What to Expect in the Rental Market 2025 - 2026

Jason McGuire • July 4, 2025

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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The State of the Rental Market – Fall 2025 Santa Rosa & Escambia Counties If you own rental property in Northwest Florida, you’ve likely noticed things feel different this year. Homes are taking longer to rent, price growth has slowed, and tenants have more choices than they did just a year or two ago. That’s not bad news — it’s just the natural cooling of a market that was red-hot for years. For landlords in Santa Rosa and Escambia Counties, the fall 2025 rental landscape is stable, competitive, and increasingly data-driven. Here’s what’s happening — and what it means for you. Rents Are Holding Steady After several years of double-digit increases, rent growth has finally leveled off. Across both counties, most homes are renting for about the same or slightly more than they did last fall. Average rent in Santa Rosa County : about $2,000 per month Average rent in Escambia County : around $1,650–$1,700 per month Year-over-year growth: roughly 1–2% in most areas That small bump means landlords are keeping pace with inflation, but big rent hikes are a thing of the past. The market has reached a healthy balance between affordability and owner returns. Homes Are Taking Longer to Rent The days of getting ten applications the first weekend are gone. Most properties now spend two to four weeks on the market before securing a tenant — longer if they’re priced above average or need updates. Several factors are driving this: More supply: new apartments and converted homes entering the market Seasonal slowdown: fall always brings fewer moves than summer Pickier renters: tenants can compare more options than before That doesn’t mean demand is weak — it’s just more deliberate. The right tenants are still out there, but they’re shopping carefully. The Market Is Splitting by Location Location has become the defining factor in 2025. Coastal towns like Navarre and Gulf Breeze still command premium rents, often above $2,300 per month , but homes can sit longer as they wait for the right tenant. Suburban hubs like Pace and Milton are steady performers, with strong family demand and average rents between $1,800–$2,000 . Inland or rural areas have lower rents but also less turnover — many tenants stay long-term for space and affordability. The key takeaway: understanding your submarket matters more than ever. What This Means for Landlords If you’re managing a property in today’s market, strategy is everything. Price precisely. Overpricing is the fastest way to lose a month of rent. Show well. Updated, clean, pet-friendly homes still rent fastest. Plan for short vacancies. Even a great property may take 2–3 weeks to fill. Be proactive. Start marketing early, and respond quickly to inquiries. Clover’s data shows that landlords who price within 2% of current market value are renting nearly twice as fast as those who list above it. How Clover Helps You Stay Ahead 🍀 Market-based pricing backed by local data 🍀 Professional marketing that reduces vacancy time 🍀 Tenant screening to protect your property 🍀 Maintenance coordination that keeps homes in top shape Our team watches the market daily — not quarterly — so your investment stays competitive and profitable. Ready to See How Your Property Compares? Clover Property Management offers free rental market evaluations to help homeowners stay in step with today’s trends. 📲 Visit www.CloverPM.com or call 850-994-1542 to request your rental analysis. Your property deserves more than guesswork — it deserves strategy.
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