Buying vs. Renting a Home in Florida 6 Aspects to Consider

Health and lifestyle benefits are high on the list of why many people choose to spend part or all of their time in Florida:

• Sunshine & warm climate – Year-round sunshine may help support mental health, vitamin D levels, and encourage an active lifestyle.
• No snow/ice – For some, milder climate may reduce risks associated with icy conditions and heavy snow removal.
• Access to healthcare – Florida has many retirement-friendly communities with strong healthcare systems, especially in coastal areas.

Below are some general considerations to keep in mind when thinking about buying or renting a home in Florida. This information is intended for educational purposes only.

1) Taxes

Some tax benefits are only available to those who own a home:

• Homestead exemption – If you establish Florida residency, you can get up to a $50,000 property tax exemption on your primary home, reducing annual property taxes.
• “Save Our Homes” cap – An amendment to the Florida constitution caps property tax assessment increases on a homesteaded property at 3% annually, protecting long-term affordability.
• Estate & Inheritance benefits – Florida doesn’t impose estate or inheritance taxes, which can be attractive for wealth transfer planning.

Note: Always consult with a qualified tax professional regarding your specific situation.

2) Investment Potential

Home ownership may also unlock the following possibilities:

• Appreciation – Many parts of Florida have seen strong property value growth in past years, though future performance may vary.
• Rental income – If not using the property year-round, you could rent it out (short-term vacation rental or long-term lease) to help offset costs.
• Leverage – Unlike renting, buying may contribute to equity over time.

3) Flexibility

Your personal preferences and financial situation will help determine what is most appropriate for you in this regard:

• Relocation – Renting usually makes moving easier if you don’t like your neighborhood or your situation changes and you need to move cities or out of the state.
• Home customization – You can renovate, decorate, and design a home you own as you please, which is usually not possible with rentals.

4) Costs & Payments

Renting generally requires lower up-front costs:

• Up-front costs – Purchasing a home usually involves higher up-front costs than renting.
• Predictability of expenses – With a mortgage, monthly housing costs are generally predictable, whereas the cost of rent is usually re-evaluated by the landlord annually.
• Repairs – With rentals, miniatous costs are generally covered by the landlord; whereas homeowners must fund their own repairs.
• Insurance – Home insurance can be expensive and difficult to secure in some parts of Florida, a risk that is shouldered by homeowners to a large degree and is less relevant for renters.

5) Personal & Emotional Values

Some people place a high value on these emotional benefits:

• Community – Owning can provide a sense of belonging and stability in a community versus being a temporary renter.
• Pride of ownership – Some people feel an emotional benefit of having a “home base” in Florida.
• Amenities – Some communities offer amenities such as sports courts, pools, restaurants, and so on – that are only available to residents. If this is something you’re looking for, you may find more opportunities with renting or purchasing, depending on what locations you are shopping in. 
• Consistency – With ownership, you don’t have to worry about availability of rentals during peak season in the exact area you want.

6) Other Financial Considerations

Two other attributes associated with home ownership are:

• Asset protection laws – Florda has homestead protection laws that can shield primary residences from certain creditors.
• Long-term plan – If retirement in Florida is in your future, exploring homeownership early may be part of a broader financial plan.