Rent vs. Buy
in Florida

What this compares

Total 5-year cost of buying (PITI + maintenance + opportunity cost of down payment, less appreciation and equity build) vs. total 5-year cost of renting (rent payments rising with inflation, less the return on the down payment kept invested).

Florida-specific assumptions: 1.0% property tax, 0.65% insurance (low for coastal — adjust if relevant), 1% annual maintenance reserve. The comparison is conservative — buying becomes more advantageous over longer hold periods because closing costs amortize.

Why the answer surprises people

Most rent vs. buy posts assume you'll hold the home for 30 years and ignore opportunity cost. That bakes in a buy-wins answer.

Realistic answer: buying typically wins after about year 3-5 in stable markets, gets dramatically better with longer holds, and gets worse if rates rise sharply or you have to sell early. For someone who might move in 2 years, renting is usually right. For someone planning to stay 7+ years, buying almost always wins — the home appreciation plus locked rent (mortgage payment) compounds in your favor.

Florida-specific factors

• Insurance increases. Florida insurance has been compounding faster than rent inflation in many areas. The model assumes static insurance — reality may be higher.
• Special assessments. Older Florida buildings can issue surprise assessments for repairs. Not in the model — but real risk.
• No state income tax. Florida residents don't get the SALT deduction benefit on income — which means the federal mortgage interest deduction is more valuable in low-tax states than in high-tax ones (your itemized deductions don't compete with state income tax).
• Save Our Homes cap. If you stay in your homesteaded Florida home long-term, the 3% cap on assessed value protects you from compounding property tax — a real long-term advantage. More →

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