Pompano Beach
Investment Analysis

Pompano Beach, FL
Investor Report

Comprehensive real estate investment analysis with cap rates, rental yields, and risk assessment.

Share:
34
Investment Score
Strong Buy
Cap Rate (Est.)
3.4%
Gross Yield
5.7%
P/R Ratio
14.2x
YoY Growth
-6.0%
Median Home Price
$340,000
Average Rent (1BR)
$1,621/mo
Median Income
$61,419
Population
113,613

Investment Breakdown

57
Value Score
0
Growth Score
32
Safety Score
38
Afford Score

Pompano Beach has a price-to-rent ratio of 14.2x, which indicates buying is significantly better than renting.

The estimated cap rate of 3.4% is below average, typical of appreciation-focused markets.

Year-over-year price growth of -6.0% suggests a cooling market.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $1,621
Annual Gross $19,452

Est. Monthly Expenses

Property Tax (~1.5%) -$425
Insurance (~0.5%) -$142
Maintenance (~1%) -$283
Est. Net Cash Flow $771/mo

Price Forecast 2026โ€“2028

๐Ÿ”ฎ Pompano Beach Price Forecast 2026โ€“2028

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$348K2027$410Kโ–ฒ 17.8%2028$428Kโ–ฒ 23.1%20232024Now
$450K$330K
Current
$340K
2026
Projected
$410K
โ†‘ 17.8% by 2027
Projected
$428K
โ†‘ 23.1% by 2028
5yr CAGR:+6.1%
Confidence:Moderate
Rยฒ:0.55
โ–ผ

Looking ahead to the 2026-2028 period, the Pompano Beach housing market forecast suggests a period of stabilization and modest growth following recent cooling. The current median home price of $347,848 and a recent YoY price change of -6.0% indicate the market is digesting the rapid appreciation seen over the last five years, which delivered a strong 35.4% total gain. With an elevated Days on Market of 82, buyers are regaining some negotiating power, a trend likely to persist as new condo developments along the coast add inventory. However, Pompano Beach's relative affordability, highlighted by a Price-to-Rent ratio of 15.9x that sits below the national average, should prevent significant price declines and continue to attract buyers priced out of neighboring South Florida markets.

When asking will Pompano Beach home prices drop significantly, the data points to a nuanced answer. While short-term softness is evident, the area's long-term fundamentals remain supportive. The city's ongoing beachfront revitalization project and its position as a more affordable alternative to Fort Lauderdale and Boca Raton provide a buffer against major downturns. The market's 50/100 temperature rating and B+ risk grade reflect a balanced environment rather than a speculative frenzy. For those evaluating the Pompano Beach real estate Pompano Beach 2027 outlook, expect price growth to be driven by local economic improvements and infrastructure upgrades rather than the rapid spikes of the past. The current "NEUTRAL" verdict is likely to hold, making this a strategic window for long-term buyers rather than quick flips.

Projected Cap Rate (2027)
2.9%
5yr CAGR
+6.1%

Job Market

Unemployment 3.2%
National avg: 3.7%
Job Growth (YoY) +3.5%

Healthcare

74
Score
Good

Risk Factors

High Crime Area
Declining Prices

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 94.3%
Months Supply 11.0
Price Drops 25%
Gone in 2 Wks 15%

Market Position

Affordability Average
Safety Higher Risk

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Pompano Beach.

Total ROI
-83%
on $68,000 invested
Annual ROI
-29.7%
compounded
Total Return
-$56,341
appreciation + cashflow
Mo. Cash Flow
-$1,083
year 1 estimate
Equity Growth Over 5 Years
Y171kY274kY377kY480kY584k
Appreciation
$0
Cash Flow
-$56,341
Final Equity
$83,940

* Estimates based on 0.0% annual appreciation, 3% rent growth, 5% vacancy. Does not include closing costs, tax benefits, or capital gains tax. For illustrative purposes only.

Rental Investment Calculator Estimate your monthly cashflow

Rental Income Estimator

Pre-filled for Pompano Beach

Property

Purchase Price$340,000
Monthly Rent$1,621
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$928
Monthly Cash Flow
-$11,131/ year
-16.4%
Cash-on-Cash
2.8%
Cap Rate

Monthly Breakdown

+ Rental Income$1,621
โˆ’ Mortgage (P&I)$1,719
โˆ’ Property Tax$340
โˆ’ Insurance$125
โˆ’ Maintenance$283
โˆ’ Vacancy Loss$81
= Net Cash Flow-$928

Investment Summary

Down Payment
$68,000
Loan Amount
$272,000
Total Monthly Expenses
$2,549
Gross Yield
5.7%

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with qualified professionals. Data sources include Zillow, Census Bureau, and BLS. Cap rates and yields are estimates based on available data.

Last updated: March 2026