The True Cost of Living in the Florida Keys: What You Need to Know Before You Buy

The True Cost of Living in the Florida Keys: What You Need to Know Before You Buy

The Florida Keys offer a dream lifestyle — turquoise waters, tropical weather, and laid-back island vibes. With that, paradise comes with a price tag. Whether you’re considering relocating full-time or investing in a second home, it’s crucial to understand what living in the Keys will really cost month to month.

Below is a detailed breakdown of the cost of living across popular areas in the Florida Keys, including Key Largo, Islamorada, Marathon, and Key West.

1. Housing Costs

• Key Largo & Islamorada (Upper Keys):
• Median home prices: $750,000 – $1.2M
• Monthly mortgage (on $900,000 home w/ 20% down, 7% interest): ~$4,800–$5,500
• Long-term rentals: $3,000–$5,000/month for 2–3 bed homes
• Marathon (Middle Keys):
• Median home prices: $650,000 – $900,000
• Rental range: $2,500–$4,500/month
• Key West (Lower Keys):
• Median home prices: $900,000 – $1.4M+
• Rentals: $3,500–$6,000/month
• Condos downtown can exceed $1,000 per sq. ft.

2. Property Insurance

Insurance is one of the biggest budget factors in the Keys due to hurricane risk and flood zones.

• Windstorm Insurance: Often required if financing a home and in many cases bundled with homeowners (Hazard insurance)
  
  
• Cost: $4,000–$10,000/year depending on age, construction, and location of the home.
• Flood Insurance (NFIP or private):
• FEMA zones determine cost. AE and VE zones are higher.
• Average annual premium: $1,000–$4,500

Tip: Newer elevated homes with impact windows may save you thousands on premiums.

3. Utility Costs

• Electricity (Florida Keys Electric Co-op & Keys Energy):
• Avg. monthly bill for 2,000 sq ft home: $250–$400 (higher with pool or older A/C systems)
• Water & Sewer:
• Monthly cost: $100–$150 for average usage
• Sewer service fees in areas like Islamorada and Marathon may be higher due to system upgrades.
• Trash/Recycling:
• Typically bundled with property tax or $30–$50/month if billed separately.
• Internet & Cable:
• Providers: Xfinity, AT&T
• High-speed internet: $90–$150/month
• Streaming or cable: $40–$100/month

4. Transportation & Fuel

• Gas Prices:
• Consistently $0.25–$0.50/gallon higher than mainland Florida
• Avg. in 2025 $3.22 unleaded per gallon ($3.63 per gallon in Key West)
• Avg. in 2025 for marine fuel $4.66 -$5.16 per gallon
• Car Insurance:
• Higher than average due to flood/hurricane risk
• Avg. premium: $2,000–$2,800/year
• Toll Costs:
• No tolls on US-1 through the Keys — a plus!

5. Food & Groceries

• Groceries:
• Expect to pay 15–25% more than the mainland due to transportation costs.
• Shopping locally? Publix and Winn-Dixie are the main chains.
• Dining Out:
• Casual meals: $20–$35/person
• Waterfront or resort dining: $50–$100+/person

6. Taxes

• Florida has NO state income tax, which is a big perk.
• Property taxes:
• Monroe County rate: Approximately ~1.0% of assessed value
• A $900,000 home would pay ~$9,000/year, depending on exemptions

7. Hidden & Seasonal Costs

• HOA Fees:
• $150–$500 per year depending on community amenities (Neighborhood boat ramps or private neighborhoods)
• Hurricane Prep:
• Annual storm supplies, window shutters, or generator upkeep: $300–$1,000+
• Pest Control & Yard Maintenance:
• Mosquito control, pool and landscaping are essential.
• Monthly costs: $75–$200
• Boat Storage or Dock Fees (if applicable):
• Marina slip rental: $500–$1,200/month
• Dry rack storage: $300–$600/month

Cost Comparison Snapshot

Final Thoughts

The Florida Keys are not the cheapest place to live — but they offer a unique lifestyle unlike any other with an outstanding sense of community, beauty, and history. With limited land and a tourist attraction to those around the world, it creates a very safe real estate market when it comes to investing and land appreciation. The key is understanding these costs upfront so you can plan, negotiate and ask the right questions before purchasing a property.

Ready to explore homes in the Keys? Let’s talk about what areas best match your lifestyle and budget.