Jacksonville, FL

Jacksonville at 71 scores in the acceptable range, penalized primarily for Florida insurance exposure and submarket concentration. The 6.5% cap rate and 1.31x DSCR are healthy fundamentals, and the 112-unit count clears the institutional ownership threshold. At $87,500/door, this is priced below replacement cost in a market that has seen meaningful in-migration.

The insurance line is the key underwriting variable. Florida multifamily insurance costs rose 18% on average in 2023 and are expected to continue rising as carriers re-price coastal and near-coastal exposure. This property on Arlington Expy is not in a SFHA flood zone, but the proximity to the St. Johns River means any institutional buyer will stress-test at +20–25% insurance costs, which would reduce NOI by approximately $38,000 and push the effective cap rate down to 6.1%.

At a 6.1% stressed cap rate with a DSCR of 1.22x, the deal remains passable but not exceptional. The 71 score reflects a property that will attract regional operators and 1031 buyers rather than institutional capital. A disciplined buyer who can contain insurance through scale or a captive program can squeeze additional yield; absent that, this is a market-rate hold with modest upside.