2025 Beach Investment Hotspots for Vacation Rentals: Where to Buy Now
Looking for a beach house that doubles as a high-performing vacation rental? In 2025, demand is steady, regulations are clearer in many markets, and investors have a solid window to capture both lifestyle and cash flow. Use this guide to identify promising coastal cities, understand macro forces, and build a repeatable acquisition plan.
Understanding Beach STR Investing in 2025
Beach rentals combine lifestyle appeal with seasonal pricing power. Peak months can drive outsized ADR and occupancy, while year-round draws (events, conferences, fishing, golf) support shoulder seasons. The right market blends consistent demand, workable rules, insurable risk, and a reliable vendor network for operations.
Key Rules or Steps
Lead with regulations and insurance
Favor markets with clear STR rules and insurable wind/flood risks at sustainable premiums.Underwrite with conservative seasonality
Model revenue by segment (peak, shoulder, off-peak) and stress-test for weather and policy changes.Prioritize operations
In beach markets, cleaners and maintenance drive occupancy. Lock vendors before you close.Price dynamically
Use event detection, LOS discounts, and gap-fill logic to capture peak surges and fill midweeks.Protect margins
Set rate floors, monitor taxes/fees, and build reserves for capex and storm-related downtime.
Why It Matters for Investors
Beach properties can deliver attractive RevPAR and long-term appreciation, but only with disciplined underwriting. Strong regulations reduce uncertainty. Insurance diligence protects cash flow. Operational readiness keeps calendars full during peak—when most of your profits are made.
Step-by-Step Process
Screen markets for regulation clarity, drive-to demand, weather risk, and vendor depth.
Build a comp set of similar bedrooms/amenities within 0.5–2 miles; pull seasonal ADR/occ.
Price insurance (wind, flood, hurricane) with multiple carriers; validate deductibles and exclusions.
Model returns with conservative occupancy; include taxes, HOA, utilities, cleaning, and PM fees.
Vendor lineup: cleaners, maintenance, pool, landscaping, pest control; secure backups.
Acquire and prep: safety upgrades, smart locks, durable furnishings, beach-ready amenities.
Launch with revenue plan: minimum stays, seasonal floors/ceilings, event boosts, orphan-gap logic.
Measure and iterate: track ADR, occupancy, RevPAR/RevPAN, booking window, 5-star rate; refine monthly.
Top Beach Short-Term Rental Markets for 2025
Notes: Metrics below reflect the provided snapshot. Always verify current data, regulations, and insurance quotes during due diligence.
Anna Maria Island, Florida
Low-rise charm and affluent, longer-stay demand support premium ADRs. Limited inventory aids pricing power.Median home sale price (Zillow): $438,167
Occupancy: 75% | ADR: $744.8 | Annual revenue: $124,800 | RevPAR: $569.9
Destin, Florida
Emerald Coast staple with strong snowbird and family demand; grandfathered STRs hold value.Median home sale price: $580,667
ADR: $378 | Annual revenue: $61,878 | Gross yield: 10.62%
Gulf Shores, Alabama
Affordable entry, family-friendly branding, and steady demand; conference traffic helps shoulder seasons.Median home price: $430,833
Occupancy: 58% | ADR: $392 | Annual revenue: $49,000 | RevPAR: $223.5
South Padre Island, Texas
Year-round tourism, clear rules, and strong peaks with a comparatively lower buy-in.Zillow list price: reported around $508k
Occupancy: seasonal 73%+; peak >90% | ADR: $235–$290 | YOY revenue: +12% vs. 2024
Port Aransas, Texas
Post-rebuild momentum, protected by TX SB 2036; events sustain shoulder demand.Median list price: $689,667
Occupancy: 48% | ADR: $248 | Annual revenue: $44,000
Virginia Beach, Virginia
Drive-to access from D.C./Raleigh; Sandbridge appeals to space-seeking families.Median sale price: $373,833
Occupancy: 57% | ADR: $353.7 | Annual revenue: $30,800 | RevPAR: $200.2
Ocean City, Maryland
Relaxed STR rules, festival calendar, and walkable downtown bolster seasonal performance.Median sale price: $455,800
Occupancy: 56% | ADR: 336.8 | Annual revenue: $27,600 | RevPAR: $189.5
Myrtle Beach, South Carolina
Most affordable entry on this list; expanding flights and shelved caps support accessibility.Median sale price: $268,000
Occupancy: 56% | ADR: $247.9 | Annual revenue: $26,400 | RevPAR: $136.9
Wildwood, New Jersey
High summer foot traffic and straightforward licensing; diversify beyond southern coasts.Median sale price: $469,300
Occupancy: 54% | ADR: $276 | Avg. monthly revenue: $3,542
Outer Banks, North Carolina
Iconic barrier islands with premium oceanfront inventory; more seasonal but resilient brand demand.Median list price: $694,917
Occupancy: 60% | RevPAN: $108
Macro Trends Shaping 2025
Drive-to dominance: Budget-conscious travelers favor drivable coasts (e.g., Gulf Shores, Virginia Beach, Wildwood).
Insurance and climate pressures: Elevated Florida premiums shift some demand to Texas/Alabama; model climate-adjusted OPEX.
Regulatory clarity wins: Systems-based cities (e.g., Myrtle Beach, Ocean City) attract professional hosts and stabilize ADRs.
Common Mistakes to Avoid
Buying before verifying STR legality and insurance availability.
Underestimating turnover logistics during peak season.
Relying on static pricing without event detection or LOS strategy.
Ignoring wind/flood deductibles and special assessments.
Overestimating off-peak demand without marketing and distribution plans.
How Rent Live Play Helps
Rent Live Play partners with investors to operate STRs with confidence. We help you launch with dynamic pricing, gap-fill logic, and multi-channel distribution. Our co-hosting model keeps your asset ranked, booked, and protected. Reach out to our team for more information.
Disclaimer:
This article is for informational purposes only and does not constitute legal, financial, or investment advice. Always consult with qualified professionals before entering into any real estate transaction.
