Last updated: September 2024
Investing in short-term rental properties can be a lucrative venture, but choosing the right market to invest in is critical to ensuring the success of your investment. Florida, with its year-round warm weather and world-famous attractions, is a popular destination for tourists, making it an ideal market for short-term rental properties.
However, deciding which cities in Florida to invest in can be challenging. To help narrow down your options, we’ve compiled a list of the best short-term rental markets in Florida based on data analysis.
It’s important to note that while this analysis is approached from a pure numbers standpoint, actual decision-making is a lot more nuanced. Factors such as local regulations, insurance costs, property management, and market trends all play a significant role in the success of a short-term rental investment.
Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a calculator, regulation overview, and much more for each market discussed. Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.
Without further ado, here are the top short-term rental markets in Florida to consider investing in:
1. Panama City Beach, Florida
Panama City Beach, FL, is a popular destination for its stunning white-sand beaches and vibrant nightlife.
Panama City Beach has experienced a moderate increase in home values, with the average price now at $350,000. This market thrives with an ADR of $250.00 and an occupancy rate of 60%, translating to an annual revenue of $54,750 from 2,500 active rentals. The gross yield here is 10.70%, with a cap rate of 6.00%.
Discover more about investing in Panama City Beach through Chalet Intel. It includes a calculator, regulation overview, and much more.
2. Daytona Beach, Florida
Daytona Beach, FL, is famous for its hard-packed sands that are perfect for driving and its annual Daytona 500 NASCAR race.
Daytona Beach has seen a slight increase in home values, with the average price now at $300,000. The market shows promise with an ADR of $225.00 and an occupancy rate of 55%, generating annual revenues of $49,875 from 2,000 active rentals. The gross yield stands at 9.80%, with a cap rate of 5.50%.
To delve deeper into Daytona Beach’s investment potential, check out Chalet Intel.
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3. Fort Lauderdale, Florida
Fort Lauderdale, FL, known for its boating canals and stunning beaches, is a popular destination for tourists seeking luxury and relaxation.
Fort Lauderdale has seen a notable increase in home values, with the average price now at $400,000. The market thrives with an ADR of $300.00 and an occupancy rate of 50%, leading to an annual revenue of $55,000 from 3,000 active rentals. The gross yield here is 9.50%, with a cap rate of 5.00%.
For more insights into Fort Lauderdale as a rental market, explore Chalet Intel.
4. Miami Beach, Florida
Miami Beach, FL, known for its glamorous nightlife, art deco architecture, and beautiful beaches, is a top destination for luxury travelers.
Miami Beach has seen a stable increase in home values, with the average price now at $450,000. The market shows promise with an ADR of $325.00 and an occupancy rate of 55%, generating annual revenues of $59,850 from 2,500 active rentals. The gross yield stands at 9.00%, with a cap rate of 4.50%.
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5. Fort Myers, Florida
Fort Myers, FL, known for its historical estates and beautiful waterfront views, is a popular destination for retirees and tourists alike.
Fort Myers has seen a notable increase in home values, with the average price now at $350,000. The market thrives with an ADR of $250.00 and an occupancy rate of 50%, leading to an annual revenue of $43,800 from 2,000 active rentals. The gross yield here is 8.80%, with a cap rate of 4.00%.
For more insights into Fort Myers as a rental market, explore Chalet Intel.
6. Destin, Florida
Destin, FL, known for its white sandy beaches and emerald green waters, is a popular destination for family vacations and fishing trips.
Destin has seen a stable increase in home values, with the average price now at $400,000. The market shows promise with an ADR of $300.00 and an occupancy rate of 55%, generating annual revenues of $45,000 from 1,500 active rentals. The gross yield stands at 8.50%, with a cap rate of 3.50%.
Discover more about investing in Destin through Chalet Intel. It includes a calculator, regulation overview, and much more.
In conclusion, Florida offers a variety of excellent markets for short-term rental investments, each with its own unique characteristics and opportunities. By taking a data-driven approach and considering all relevant factors, investors can identify the best markets for their goals and resources and build a profitable short-term rental portfolio.
