Short answer: In Miami, FL, the median home value is $598,200 and the median 3-bedroom rents for $2,179/mo (Census ACS 2024). That's a rent-to-price ratio of 0.36%, so it misses the 1% rule and ranks #40 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$2,224/mo cash flow).
Key numbers
The 1% rule in Miami
A quick screen many investors start with: is monthly rent at least 1% of the price? In Miami, here's the answer on typical numbers.
Across all rentals (not just 3-bedrooms) the ratio is 0.33%. A home renting for the median 3-bedroom rent would need to cost about $218,000 or less to pass.
A typical Miami home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $2,179 |
| Property tax ($5,120/yr, local median) | −$427 |
| Insurance ($2,990/yr, assumed) | −$249 |
| Vacancy 6% · Maintenance 5% · Management 8% | −$414 |
| Net operating income | $1,089 |
| Mortgage (P&I on $478,560 at 7.40%) | −$3,313 |
| Monthly cash flow | −$2,224 |
What price works in Miami?
Same rent, different prices. Here's the most you could pay in Miami for each result, keeping the median 3-bedroom rent and local tax rate.
Takeaways
- Miami's 0.36% ratio is far below the 1% rule (#40 of 50). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $2,224/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $265,000, 56% below the median.
- Rents are outrunning prices: the median 3-bedroom rent rose 13.2% from 2023 to 2024 while values rose 1.8%. That slowly improves the math for buyers.
- Renters are the majority here (67% of households), so the tenant pool is deep.
- Renters already spend a median 38.7% of income on rent, so don't count on big rent increases.
Frequently asked questions
Does Miami pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $2,179/mo and the median home value is $598,200 (Census ACS 2024 1-year), a ratio of 0.36%. To pass at that rent, a home would need to cost about $218,000 or less.
What is the typical rent for a 3-bedroom in Miami?
The median gross rent for a 3-bedroom in Miami, FL is $2,179 a month, and $1,975 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median rose 13.2% from 2023.
Can you cash flow a rental in Miami?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $598,200 home renting for $2,179 loses about $2,224/mo. It breaks even at roughly $265,000.
How much cash do you need to buy a typical rental in Miami?
About $137,540: a 20% down payment of $119,640 plus closing costs we assume at 3% ($17,900). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Miami a good place to buy a first rental?
FirstDoor scores a median-priced home in Miami as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
Compare similar markets
Keep learning
Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($2,990/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.