Real Estate Investing in Key West, Florida (33040)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 33040 (Key West, FL)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 21.2% of homes vacant — above national norms.
What’s happening in Key West, FL (33040)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 33040 Key West
Turning to rents, ZIP 33040 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $957K median. It rewards specialists, not generalists.
Looking more closely, the numbers look inviting — $957K purchase price, 0.0% nominal cap — the work to hit that pro forma in 33040 is substantial and deserves full respect.
Meanwhile, 33040 offers a low basis, the region around Key West has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Demographically, 33040 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
The right play in 33040 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Key West:
Property Strategy for 33040
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $597,761 | $2,470 | 3.0% | +7.3% | $597,761 |
| 2BR | $815,027 | $2,800 | 2.5% | +7.4% | $407,513 |
| 3BR | $1,074,327 | $3,690 | 2.5% | +8.2% | $358,109 |
| 4BR | $1,644,097 | $3,710 | 1.6% | +10.3% | $411,024 |
| 5BR | $2,780,305 | — | — | +9.9% | $556,061 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 33040 Compare?
| Metric | 33040 | Key West | Key West, FL | Florida |
|---|---|---|---|---|
| Home Value | $957,004 | $957,004 | N/A | $374,697 |
| 5-Year CAGR | 5.1% | 5.1% | N/A | 7.4% |
| Avg Rent | $3,385 | $3,385 | N/A | - |
| Cap Rate | 2.8% | 2.8% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 33040 (Key West, FL). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 33040 (Key West, FL)?
~25 seconds · no account needed · your report is anonymous
📊 Market Snapshot
| Home Value | $957,004 |
| Monthly Rent | $3,385 |
| Price-to-Rent | 23.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.2% |
| Cap Rate | 2.8% |
| 5-Year IRR | 7.9% |
📈 Home Appreciation
| 1-Year | -0.9% ▼ |
| 3-Year CAGR | -1.5% ▼ |
| 5-Year CAGR | +5.1% ▲ |
| 10-Year CAGR | +5.7% ▲ |
🏠 Rent Trends
| 1-Year | -0.7% ▼ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.8%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 33040
Population: 36,091
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 33040
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
Where do rents currently stand in Key West, FL?
Average rent in Key West, FL is approximately $3,385/mo per month. Against $957K home values that yields a reasonable rent-to-price ratio.
How deep is the rental pool in Key West, FL?
The renter base in Key West, FL is reasonable for the $3,385/mo price point. Screening well and pricing to market typically yields stable tenants.
What investment strategy works best in Key West, FL?
Key West, FL investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($957K prices, $3,385/mo rents) make it a reasonable choice.
Is Key West, FL good for landlords?
FL ranks as a landlord-friendly state for landlord-tenant law. Key West generally follows the statewide framework, so landlords face reasonable operating rules.
Is Key West, FL suited for a house hack?
House hacking in Key West, FL is a challenging. With home values around $957K and rents at $3,385/mo, owner-occupants can offset a meaningful share of PITI.
You know 33040 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 33040 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
AI Market Advisor
Ask questions about investing in 33040 (Key West)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 33040 (Key West, FL).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.