What to Expect in the Rental Market 2025 - 2026
What Landlords Should Expect in the 2025 Rental Market Across Santa Rosa & Escambia Counties
The real estate market in our area has changed a lot over the past 12–18 months—and if you’re a property owner or investor, it’s important to understand where things are heading for the rest of 2025 and into early 2026.
Let’s break down what’s happening right now—and what it means for rental property owners across Pace, Milton, Pensacola, and the surrounding areas.
Rental Prices: Still Strong, but Slowing
In 2022–2023, rents were rising rapidly. Now, things are balancing out.
Pace, FL rental prices are still above average.
- Typical rent: $1,850–$2,200/month for 3 BR homes
- Small apartments and two-bed units are averaging $1,300–$1,600
Pensacola / Escambia County sees a wider range.
- Smaller homes or units: $1,400–$1,600/month
- Larger single-family homes: $1,700–$2,000+, depending on condition and location
Across both counties, we’re seeing less aggressive rent increases—but overall rates remain healthy.
Vacancy Rates Are Rising
One of the most noticeable shifts in early 2025: properties are sitting longer.
What used to rent in 3–5 days may now take 2–3 weeks. Why?
• More rental inventory available
• Renters have more options
• Some sellers are converting unsold homes into rentals
This means landlords need to act faster, market smarter, and remain flexible—especially on older or less-updated properties.
Rental Demand Is Still There
Despite slower movement, renter demand is not disappearing.
• Military relocations and steady job growth continue to fuel interest
• Families prefer areas like Pace, Milton, and Gulf Breeze due to schools and space
• Many would-be buyers are staying in rentals longer due to interest rates
The takeaway? A well-managed, competitively priced property in good condition will still rent—it just may take a little more strategy than it used to.
Home Sales Are Slowing—Creating More Rental Opportunities
Across Santa Rosa and Escambia counties, homes are taking longer to sell—and many owners are turning to renting as a backup plan.
• Average time on market for home listings: ~90 days
• Home values in some areas have dropped 1–2% from last year
• Pace, FL list prices are holding strong, but buyer activity is softer
If you’ve been trying to sell with no luck, renting your home out might be a smart short-term move that protects your equity and generates monthly income.
What Landlords Should Focus On Right Now
Here’s what we recommend heading into the second half of 2025:
✅
Price with precision
Don’t overprice based on last year’s market. Let the data guide you.
✅
Act quickly on vacancies
Even 1–2 extra weeks off-market costs you money. Stay proactive.
✅
Update where it counts
Fresh paint, curb appeal, working appliances—these small updates make a big difference in today’s market.
✅
Work with professionals
Leverage experienced property management to reduce turnover, stay legally compliant, and fill vacancies faster.
Let’s Talk About Your Property
Whether you’re an investor with multiple homes or a homeowner with one vacant property, now is the time to make smart, data-driven decisions.
📲 Visit
www.CloverPM.com or call 850-994-1542 to schedule a free rental evaluation.
We’ll give you a clear picture of what your property could earn—and how to keep it rented in today’s market.
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