Southeast6.2% avg cap rate

Key West, FL

Southernmost point — premium year-round island STR

Key West is America's southernmost city and one of the most supply-constrained STR markets in the US. The island's physical size limits new construction, the Conch Republic culture drives intense brand loyalty, and the tropical climate supports year-round demand. STR regulations are among the most complex in Florida — licensing, registration, and inspection requirements apply.

6.2%
Avg Cap Rate
Net operating income / price
72%
Avg Occupancy
Annual average
$475
Avg Nightly Rate
All property types
$875K
Median Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
72% occ × $475/night
$124,830
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
– $49,932
Est. net operating income
Before mortgage & depreciation
$74,898
At median price
Implied cap rate
8.6%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Key West

Supply-constrained island market — limited new inventory possible
Year-round tropical climate eliminates seasonal off-peak
Premium pricing relative to property size — walkable, dense market
Review FL STR licensing requirements — active regulation applies
Peak season: Year-round (peaks: Fantasy Fest Oct, spring break)
Top property types: Conch House, Cottage, Condo, Duplex
Primary zip: 33040, 33042

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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