically rent for $5,500 to $8,500 per month. Waterfront Fort Lauderdale properties command a premium above that range.
• Miami-Dade (Coral Gables, Pinecrest, Miami Beach): $1M to $1.5M homes fetch $6,000 to $10,000 per month. Luxury condos in Brickell or Miami Beach with water views can reach $8,000 to $20,000 per month.
• Martin County (Jupiter Island, Stuart): Waterfront $1M+ properties rent for $7,000 to $14,000 per month.

Does a million-dollar South Florida home make sense as a rental?

This is where the math gets honest. Here is a model for a $1.2M Boca Raton single-family home renting for $8,000 per month:

• Gross annual rent: $96,000
• Vacancy (5%): -$4,800
• Property taxes: -$18,000 (high end, Palm Beach County)
• Insurance: -$10,000 (high-value home)
• Property management (8%): -$7,296
• Maintenance reserve (5%): -$4,800
• NOI: $51,104
• Cap rate: 51,104 divided by 1,200,000 = 4.3%

With a mortgage (25% down means $300,000 equity deployed, $900,000 financed at 7% equals $5,988 per month or $71,856 per year), this property would be significantly cash-flow negative. Even purchased all-cash, a 4.3% cap rate is modest for the capital required.

The investment case for luxury South Florida rentals is not income. It is appreciation. Million-dollar homes in the right locations have appreciated 6 to 10% annually over extended periods. The rent is a partial offset to carrying costs while appreciation builds equity.

Short-term rentals: a different calculation

On short-term rental platforms like Airbnb and VRBO, South Florida luxury properties can generate considerably more income. A well-marketed $1.2M Boca Raton pool home might bring in $12,000 to $20,000 or more per month during peak winter season and $6,000 to $9,000 per month in summer. Management costs are substantially higher on STRs, though, running 25 to 30% of revenue. Regulatory risk is also real: many South Florida municipalities have tightened short-term rental rules in recent years.

If you are evaluating a luxury South Florida property as a rental investment, use our Rental Property ROI Calculator to model actual cash flow at your financing terms. For most income-focused investors, better cash flow is available at lower price points. The luxury segment is for appreciation investors and second-home owners who want partial income to offset carrying costs. Talk to our team to find the right fit for your strategy, or browse South Florida investment markets by county.