Thinking about shifting part of your Orlando portfolio to a Miami condo? The numbers can look tempting, but Miami behaves differently than Central Florida. Prices are higher in key submarkets, monthly association costs run heavier, and building rules and insurance can reshape your return. In this guide, you will see how Miami’s condo math works, where investors trip up, and how to run due diligence that protects your capital. Let’s dive in.
Miami vs. Orlando: What really changes
Miami is a coastal, high-density market with a wide range of condo product. Countywide pricing trends do not tell the full story, and submarket selection matters a lot.
Prices and rents by the numbers
- The Miami-Dade countywide median existing condo sale price is about $420,000, and core urban and waterfront areas often trade higher. You will see premiums in Brickell, Downtown, Edgewater, and Miami Beach compared to many Central Florida neighborhoods. MIAMI REALTORS® reports the countywide median.
- Rents are higher in Miami’s urban core, but they do not always offset the bigger purchase price and carrying costs. For example, RentCafe’s Brickell snapshot shows an average 1-bedroom rent near $3,044. Miami rents also show seasonal patterns, with stronger winter demand in tourism districts.
A quick gross-yield example
Consider a typical Brickell 1-bedroom scenario that many investors review. At a $750,000 price and about $3,044 in monthly rent, your gross yield sits near 4.9 percent before expenses. Layer in a meaningful HOA, insurance pass-throughs, property taxes, and management, and the net yield can drop to low single digits. This is why Miami condo strategies often lean on appreciation, tax planning, or short-term rental premiums if a building allows it.
The carrying costs you must model
Your Miami underwriting should be line-item detailed. Small misses on HOA or insurance can erase your margin.
HOA fees and special assessments
Association costs in Miami-Dade have climbed since 2019. A recent review of MLS and market data placed the county’s median monthly condo fee near $900 in Q2 2024, roughly a 60 percent jump since 2019. Boards are also raising reserves or levying special assessments more often. Always verify the current fee, recent increases, and any approved or proposed assessments in writing. See the coverage of rising HOA costs for context in this summary of condo fee trends.
Insurance and coastal risk
Florida’s property insurance market has been evolving, and higher premiums or unusual deductibles at the building level can flow directly to owners. Get quotes early and confirm how the master policy allocates wind and flood deductibles. For market context, review the Florida Office of Insurance Regulation’s update on insurer activity. Then, check the building’s FEMA flood zone and your unit’s flood exposure using the state’s DFIRM resources at FEMA flood zone guidance. If you plan a long hold, consider sea-level projections with the NOAA Sea Level Rise viewer.
Property taxes and millage
Florida has no state income tax, but local property taxes vary by municipality and special districts. For accurate budgeting, look up the parcel’s taxable value and millage at the Miami-Dade Property Appraiser. Do not use Orlando assumptions for a Miami condo. Always model taxes on the specific unit.
Building and regulatory risk you cannot ignore
Older coastal buildings and post-Surfside reforms add building-level risks that directly affect investors.
Milestone inspections and reserves
Florida now requires milestone inspections and structural integrity reserve studies on a defined schedule. Phase 1 visual reviews can trigger Phase 2 follow-ups and mandatory repair timelines. These items can lead to large special assessments if reserves are not adequate. Review reserve studies, inspection reports, timelines, and cost estimates before you write an offer. A helpful overview of the reforms is available in this legislative summary of SB 4-D and subsequent updates.
Short-term rentals and licensing
Short-term rentals are tightly regulated. You must confirm three layers: state licensing with DBPR, local city or county rules, and the condo association’s rental restrictions. Many buildings prohibit or limit short stays even if they allow annual leases. Start with the state rule framework summarized in this overview of Florida vacation rental regulations, then verify the municipal code and the condo declaration.
Financing and project eligibility
Condo lending depends on project review by Fannie Mae or Freddie Mac, plus lender overlays. Buildings with litigation, insufficient reserves, or heavy commercial ratios can get flagged as ineligible. That shrinks the buyer pool and may require cash or portfolio lending, which can affect resale. Ask your lender to check the project in CPM or CPA, and review Freddie Mac’s condo project review FAQs as you plan.
Submarkets: How to think about them
Brickell, Downtown, and Edgewater
- Brickell is the financial core with high-rise, full-amenity towers. Rents are strong but HOA and insurance loads in many buildings are significant. Use current comps and the Brickell rent snapshot from RentCafe to set conservative rents.
