Florida's housing market offers unique dynamics that make the buy vs rent decision particularly impactful. With no state income tax, strong appreciation in metro areas like Miami-Dade, Broward, and Palm Beach counties, and a growing population driving demand, the numbers often favor ownership over the medium to long term.
This calculator models the real wealth comparison: when you buy, your monthly costs build equity in an appreciating asset. When you rent, the difference between what you'd spend owning versus renting can be invested in the stock market. We compare both paths year by year so you can see exactly when ownership pulls ahead.
What This Calculator Considers
- Full ownership costs — principal, interest, property taxes (Florida avg 0.89%), insurance, and PMI if applicable
- Loan programs — choose between Conventional, FHA, and VA — each with different rates and down payment requirements
- Home appreciation — Florida has averaged 3-5% annually over the past decade in major metros
- Rent increases — South Florida rents have increased 3-8% per year recently
- Opportunity cost — if renting, your down payment savings earn market returns instead
- Live rates — we pull today's rates directly from our MBS Highway feed, not stale estimates
Florida Mortgage Programs Compared
Different loan programs serve different borrowers. Use the program selector above to see how each affects your buy vs rent outcome:
- Conventional — best rates, typically requires 5-20% down and 620+ credit score. No upfront mortgage insurance with 20% down
- FHA — government-backed, 3.5% minimum down with 580+ credit. Popular with first-time buyers. Upfront and annual MIP apply
- VA — exclusive to veterans and active military. 0% down, no PMI, competitive rates. Funding fee applies
Florida Homestead Exemption: A Buyer's Advantage
One of the strongest financial arguments for buying in Florida is the Homestead Exemption. If you make a property your primary residence, you can exempt up to $50,000 of your home's assessed value from property taxes. On a $400,000 home, that saves roughly $500-$1,000 per year depending on your county's millage rate. This exemption is automatic for owner-occupants and renews each year — renters get no equivalent benefit.
Florida also offers a Save Our Homes cap that limits assessed value increases to 3% per year for homesteaded properties, regardless of actual market appreciation. In a state where home values have risen 5-10% in some years, this cap compounds into significant tax savings over time — another factor our calculator helps you model.
Property Taxes by Florida County
Property tax rates vary meaningfully across Florida's 67 counties. Here are the effective rates for South Florida's most popular counties — use the Advanced settings in the calculator above to enter your specific county's rate:
- Miami-Dade County — effective rate ~1.02% — highest in the tri-county area, offset by strong appreciation and no state income tax
- Broward County — effective rate ~1.08% — includes Fort Lauderdale, Oakland Park, Coral Springs, and Pembroke Pines
- Palm Beach County — effective rate ~1.11% — slightly higher taxes but lower median home prices than Miami-Dade in many zip codes
- Hillsborough County — effective rate ~0.97% — Tampa metro area, strong job growth and relatively affordable inventory
- Orange County — effective rate ~0.98% — Orlando metro, popular with first-time buyers and investors
- Duval County — effective rate ~0.91% — Jacksonville metro, one of the most affordable major Florida markets
Florida Home Insurance: What Buyers Should Know
Insurance is a critical factor in the Florida buy vs rent equation. The state's property insurance market has seen significant increases since 2020, with average annual premiums now ranging from $3,000-$6,000 depending on location, construction type, and proximity to the coast. Coastal properties in Miami Beach or Fort Lauderdale Beach may see higher premiums than inland locations.
Our calculator defaults to 0.5% of home value for insurance, which is conservative for newer, inland construction. Use the Advanced settings to adjust this to your expected premium. If you're buying a condo, your HOA fee often includes building insurance — you'd only need an HO-6 walls-in policy, which is significantly cheaper.
Importantly, when you rent, your landlord's insurance costs are baked into your rent. As insurance premiums rise, rents rise too — but as a homeowner, you can shop insurers, improve your wind mitigation rating, and take advantage of Citizens Property Insurance as a last-resort option if private market rates are too high.
Closing Costs in Florida
When budgeting for a Florida home purchase, plan for closing costs of 2-5% of the purchase price. On a $400,000 home, that's $8,000-$20,000, covering title insurance, appraisal, origination fees, prepaid taxes and insurance, and doc stamps. Florida is unique in that the seller traditionally pays for the owner's title insurance policy, which reduces the buyer's out-of-pocket costs. HFG provides a detailed Loan Estimate within 3 business days of application so you know exactly what to expect.
Why Florida Homebuyers Trust HFG
Home Financial Group has been a direct Florida mortgage lender since 2002. We're not a marketplace or a lead aggregator — we underwrite and fund loans in-house. That means faster closings, competitive rates, and a loan officer who picks up the phone. Conventional, FHA, VA, and DSCR programs available statewide across all 67 Florida counties.
Last updated: 2026-05-20 · Rates and market data refreshed daily from MBS Highway. County tax rates are approximate effective rates and may vary by municipality.
