Key Takeaways
- Insurance dominates costs: Florida homeowners insurance averages $8,770/year—nearly 4x the national average of $2,423
- Property taxes are low: Florida's 0.83% average is below the national 1.1%, saving you $1,000+/year vs most states
- Homestead exemption: Save ~$415/year on property taxes—but you must apply by March 1st
- CDD fees surprise buyers: $1,000-4,000/year in master-planned communities (tax-deductible)
- First-time buyer programs: Up to $35,000 in down payment assistance through Hometown Heroes and Florida Assist
- Flood insurance: Required in high-risk zones, $700-3,000/year depending on your flood zone
Quick Answer
On a $410,000 Florida home with 20% down at 6.36% rate, your monthly payment is approximately $2,045 for principal and interest. Add Florida's extreme insurance (~$731/mo), property taxes (~$284/mo), and typical HOA (~$150/mo) for a true total of around $3,210/month. Insurance alone adds $500+/month more than buying the same home in most other states.
You've heard the pitch: "Move to Florida! No state income tax! Sunshine year-round!"
And it's true. Florida is one of only nine states without an income tax. The weather is gorgeous. The beaches are world-class.
But here's what the relocation brochures conveniently leave out:
Florida has the highest homeowners insurance rates in America. The average premium is $8,770/year—nearly four times the national average of $2,423.
That's not a typo. Florida homeowners pay an extra $6,300+ per year just to insure their home.
Let me show you what this actually looks like in real numbers:
On a $410,000 home in Tampa, you might expect a monthly payment around $2,045 based on a 6.36% rate and 20% down.
The reality? With insurance at $731/month, property taxes at $284/month, and a modest HOA—your true monthly cost hits $3,210+.
That's a $1,165/month difference that catches buyers completely off guard.
This guide fixes that problem.
I'll show you exactly how to calculate your true Florida mortgage payment, explain the insurance crisis that's driving costs through the roof, and help you navigate Florida-specific factors like CDD fees, flood zones, and the homestead exemption that can save you over $400/year.
Florida Mortgage Rates 2026: Close to National Average
Florida Rate Snapshot
Florida is the 4th largest mortgage market in the U.S. with substantial lender competition. Current rates run close to national averages, with 30-year fixed mortgages around 6.36% as of December 2025.
According to Bankrate and Freddie Mac data as of December 2025:
| Loan Type | Florida Rate | National Avg | Best For |
|---|---|---|---|
| 30-Year Fixed | 6.36% | 6.22% | Long-term stability |
| 15-Year Fixed | 5.78% | 5.54% | Faster payoff, big interest savings |
| FHA 30-Year | 6.10% | 6.05% | Lower credit, 3.5% down |
| VA 30-Year | 5.75-6.10% | 6.29% | Veterans, active military (no down) |
| USDA | 5.65% | 5.60% | Rural areas, 0% down |
| Jumbo (>$806,500) | 6.55% | 6.52% | Homes above conforming limit |
Sources: Bankrate, Freddie Mac PMMS, December 2025
Florida Conforming Loan Limits (2026)
- Most Florida counties: $806,500
- Monroe County (Keys): $967,150 (high-cost area)
- 2-unit: $1,032,650
- 3-unit: $1,248,150
- 4-unit: $1,551,250
Loans above these limits require jumbo financing: typically 700+ credit score, 20% down, and 6-12 months cash reserves.
Florida's Insurance Crisis: The $8,770/Year Reality
This is where Florida homebuying gets expensive. Really expensive.
Florida has the highest homeowners insurance rates in the nation—and it's not even close.
Here's what you're actually dealing with:
🌀 Why Florida Insurance Is So Expensive
Hurricane exposure, litigation costs, and insurer exits have created a perfect storm. Six major insurers left Florida in 2022-2023 alone, reducing competition and driving up prices. In 2021, Florida had 6.9% of all U.S. insurance claims—but 76% of all property insurance lawsuits.
| Coverage Level | Florida Average | National Average | Extra Cost/Year |
|---|---|---|---|
| $250K dwelling | $8,770/year | $2,423/year | +$6,347 |
| $300K dwelling | $10,200/year | $2,850/year | +$7,350 |
| $500K dwelling | $15,983/year | $4,200/year | +$11,783 |
Source: MoneyGeek, Insurance.com, 2024-2025 data
Insurance Costs by Florida Region
Where you buy matters dramatically for insurance. Coastal areas can cost 3-4x more than inland locations.
