The Jupiter ROI Calculation: A Worked Example

Rather than abstract formulas, the most useful Jupiter ROI guide is a worked example using real 2025 numbers. Scenario: a 3-bedroom, 2.5-bath single-family home in Windsor Park, Abacoa, Jupiter, FL.

Purchase price: $495,000. Down payment (25%): $123,750. Mortgage (7%, 30-year): $371,250. Monthly payment (P+I): approximately $2,471/month. Annual debt service: $29,652.

Monthly gross rent (current market): $3,000/month = $36,000/year gross rent.

Annual operating expenses (accurate 2025 inputs): Property taxes: $8,100 (current assessed value at post-homestead-removal rate). Landlord insurance: $5,800. HOA dues: $4,200 ($350/month). Management fee (8%): $2,880. Maintenance reserve (10%): $3,600. Lawn care: $2,400. Pest control: $350. HVAC annual service: $225. Total annual operating expenses: $27,555.

Net Operating Income (NOI): $36,000 - $27,555 = $8,445/year.

Cap rate: $8,445 / $495,000 = 1.7%. Wait — is this correct? Yes. The cap rate for this specific property with accurate HOA and insurance inputs is approximately 1.7-2.0%, not the 5-6% cap rate that less carefully modeled analysis would produce. The HOA dues ($4,200/year) and insurance ($5,800/year) together reduce NOI by $10,000/year relative to a comparable non-HOA, lower-insurance property.

Annual cash flow after debt service: $8,445 NOI - $29,652 debt service = -$21,207. Cash-on-cash return: -$21,207 / $123,750 = -17.1%.

What does this negative cash flow tell us? This is not a cash flow investment. It is a total return investment where the investment thesis is: appreciation (Abacoa has appreciated at approximately 4-5% compound annually over the past decade); rent growth (3-5% annually in this market); depreciation tax shield ($495,000 - $99,000 land = $396,000 building / 27.5 years = $14,400/year depreciation deduction = $3,456/year in tax savings at 24% bracket); and mortgage amortization (debt paydown building equity).

Total return over 5 years (conservative estimates): Property appreciation at 4.5% on $495,000 = $119,000. Rent growth (3% compound): additional $16,200 in cumulative rent over 5 years. Depreciation tax savings: $17,280. Mortgage amortization: approximately $18,000 in equity build. Total 5-year economic return: approximately $170,000 on $123,750 initial equity = 138% return over 5 years, or approximately 18% compound annual return on equity.

Landlords operating in Harbour Isles face the full complexity of Jupiter's rental environment: HOA compliance requirements, a tenant pool with above-average income and expectation standards, and seasonal demand variation that rewards landlords who price accurately and market professionally. Atlis currently manages properties throughout Harbour Isles and the broader Jupiter submarket, with an average days-to-lease of under 21 days for properly prepared and priced units. Owners in this community who contact Atlis receive a no-obligation rental analysis specific to Harbour Isles market conditions — not a county-wide estimate.

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