Florida was already ranked as one of the top states for lucrative house flipping. Now a new report has revealed the Sunshine State has the most profitable vacation rental markets in the U.S.
Florida’s markets blew out the competition. There were two in the top five, six in the top 25 and 10 in the top 25.
While California came in second with 13, not one of the markets ranked higher than 44.
The report used two metrics to grade the markets: costs of home ownership and short-term rental potential.
“The trend this year tends to focus on markets that are as recession resistant as they come,” the report stated. “They are established vacation destinations where family traditions are made. They remain affordable family vacation destinations even during an economic downturn.”
Each city was given a score from 0-100 and an estimated rental income.
|Position||Market||Score||Estimated Rental Income|
|3||Panama City Beach||90.5||$20,000|
|20||Cape San Blas||74.0||$66,500|
|113||Santa Rosa Beach||42.0||$47,500|
Panama City Beach was actually in first a year ago and Destin was once as high as two in 2017.
But not every corner of Florida is a profit center. With three cities in the bottom 20 and a housing shortage across the state, Rent.com advises that investors really do their due diligence before buying in Florida.
Rent.com gave four key points to look for when evaluating the overall profitability of a short-term rental:
• Real Estate Price
• Local Vacation Rental Rates
• Insurance, Taxes & Maintenance Costs
• Overall Popularity of the Tourist Destination
Rent.com offers short-term vacation rental property appraisal. The property management website has an industry expert calculate how much the rental should earn and connects you with a property manager.
Chris began his writing as a hobby while attending Florida Southern College in Lakeland, Florida. Today he and his wife live in the Orlando area with their three children and dog.