| Region | Avg Annual Premium | Monthly Cost | Risk Level |
|---|---|---|---|
| Monroe County (Keys) | $9,058+ | $755+ | Extreme |
| South Florida (Miami-Dade, Broward) | $10,000-15,000 | $833-1,250 | Very High |
| Palm Beach County | $6,614 | $551 | High |
| Tampa Bay Area | $6,000-8,000 | $500-667 | High |
| Central Florida (Orlando) | $4,500-6,000 | $375-500 | Moderate |
| North Florida (Jacksonville) | $4,000-5,500 | $333-458 | Moderate |
| Tallahassee (Leon County) | $2,950 | $246 | Low |
| National Average | $2,423 | $202 | — |
Critical step: Get insurance quotes BEFORE making an offer on a Florida home. Insurance costs can vary by $5,000+ per year depending on the property's age, roof condition, and proximity to the coast. A 2024 roof can save you 20-40% on premiums.
What About Citizens Insurance?
What Is Citizens Property Insurance?
Citizens is Florida's state-run "insurer of last resort" for homeowners who can't find coverage in the private market. It's now the largest property insurer in Florida with 1.2+ million policies. Citizens has requested rate increases, though the state caps annual increases.
Here's the good news:
Citizens announced a 5.6% average rate reduction for 2025, benefiting 75% of Miami-Dade and 50% of Broward policyholders. Legislative reforms in 2022-2023 targeting litigation abuse are slowly stabilizing the market.
Flood Insurance in Florida: The Second Insurance Bill
Standard homeowners insurance does NOT cover flood damage.
In Florida, this is a critical—and often expensive—consideration.
🌊 Do You Need Flood Insurance?
Required: If your home is in a FEMA high-risk flood zone (A or V zones) and you have a federally-backed mortgage, flood insurance is mandatory.
Strongly Recommended: Even in moderate-risk zones. 25% of all flood claims come from areas outside high-risk zones. Hurricane Ian proved that flooding can devastate areas far from the coast.
| Flood Zone | Risk Level | Insurance Required? | Avg Annual Cost |
|---|---|---|---|
| Zone V/VE | High Risk (Coastal) | Yes (if mortgaged) | $2,500-5,000+ |
| Zone A/AE | High Risk | Yes (if mortgaged) | $1,500-3,000 |
| Zone X (shaded) | Moderate Risk | No, but recommended | $400-800 |
| Zone X (unshaded) | Low Risk | No | $300-600 |
NFIP vs Private Flood Insurance
The National Flood Insurance Program (NFIP) caps coverage at $250,000 for the dwelling. For higher-value Florida homes, consider private flood insurance which may offer:
- Higher coverage limits
- Sometimes lower rates (shop around!)
- Faster claims processing
How to check your flood zone: Use the FEMA Flood Map Service Center to look up any Florida address.
Florida Property Taxes: The One Advantage
Here's the silver lining in Florida homeownership:
Florida's average effective property tax rate is 0.83%—well below the national average of 1.1%.
On a $410,000 home, that's roughly $3,400/year vs $4,500/year in an average-tax state. You save over $1,000 annually.
| County | Median Home Price | Effective Tax Rate | Annual Tax (Median Home) |
|---|---|---|---|
| Miami-Dade | $578,000 | 0.97% | $5,607 |
| Broward | $450,000 | 1.08% | $4,860 |
| Palm Beach | $520,000 | 1.05% | $5,460 |
| Hillsborough (Tampa) | $410,000 | 0.98% | $4,018 |
| Orange (Orlando) | $400,000 | 0.92% | $3,680 |
| Duval (Jacksonville) | $390,000 | 0.91% | $3,549 |
| Monroe (Keys) | $850,000 | 0.58% | $4,930 |
Sources: Florida Department of Revenue, County Property Appraisers, 2025
Florida Homestead Exemption: Your $415+/Year Tax Break
The Homestead Exemption is one of the genuine advantages of Florida homeownership.
How the Florida Homestead Exemption Works
The exemption removes up to $50,000 from your home's assessed value for tax purposes. The first $25,000 applies to all taxes; the second $25,000 applies to non-school taxes on values between $50,000-$75,000.
| Home Value | Without Exemption (0.83%) | With Exemption | Annual Savings |
|---|---|---|---|
| $300,000 | $2,490 | $2,075 | $415 |
| $410,000 | $3,403 | $2,988 | $415 |
| $600,000 | $4,980 | $4,565 | $415 |
⚠️ You Must Apply—It's Not Automatic
The homestead exemption doesn't happen automatically. You must file with your county property appraiser by March 1st of the tax year.
