After All Costs, Broward County's Short-Term Rental Edge Shrinks to 1.7%

Short-term rental grosses 56% more than long-term rental on a typical 3-bed house in Broward County, but after insurance, Airbnb fees, maintenance, property tax, and utilities, the net gap between the two strategies narrows considerably. This article breaks down the full cost picture for both a 3-bed house and a 2-bed apartment, because the two property types carry meaningfully different cost structures: apartments add HOA fees but come with a much lower entry price.

3-Bed House Costs: Short-Term Rental Nets 1.7% After $39,702 in Annual Expenses

Estimated annual figures for a self-managed 3-bed house in Broward County. All values modelled from market data.

Insurance and Airbnb Fees Consume Most of the House Premium

The biggest cost difference between the two strategies is Airbnb fees. At 15.5% of gross revenue, Airbnb takes $7,817 per year from a 3-bed house. Other platforms charge differently: Vrbo takes roughly 5% from hosts, while Booking.com charges closer to 15%. Long-term rental has no equivalent platform cost. Short-term rental tax at 9.5% adds $4,791 per year that long-term rental does not carry, making it the second-largest gap. Insurance is the third; short-term rental insurance runs $9,049 compared to $7,549 for a standard landlord policy, reflecting the higher liability exposure from transient guests. In South Florida, where hurricane and flood risk push all property insurance higher than national averages, this premium is particularly meaningful.

Maintenance also costs more for short-term rental ($9,214 vs $6,134) because the estimate includes furnishing replacement costs, accounting for the wear and tear that comes with frequent guest turnover. Utilities at $2,964 apply in full to short-term rental operators, who cover electricity, water, and year-round air conditioning for guests. Long-term rental utilities are lower at — because tenants cover most of their own consumption, but the owner still carries a portion. Property tax at $5,866 (approximately 0.9% of the purchase price) hits both strategies equally.

2-Bed Apartment: Lower Entry at $129,425, but HOA Adds a Fixed Cost Layer

Estimated annual figures for a self-managed 2-bed apartment in Broward County. All values modelled from market data.

Houses vs Apartments: Lower Entry Price, but HOA Changes the Math

The apartment's biggest advantage is entry price. At $129,425, a 2-bed apartment costs a fraction of the $629,085 needed for a 3-bed house. That lower price point makes Broward County apartments accessible to investors who cannot (or choose not to) commit over half a million dollars to a single property. For context, the Broward median house price sits well above both the Florida state average of $455,850 and the national average of $260,430, making apartments a practical entry point into this premium coastal market.

The trade-off is HOA fees. At $2,320 per year, HOA is a fixed cost that hits regardless of whether the property is vacant, rented short-term, or leased to a long-term tenant. It covers building insurance, common area maintenance, and amenities, but it is money that goes out every month whether or not income comes in. For short-term rental, the apartment nets 11.4% compared to 1.7% for the house. For long-term rental, the apartment yields 12.4% compared to 1.7% for the house. The lower purchase price boosts the yield percentage, but the fixed HOA drag works against it. Which property type comes out ahead on net yield depends on how those two forces balance in the current market data.

Short-Term Rental Gross Revenue Matches Long-Term Rent at 32% Occupancy

For the 3-bed house, short-term rental gross revenue matches long-term rental annual rent at roughly 32% occupancy. That is a gross break-even — it does not account for the higher operating costs that short-term rental carries, so the actual after-costs break-even is higher. The Broward County market median occupancy sits at 49%, well above the gross break-even point. But operators who fall below it due to poor listing quality, inconsistent pricing, or unfavorable location within the county would almost certainly be better off with a long-term tenant.

Hiring a Manager Drops Short-Term Rental Yield to 0.1%

Both cost tables above assume self-management. For investors who prefer a hands-off approach, hiring a professional short-term rental manager in Broward County adds around $10,087 per year (roughly 20% of gross revenue). That additional cost drops the 3-bed house net yield from 1.7% to approximately 0.1%. In a market with year-round demand and high guest turnover, management fees reflect the intensity of the work: guest communication, cleaning coordination, dynamic pricing, restocking supplies, and handling maintenance issues between stays.

For long-term rental, hiring a letting agent adds around $2,913 per year (typically 9% of rent collected), bringing the house net yield down to approximately 1.3%. The long-term rental management burden is lighter (tenant screening, lease management, occasional maintenance coordination), which is reflected in the lower fee. For investors weighing self-management against professional management, the key question is whether the time savings justifies the yield reduction. In Broward County's competitive short-term rental market, a skilled manager can sometimes offset their fee through higher occupancy and better pricing, but that is not guaranteed.

Florida's Tax Structure Favors Rental Investors

Florida has no state income tax, which gives Broward County investors a structural advantage over comparable coastal markets in states like California or New York. Every dollar of net rental income stays in your pocket at the state level. At the federal level, residential rental property depreciates over 27.5 years. For a house purchased at $629,085, approximately 80% of the value (roughly $503,268) qualifies as the depreciable building component, producing an annual paper deduction of around $18,301. That deduction can shelter rental income and, for short-term rental operators who materially participate in management, may offset ordinary income as well. Closing costs and transfer taxes apply at purchase; consult a local real estate attorney for current rates. Rental income is reported on Schedule E, and 1031 exchanges remain available for tax-deferred property swaps. Review our data sources for how tax impacts are modelled.

Broward's Suburban Balance: Demand Without Miami-Dade Prices

Broward County sits between Miami-Dade's premium pricing to the south and Palm Beach County to the north, offering a middle ground that attracts both tourists and long-term tenants. Florida state law preempts local STR bans enacted after June 2011 — cities cannot prohibit vacation rentals if they allowed them before that date. State vacation rental license required. Tourist development tax rates vary by county (typically 5-6% on top of state sales tax). Generally investor-friendly. This permissive environment, combined with proximity to Fort Lauderdale's cruise port and beaches, keeps short-term rental demand strong across the county's 54 ZIP codes. The market scores reflect this: 9.1/10 for short-term rental and 7.8/10 for long-term rental, based on our market score methodology.

These are county-level medians, and individual neighborhoods diverge significantly. A beachfront property in Hollywood or Fort Lauderdale Beach will command higher nightly rates but also a much higher purchase price, potentially compressing net yields. Inland suburbs like Sunrise (33322) and Coconut Creek (33066) offer lower entry prices with solid rental demand from local workers and families. The dashboard shows neighborhood-level data for every bedroom count and property type, so you can model the specific cost breakdown for your target area rather than relying on county averages. Miami's Airbnb Premium Drops to 2.1% Net After All Costs faces similar dynamics as a premium Florida coastal market.

Data reflects market conditions as of April 2026.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.