As the continental United States largest city by land mass, Jacksonville boasts impressive investor property purchase opportunities. In 2018, Forbes ranked Jacksonville as the third most affordable city in the country. One of the largest factors for this attractive cost of living is the relatively low cost of real estate in the market.
The median monthly rent for a 3-bedroom home was $1,247 in January 2019, with a median home price of $163,000. This represents a gross rental yield of 9.18% which on the face appears to be a relatively moderate rental yield, however, it is important to note that the median home price includes all homes including non-rental properties.
As it is, Jacksonville is the most populous city in all of Florida. It is also the largest by land area in the contiguous United States. With such a large and growing population on an even larger land mass it is logical to see the why we have a large tenant pool. As a matter of fact, about 44% of the city’s residents are renters. This makes it easy to see why many investors flock to the housing market in Jacksonville, FL.
Considering this information, one can discern that there is ample supply of rental product capable of producing attractive rental yields. Even in today’s strong market, investors can acquire older construction homes with gross rental yields in the 12% to 16% range and between 9% and 11% for brand new homes.