- Who qualifies: Florida residents who own and occupy their home as primary residence as of January 1st
- New homeowners: File as soon as you close—don't wait until March
- Required docs: Florida driver's license or ID with property address, recorded deed
Save Our Homes (SOH) Cap
Here's another Florida benefit many buyers don't know about:
Once you have a homestead exemption, the Save Our Homes amendment caps how much your assessed value can increase each year—the lower of 3% or the Consumer Price Index.
This protects long-term Florida homeowners from dramatic tax increases even when home values spike.
CDD Fees: Florida's Hidden Cost
Community Development Districts (CDDs) are a Florida-specific cost that surprises many buyers, especially in newer developments.
What Are CDD Fees?
CDDs are special taxing districts that fund infrastructure in master-planned communities—roads, utilities, amenities, and maintenance. Fees typically range from $1,000 to $4,000 per year and appear on your property tax bill. Unlike HOA fees, CDD fees are generally tax-deductible.
CDD Fees by Community Type
- Basic communities: $1,000-1,500/year
- Standard amenities: $1,500-2,500/year
- Resort-style communities: $2,500-4,000/year
- Luxury developments: $4,000+/year
Here's what many buyers miss:
CDD fees are in addition to your HOA fees. A home in a master-planned community might have $150/month HOA + $200/month CDD = $350/month in fees before you even count your mortgage, taxes, and insurance.
Should You Buy in a CDD Community?
- Pros: Newer homes, better infrastructure, resort-style amenities, tax-deductible fees
- Cons: Higher total monthly costs, fees can increase, less control than non-CDD properties
- Ask the seller: Request the full CDD disclosure showing current fees and any planned increases
- How to spot them: Look for "CDD" or "Community Development District" on the tax bill or listing
CDD Fees Are Tax-Deductible
Unlike HOA fees, CDD assessments are generally tax-deductible because they're a form of property tax. Consult a tax professional to confirm your specific situation.
Miami vs Tampa vs Orlando vs Jacksonville: Where Should You Buy?
Florida's real estate market is not one market—it's several distinct markets with dramatically different price points, insurance costs, and lifestyles.
🌴 Miami-Fort Lauderdale
- Insurance: $10,000-15,000/year (highest)
- Property tax: 0.97-1.08%
- Market: 10+ months supply (buyer's market)
- Best for: International buyers, urban lifestyle
- Watch out for: Condo special assessments, highest insurance
⚓ Tampa Bay
- Insurance: $6,000-8,000/year
- Property tax: 0.98%
- Market: 4.3 months supply (balanced)
- Best for: Job growth, waterfront living, sports fans
- Watch out for: Flood zones, hurricane exposure
🏰 Orlando
- Insurance: $4,500-6,000/year (lowest major metro)
- Property tax: 0.92%
- Market: Balanced with good inventory
- Best for: Families, theme park access, lower insurance
- Watch out for: CDD fees in new developments
🏖️ Jacksonville
- Insurance: $4,000-5,500/year
- Property tax: 0.91%
- Market: Most affordable major metro
- Best for: Value seekers, beach access, military families
- Watch out for: Flood zones near St. Johns River
Sources: Florida Realtors, Redfin, Zillow, December 2025
The bottom line:
20 out of 22 Florida metros have median prices below the national median of $422,000. Only Miami and Naples cost more than the typical American home. Florida is selectively expensive—not universally expensive.
Florida First-Time Buyer Programs: Up to $35,000 in Assistance
Florida offers substantial first-time buyer assistance through the Florida Housing Finance Corporation (FHFC) and local programs.
Here's what's available:
Major Florida First-Time Buyer Programs
- Hometown Heroes: Up to $35,000 (5% of purchase price) for teachers, nurses, first responders, veterans, and 50+ other professions
- Florida Assist: Up to $10,000 as 0% interest deferred second mortgage
- FL HLP: Up to $10,000 at 3% interest, 15-year term
- HFA Preferred: 3-5% of loan amount, forgiven over 5 years
- Salute Our Soldiers: Veterans program with reduced rates + down payment help
Florida Hometown Heroes Program
This is Florida's flagship first-time buyer program, specifically for "hometown heroes" who serve their communities.
