Best Places to Invest in Vacation Rentals in Florida

Florida has long been a top choice for vacation rental investments, thanks to its unique combination of year-round warm weather, diverse tourist attractions, and booming real estate market. The Sunshine State draws millions of visitors annually, from beachgoers to theme park enthusiasts, making it a prime location for investors looking to capitalize on the high demand for vacation rentals.

Several factors make Florida an attractive destination for vacation rental investments:

• Year-Round Temperate Weather: With gentle ocean breezes and average temperatures ranging from 57°F in January to 88°F in August, Florida offers a pleasant climate for outdoor activities year-round. Areas like Florida’s Historic Coast stay cooler in summer, making it an ideal destination for vacationers.
• Lower Property Taxes: Florida's average effective property tax rate is 0.98%, slightly below the U.S. average, varying by county and city.
• Abundant Waterfront Options: With 1,350 miles of coastline along the Atlantic Ocean and Gulf of Mexico, Florida has a wealth of waterfront properties. Vacation rentals with water views are highly sought after due to the state's extensive network of lakes, rivers, and ponds.
• Variety of Amenities & Services: Florida’s tourism infrastructure includes utilities designed for part-time residents and plenty of property management companies to help maintain and market vacation homes.
• Popular Vacation Destination: As one of the most visited vacation destinations in the U.S., Florida attracts millions of tourists year-round, boosting the demand for vacation rentals.

In this article, we’ll not only cover the top cities and locations for vacation rentals in Florida but also introduce nearby alternatives for those considering buying a vacation rental property. These lesser-known locations provide excellent value while benefiting from the attention drawn to the major vacation spots, giving you the opportunity to invest smartly and still see strong returns without breaking the bank.

Are Vacation Homes in Florida Good Investments?

Investing in vacation homes in Florida can be highly profitable due to the state's year-round tourism, beautiful beaches, and top attractions like Disney World and Miami Beach. Platforms like Airbnb and Vrbo make managing short-term rentals easier, offering the potential for significant income, especially during peak seasons. Additionally, Florida real estate tends to appreciate over time, providing long-term value.

However, the market comes with challenges such as seasonality, economic fluctuations, and local regulations. This is where conducting a thorough market analysis becomes crucial. A market analysis helps you understand trends like local demand, rental rates, and competition, allowing you to make data-backed decisions about the homes you're considering. For example, while certain areas in Florida may experience high rental demand during the winter, others might have stronger year-round appeal. A well-executed market analysis can help you navigate these dynamics, ensuring you avoid costly mistakes and invest in a vacation home that offers steady profitability.

Success depends on careful management and market understanding. For a deeper dive into the pros and cons, check out our article, "Are Vacation Rentals Good Investments?".

Florida's Vacation Rental Market: Still One of the Best Places to Invest!

Florida's vacation rental market has seen significant growth, driven by consistent tourist demand and favorable conditions for property owners. As of November 2023, the number of active short-term rental listings reached 230,055, reflecting rising interest from investors (PriceLabs).

With an ADR peak of $289 in July 2022 and strong seasonal occupancy rates—67% in peak months—Florida remains a top market for maximizing rental income (PriceLabs). Additionally, the state's tourism-friendly policies and attractive tax benefits make it a smart choice for investors seeking long-term profitability (Dorsey).

Top 10 Cities for Investing In Florida Vacation Rentals

First, let's talk about some of the top locations you can find in other articles about the subject. Then, we will double back and talk about the areas nearby that also can be lucrative: Florida is home to some of the most sought-after vacation rental markets in the country.

With its beautiful coastlines, year-round warm weather, and world-renowned attractions, it’s no surprise that several cities stand out as prime locations for investment. However, as these top destinations continue to attract high demand, property prices can be steep, making them less accessible for some investors. While these cities offer lucrative opportunities, nearby alternatives often present more affordable options with the potential to benefit from the same demand.

Below, we explore the top 10 Florida cities for vacation rental investments. These hotspots see consistently high tourist traffic and rental occupancy rates, making them ideal for maximizing rental income. However, what makes these locations even more attractive is that nearby, less expensive areas can also offer great returns for savvy investors willing to capitalize on proximity to the demand.

