Miami multifamily cap rates
Miami-Dade County · Updated September 2026
Current range
5.25% – 6.25%
Most apartment buildings in Miami-Dade trade on in-place income, with buyers underwriting insurance and taxes at today's cost, not the seller's.
Typical expenses
42%
of collected income, paid by the owner
What moves a multifamily property within the range
- Rents against the market. A building leased below market trades at a lower cap rate because the buyer is paying for the upside.
- Age and deferred maintenance. Roofs, elevators, windows and the 40-year recertification all come out of the buyer's price.
- Insurance and taxes. Both have risen sharply in South Florida and they are the first line a buyer checks.
- Unit mix and size. Larger buildings attract institutional buyers who accept lower returns.
- Location and age. Core neighborhoods trade about 0.25% tighter, outer markets about 0.50% wider, and buildings from before 1980 about 0.25% wider.
What a quarter point is worth
Take a multifamily property with $500,000 of net operating income. At today’s range, every 0.25% change in cap rate moves its value by about $362,319.
| Cap rate | Value at $500,000 NOI |
|---|---|
| 5.00% | $10,000,000 |
| 5.25% | $9,523,810 |
| 5.75% | $8,695,652 |
| 6.25% | $8,000,000 |
| 6.50% | $7,692,308 |
Questions
What is a good cap rate for multifamily in Miami?
Stabilized multifamily properties in Miami-Dade are trading at 5.25% to 6.25%. A lower cap rate means a higher price for the same income. Whether a given cap rate is good depends on whether you are buying or selling.
How do I calculate the value of a multifamily property?
Divide the net operating income by the cap rate. A property netting $500,000 a year at a 5.75% cap rate is worth about $8,695,652.
What expenses come out of net operating income?
Property taxes, insurance, repairs, management, utilities the owner pays and reserves. Not the mortgage. For multifamily, owner-paid expenses typically run about 42% of collected income.
Other property types: Small multifamily (2–9 units) · Retail / strip center · Single-tenant net lease · Office · Medical office · Industrial / warehouse · Mixed use · Self storage · Hotel / motel · Auto service / gas. Land values by neighborhood: see the table.
What is your multifamily property worth?
Enter your address and we pull the county record. Add your rent and expenses and you will see your cap rate and value range against today's multifamily market. It is free.
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