Fort Lauderdale Short-Term Rentals Gross 58% More, but Costs Narrow the Gap

Estimates for a typical 3-bedroom house. Figures are modelled from market data; not guaranteed outcomes.

Short-term rental grosses approximately 58% more than long-term rental in Fort Lauderdale (Broward County). However, short-term rental operating costs are significantly higher, which compresses the net advantage considerably.

Short-term rental only outperforms long-term rental if occupancy exceeds 38%. With the market averaging 61%, Fort Lauderdale sits well above that threshold, but the margin depends heavily on which suburb and how well the property is managed.

Occupancy Swings Change the Short-Term Rental Story in Fort Lauderdale

Occupancy is the single biggest variable in short-term rental returns. Long-term rental income is essentially fixed once tenanted, but short-term rental income swings dramatically with occupancy. Here is what that looks like in Fort Lauderdale at the market average nightly rate of $255:

• At 46% occupancy (weak season or poor reviews): Gross revenue drops to around $38,306, still above the long-term rental gross of $32,304, but leaving very little margin after higher short-term rental costs.
• At 61% occupancy (market average): Gross revenue reaches approximately $50,929, the baseline scenario.
• At 71% occupancy (prime location, strong reviews): Gross revenue climbs to roughly $59,345, creating a more meaningful gap over long-term rental.

The theoretical ceiling at full occupancy across all 330 available nights is $84,157, though no property realistically sustains that year-round. These scenarios show why your specific suburb and property quality matter so much; the dashboard lets you model each one.

Fort Lauderdale Suburbs Show Wide Yield Variation

Across 54 ZIP codes in Broward County, yields range widely. The most affordable suburbs deliver the strongest gross rental yields, while premium beachfront areas trade yield for appreciation potential. This is the defining tension of a premium market like Fort Lauderdale: high entry prices compress yields, but some suburbs buck the trend.

The spread between the highest and lowest-yielding suburbs is substantial. More affordable inland areas like Sunrise (33322) and Lauderhill (33313) deliver meaningfully higher gross rental yields than the county median because entry prices are lower while rents remain competitive. Premium suburbs command higher rents in absolute terms, but the elevated purchase prices more than offset that advantage.

These are averages per suburb. The dashboard breaks it down further, by bedroom count and property type, so you can model your specific property.

Premium Prices Compress Yields, but Fort Lauderdale's Tourism Demand Compensates

Fort Lauderdale is a premium market. The median 3-bedroom house price of $629,085 sits well above the Florida state average of $455,850 and far above the national median of $260,430. In most premium markets, those elevated prices crush rental yields. Fort Lauderdale partially offsets this through strong tourism demand: the short-term rental gross yield of 8.1% is competitive despite the high entry point.

The trade-off is the classic premium market dynamic. Cash flow is modest, but South Florida's long-term appreciation trajectory provides a second return channel that lower-cost markets typically lack. Investors here are betting on total return (income plus capital growth), not income alone. For pure cash flow, markets like Osceola or Bay County in Florida offer substantially higher yields on lower-priced properties, but without the same demand fundamentals or appreciation profile.

The price range within Broward County itself is wide, from around $338,034 to roughly $1,230,395 for 3-bedroom houses, meaning investors can target different points on the yield-to-appreciation spectrum without leaving the market.

Operating Costs Eat Into Fort Lauderdale's Short-Term Rental Advantage

Short-term rental grosses 58% more than long-term rental, but the cost structure is significantly heavier. Here is what annual operating costs look like for each strategy:

Short-term rental annual costs (estimated):

• Airbnb host fee: 15.5% of gross revenue (approximately $7,894)
• Property management: around 20% of revenue (approximately $10,186)
• Insurance: around $3,039
• Maintenance (including furnishing replacement): approximately $6,951
• Cleaning between guests: $124 per turnover
• Upfront furnishing: roughly $20,250 (one-time)
• Total annual operating costs: approximately $26,714

Long-term rental annual costs (estimated):

• Property management: around 9% of rent
• Insurance: around $1,344
• Vacancy allowance: approximately $1,615 (5% of annual rent)
• Total annual operating costs: approximately $14,959

After costs, the net operating income narrows considerably: approximately $24,215 for short-term rental versus $17,345 for long-term rental. That translates to net yields of 3.8% and 2.8% respectively. The gross advantage of 58% compresses to a much slimmer net margin.

