Should You Add a Rental Property to Your Portfolio This Year?

With the new year here, many investors are reevaluating their financial goals. One strategy worth considering is adding a rental property to your investment portfolio. While real estate is a long‑term play, 2026 presents some compelling conditions for potential landlords—especially in Florida.

Here are a few key reasons why now might be the right time to explore this opportunity.

1. Florida’s Rental Market Remains Active

Florida’s rental market has shown resilience. As of early 2026, average rent across the state is about $1,670 per month, with larger units commanding higher rents in key markets*. This indicates ongoing demand for rental homes, especially in areas with strong job markets and population inflows.

2. Demand Driven by Population Growth and Migration

Florida continues to attract people relocating from other states. Recent data highlights Florida as one of the top destinations for movers seeking affordability and lifestyle options**. Population growth and in‑migration are key drivers of rental demand, making Florida a compelling market for investment.

3. You Don’t Have to Do It Alone

Managing a rental property can be time-consuming, but it doesn’t have to be. Watson Property Management is here to help take the day-to-day responsibilities off your plate, from tenant screening and rent collection to maintenance coordination and compliance. With decades of experience across Florida, we help property owners protect their investments, reduce stress, and maximize long-term performance.

4. Build Wealth Through Rental Income and Appreciation

Owning rental property offers multiple financial benefits:

• Rental income provides ongoing cash flow.
• Equity growth occurs as tenants help pay down the mortgage.
• Potential tax advantages such as depreciation and expense deductions can improve long‑term returns.

Even in a balanced market, properties that are well priced and managed effectively can deliver strong performance over time.

Is 2026 the Right Year for You?

If you're considering expanding your investment portfolio, 2026 may be a great time to enter or grow in the Florida rental market. The combination of population growth, ongoing rental demand, and favorable pricing in many areas makes this a strategic moment to invest. As always, do your research, evaluate your goals, and work with professionals who understand your local market.

*According to the Apartments.com article Average Rent in Florida as of January 2026.

**According to The Sun’s Five most popular states Americans are moving to for a cheaper lifestyle in a massive ‘blue-to-red’ migration from January 2026.