1. Miami

Miami is one of the world’s most iconic vacation destinations, known for its nightlife, art deco architecture, cultural diversity, and beautiful beaches. Whether it’s deep-sea fishing, luxury shopping, or attending world-class festivals, Miami offers something for everyone. As a result, the city consistently attracts high-end tourists, making it a prime spot for vacation rental investments.

• Median Listing Price: $620K
• Estimated Rental Income: High, given Miami’s status as a global destination.
  

2. Orlando

Orlando is home to some of the most popular theme parks in the world, including Disney World and Universal Studios, attracting millions of visitors year-round. Its family-friendly attractions and steady influx of tourists create a highly lucrative vacation rental market. Orlando’s strong tourism infrastructure ensures steady rental demand, especially for short-term stays.

• Median Listing Price: $415K
• Estimated Rental Income: Typically high, especially for properties close to theme parks.

3. Tampa

Tampa offers a mix of historic charm and modern attractions, drawing both leisure and business travelers. Its scenic waterfront and cultural districts, such as Ybor City, make it a desirable location. Tampa’s diverse property options—ranging from beachfront homes to urban apartments—make it an appealing choice for investors looking to tap into vacation rentals.

• Median Listing Price: $460K
• Estimated Rental Income: $2,444 per month

4. Fort Lauderdale

Fort Lauderdale is known for its boating canals and stunning beaches. With its proximity to Miami and its reputation as a yachting hub, it appeals to affluent travelers looking for a quieter alternative. The city’s relaxed, luxurious atmosphere makes it ideal for vacation rentals aimed at those seeking a more laid-back coastal experience.

• Median Listing Price: $629K
• Estimated Rental Income: High, given its popularity with both American and international visitors.

5. Naples

Naples is synonymous with luxury, offering upscale shopping, fine dining, golf courses, and pristine beaches. Its affluent visitors are willing to pay premium rates for vacation rentals, especially for properties with beach access. Naples also has a strong appeal for retirees, ensuring demand remains steady.

• Median Listing Price: $744K
• Estimated Rental Income: $3,986 per month.

6. Destin

Destin, located along the Emerald Coast, is a favorite for beachgoers and fishing enthusiasts. Known for its white sand beaches and vibrant local community, Destin attracts both family vacationers and spring breakers. Its high tourist numbers make it a great option for investors looking for steady vacation rental income.

• Median Listing Price: $649K
• Estimated Rental Income: Consistently strong, particularly during peak seasons.

7. Clearwater

Clearwater’s pristine beaches and family-friendly activities make it a popular destination for tourists of all ages. The city is known for its Gulf Coast views and the Clearwater Marine Aquarium, drawing consistent crowds year-round. Clearwater’s rental market thrives thanks to its mix of attractions and waterfront appeal.

• Median Listing Price: $375K
• Estimated Rental Income: $30,500 per year.

We offer vacation rental management in Clearwater for those serious about making their income from vacation rentals truly passive.

8. Sarasota

Sarasota stands out for its vibrant arts scene, cultural offerings, and stunning coastline. It attracts both tourists and retirees who appreciate its balance of leisure and sophistication. Sarasota’s upscale vibe makes it an attractive location for vacation rentals, particularly for those seeking a quiet yet refined escape.

• Median Listing Price: $579K
• Estimated Rental Income: High, particularly for properties near the water or cultural districts.

We offer vacation rental management in Sarasota for those serious about making their income from vacation rentals truly passive.

9. Panama City Beach

Panama City Beach is known for its vibrant nightlife, stunning white-sand beaches, and family-friendly attractions. It’s especially popular among spring breakers and vacationers looking for a lively atmosphere. The area boasts a high number of vacation rental properties, and its consistent tourist draw ensures solid returns for investors.

• Median Listing Price: $485K
• Estimated Rental Income: $20,000 per year.

10. Key West

Key West is renowned for its historic charm, vibrant nightlife, and stunning coastal views. As the southernmost point of the continental U.S., it attracts a wide variety of tourists, including history buffs, outdoor adventurers, and those looking for a laid-back island getaway. The high demand for vacation rentals here makes it one of the pricier markets in Florida, but the returns can be significant.

• Median Listing Price: $1.4M
• Estimated Rental Income: $61,000 per year.

