Jacksonville, FL, is one of the fastest-growing rental markets in the U.S., attracting new residents with its booming job market, coastal lifestyle, and affordable cost of living. While shifts in supply and demand have led to moderate rent adjustments and new development, the city remains a prime location for real estate investors.
Whether you’re investing in long-term rentals, short-term stays, or coliving models like PadSplit, selecting the right neighborhood and rental strategy is key to maximizing your returns.
Why Jacksonville is a strong rental market
Jacksonville’s rental market is evolving, creating opportunities for landlords who can adapt to shifting demand. The city attracts a diverse mix of young professionals, remote workers, military personnel, and families looking for more affordable alternatives to cities like Miami, Orlando, and Tampa.
As one of the most affordable major cities in Florida, Jacksonville’s cost of living remains lower than national averages. However, rising home prices and rent costs have increased demand for rental housing. More than 40% of households in the Jacksonville metro area rent, highlighting the city’s affordability challenges and the increasing need for cost-effective rental options.
With a steadily growing population and a strong economy, Jacksonville remains a landlord-friendly market. Investors can capitalize on high demand for affordable rentals, and coliving models like PadSplit allow landlords to reduce vacancies, increase revenue per unit, and provide affordable housing solutions.
Jacksonville’s job market and growth drivers
Jacksonville’s strong rental demand is closely tied to its expanding job market. The city is home to major employers in logistics, healthcare, finance, and military sectors, attracting workers from across the country.
The city’s key industries include:
- Logistics & Shipping: Jacksonville is home to JAXPORT, one of the busiest ports in the U.S., fueling demand for housing among logistics and trade workers. The city’s location provides easy access to rail, trucking, and shipping industries, making it an economic powerhouse for transportation.
- Healthcare & Biomedical: Employers like Mayo Clinic, Baptist Health, and UF Health Jacksonville provide job stability, attracting medical professionals and staff. With Jacksonville’s growing senior population, demand for healthcare services—and nearby housing for workers—continues to rise.
- Finance & Insurance: Headquarters for FIS, Florida Blue, and Black Knight, Jacksonville has a thriving finance sector that supports strong rental demand. Many professionals relocate to Jacksonville for high-paying jobs, increasing the need for housing near corporate hubs.
- Military & Defense: Naval Station Mayport and NAS Jacksonville provide thousands of military jobs, increasing demand for flexible housing near base locations. Many military families prefer off-base housing options, creating consistent rental demand.
- Tourism & Hospitality: With Jacksonville Beach, the Jaguars, and cultural events, the city sees steady visitor traffic, making short-term rentals attractive. The rise of remote work has also led to more extended stays from digital nomads and business travelers.
Understanding zoning and rental regulations in Jacksonville
Before investing in rental property, landlords should understand local regulations that impact rental operations.
- Short-term rentals: Jacksonville has varied STR regulations, and some areas require permits and zoning approval. Investors should research neighborhood-specific policies to determine the best locations for short-term rentals.
- Long-term rentals: The city continues to see new apartment developments, meaning landlords should consider competition from newer buildings. While high-rise apartment buildings dominate downtown, suburban areas still provide strong rental demand.
- Coliving rentals: PadSplit’s shared housing model works well in high-demand areas, but investors should check local zoning laws to ensure compliance with occupancy regulations. Some Jacksonville neighborhoods are more accommodating of room-by-room rentals than others.
Best neighborhoods for long-term rentals
Riverside Avondale
- Why invest? This historic, walkable neighborhood has strong rental demand from young professionals and creatives. The area is known for its unique architecture, thriving arts scene, and trendy coffee shops, making it a desirable place to live.
- Rental market insight: The neighborhood has high occupancy rates due to its proximity to downtown, parks, and nightlife. Renters are drawn to the neighborhood’s character, which includes historic homes and modern apartments.
- Best property types: Bungalows, townhomes, and small multifamily units. Many older homes in the area have been renovated, adding value to rental properties.
- Ideal tenants: Young professionals, remote workers, and creatives. The area attracts renters who prioritize an active lifestyle, cultural attractions, and a sense of community.
Southside
- Why invest? This area offers a mix of suburban and urban living, with affordable housing options and high rental demand. The neighborhood has seen consistent job growth, making it attractive to professionals and families alike.
