Big Pine Key, FL · Investment
Does buying an Airbnb in Big Pine Key make financial sense?
On modelled assumptions — a $420,000 purchase with $105,000 down — a Big Pine Key short-term rental produces $43,384 of net operating income, a 10% cap rate and positive cash flow of $18,236 a year after financing. You need 36% occupancy just to cover the mortgage.
Cap rate
10%
NOI ÷ purchase price
Cash-on-cash return
17%
Cash flow ÷ cash invested
Annual cash flow
$18,236
After operating costs and mortgage
Break-even occupancy
36%
Market models at 62%
The full modelled pro forma
| Purchase price (modelled) | $420,000 |
|---|---|
| Down payment (25%) | $105,000 |
| Loan amount | $315,000 |
| Gross annual revenue | $63,800 |
| Operating costs (32%) | −$20,416 |
| Net operating income | $43,384 |
| Mortgage (30yr @ 7%) | −$25,148 |
| Cash flow before tax | $18,236 |
| Gross yield | 15% |
Operating costs are modelled at 32% of gross revenue for a nightly rental (cleaning, supplies, utilities, platform fees, maintenance, insurance) and 14% for a monthly rental. Financing assumes a 25% down payment and a 30-year loan at 7%. These are planning assumptions, not quotes — replace them with your own numbers. The purchase price shown is modelled from nightly-rate benchmarks, not from listing data — swap in a real asking price before you make any decision. Property taxes, insurance premiums and HOA dues vary enough between properties that they sit inside the 32% operating cost assumption rather than as separate line items.
What would break this deal
- Occupancy landing below 36% — the point where nightly income no longer covers the mortgage.
- A rule change that adds a minimum stay or caps nights. Check the Big Pine Key rules before you buy.
- Paying peak-season prices for a property that only performs around Jan–Feb–Mar.
Next step
Run the numbers against a specific property and a real purchase price.
Compare Big Pine Key with nearby markets
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