1031 Exchange in Jacksonville MSA
The Jacksonville MSA offers diverse 1031 exchange opportunities with moderate cap rates, strong rental demand driven by financial services and healthcare sectors, and no state income tax advantages in Florida's largest city by area.
Population
1,605,848
Key Industries
Financial Services, Healthcare, Logistics/Port
Table of Contents
Information is for educational purposes only. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
1.14% - 1.20%
Assessment Method
Assessed Value (Florida Property Tax Code)
MSA rate (1.14%) vs State average (0.98%)
+16% above state average
Transfer Taxes & Fees
Transfer Tax Rate
No state transfer tax
Documentary stamp tax of $0.70 per $100 of consideration, local recording fees apply
Local Tax Incentives
Economic Development Incentives
City and county incentives for business development and job creation
Eligibility: Qualifying commercial and industrial developments
Northwest Jacksonville Economic Development Fund
Public fund for businesses in Northwest Jacksonville area
Eligibility: Existing and prospective businesses in Northwest Jacksonville
No State Income Tax
Florida has no state income tax on individuals or businesses
Eligibility: All Florida residents and businesses
Opportunity Zones
Number of Zones
8
Key Locations
- Downtown Jacksonville
- Northwest Jacksonville
- Eastside
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
1,605,848
Growth: +1.8% annually
Median Income
$77,013
Unemployment
3.0%
Job Growth
+1.5% annually
Economic Drivers
Market Trends
Median Home Price
$290,980 - $305,000
Average Rent
$1,450/mo
Cap Rates
6.0% - 8.0%
Demographics
Median Age
36.2 years
Bachelor's Degree+
33.2%
Owner Occupied
58.7%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand driven by young professionals in financial services and healthcare with diverse tenant base.
Market Metrics
- Cap Rates: 6.8%
- Vacancy Trends: Low vacancy at 5.2% due to job growth and population influx
- Demand Forecast: Continued strong demand from economic growth and in-migration
Risk Factors
- Interest rate sensitivity affecting affordability
- New supply coming online in some submarkets
Opportunities
- Growing employment base in high-paying sectors
- No state income tax attracting residents
Single-Family Rental
Popular with families and professionals seeking suburban lifestyle with good schools.
Market Metrics
- Cap Rates: 7.5%
- Vacancy Trends: Very low vacancy at 4.8% with strong tenant retention
- Demand Forecast: Strong fundamentals with continued population and job growth
Risk Factors
- Rising home prices affecting affordability for renters
- Competition from new construction
Opportunities
- Strong job market supporting rental demand
- Population growth from other states
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
Downtown Jacksonville
Urban core with high-rise condos, mixed-use development, and major employers
Investment Thesis
Opportunity zone benefits, urban revitalization, and strong rental demand from young professionals working in financial services and healthcare.
Median Price
$425,000
Price Growth
+5.2% YoY
Rental Yield
5.8%
Days on Market
45 days
Key Highlights
Development Pipeline
Major mixed-use developments and riverfront projects planned
Riverside/Avondale
Historic neighborhoods with tree-lined streets and proximity to downtown
Investment Thesis
Established neighborhoods with character homes, strong appreciation potential, and appeal to young professionals and families.
Median Price
$385,000
Price Growth
+4.8% YoY
Rental Yield
6.2%
Days on Market
38 days
Key Highlights
Development Pipeline
Historic preservation projects and infill development
Southside/Baymeadows
Suburban area with newer construction and major employment centers
Investment Thesis
Strong rental demand from healthcare and corporate employees, newer properties with lower maintenance, family-friendly amenities.
Median Price
$320,000
Price Growth
+3.2% YoY
Rental Yield
7.1%
Days on Market
42 days
Key Highlights
Development Pipeline
Continued suburban development and commercial expansion
Beaches (Neptune Beach/Atlantic Beach)
Coastal communities with vacation rental and luxury housing markets
Investment Thesis
Tourism-driven rental income, luxury market appreciation, and lifestyle appeal for high-income residents and visitors.
Median Price
$485,000
Price Growth
+6.8% YoY
Rental Yield
5.2%
Days on Market
35 days
Key Highlights
Development Pipeline
Luxury residential and hospitality developments
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Frequently Asked Questions
Common questions about Jacksonville 1031 exchanges
Jacksonville offers balanced cap rates (6-8%), strong job growth in financial services and healthcare, no state income tax, and diverse investment opportunities from urban to beach properties.
Major employers like Bank of America, FIS, and Deutsche Bank provide stable, high-paying jobs that support strong rental demand and tenant quality, particularly in downtown and Southside areas.
Yes, Jacksonville has eight designated Opportunity Zones including downtown and several neighborhoods, offering potential tax benefits for qualifying investments including deferral and possible exclusion of capital gains.
The economy is anchored by financial services (Bank of America, FIS), healthcare (Mayo Clinic, Baptist Health), the Port of Jacksonville, Naval Air Station, and growing tourism sector generating $7.4B annually.
No state income tax, business-friendly policies, and moderate property taxes (1.14%) create favorable investment climate, while documentary stamp tax of $0.70 per $100 is reasonable for transactions.