- Rental market insight: Southside provides strong job access with major employers located nearby. Many corporate offices and retail hubs are in this area, increasing demand for rental properties.
- Best property types: Single-family homes, townhomes, and apartments. The mix of property types allows for a diverse range of rental opportunities.
- Ideal tenants: Corporate employees, medical workers, and families. Many renters in Southside seek stable, long-term housing with access to good schools and amenities.
Best neighborhoods for short-term rentals
Jacksonville Beach
- Why invest? This high-demand tourist area has strong year-round appeal, particularly for short-term rentals. Visitors come for the oceanfront experience, making it a prime location for Airbnb and vacation rentals.
- Rental market insight: Jacksonville Beach has a steady stream of tourists and event attendees, especially during peak seasons. Short-term rental hosts benefit from high nightly rates, particularly for beachfront properties.
- Best property types: Beach cottages, condos, and townhomes. Properties with ocean views or close beach access tend to command premium prices.
- Ideal guests: Vacationers, weekend travelers, and surfers. Jacksonville Beach is known for its laid-back atmosphere and outdoor lifestyle.
Downtown Jacksonville
- Why invest? This urban hub is close to corporate offices, sports venues, and major events. Business travelers and sports fans frequently book short-term stays in the area.
- Rental market insight: Consistent demand from corporate travelers, event attendees, and tourists makes downtown rentals a stable investment. Properties near the stadium and entertainment districts see increased occupancy rates.
- Best property types: Lofts, high-rise apartments, and modern condos. These property types appeal to visitors looking for a premium short-term stay experience.
- Ideal guests: Business travelers, event attendees, and concert-goers. The downtown area is a hub for conferences, sports games, and nightlife.
Best neighborhoods for coliving rentals
Northside Jacksonville
- Why invest? This area has affordable homes with proximity to JAXPORT and industrial job hubs. Many workers in the area require low-cost, flexible housing options.
- Rental market insight: High demand from logistics workers and port employees ensures a stable tenant pool. Many renters prefer room-by-room options to save on costs.
- Best property types: Large single-family homes and duplexes. Properties with multiple bedrooms work well for shared housing.
- Ideal tenants: Service workers, trade employees, and low-income renters looking for affordable housing.
Westside (Normandy, Cedar Hills)
- Why invest? This growing area has affordable home prices and strong rental demand, making it an attractive option for coliving.
- Rental market insight: A high percentage of renters in this area seek cost-effective shared living options, making it ideal for landlords using the PadSplit model.
- Best property types: Converted single-family homes, townhouses, and larger properties with multiple rooms.
- Ideal tenants: Students, gig workers, and essential workers who need flexible and affordable housing options.
Financing and tax considerations for Jacksonville landlords
Jacksonville offers strong investment potential, but landlords should consider key financial factors before purchasing rental properties.
- Financing options: Many investors use DSCR (Debt Service Coverage Ratio) loans, hard money loans, or owner financing to acquire investment properties. Jacksonville’s relatively affordable home prices compared to other Florida metros make it an attractive market for financed deals.
- Property tax impact: Florida has no state income tax, but property taxes vary by county. Jacksonville’s Duval County property tax rates are moderate compared to Miami and Tampa, making it a cost-effective place for landlords.
Make the most of Jacksonville’s rental market
Jacksonville offers strong investment opportunities in both traditional and alternative rental strategies. The city’s continued job growth, population influx, and affordability challenges create a unique landscape where landlords can thrive by choosing the right rental approach.
With rental competition increasing, now is the time for landlords to explore strategies that reduce vacancies and increase profitability. Coliving models like PadSplit offer a proven solution, allowing landlords to boost rental revenue, attract reliable tenants, and provide much-needed affordable housing in one of the nation’s fastest-growing cities.
PadSplit makes it easy to streamline operations while increasing rental income. Join PadSplit today and take the next step in growing your rental business in Jacksonville!
The information provided in this blog post is for general informational purposes only. It should not be construed as legal, financial, or professional advice. The content is intended to provide general guidance and should not be relied upon for making specific decisions.
PadSplit strongly recommends consulting with qualified legal counsel, licensed financial advisors, tax professionals, or other relevant experts for advice concerning your specific situation and investment needs. PadSplit makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, or suitability of the information contained in this post.
