Did you know that Jacksonville leads the nation in the "rising house market?" By the way, The Wall Street Journal ranked Jacksonville as the "fifth hottest job market in the country." And don't let the fear of exuberant property tax rates scare you off.
Besides not having an income tax, the property tax rates in Florida are "below the national average." This prospective real estate investing statistic is from SmartAsset.
But my fellow landlords, the opportunities for real estate investing in Jacksonville get better.
According to JaxUSA, nearly "6,000 new jobs" have become available in Jacksonville. And with Fortune 500 companies like Johnson & Johnson Vision moving into Jacksonville, the prospects of steady rent collection become clear.
By the end of this article, prospective Jacksonville landlords will also learn the importance of rental valuations. But don't wait too long to invest. According to Redfin, "Jacksonville homes usually sell after 30 days on the market."
The Jacksonville Housing Market
Jacksonville is Florida's largest city. And Jacksonville's housing prices have increased in recent years. But compared to other large cities, Jacksonville's housing prices are more affordable.
Also going in your real estate investing favor is the median home price. The average Jacksonville home price is just under $300,000.
Jacksonville currently has over 900,000 residents. So, landlords can capitalize on Jacksonville's "average $1,453 monthly rent." This statistic is according to RentCafe.
By the way, we can help manage your rental leasing with our rent collection services.
The Value of Property Tax Rates in Florida
The median property tax rate in Florida is slightly less than $1,800. Florida's property tax rate is roughly 0.83%. Of course, these figures vary from county to county.
Jacksonville is in Duval County. Duval County's average property tax rate is 0.85%. Therefore, landlords in Jacksonville expect to pay an average of $1,500 in property taxes.
This is assuming you're real estate investing in properties valued at around $175,000. Florida permits landlords to make bi-annual payments on their property taxes.
When landlords buy a property, the property taxes reset. So before purchasing your Jacksonville rental property, get it appraised.
By the way, we can help you negotiate the property tax rates in Florida. Our expertise also extends to tax exemption consultation.
The Rental Valuation Process
Successful Jacksonville rent collection depends on your tenant's income status. The median household income in Jacksonville is $56,975. In contrast, Florida's cost of living is lower than other states.
Other factors involved with rental valuations include:
- Sales Comparison
- The Capital Asset Model
- The Income Approach
- Gross Rent Multiplier
We can also assist landlords in the rental valuation process.
Sales Comparison Approach
The Sales Comparison model is a rental valuation comparing similarly sold homes. Also, it compares similar rental leasing from a group of properties. The Sales Comparison approach also factors in-home amenities and features.
The Capital Asset Model
The CAPM rental valuation factors in the return of investment potential. If the potential risks exceed the value, investing is not wise.
The Income Approach
Landlords must weigh a tenant's ability to pay over time. Then you weigh this against the value of the property.
Gross Rent Multiplier
The Gross Rent Multiplier method calculates a landlord's expected rental income each year. The GRM rental valuation focuses on gross rent collection compared to net rent collection.
More on Property Tax Rates in Florida
We are the largest single-family property management company on the East Coast. Landlords continue to benefit from our exceptional tenant screening and brokering services. We extend you the same rental leasing management services.
Please don't hesitate to contact us about property tax rates in Florida. You can also visit our blog for tips on Jacksonville's housing trends. If you're ready to begin real estate investing, check out our homes for sale area.
Choosing Home River Group to manage your Jacksonville property, means your investment receives professional and expert treatment. Between our regional offices, we look after more than 4,000 properties.