Investing in Lee County, FL Real Estate: The Actual Numbers

Considering rental property in Lee County, FL? The typical home ($338,437, Zillow) against typical rent ($1,874/mo, Zillow Observed Rent Index) works out to a 6.6% gross cap rate. Gross is where analysis starts, not ends — below is the investor cost stack that turns it into a real number, and the demand-and-supply data that decides whether the rent holds.

Lee County yield at a glance

6.6%

Gross cap rate

$338,437

Typical value (Zillow)

$1,874/mo

Typical rent (ZORI)

15.1

Price-to-annual-rent

4.40%

After tax + insurance (approx.)

The investor cost stack, worked

Start with $22,483 of gross annual rent. Property tax: investors get NO homestead exemption and no 3% cap — at Lee County’s typical 15.97 mills on a $338,437 assessment, roughly $5,405 a year (non-homestead assessments can still rise up to 10% annually). Insurance: Citizens averages about $2,197/yr here, and landlord (DP-3) policies typically price above owner-occupied. That already takes the yield to about 4.40% before vacancy, maintenance, management and any HOA — the line items that separate real operators from spreadsheet optimists.

Will the rent hold? Demand and supply

Rent growth here is running -1.5% (Zillow index). On demand, IRS migration data shows a net 4,899 people per year into the county; on supply, builders pulled 13,547 residential permits in 2025. Rising rents plus positive migration plus a restrained pipeline is the configuration that protects yields; the reverse erodes them. Our valuation model currently reads the county as undervalued by 5.9% versus income-and-rent fundamentals.

Where investors actually buy here

Community-level medians, days on market and price trends for every tracked Lee County community are on the county’s community and lifestyle pages — start with the county rent page (full rent-versus-own math).

The Lee County market, in context

Lee County is Southwest Florida's growth engine — Cape Coral's canal network, Fort Myers, and the Gulf islands of Sanibel and Captiva. It draws retirees, second-home buyers, and relocating families with relatively affordable Gulf living, though Hurricane Ian's 2022 landfall and the resulting insurance market loom large over every coastal decision.

The economy behind the market: {'drivers': 'healthcare, tourism and hospitality, construction and real estate, and retail', 'summary': "Lee Health is the largest employer in Southwest Florida, and healthcare broadly anchors the economy alongside tourism on the Gulf beaches, a large construction and real-estate sector feeding rapid growth, and retail. Hertz Global is headquartered in nearby Estero, Chico's FAS in Fort Myers, and the region's retiree-and-second-home base supports a deep services economy.", 'employers': ['Lee Health (largest employer in SW Florida)', 'School District of Lee County', 'Publix', 'Lee County government', 'Walmart', 'Hertz Global (Estero HQ)', "Chico's FAS (Fort Myers HQ)", 'Gartner'], 'jobNote': "Lee Health is Southwest Florida's largest employer; Hertz Global is headquartered in nearby Estero."}

What could change it: Hurricane and storm-surge exposure is the dominant risk — Hurricane Ian (2022) devastated Fort Myers Beach, Sanibel, and parts of Cape Coral, and the resulting insurance market is among the hardest and most expensive in the state. Flood-zone status and elevation are decisive on the coast and the canals, and rapid inland growth in Cape Coral and Lehigh Acres brings overbuilding and absorption questions.

Near-term outlook: Expect a recovering, buyer-friendly market over the next 12 months: long-term migration and affordability keep demand healthy, but Ian recovery, high insurance, and a heavy construction pipeline (Babcock Ranch, Kingston) give buyers leverage and keep price growth modest, especially in storm-affected coastal zones.

Run the numbers in Lee County

Common questions

What is the cap rate in Lee County, FL?

About 6.6% gross - typical Zillow value against typical ZORI rent. After typical property tax (no homestead benefits for investors) and average insurance, roughly 4.40% before vacancy, maintenance and management.

Do investors pay more property tax in Florida?

Effectively yes: non-homestead property gets no $25-50K exemption and no 3%% Save Our Homes cap - assessments can rise up to 10%% per year, and the assessment resets to roughly your purchase price when you buy.

Is Lee County a good place to buy rental property?

That depends on your basis, financing and operations - this page gives the inputs: 6.6% gross yield, the tax-and-insurance stack, -1.5% rent growth, and migration and permit data. Not investment advice; run your own underwriting.

Figures from Zillow research series, Zillow Observed Rent Index, verified county millage, Citizens Property Insurance, IRS SOI migration and Census permits, as of 2026-06-16; deemed reliable but not guaranteed. Informational only - not investment, tax or legal advice. Equal Housing Opportunity.