What cap rates do Orlando vacation rentals produce?

Orlando vacation rental cap rates range from 6% to 10.5% depending on location, property type, and management model. Cash buyers near Disney or Universal targeting 75% occupancy at $220/night achieve 8–10%+ cap rates. Professionally managed properties with 20–25% management fees run 6–8% cap rates.

How is cap rate calculated for a vacation rental?

Cap Rate = NOI ÷ Purchase Price. For STRs: NOI = (Nightly Rate × 365 × Occupancy) × (1 − Operating Expense Ratio). Use 35–40% operating expense ratio including cleaning, utilities, insurance, property management (if applicable), maintenance, and vacancy allowance.

Does management fee affect cap rate?

Yes significantly. Self-managed STRs eliminate the 20–30% management fee, lifting cap rates by 2–3%. A property generating $50K gross revenue with 25% management fee has $12,500 lower NOI than self-managed — at $350K purchase price, that's 3.5% cap rate difference.

Cap Rates/Orlando Vacation Rentals

Market Data · 2026

Orlando Vacation Rental Cap Rates 2026

STR and vacation rental investment benchmarks for Orlando — by location, property type, and management model. 75M annual visitors generate $180–280/night demand near theme parks.

6–10.5%

Cap Rate Range

$180–280

Nightly Rate (Prime)

75–85%

Annual Occupancy

12–18%

Cash-on-Cash (Cash Buyer)

Cap Rates by Location

Location	Nightly Rate	Occupancy	Gross Yield	Cap Rate
Near Disney (3 miles)	$200–280	78–85%	12–16%	7.5–10.5%
Near Universal (Kirkman area)	$180–250	75–82%	10–14%	7.0–9.5%
I-Drive / Sand Lake	$160–220	72–80%	9–13%	6.5–9.0%
Kissimmee / US-192	$140–200	70–80%	8–12%	6.0–8.5%
Downtown Orlando	$130–180	65–75%	7–10%	5.5–8.0%

Assumes 40% operating expense ratio. Self-managed properties with no management fee add 2–3% to effective cap rate.

Cap Rates by Property Type

Single-Family (3–4 BR)

7.0–10.5%

Acquisition:
$280–450K

Gross Revenue:
$48–72K/yr

NOI:
$29–43K (at 40% OpEx)

Management:
Self or professional

Single-Family (5–6 BR)

7.5–10.0%

Acquisition:
$450–700K

Gross Revenue:
$65–100K/yr

NOI:
$39–60K (at 40% OpEx)

Management:
Usually professional

Multifamily (4–6 units)

7.0–10.5%

Acquisition:
$500–900K

Gross Revenue:
$90–150K/yr

NOI:
$54–90K (at 40% OpEx)

Management:
Scale requires professional

Extended-Stay Hybrid

6.0–8.0%

Acquisition:
$350–600K

Gross Revenue:
$42–70K/yr

NOI:
$25–42K (at 40% OpEx)

Management:
Lower turnover, simpler ops

What Moves the Cap Rate

Theme Park Proximity

+2–3%

Properties within 3 miles of Disney/Universal command 20–30% higher nightly rates and 5–8% higher occupancy.

Self-Management vs Professional

+2–3%

Eliminating 20–25% management fee directly adds NOI. Works for 1–3 properties; hard to maintain at scale.

Bedroom Count

+1–2%

Larger homes (4–6 BR) command per-room rate premiums. Family travelers prefer larger homes and pay more per night.

Zoning / STR License

±significant

Limited STR licenses in some cities (Kissimmee capping at 3,000 licenses) affects supply and nightly rates.

Occupancy Rate

±major

Difference between 70% and 85% occupancy on a $200/night property = $10.9K/year in additional NOI. Model conservatively.

Operating Expense Ratio

±2–4%

High-quality furnishings reduce maintenance; smart pricing tools reduce vacancy. Operating expense ratio 35–45% is normal range.

Related Resources

STR Investment Guide →Hotel Cap Rates →All Orlando Cap Rates →Vacation Rental Strategies →Hospitality Financing →

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