Question 1

Which is better for STR bonus depreciation in 2026: Orlando / Kissimmee, FL or Palm Coast, FL?

Accepted Answer

Both are Florida with no state income tax, so all bonus depreciation flows through federally. Orlando wins on entry price ($297K vs $700K), depreciation math (16% land vs 23%), and Diamond density (67% vs 49%). Palm Coast works if you specifically want coastal exposure — Orlando is the theme-park corridor.

Question 2

What is the typical Year-1 bonus depreciation write-off on a Orlando / Kissimmee short-term rental vs a Palm Coast short-term rental?

Accepted Answer

On the median Orlando / Kissimmee STR ($297K), Year-1 bonus depreciation is approximately ~$77K (26% bonus-eligible of purchase price). On the median Palm Coast STR ($700K), Year-1 is approximately ~$175K (25% bonus-eligible). Higher bonus-eligible % combined with lower purchase price typically yields the best return-on-tax-dollars.

Question 3

When should an STR investor choose Orlando / Kissimmee over Palm Coast?

Accepted Answer

Choose Orlando / Kissimmee if: STR investors optimizing for the lowest entry point in Florida with strong depreciation math. Theme-park adjacency drives year-round demand. Choose Palm Coast if: Coastal-specific investors who want Atlantic beach access. Accept 2× the entry price and weaker depreciation math for the coastal brand.

Orlando / Kissimmee, FL vs Palm Coast, FL — short-term rental bonus depreciation head-to-head

Orlando / Kissimmee wins on depreciation math

Orlando / Kissimmee vs Palm Coast — data head-to-head

When to choose Orlando / Kissimmee

When to choose Palm Coast

Not sure which is right? Run the numbers on a specific property.

Metric	Orlando / Kissimmee, FL	Palm Coast, FL
Median bonus-eligible % (of purchase price)	26%Better tax math	25%
Median STR purchase price	$297K	$700K
Typical Year-1 write-off	~$77K	~$175K
Median land ratio	16%	23%
Diamond density (≥24% bonus-eligible listings)	67%	49%