Top 5 Cities in Florida to Buy Vacation Rental Property in 2023
If you’re considering the Sunshine State as the place to start a vacation rental business, we would just like to note that you can’t go wrong with Florida. And that’s why we’ve compiled a list of the top five best places to buy vacation rental property in Florida below.
The cities are arranged from the highest to the lowest cash on cash return.
1. Fern Park
- Median Property Price: $267,130
- Average Price per Square Foot: $180
- Days on Market: 51
- Monthly Vacation Rental Income: $2,875
- Vacation Rental Cash on Cash Return: 5.18%
- Vacation Rental Daily Rate: $154
- Vacation Rental Occupancy Rate: 62%
- Walk Score: 57
For those who want to go on vacation but still feel “at home,” Fern Park—a small suburban community in Florida—is the perfect place for such a vacation. You can never go wrong with it as one of the best places to buy a vacation rental property in the state.
2. Palm Harbor
- Median Property Price: $528,342
- Average Price per Square Foot: $289
- Days on Market: 42
- Monthly Vacation Rental Income: $4,486
- Vacation Rental Cash on Cash Return: 5.09%
- Vacation Rental Daily Rate: $213
- Vacation Rental Occupancy Rate: 60%
- Walk Score: 64
Palm Harbor’s an ethnically-diverse area that welcomes visitors from around the world. Even more so, people who decide to spend their vacation days here will also get to experience the untouched beauty of Clearwater Beach, which is just around 8 miles from Palm Harbor.
3. Spring Hill
- Median Property Price: $376,485
- Average Price per Square Foot: $207
- Days on Market: 48
- Monthly Vacation Rental Income: $3,021
- Vacation Rental Cash on Cash Return: 4.90%
- Vacation Rental Daily Rate: $144
- Vacation Rental Occupancy Rate: 56%
- Walk Score: 36
One of many reasons why Spring Hill is among the top places for investing in Florida’s short-term rentals is the underwater mermaid shows. The spectacular underwater shows take place at Weeki Wachee Springs State Park. They are the perfect attraction for families on summer vacation.
4. Deer Island
- Median Property Price: $478,783
- Average Price per Square Foot: $218
- Days on Market: 142
- Monthly Vacation Rental Income: $3,453
- Vacation Rental Cash on Cash Return: 4.88%
- Vacation Rental Daily Rate: $146
- Vacation Rental Occupancy Rate: 52%
- Walk Score: 7
Deer Island is arguably the best vacation destination for individuals and families who want to enjoy the natural beauty of the five-mile walkway the island features—with fun activities such as fishing, sightseeing, cycling, and picnicking.
5. Crystal River
- Median Property Price: $476,874
- Average Price per Square Foot: $263
- Days on Market: 60
- Monthly Vacation Rental Income: $3,450
- Vacation Rental Cash on Cash Return: 4.34%
- Vacation Rental Daily Rate: $197
- Vacation Rental Occupancy Rate: 54%
- Walk Score: 51
Western Florida’s Crystal River is an attractive destination for fishing enthusiasts. The city is famous for offering a world-class fishing experience. Visitors from all over the world come here to enjoy not only the sport but the crystal-clear blue waters, too.
Final Verdict
We’ve successfully closed the topic on investing in Florida’s vacation rentals. Let’s just go over the main takeaways and do a quick recap of sorts.
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.
Here’s something to consider:
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.
Although Florida’s favorable weather conditions are its number one attraction, many people come here for short-term business purposes, as well.
When it’s time to prepare your vacation rental, keep the following things in mind:
Making house rules clear and understandable, doing minor touch-ups, reading reviews, deep cleaning, and upgrading the technology are all essential components of running a successful rental business.
And just to remind you, the best five places to invest in vacation rentals are Palm Harbor, Deer Island, Crystal River, Spring Hill, and Fern Park.
Identifying the best places to buy vacation rental property in Florida 2023 is made easier with The Lledon Stokes Group we craft and developed strategy to assist investors in pinpointing the most profitable locations for their future investments.
Let us help you in your search for the best places to invest in Florida in 2023.