Florida ADU · Rental economics · 2026
What can you earn renting an ADU in Florida?
A furnished one-bedroom backyard home rents long-term for $1,150–$2,200 a month across Florida's major metros. Against a Sidesuite at $99,999 plus installation (estimated around $30,000), that's roughly an 11–20% gross yield, before lot-specific costs. Here's the math, the variability, and the realistic returns by city.
Florida ADU rent ranges (2026).
The numbers below reflect typical long-term lease rents for a small, furnished 1-bedroom unit. Sidesuite comes unfurnished, so budget for furniture or expect lower rent unfurnished. Short-term (Airbnb) rates are higher but more variable and increasingly restricted by city ordinance.
| Metro | Typical monthly rent | Annual gross | Gross yield |
|---|---|---|---|
| Miami | $1,600 – $1,950 | $19,200 – $23,400 | 15–18% |
| Tampa | $1,400 – $1,700 | $16,800 – $20,400 | 13–16% |
| Orlando | $1,350 – $1,650 | $16,200 – $19,800 | 12–15% |
| Jacksonville | $1,150 – $1,400 | $13,800 – $16,800 | 11–13% |
| St. Petersburg | $1,450 – $1,750 | $17,400 – $21,000 | 13–16% |
| Palm Beach | $1,750 – $2,200 | $21,000 – $26,400 | 16–20% |
What you actually take home.
Gross yield is the easy number. Net cash flow is the one that matters. Here's the full stack on a Sidesuite in Tampa: about $130,000 for the home and installation (the $99,999 home plus the ~$30,000 estimate), before lot-specific costs (permits, site prep, utility tie-ins). Rent is $1,500/mo, financed with an 8.5% HELOC over 20 years:
| Gross monthly rent | +$1,500 |
| Vacancy reserve (~5%) | −$75 |
| Property tax (~$1,800/yr on ~$91k added value) | −$150 |
| Insurance addition | −$60 |
| Maintenance reserve | −$75 |
| Mortgage / HELOC payment ($130k, 8.5%, 20yr) | −$1,128 |
| Net monthly cash flow | +$12 |
Plus appreciation on the property itself, plus principal paydown on the loan — you build equity with every payment. Financed this way, cash flow is roughly break-even in the early years; the wealth-building return (equity built per dollar invested) is significantly higher.
In a market where the ADU is paid in cash:
| Gross monthly rent | +$1,500 |
| Total monthly costs (taxes, insurance, maintenance, vacancy) | −$360 |
| Net monthly cash flow | +$1,140 |
| Annual net | $13,680 |
| Cash-on-cash return on $130k | ~10.5% |
Both examples leave out lot-specific costs (permits, site prep, utility tie-ins). Add yours from your site-plan quote; financing them raises the payment.
Affordable-rent fee reductions.
A Sidesuite is yours to use however you want (check whether your city requires an affordable-rent affidavit under §163.31771). But if you commit to renting the unit at an affordable rate as your city or county defines it, some local programs take real dollars off the fees on your build.
- Impact-fee and utility-connection waivers — can knock several thousand dollars off the lot-side costs.
- Expedited permitting in many jurisdictions when the unit is committed to workforce/affordable tenancy.
- Local programs — Miami-Dade impact fee waivers, Hillsborough's AHIP, Palm Beach's Workforce Housing Program, Orange County's affordable-housing fee deferrals.
The commitment is between you and your city or county. More on fee programs on the cost page.
The Airbnb question.
Furnished short-term rentals (Airbnb, Vrbo) typically command 50–100% more revenue than long-term leases — but with more vacancy, more management, and increasingly restrictive city rules. Many Florida municipalities have tightened short-term rental ordinances since 2023.
- Miami Beach, Key West, Sanibel — restrictive STR rules; permit required and often capped.
- Orlando, Tampa, Jacksonville — STRs allowed in most residential zones, but ADU-specific rules vary.
- Most unincorporated Florida — STRs permitted with a state license under the Department of Business and Professional Regulation. DBPR vacation rental info.
Our recommendation: model the deal on long-term rental rates. Treat short-term upside as bonus, not the base case.
Common ADU rental questions.
Can my city stop me from renting out the ADU?
Most Florida jurisdictions permit long-term rentals (12+ month leases) in ADUs. Short-term (under 30-day) rentals are sometimes restricted. Some cities (notably Miami) have owner-occupancy rules — you must live in either the primary house or the ADU, but you can rent the other. Full rules here.
Do I need a business license?
For a long-term lease, usually no — you're a residential landlord under Florida statute. For short-term rental, yes — you'll need a Florida DBPR vacation rental license and likely a city/county registration.
How does an ADU affect my property taxes?
It raises assessed value, and so your property tax. Typical assessment increase: 60–80% of the build cost. Your homestead exemption still applies to the primary residence; the ADU and its land allocation can be assessed at full market rate.
What about hurricane insurance?
Adding an insured ADU typically raises annual home insurance in Florida by $600–$1,000 — accounted for in the math above.
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