Miami Beach Investment Property: What the Numbers Look Like in 2026

Miami Beach has one of the most active real estate investment markets in the country, driven by short-term rental demand from global tourism, seasonal rental premiums, and international capital that treats Miami Beach real estate as a store of value. The numbers work differently here than in typical markets.

Short-Term Rental Market

Season (November-April) STR rates for a well-positioned 2-bedroom condo run $5,000-$10,000+/month. Off-season rates drop to $3,000-$5,000. The Art Basel week (December) commands extreme premiums - units regularly rent for $10,000-$25,000+ per week. Annual STR gross revenue on a well-managed 2-bedroom in the right building can exceed $80,000-$120,000.

STR Regulations

Miami Beach has been tightening STR regulations. Many buildings prohibit short-term rentals in their HOA documents. The city has licensing requirements. Verify current ordinances and the specific building’s rules before buying with STR intent. Some buildings and neighborhoods are explicitly STR-friendly; others are not.

Long-Term Rental Market

A 2-bedroom condo rents for $4,500-$7,000+/month on annual lease. High-end units command more. Tenant demand is strong from professionals, visiting executives, and seasonal residents who want to lease rather than own.

Cap Rates and Returns

Cap rates on Miami Beach investment properties are typically 3-5% on a long-term rental basis. HOA fees are the biggest margin compressor. Short-term rental gross yields can be significantly higher but require active management or a management company (typically 20-30% of revenue). The investment case for Miami Beach is often appreciation and store-of-value more than current yield.