Property investment in Florence, Italy
2026 Market Data & Investment Analysis
Gross Yield
5.47%
Annual rent / price
Median Home Price
€360,000
As of 2026-Q1
Median Monthly Rent
€1,640
Per month
Population
362,417
+0.3% / yr (5y avg)
Estimates based on median market data. Actual returns depend on your specific property. Source: Immobiliare.it / ISTAT / Agenzia delle Entrate (OMI), 2026-Q1.
Calculate your rental yield in Florence
Pre-filled with Florence's median values. Adjust to match your specific property.
Property Details
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross Rental Yield
5.47%
Net Rental Yield
3.53%
Cap Rate
3.53%
Monthly Cash Flow
€1,058.00
Annual Cash Flow
€12,696.00
Florence rental market at a glance
Median Home Price — 5-Year Trend
Median Monthly Rent — 5-Year Trend
Florence's status as one of Italy's most visited cities creates intense competition for rental properties, supporting firm rents — though high prices compress yields to the 5–6% range for long-term lets.
Florence provides solid rental yields of 5.47%, in line with healthy investment market benchmarks.
Modest population growth of 0.3% per year indicates a stable but slowly growing rental market.
The vacancy rate of 3.8% is healthy, indicating strong rental demand and limited downtime between tenants.
What type of investment market is Florence?
Florence presents challenges with both modest rental yields and limited population growth. Investors need to carefully analyze specific neighborhoods and property types to find opportunities that outperform the market average.
✓ Strengths
- •Lower entry prices may reduce downside risk
- •Select neighborhoods and value-add properties can outperform the average
! Risks
- •Below-average gross yield of 5.47% limits income potential
- •Limited population growth reduces long-term rental demand
- •Higher due diligence required to identify strong-performing assets
Key Metrics
Common questions about investing in Florence
Is rental investing profitable in Florence?▾
What is the average rental yield in Florence?▾
How does Florence compare to Pisa for investors?▾
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