| Feature | Details |
|---|---|
| Assistance Amount | Up to 5% of purchase price (max $35,000) |
| Loan Type | 0% interest, non-forgivable second mortgage |
| Eligible Professions | Teachers, nurses, firefighters, police, EMTs, active military, veterans, childcare workers, healthcare workers, and 50+ more |
| Credit Score | 640 minimum |
| Income Limits | Varies by county (check eligibility wizard) |
| First Mortgage | Below-market rate 30-year fixed (FHA, VA, USDA, or conventional) |
Local City and County Programs
Many Florida cities offer additional assistance on top of state programs:
| Location | Program | Assistance Amount |
|---|---|---|
| Miami-Dade County | Homeownership Assistance Program | Up to $28,500 (0%, forgivable after 20 years) |
| Palm Beach County | SHIP/HOME Programs | Up to $100,000 for qualifying buyers |
| Jacksonville | Head Start to HOME Ownership | Down payment + closing cost assistance |
| Tampa | First-Time Homebuyer Program | Down payment assistance available |
| Pinellas County | Home Key Plus | $7,500-10,000 deferred second mortgage |
Stack your benefits: Many local programs can be combined with state programs. A first-time buyer in Miami-Dade could potentially access $28,500 from the county + state assistance = $35,000+ in help.
Check your eligibility: Use the Florida Housing Homebuyer Program Wizard to see which programs you qualify for.
Common Florida Buyer Mistakes (And How to Avoid Them)
After analyzing thousands of Florida mortgage scenarios, these are the mistakes that cost buyers the most money:
Mistake #1: Not Getting Insurance Quotes Before Making an Offer
Insurance can vary by $5,000-10,000+ per year depending on the property. A beautiful coastal home might be uninsurable or cost $15,000+/year to insure. Get quotes FIRST.
Mistake #2: Ignoring Flood Zone Status
Many buyers don't check flood zones until after they're under contract. A home in Zone AE could require $2,000+/year in flood insurance on top of your already-expensive homeowners policy.
Mistake #3: Underestimating CDD Fees in New Developments
That new construction home with amazing amenities might have $3,000+/year in CDD fees on top of $2,000/year HOA fees. That's $5,000/year ($417/month) before mortgage, taxes, and insurance.
Mistake #4: Missing the Homestead Exemption Deadline
The deadline is March 1st. Miss it and you lose ~$415 in tax savings for the entire year. File immediately after closing.
Mistake #5: Buying an Older Home Without Checking Roof Age
Many insurers won't cover homes with roofs over 15 years old, or charge 40%+ more. A $15,000 roof replacement might be required to get affordable insurance.
Mistake #6: Thinking Citizens Insurance Is "Cheap"
Citizens is the insurer of last resort, not a discount option. If you're on Citizens, you're likely paying market rates or higher. Shop private carriers annually.
Mistake #7: Not Factoring Insurance Into Your Budget
A $410,000 home in Florida might have the same P&I payment as a $410,000 home in Ohio, but the Florida home costs $500+/month more due to insurance alone.
Ready to See Your True Florida Payment?
Our calculator includes Florida-specific insurance and tax defaults so you can see the real cost.
Calculate Your Florida PaymentFrequently Asked Questions
What is a good mortgage rate in Florida in 2026?
As of December 2025, Florida 30-year fixed rates average around 6.36%, which is close to the national average of 6.22%. With excellent credit (760+), you should be able to secure rates in the 5.9%-6.2% range. VA-eligible borrowers can often get rates as low as 5.75%.
Why is Florida homeowners insurance so expensive?
Florida has the highest insurance rates due to hurricane exposure, historically high litigation costs (76% of all U.S. property lawsuits in 2021), and insurer exits. Six major insurers left Florida in 2022-2023, reducing competition. The average premium is $8,770/year—nearly 4x the national average.
How much is the Florida Homestead Exemption worth?
The Florida Homestead Exemption removes up to $50,000 from your home's taxable value, saving approximately $415/year in property taxes. You must apply by March 1st at your county property appraiser's office. It's not automatic—you must file.
What are CDD fees in Florida?
Community Development District (CDD) fees fund infrastructure in master-planned communities—roads, utilities, amenities. They range from $1,000-4,000/year and appear on your property tax bill. Unlike HOA fees, CDD fees are generally tax-deductible.
Do I need flood insurance in Florida?
If your home is in a FEMA high-risk flood zone (A or V), your lender will require it. Even outside designated zones, consider it—25% of Florida flood claims occur outside high-risk areas. NFIP flood insurance averages $700-1,500/year in moderate-risk zones, $1,500-5,000+ in high-risk zones.
