SFR CAP rates

[Vladimir Kovrizhnykh]

Hi BiggerPockets team! I’m evaluating the Florida market for single-family rental investments. Could you share what cap rates you’re seeing right now for single-family homes in Florida across major markets (e.g., Miami, Tampa, Orlando, Jacksonville)? Additionally, for larger portfolios of single-family houses (e.g., 30–50 homes), do institutional or private investors typically apply a different cap rate compared to individual single assets? If so, how and why does the cap rate change for larger portfolios?

[Chris Seveney]

Quote from @Vladimir Kovrizhnykh:

Hi BiggerPockets team! I’m evaluating the Florida market for single-family rental investments. Could you share what cap rates you’re seeing right now for single-family homes in Florida across major markets (e.g., Miami, Tampa, Orlando, Jacksonville)? Additionally, for larger portfolios of single-family houses (e.g., 30–50 homes), do institutional or private investors typically apply a different cap rate compared to individual single assets? If so, how and why does the cap rate change for larger portfolios?

I assume you are referring to returns from single family rentals, as cap rates are not really used in SFR's.

Larger institutional investors are fine with very low returns because their cost of capital is so low. They also value them very different than MF because there is a lot more overhead and management on SFRs vs. MF which is why institutional are typically not in the SFR space.