Cash on Cash Return: How to Calculate It for Florida Rental Properties (2026)
What Is Cash on Cash Return — and Why Florida Investors Use It
Cash on cash return (CoC) measures how much annual income you earn relative to the cash you actually deployed into a deal. It is the primary metric Florida buy-and-hold investors use to compare deals across different markets and financing structures, because unlike cap rate, it accounts for your actual mortgage payment.
Example: You buy a Jacksonville duplex for $280,000. You put 25% down ($70,000) plus $6,200 in closing costs — total cash out-of-pocket: $76,200. Your annual net cash flow after the mortgage, taxes, insurance, and property management fee is $8,400. Your cash on cash return: $8,400 ÷ $76,200 = 11.0%.
That 11% tells you precisely what your deployed capital earns as income per year. It is the number that determines whether this deal beats other uses of your capital — index funds, other Florida markets, or simply leaving cash in a high-yield savings account at 5%.
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Florida Cash on Cash Return Benchmarks by City (2026)
Returns vary significantly across Florida markets in 2026, driven primarily by entry prices rather than rent levels. Here is what leveraged investors are realistically seeing with 25% down and a 7.0% 30-year mortgage:
| City | Median Entry Price | Avg CoC Return | Grade |
|---|---|---|---|
| Jacksonville | $255K | 8–11% | ★ A |
| Kissimmee / SW Orlando | $250K | 7–9% | ★ A− |
| Tampa (working class) | $290K | 6–8% | B+ |
| Fort Lauderdale | $355K | 4–7% | B |
| Miami (NW Miami-Dade) | $380K | 4–6% | B− |
| Naples / Sarasota | $490K+ | 2–4% | C |
Assumes 25% down, 7.0% interest rate, 30-year term. Includes taxes, insurance, 10% property management fee, 8% vacancy allowance, 5% maintenance reserve. Individual properties vary.
Florida investors targeting income rather than speculation should aim for 7%+ CoC. Anything below 5% requires a strong appreciation thesis to justify the capital commitment. Browse live Jacksonville deals or Tampa deals where SpillDeals shows real-time CoC estimates on every listing.
How to Calculate Cash on Cash Return: Step-by-Step
Run this calculation before making any offer on a Florida rental property. Here is the full walkthrough using a real Kissimmee 3BR/2BA at $260,000:
- Total cash invested: down payment + closing costs + initial reserves. At 25% down on $260K: $65,000 + $6,000 closing costs + $3,000 initial reserves = $74,000.
- Annual gross rent: market rent × 12. Kissimmee 3BR/2BA rents at $1,750/month × 12 = $21,000.
- Subtract vacancy at 8%: $21,000 × 0.08 = $1,680. Effective gross income = $19,320.
- Subtract operating expenses: property taxes (~$3,100), insurance (~$2,200), property management at 10% of rent ($2,100), maintenance reserves at 5% ($1,050). Total: $8,450.
- Net operating income (NOI): $19,320 − $8,450 = $10,870.
- Annual debt service: $195,000 mortgage at 7.0%, 30 years = $1,298/month × 12 = $15,573.
- Annual cash flow: $10,870 − $15,573 = −$4,703. This deal is cash-flow negative at $260K.
That negative result is why deal-specific math matters. The market average says Kissimmee works at 7–9% CoC — but that requires buying below $230K or finding rent above $1,900/month. Run the specific address on SpillDeals' rental property calculator to get verified rent comps and real tax data instead of estimates.
Cash on Cash vs Cap Rate: Which Metric Matters More in Florida?
Both metrics are essential for FL investors, but they answer different questions. Using only one will cause you to make the wrong decision half the time.
Cap rate is a financing-neutral metric. Use it to compare two properties regardless of how you plan to pay for them. A 7% cap rate deal in Jacksonville is objectively a better income asset than a 5.2% cap rate deal in Sarasota at the same price — full stop. Screen with cap rate first.
Once you have screened with cap rate, run CoC to evaluate your actual leveraged return given your specific down payment and loan terms. CoC is the metric that determines whether this deal beats your alternatives. If your CoC is below 6%, you may earn more with less risk in other asset classes.
Buy-and-hold income investors should lead every deal review with CoC. BRRRR investors should recalculate CoC on deployed cash after the refinance to verify the strategy worked. All-cash buyers will find CoC equals cap rate by definition. FHA house hackers often discover their CoC is higher than expected because 3.5% down creates substantial leverage — model your deal with the SpillDeals calculator to see both FHA and DSCR scenarios side-by-side.
About the Author
Alejandro Gonzalez
Florida real estate investor and founder of SpillDeals. Alejandro built SpillDeals to give every investor the same data edge that institutional buyers have had for decades. Learn more →
Alejandro Gonzalez is a Florida real estate investor and founder of SpillDeals — the only platform that grades every FL investment property A–F using live MLS data. Learn more →