Jay is home to the best residential real estate investment market in Florida.
The 32565 zip code in Jay presents the greatest opportunity for investors among the 3,116 individual real estate markets in Florida we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
Top 5 Florida residential real estate markets
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Jay | 100 | 3.2 | 78.48% |
| 2 | Lake Butler | 91.1 | 4.1 | 78.83% |
| 3 | Old Town | 91 | 3.6 | 78.41% |
| 4 | Brooksville | 88.5 | 4.3 | 78.58% |
| 5 | Silver Springs | 88.5 | 4.6 | 75.04% |
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1. Jay
We've identified the 32565 zip code in Jay as Florida's best real estate investment market. Here's why.
🔎 Key data about Jay
| Data point | Value | Rank in state (of 3,116 markets) |
|---|---|---|
| Zip code | 32565 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $248,360[1] | 98th lowest |
| Five-year appreciation | 78.48%[2] | 137th highest |
| Household income | $77,553[3] | 256th highest |
| Affordability ratio | 3.2 | 4th most affordable |
| Five-year population growth | 12.5%[4] | 212th highest |
| Unemployment rate | 2.1%[5] | 31st lowest |
| Property taxes | $1,128[6] | 82nd lowest |
| Educational attainment | 19.6%[7] | 597th highest |
Jay (zip code 32565) is the best residential real estate investment market in Florida. It has the 137th highest property value appreciation among markets we evaluated, with a 78.48% appreciation of the typical property over the last five years.
Jay is the 4th most affordable market among the 3,116 Florida markets we evaluated, with an affordability ratio of 3.2.
2. Lake Butler
The 32054 zip code in Lake Butler is Florida's second-best residential real estate investment market.
🔎 Key data about Lake Butler
| Data point | Value | Rank in state (of 3,116 markets) |
|---|---|---|
| Zip code | 32054 | N/A |
| InvestScore | 91.1 | 2nd highest |
| Typical property value | $268,938[8] | 125th lowest |
| Five-year appreciation | 78.83%[9] | 134th highest |
| Household income | $65,893[10] | 417th highest |
| Affordability ratio | 4.1 | 63rd most affordable |
| Five-year population growth | 7.5%[11] | 325th highest |
| Unemployment rate | 3.4%[12] | 145th lowest |
| Property taxes | $965[13] | 50th lowest |
| Educational attainment | 11.1%[14] | 751st highest |
The 32054 zip code in Lake Butler features a typical property value of $268,938, the 125th lowest in the state.
Property values have appreciated 78.83% over the past five years, the 134th highest increase among evaluated markets in the state. Lake Butler homes have an affordability ratio of 4.1, the 63rd most affordable in the state.
3. Old Town
The 32628 zip code in Old Town comes in at No. 3 in our ranking of residential real estate investment markets in Florida.
🔎 Key data about Old Town
| Data point | Value | Rank in state (of 3,116 markets) |
|---|---|---|
| Zip code | 32628 | N/A |
| InvestScore | 91 | 3rd highest |
| Typical property value | $145,360[15] | 5th lowest |
| Five-year appreciation | 78.41%[16] | 138th highest |
| Household income | $39,835[17] | 744th highest |
| Affordability ratio | 3.6 | 14th most affordable |
| Five-year population growth | 3.7%[18] | 446th highest |
| Unemployment rate | 2.4%[19] | 49th lowest |
| Property taxes | $569[20] | 7th lowest |
| Educational attainment | 9.4%[21] | 767th highest |
With a typical property value of $145,360, Old Town's 32628 zip code features the 5th lowest property values in the state.
Old Town homes have an affordability ratio of 3.6, the 14th most affordable among the markets we evaluated.
4. Brooksville
The 34604 zip code in Brooksville ranks No. 4 among Florida's residential real estate investment markets.
🔎 Key data about Brooksville
| Data point | Value | Rank in state (of 3,116 markets) |
|---|---|---|
| Zip code | 34604 | N/A |
| InvestScore | 88.5 | 4th highest |
| Typical property value | $340,270[22] | 324th lowest |
| Five-year appreciation | 78.58%[23] | 135th highest |
| Household income | $79,316[24] | 135th highest |
| Affordability ratio | 4.3 | 96th most affordable |
| Five-year population growth | 26.7%[25] | 71st highest |
| Unemployment rate | 3.4%[26] | 145th lowest |
| Property taxes | $1,710[27] | 280th lowest |
| Educational attainment | 19.5%[28] | 602nd highest |
Property values in Brooksville's 34604 zip code have seen the 135th highest increase among evaluated markets in the state, with an appreciation of 78.58% over the past five years.
Brooksville's affordability ratio of 4.3 makes it the 96th most affordable among the 3,116 markets we evaluated.
5. Silver Springs
The 34488 zip code in Silver Springs rounds out our top five residential real estate investment markets in Florida.
🔎 Key data about Silver Springs
| Data point | Value | Rank in state (of 3,116 markets) |
|---|---|---|
| Zip code | 34488 | N/A |
| InvestScore | 88.5 | 5th highest |
| Typical property value | $202,105[29] | 35th lowest |
| Five-year appreciation | 75.04%[30] | 197th highest |
| Household income | $44,047[31] | 197th highest |
| Affordability ratio | 4.6 | 150th most affordable |
| Five-year population growth | 19.7%[32] | 119th highest |
| Unemployment rate | 4%[33] | 257th lowest |
| Property taxes | $798[34] | 24th lowest |
| Educational attainment | 20%[35] | 580th highest |
Property values in Silver Springs's 34488 zip code rose 75.04% over the last five years, ranking the city 197th highest among evaluated markets in Florida.
Silver Springs homes have an affordability ratio of 4.6, the 150th most affordable among the markets we evaluated.
How we rank residential real estate markets in Florida
We evaluated 3,116 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Florida.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income. We assign a weight of 10% to median household income.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.
Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
