There was a client curious about the rental yield for properties in Orlando. They already knew the purchase price and monthly rent, but they were unsure if they could determine the yield based on just those two numbers. Given the current market, such questions are common, so it helps to outline the items to check in order.

The first item to check is the total yield. According to 2026 data, the average rent for apartments in Orlando is $1,812 per month, and the average home value based on Zillow is $376,216. Plugging these numbers in, the total yield calculated by dividing the annual rental income of $21,744 by the purchase price is about 5.8 percent. However, this value is just a starting point that does not reflect operating costs at all.

The second item to check is the cap rate. This is the net operating income (NOI), which is the total income minus property taxes, insurance, management fees, maintenance costs, and vacancy losses, divided by the purchase price. Orange County, where Orlando is located, has an effective property tax rate of 1.12 percent according to Ownwell data, which is similar to the Florida state average. Applying the 50% rule and assuming total operating costs are half of the total rental income, the NOI is $10,872 annually, and the cap rate drops to about 2.9 percent.

The third item to check is the cash-on-cash return. Assuming a 30-year fixed rate of 6.67 percent as of August 13, 2026, with a 20 percent down payment, the loan principal and interest exceed $23,000 annually. Since the NOI falls short of this amount, the monthly cash flow could be negative. This is something that could be overlooked if only the cap rate was checked.

The fourth item to check is the vacancy rate and the volatility due to tourism demand. Orlando is a region where tourism and theme park-related employment support rental demand, but the income structure for short-term rentals and long-term rentals differs significantly, so the management costs and vacancy losses can vary greatly depending on how the property is operated.

• Total Yield - The value obtained by dividing annual rental income by the purchase price, excluding costs
• Cap Rate - The value obtained by dividing NOI by the purchase price, including operating costs such as property taxes and insurance
• Cash-on-Cash - Pre-tax cash flow compared to actual cash invested, reflecting loan conditions
• Vacancy Rate and Rental Method - Differences in management costs and vacancy losses between short-term and long-term rentals

Additionally, the 1% rule is worth considering. Dividing the monthly rent of $1,812 by the purchase price of $376,216 gives 0.48 percent, which falls short of the 1 percent benchmark. While this is not an absolute standard, if this figure is low, it may indicate that cash flow could be tight at the cash-on-cash stage.

From a total yield perspective, even if cash-on-cash seems lacking at the moment, one must also consider the asset appreciation due to loan principal repayment and capital gains. Orlando is a region with steady population growth, so this aspect could positively influence long-term outcomes, but it is important to remember that these are not guaranteed returns.

By checking these four items in order, a clearer picture emerges that cannot be seen with just the purchase price and monthly rent. Properties that appear to have a high total yield may change rankings at the cap rate and cash-on-cash stages.

If you are considering relocating to Orlando, it is also worth looking into school districts for your children, in addition to rental yields. There are several highly rated school districts near Orlando according to GreatSchools, but school district boundaries change frequently, so be sure to check the assigned school for the specific address before making a purchase. If you plan to operate a short-term rental, you should also check the county or HOA's short-term rental regulations in advance to determine if the expected income structure will actually hold.

Please verify the property tax rate and insurance based on the exact address. This article is not investment advice, and if you are about to make a purchase, it is advisable to review specific numbers with a real estate professional or accountant.