More Top Places In Florida To Consider For Investment

While Florida’s major vacation rental hotspots like Miami and Orlando are well-known, there are plenty of other places across the state that offer great investment opportunities. These locations may not receive as much attention but can still provide excellent returns due to their proximity to popular tourist destinations, natural beauty, or growing local economies. Below, we explore some of the top alternatives to Florida’s major cities, offering investors the chance to find valuable properties without competing in the highest-demand markets.

Hollywood, FL

Located just north of Miami, Hollywood offers a quieter, more relaxed coastal experience while still benefiting from the demand generated by nearby Miami. With its iconic 2.5-mile boardwalk along the Atlantic, Hollywood is known for its beautiful beaches, outdoor activities, and family-friendly atmosphere, making it an attractive alternative for vacation rental investors.

As of August 2024, Hollywood was a seller's market, with more buyers than available homes. The median real estate prices reflect the demand:

• Median Listing Price: $545,000
• Median Listing Price per Sq Ft: $415

While prices in Hollywood are rising due to high demand, it remains a more affordable alternative to Miami, especially for investors looking to tap into the same tourism market while avoiding Miami's higher property costs.

North Miami Beach, FL

As a more affordable alternative to Miami, North Miami Beach offers the benefits of proximity to Miami’s bustling tourism and attractions while maintaining a quieter, more residential atmosphere. With its easy access to beaches and parks, North Miami Beach is an appealing option for vacation rental investors who want to capture Miami’s demand without competing in the high-priced Miami market.

Recent real estate figures reflect this investment potential:

• Median Sold Price: $486,125
• Median Price per Sq Ft: $382
• Average Home Value: $470,372 (up 9.2% from the previous year)

Neighborhoods like City Center and Sunray West offer a range of property prices, making it possible to find investment opportunities at various price points:

• City Center: $187,449
• Sunray West: $503,601
• Pleasant Village: $544,192

North Miami Beach provides a great opportunity to invest in vacation rentals while benefiting from the overflow of tourists and visitors to nearby Miami, all at a more accessible price point.

Homestead, FL

Located south of Miami, Homestead offers a more affordable alternative to Miami’s high real estate prices. As a gateway to both the Florida Keys and the Everglades, it attracts tourists seeking outdoor adventures, making it a promising location for vacation rental investors. Homestead provides a good balance of affordability and proximity to major attractions, offering strong potential for vacation rental income.

As of 2024, real estate prices in Homestead are relatively reasonable compared to Miami:

• Median Listing Price: $470,000
• Median Listing Price per Sq Ft: $280
• Median Sold Price: $455,000

Homestead’s affordability, combined with its convenient location, makes it an appealing choice for investors looking to benefit from the demand of the Miami area without paying the premium prices of the city.

Kissimmee, FL

Located just south of Orlando, Kissimmee is a popular alternative for vacation rental investors looking to capitalize on the area's world-renowned attractions, including Walt Disney World and Universal Studios, without the high real estate costs of Orlando itself. Known for its family-friendly atmosphere, Kissimmee offers a range of properties that cater to tourists visiting the theme parks, making it a reliable choice for vacation rental income.

In 2024, real estate prices in Kissimmee remain more affordable than those in Orlando:

• Median Listing Price: $399,000
• Median Listing Price per Sq Ft: $222
• Median Sold Price: $341,000

Kissimmee has seen a steady increase in property values, with home prices rising by 1.3% over the last year. Its proximity to major attractions, along with more affordable real estate prices, makes it a great investment option for those seeking high occupancy rates from vacationers visiting Orlando.

Winter Park, FL

Just northeast of Orlando, Winter Park offers a charming and upscale alternative for vacation rental investors. Known for its tree-lined streets, boutique shopping, and cultural attractions, Winter Park attracts tourists who prefer a quieter, more refined experience while still being close to Orlando’s major attractions. The area is home to Rollins College and the scenic Winter Park Chain of Lakes, making it a desirable destination for both short-term and long-term visitors.

