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With a median price tag under $150,000 — not to mention the second-highest projected rental profit in this study at $38,227 — this could be one smart investment even if you never set foot in Florida. With so much to do and see in Miami, investing in a vacation property in this beautiful and luxurious South Florida haven will allow you to enjoy excellent rental income and escape to paradise whenever you like. Daytona Beach is another great spot for vacation real estate investment in Florida. This long-time vacation hot spot offers miles of beach, a ton of activities, and is home to one of the world’s most famous speedways.
With beautiful scenery, plenty of outdoor activities, many popular attractions, and big city living with a small-town feel, it’s no wonder Jacksonville’s occupancy rates are some of the highest in the state. According to data from Mashvisor’s investment property calculator, St. Augustine is #1 among the best places to buy a vacation home in Florida. It offers a really high Airbnb rental income, with the additional benefit of being quite affordable. No surprise that the forecast profitability as measured by both cash on cash return and capitalization rate. St. Augustine is a small city on the coast of northeastern Florida, which makes it a great location for spending your holidays as well as for owning a rental property. For starters, it has plenty of affordable properties available in well-performing areas.
Buying Guides
The real estate market in the city where many of the country's wealthiest individuals own a vacation property is extremely hot right now. When talking about the best places to buy a vacation home in Florida, it is simply impossible to skip Miami Beach. This is a famous resort city on a barrier island connected to mainland Miami through a system of bridges. Actually both Airbnb and traditional renting are very profitable here, which gives you the option to move to a full-time landlord in the future by renting your income property out for long-term rentals. For those who are unfamiliar, the Middle Keys are, you guessed it, right in the middle of the Florida Keys. And this area is a sight to see, with waterways and famous bridges, like the Seven Mile Bridge, between islands.
Kansas City is another city where you can definitely find an affordable house that will still generate significant income through rentals, with the cost of the house paying for itself in about six years. If you crave the excitement of Miami but prefer to stay a little off the beaten path , Key Biscayne is an excellent place to invest. This is an especially good choice for those who are interested in water sports, ocean exploration, and low-key luxury. The state can boast about being able to enjoy warm weather all year long, and the best weather conditions are in cities in the south.
Buying a Rental Property Below Market Value
Lexington might be on the low end of its gross rental profits for this list, but if you’re a fan of horses and/or whiskey, this could be the place for you. Known as the “horse capital of the world,” it’s also right next door to Kentucky’s famous Bourbon County. Located on the Gulf of Mexico in the Florida Panhandle, Fort Walton Beach could be just the place for you to take in the sea and the sun while also padding your income through your rental property. The nearly $45,000 a year you can make in rental profits is the highest in the study. Jill Penman, an agent with Sotheby's International Realty, shared her tips for the best cities to check out.
The entire city is family-friendly – and most of the 100,000 full-time residents are families with children. After extensive research of the Florida housing market, we’ve found the most enticing locations for generating Airbnb income. Most buyers looking for a vacation home in Florida are in the market for properties in luxury buildings with lots of high-end amenities and in proximity to restaurants and sporting events. "I would describe Florida's real estate market right now as hot, just like our weather," said Dina Goldentayer, executive director of sales with Douglas Elliman in Florida. Aside from New Orleans, there might be no single city more important to the history of American music than Memphis.
Where to Buy a Vacation Home in Florida
"The Gulf Coast is still experiencing some of its best numbers due to its drivability for residents in the southeast," reads the report. "This area is also ripe for opportunities to invest, as asset prices have not risen nearly as fast as those in other markets." Buying a second home in Dallas is likely going to be costlier than would be “worth” it, but a vacation home in Fort Worth would mean relatively easy access by car to Dallas, Arlington and other major cities. Not only does that give you a lot of options for enjoying your vacation home, but there are a lot of different potential renters interested in the area for short-term rentals. Panama City Beach is a resort town located in Bay County, right by the Gulf of Mexico coast.