- Edgewater and nearby Downtown pockets include waterfront or near-water product with higher price per square foot and varied building ages. Financials, reserves, and inspection status matter as much as view and amenities here.
- Across all three, confirm rental permissions early. Short-term rules differ by city block and by building.
A focused due diligence checklist
Use this pre-offer process to reduce surprises.
Property and unit level
- Pull 6 to 12 months of building and ZIP-level rental and closed sales comps. Be precise with unit size, floor, view, and parking.
- Get the seller’s disclosure package. Confirm current HOA, the last three to five years of fee increases, and any approved or proposed special assessments. Reference the recent trend of rising fees in this HOA fee analysis.
- Obtain quotes for the unit’s HO-6 and flood policies. Validate FEMA flood zone using DFIRM flood resources.
Building and association
- Review the most recent budget, balance sheet, and 12 to 24 months of meeting minutes. Look for insurance renewals, reserve transfers, and assessment votes.
- Get the structural integrity reserve study and all milestone inspection reports. Confirm deadlines and any Phase 2 repair scope. See the rule overview in this SB 4-D summary.
- Request the master insurance declarations and note wind and flood deductibles and owner responsibility.
- Confirm rental restrictions, lease minimums, caps, and any short-term prohibitions. Cross-check with Florida’s vacation rental rule summary.
- Ask your lender to verify agency eligibility for the project and review Freddie Mac’s project review guidance.
Physical and environment
- Note building age and the status of major systems such as roof, elevators, façade or concrete work, and windows.
- Check FEMA flood zone and ground elevation, then consider long-term exposure using the NOAA Sea Level Rise viewer.
Transaction and operations
- Get firm quotes for unit insurance and property management. Short-term and long-term management costs differ widely. For insurance market context, review Florida OIR’s update.
- For tax planning, verify the current assessment at the Miami-Dade Property Appraiser.
- Build a conservative pro forma. Include HOA, master policy pass-throughs, flood and HO-6, property taxes, mortgage, management, reserves, and a special assessment contingency.
How to model your Miami pro forma
Start with gross rent and layer every known cost. In Miami, the big swing items are HOA, insurance, and any reserve or assessment requirements. Set rent assumptions with a margin for seasonality and potential rent softness. Then stress test your return with:
- 10 to 20 percent higher HOA over the next 24 months if the building is mid-renewal.
- Insurance increases or higher wind and flood deductibles passed through by the association.
- A one-time special assessment reserve line.
- A vacancy cushion if you plan to switch between annual and seasonal leases.
The goal is simple. If your Miami pro forma still works with conservative inputs, you likely have a durable asset in a global demand market.
How Team Gabriel helps Orlando investors
You should not have to decode building financials and project eligibility on your own. Our team sources data-driven comps, pressure tests condo budgets and insurance, and confirms rental permissions before you commit. We coordinate lender and insurance introductions, request board documents, and line up management options that fit your plan. With bilingual support and cross-market expertise, we make Orlando to Miami moves clear and efficient.
Ready to compare Miami condos against your Orlando holdings? Connect with Andrea Alonso to start your Florida search.
FAQs
What are typical HOA fees for Miami condos and why do they matter?
- A recent review placed Miami-Dade’s median condo HOA near $900 per month, up about 60 percent since 2019, which can compress net yields if you do not model increases and assessments. See context in this HOA fee analysis.
How do Florida’s milestone inspections and reserve studies affect buyers of older Miami condos?
- Required inspections and structural reserve studies can trigger mandatory repairs and large assessments if reserves fall short. Always review the latest reports and deadlines, guided by this SB 4-D summary.
Are short-term rentals allowed in Miami condos and what approvals are needed?
- You must satisfy state DBPR licensing, local city or county rules, and the condo’s own rental restrictions. Many buildings limit short stays even if annual leases are allowed. Start with this Florida vacation rental rule overview.
What financing challenges might I face when buying a Miami condo as an investor?
- If a project fails Fannie or Freddie review, financing can be limited or costlier and resale demand can shrink. Ask your lender to check CPM or CPA and review Freddie Mac’s FAQs.
How should I budget insurance and flood costs for a Miami condo?
- Get quotes early and confirm how the master policy allocates wind and flood deductibles. Use FEMA flood zone guidance and track market context through Florida OIR’s update.
What is the current Miami-Dade condo median price and what does it mean for investors?
- The countywide median is about $420,000. Core submarkets often trade above that, so you should run building-specific comps and conservative pro formas. See the median in this MIAMI REALTORS® report.