As of August 2024, Winter Park’s real estate prices reflect its appeal:

• Median Listing Price: $537,000
• Median Sold Price: $480,175
• Median Price per Sq Ft: $288

Despite a slight decrease in prices from the previous year, Winter Park remains a premium location for vacation rental investments. Its proximity to Orlando, coupled with a more relaxed atmosphere, makes it an attractive choice for those looking to invest in the Central Florida region.

Clermont, FL

Located west of Orlando, Clermont is known for its rolling hills, lakes, and scenic views, offering a peaceful yet accessible alternative for vacation rental investors. With its proximity to Orlando’s theme parks and growing local attractions, Clermont has become an increasingly popular destination for both tourists and long-term residents. The area is also known for outdoor activities such as boating, fishing, and hiking, making it appealing to visitors seeking a more relaxed, nature-filled experience.

As of 2024, real estate prices in Clermont reflect its growing demand:

• Median Listing Price: $475,500
• Median Listing Price per Sq Ft: $233
• Median Sold Price: $525,000

Clermont remains a seller’s market, meaning homes sell faster and often at higher prices due to the demand. Its combination of natural beauty and proximity to Orlando makes it an attractive investment for vacation rentals (Realtor.com).

Indian Rocks Beach, FL

Situated along the Gulf Coast, Indian Rocks Beach offers a more laid-back alternative to nearby Tampa and St. Petersburg. Known for its charming, less crowded beaches and family-friendly atmosphere, this coastal town has become an attractive location for vacation rental investors looking to capitalize on the Gulf’s tourist traffic without the competitive pricing of nearby larger cities. While the housing market has softened in recent months, Indian Rocks Beach remains a strong option for vacation rentals, benefiting from both local and national tourism.

As of July 2024, the real estate market in Indian Rocks Beach was experiencing a decline in home prices:

• Median Sale Price: $799,900 (down 33.1% year-over-year)
• Median Sale Price per Sq Ft: $652
• Median Days on Market: 64 days

Despite the price drop, Indian Rocks Beach remains a desirable destination, especially for those looking to manage vacation rentals or Airbnb properties. The town’s lower competition and unique charm make it a great option for capturing travelers seeking a more relaxed vacation experience on the Gulf Coast.

We offer Airbnb management and vacation rental management services in Indian Rocks Beach, ensuring your property is well-maintained and optimized for guest bookings. With our professional management, you can maximize your rental income while providing a seamless experience for your guests.

Seminole, FL

Just a short drive from both Tampa and the Gulf Coast beaches, Seminole offers a quieter suburban atmosphere while still benefiting from its proximity to major tourist destinations. Known for its parks, family-friendly neighborhoods, and growing amenities, Seminole is an attractive option for vacation rental investors who want to tap into the demand generated by nearby hotspots like Tampa and St. Petersburg without the higher real estate prices.

As of July 2024, the real estate market in Seminole saw steady growth:

• Median Sale Price: $424,000 (up 3.5% year-over-year)
• Median Price per Sq Ft: $282 (Redfin).

Seminole’s combination of suburban charm and easy access to Florida’s Gulf Coast makes it a great location for vacation rental investments, offering more affordable properties with the potential to draw vacationers from nearby coastal cities.

We offer Airbnb and vacation rental management in Seminole, FL, helping you maximize rental income and ensure a seamless guest experience. Learn more at Seminole Vacation Rental Management.

Palm Harbor, FL

Located just north of Clearwater and close to Tampa, Palm Harbor is a desirable suburban area that offers a more relaxed setting while still providing easy access to the Gulf Coast’s tourist hotspots. Known for its golf courses, parks, and family-friendly environment, Palm Harbor has become a sought-after location for vacation rentals, with real estate prices slightly higher than those in the surrounding areas.

As of July 2024, Palm Harbor’s real estate market reflects its strong demand:

• Median Home Price: $430,897
• Median Price per Sq Ft: $276 (Rocket Homes).

Palm Harbor’s combination of suburban tranquility and proximity to the coast makes it an attractive option for investors, offering excellent value for vacation rental properties.

We offer Airbnb and vacation rental management in Palm Harbor, FL, helping you optimize your property and maximize rental income. Learn more at Palm Harbor Vacation Rental Management.