Airbnb Gainesville should remain on the radar of savvy real estate investors looking for the best places for buying a vacation home in the Sunshine State. The combination of property values and Airbnb revenue results in a high rate of return for short-term rentals. Palm Beach's exclusive and glamorous lifestyle appeals to buyers looking to enjoy its world-class shopping and pristine beaches in a serene and sophisticated environment.
Kansas City, Missouri
The Old Town is home to an impressive collection of Victorian-style homes, but you’ll also find that beachfront villas and modern, stylish condos abound. Key West is a veritable paradise, and the hours you’ll get in front of the ocean and under the sun will be well worth the investment. Key West is a premier tourist destination, not just in Florida but across the country. Therefore, it should come as no surprise that we have it near the top of our list of the best cities for buying houses in Florida. This popular tropical paradise personifies relaxation and luxury, both of which are in high demand.
Creating a long-term plan and doing year-long forecasts is necessary, and it helps investors locate the best places to buy vacation rental property in Florida. In addition to its great weather, Florida offers a variety of amenities and activities that appeal to a wide range of people. From world-class golf courses and pristine beaches to exciting theme parks and vibrant nightlife, there’s something for everyone in Florida.
Chattanooga represents the fourth city in Tennessee, tying it with Florida for places with the most options for affordable vacation homes. With a median home price at just over $145,000 and projected rental profits of just over $25,000 a year, you could theoretically be into the black on the investment by the end of year six. Daytona Beach is one such location, with a projected annual profit on renting it out that’s close to $30,000.
The average price of single-family homes in Fort Lauderdale has risen an incredible 60% in the past year. Buyers who are serious may need to pay far above a home’s initial list price if they wish to lock something down. To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life. The multitude of historical and cultural attractions easily turn the capital of Florida into one of the hottest destinations for Airbnb investments in 2021. Since 2013, he’s been helping businesses in various industries thrive in the digital world. The days of searching through the Internet for hours – and days – on end are gone, as this tool gives you insight into the Florida real estate market right now, right there.
However, with so many great vacation destinations, deciding on a location for your vacation rental property can be easier said than done. If you’ve ever seen those aerial images of long stretches of sand dotted with colorful umbrellas and lots of sunbathers, they were probably taken at Pensacola Beach. Located in the northwest corner of Florida, Pensacola Beach is a lively, activity-filled coastline that offers beachfront bars and restaurants, as well as live music as the sun goes down over the water. While guests to the area can find quieter stretches of sand if desired, the area is known for visitors harmoniously enjoying the area’s 343 days of sunshine and 72 degree average ocean temperatures.
The below-average home values make it an ideal destination for beginner investors who face budget constraints. When it comes to short-term rental laws, Florida is one of the most Airbnb-friendly states in the US. Currently, local governments are not allowed to pass laws that prohibit Florida vacation homes. Nevertheless, before buying houses in Florida to rent out on Airbnb or similar platforms, be sure to check out local government websites to stay updated on any changes in the regulations.
A spacious condo to kick back in after all the fun will cost around $300,000, but will return a healthy cap rate of 5.6%. To determine net operating income for this report, we first calculated gross rental income for each market. From there, we subtracted each market’s average operating costs—factoring in things like management fees and property tax rates.
In addition to that, acquiring a vacation home in Florida offers other advantages like a relatively mild property tax rate and opportunities to earn passive income by renting the property. In the first quarter of 2022, Florida welcomed roughly 1.3 tourists from overseas. Experts predict that the market will experience a complete turnaround in 2024—but the migration and demand for vacation rentals suggest that it could happen even earlier. In terms of investing in Florida’s real estate market, know that it’s a good idea, given that it’s been able to cope with the considerable—and generally devastating— consequences of COVID-19 back in 2020. Reviews are, hands down, the best feedback you can get in the vacation rental business. Take into account every comment left by your guests—and, if needed, try to work on improving certain aspects of your property in due time.
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