Coconut Grove

Coconut Grove remains a stable but fully-priced multifamily submarket in Miami-Dade County. Cap rates have compressed to 4.3%-4.7%, reflecting strong demand but limited upside for new investors. Average rents of $3,200/month and 95% five-year appreciation tell the story of a market that has already run significantly. Rent growth at 1.5% suggests the upward momentum is decelerating.

One of Coconut Grove's advantages is its favorable expense profile. Insurance costs are approximately $1,600 per unit annually — well below the county's coastal zones where premiums reach $2,200-$2,800 per unit. The AE (Moderado) flood designation keeps insurance risk medium, and with a millage rate of 21.08, property taxes come in at $5,500 per unit per year. Operating expenses typically run 33% of gross rent in this submarket.

Coconut Grove serves a population of 20,000 with a median household income of $105,000. The walkability score of 72/100 and transit score of 55/100 make it highly accessible without a car. Crime grade A- and school rating A factor into tenant quality and retention. Vacancy at 4% signals tight supply.

For multifamily investors evaluating Coconut Grove in 2026, the entry point ranges from $400K to $500K per unit. Stable premium with natural scarcity. High entry price limits upside. Ideal for capital preservation. High-income tenants = low turnover. Investors comparing this zone against the broader Miami-Dade market should weigh the 4.3%-4.7% cap rate against the county-wide range of approximately 3.8% (Key Biscayne) to 7.5% (Florida City), and factor in the significant variation in insurance and tax burden across the county's 34 investable zones.