Pompano Beach, FL

Located just a 31-minute drive north of Fort Lauderdale, Pompano Beach offers a more affordable alternative while still benefiting from proximity to Fort Lauderdale’s bustling tourist scene. With its quieter beaches, waterfront properties, and emerging development, Pompano Beach is an attractive option for vacation rental investors seeking lower property costs compared to Fort Lauderdale.

As of July 2024, Pompano Beach's real estate market showed:

• Median Sale Price: $325,000 (down 7.9% year-over-year)
• Median Price per Sq Ft: $304
• Median Days on Market: 93 days (Redfin).

In comparison, Fort Lauderdale’s median sale price was significantly higher at $544,500, and the median price per square foot was $405. Despite this, Pompano Beach offers a strong opportunity for vacation rental investments, with lower entry costs and proximity to one of Florida's top tourist destinations.

Dania Beach, FL

Located just south of Fort Lauderdale, Dania Beach provides an attractive option for vacation rental investors who want a more affordable entry point in the South Florida market. With its close proximity to the famous Hollywood Beach and Fort Lauderdale, it offers easy access to major tourist hubs while keeping property prices relatively lower.

As of August 2024, the median sale price in Dania Beach was $397,333, with a median price per square foot of $304. This marks a 7.7% increase from the previous year (“Real Estate Trends in Dania Beach, FL” Rocket Homes).

Despite its growing appeal, Dania Beach remains a buyer’s market, offering opportunities for investors to secure properties before the area becomes more competitive.

Deerfield Beach, FL

Just a short drive from both Fort Lauderdale and Boca Raton, Deerfield Beach offers a more affordable yet appealing option for vacation rental investors. Known for its pristine beaches and laid-back atmosphere, Deerfield Beach attracts both tourists and long-term renters, making it a viable market for investment.

As of July 2024, the real estate market in Deerfield Beach showed:

• Median Sale Price: $346,500 (up 3.4% year-over-year)
• Median Price per Sq Ft: $259
• Median Days on Market: 77 days (Redfin).

Despite being less competitive than Fort Lauderdale, Deerfield Beach offers vacation rental investors lower property costs while still benefiting from steady tourist demand.

Dunedin, FL

Located on Florida's Gulf Coast, Dunedin offers a charming, small-town atmosphere while still being close to major tourist destinations like Clearwater and Tampa. With its vibrant downtown, access to beautiful beaches, and a popular trail system, Dunedin presents an attractive option for vacation rental investors looking for a less competitive market.

As of July 2024, Dunedin's real estate market showed:

• Median Sale Price: $372,500 (down 17.6% year-over-year)
• Median Price per Sq Ft: $301
• Median Days on Market: 48 days (Redfin).

Dunedin's lower prices and relaxed pace make it a solid option for investors seeking to tap into the Gulf Coast's strong vacation rental market at a more accessible price point.

We offer full-service Airbnb and vacation rental management in Dunedin, ensuring your property reaches its full potential. Learn more at Dunedin Vacation Rental Management.

Think Beyond the Immediate Cities: The Power of Florida’s Emerging Areas

We could go on about the appeal of Florida’s top vacation rental spots, but what we’re advocating for here is to think beyond the immediate, well-known cities. Areas just outside these hotspots are not only more affordable but are also experiencing significant growth. By expanding your focus to these emerging locations, you can take advantage of lower property prices while still benefiting from the tourism and demand driven by nearby popular destinations. These regions are evolving rapidly, offering lucrative opportunities for vacation rental investments as they grow alongside their more famous neighbors. That's why we've included some of these locations as real zingers in our "Best Places to Buy a Vacation Home 2024"!

Need Some Help? Work with Home Team Vacation Rentals!

At Home Team Vacation Rentals, we provide full-service Airbnb and vacation rental management throughout Florida to help you maximize your cash flow and ROI. Whether you're just exploring where to invest or already own a vacation home, we’re ready to partner with you at any stage of your journey.

Our approach is designed to make your life easier—we take care of everything from strategic pricing and expert marketing to guest relations and property maintenance. By utilizing the latest technology and market insights, we ensure your property gets the exposure it deserves, all while maintaining a seamless experience for your guests.

Let us help you elevate your vacation rental’s performance, so you can enjoy the benefits without the hassle. If you're ready to take your investment to the next level, we’re here to make it happen!

Categories: Best Places to Invest, Florida