Both strategies face property tax of 0.9% (around $5,866 annually), and short-term rental operators must also collect and remit 9.5% in lodging taxes, which is passed through to guests but affects pricing competitiveness.

Florida's Permissive Rules and No Income Tax Benefit Fort Lauderdale Investors

Florida is one of the most investor-friendly states for short-term rental. State law preempts any local ban on vacation rentals enacted after June 2011, meaning Fort Lauderdale cannot prohibit them outright. A state vacation rental license is required, costing approximately $100, and some areas may require additional local registration. The regulatory burden is light compared to markets like New York or Los Angeles.

The tax picture is equally favourable. Florida has no state income tax, which means rental income (both short-term and long-term) is taxed only at the federal level. For investors in high-income-tax states looking to diversify geographically, this is a meaningful advantage. The lodging tax of 9.5% applies to short-term rental stays (Florida's 6.0% sales tax plus local tourist development tax), but this is typically collected from guests, not absorbed by the host.

After Federal Tax, Depreciation Significantly Shelters Fort Lauderdale Rental Income

Rental property investors can depreciate the building value over 27.5 years on a straight-line schedule. For a property purchased at around $629,085, the depreciable building value (at 80% of the purchase price) is approximately $503,268, yielding an annual depreciation deduction of roughly $18,301. This paper loss often exceeds the net operating income, creating a tax loss on paper even while the investment generates positive cash flow.

For short-term rental operators who materially participate in management (handling bookings, guest communication, maintenance coordination), the IRS may treat the activity as non-passive. This allows active loss deductions against other income, a significant benefit not available to passive long-term rental investors. Mortgage interest is also fully deductible on Schedule E without the SALT cap that applies to personal residences.

Additionally, 1031 exchanges allow investors to defer capital gains when swapping into another investment property, preserving equity for reinvestment. Combined with Florida's absence of state income tax, the effective tax burden on Fort Lauderdale rental income is among the lowest in the country.

Fort Lauderdale Yields Compare Favourably Within Florida's Premium Tier

Comparison of key investment metrics.

Fort Lauderdale's long-term rental gross yield of 5.1% sits close to both the Florida average of 5.1% and the national average of 4.9%. The similarity is deceptive: Fort Lauderdale achieves a comparable yield on a property price roughly three times the national median. Rents are correspondingly higher in absolute terms ($2,692 versus the national $1,068), which means the dollar income is substantially larger even if the percentage yield is comparable.

For investors comparing within Florida, lower-cost markets in the Panhandle or Central Florida offer higher gross rental yields on cheaper properties, but Fort Lauderdale's tourism infrastructure, population growth, and coastal location provide a fundamentally different risk profile. Miami faces similar premium dynamics with even higher entry prices.

Which Suburbs Offer Both Demand and Affordability in Fort Lauderdale?

The best opportunities in a premium market like Fort Lauderdale sit in suburbs that combine enough short-term rental demand with prices below the county median. Areas like Sunrise (33322) and Deerfield Beach (33442) achieve this balance: entry prices well below the county-wide $629,085, with rents that produce gross yields far above the market average. These are not beach-adjacent locations, but they benefit from Broward County's broad tourism and business travel demand.

By contrast, beachfront ZIP codes in Hollywood and Fort Lauderdale Beach command the highest nightly rates and strongest occupancy for short-term rental, but prices above $1,230,395 mean gross yields compress despite the premium revenue. The investor's decision comes down to the appreciation-versus-cash-flow trade-off: inland suburbs for yield, coastal suburbs for long-term capital growth.

For investors who want both demand and affordability, the mid-ring suburbs of Broward County are worth examining closely. Explore rental data in the dashboard to compare specific suburbs by bedroom count and property type.

Investment Bottom Line for Fort Lauderdale

Fort Lauderdale is a premium market where short-term rental outperforms long-term rental on gross revenue, but costs narrow the net difference substantially. The regulatory environment is permissive, Florida charges no state income tax, and federal depreciation shelters much of the cash flow. The real question is not which strategy wins on average, but which suburb and property type align with your investment goals.

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.