Is it better to buy in Miami, Tampa, Orlando, or Jacksonville?
It depends on your priorities. Jacksonville offers the best affordability (median $369,000) and lowest insurance. Orlando has the lowest insurance among major metros. Tampa offers job growth and waterfront living. Miami has the highest prices and insurance but strongest international demand. 20 of 22 Florida metros cost less than the national median.
What first-time homebuyer programs are available in Florida?
Florida offers substantial first-time buyer assistance. The Hometown Heroes program offers up to $35,000 (5% of purchase price) for teachers, nurses, first responders, and 50+ professions. Florida Assist offers up to $10,000 as a 0% deferred second mortgage. Many cities offer additional programs.
What is Citizens Property Insurance?
Citizens is Florida's state-run "insurer of last resort" for homeowners who can't find private coverage. It's now the largest property insurer in Florida with 1.2+ million policies. Citizens has implemented rate reductions in some areas following legislative reforms.
How does roof age affect Florida insurance?
Roof age is critical in Florida. Many insurers won't cover homes with roofs over 15 years old, or charge 40%+ premium increases. A new roof (especially impact-resistant materials) can save you 20-40% on insurance. Always get a roof inspection before buying.
Should I rent or buy in Florida?
It depends on your timeline, down payment, and location. Florida's high insurance costs can make renting more attractive in short-term scenarios. Use our Rent vs Buy Calculator to compare your specific situation with Florida costs.
Florida Mortgage Calculator Summary
What makes Florida different:
Florida mortgages cost significantly more than other states primarily due to insurance. The average Florida homeowner pays $8,770/year for homeowners insurance alone—nearly 4x the national average. Factor in flood insurance ($700-5,000+/year in risk zones) and CDD fees ($1,000-4,000/year in new developments), and your true monthly payment can be $500-1,200 higher than expected.
Key numbers for Florida buyers:
- Median home price: $410,000 statewide
- Average mortgage rate: 6.36% (30-year fixed)
- Average insurance: $8,770/year (varies wildly by location)
- Property tax: 0.83% average (below national average)
- CDD fees: $1,000-4,000/year in master-planned communities
- Homestead exemption savings: ~$415/year
Essential steps:
- Get insurance quotes BEFORE making an offer
- Check flood zone status (FEMA flood maps)
- Ask about CDD fees in any new development
- Get a roof inspection (age affects insurance dramatically)
- Apply for Homestead Exemption by March 1st
- Check Hometown Heroes eligibility for up to $35,000 assistance
- Budget 25-35% more than P&I for total housing cost
Florida-Specific Reminders
- No state income tax = more take-home pay, offset by insurance costs
- Insurance varies dramatically by location—coastal = expensive
- CDD fees are tax-deductible; HOA fees are not
- Homestead exemption saves ~$415/year—but you must apply
- Save Our Homes caps assessment increases at 3%/year after homestead
Ready to Calculate Your Florida Payment?
Use the Florida Mortgage Calculator
Next Steps
Related Florida Calculators
Helpful Resources
- Mortgage Rates Guide - Understand what drives rates and how to get the best one
- How Amortization Works - See how your Florida mortgage payments split between principal and interest
- Florida Housing Finance Corporation - First-time buyer programs and assistance
- Hometown Heroes Program - Up to $35,000 in down payment assistance
- Florida Office of Insurance Regulation - Official insurance information and rate comparisons
- FEMA Flood Map Service - Check your flood zone status
- Florida Homestead Exemption - Apply for your exemption
- Citizens Property Insurance - Florida's insurer of last resort
BONUS: The "Wind Mit" Form (Your $1,000 Coupon)
Before you close on a Florida home, demand a Wind Mitigation Inspection (Form OIR-B1-1802).
It costs roughly $100–$150.
If the home has hurricane clips/straps—even if it's older—this form forces insurers to give you a discount by law.
It can save you $1,000–$2,000/year on premiums instantly.
Most Florida homebuyers have never heard of this. Most insurance agents won't mention it because it cuts their commissions.
But it's one of the fastest ways to slash your insurance bill in the very first year of ownership.
Don't buy a Florida home without seeing this form.
About Jon Teera
Jon Teera is the Lead Developer and Founder of CalcLogix. Unlike traditional financial writers, Jon approaches personal finance as a data engineering problem. He builds custom calculators that factor in localized variables—like Florida flood zones and insurance rates—that standard bank tools ignore.
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