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10 Best Places To Buy a Beach House To Rent Out for Passive Income

July 29, 2024

2 min Read

Written by Gabrielle Olya

Edited by Levi Leidy

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Buying a property to use as a short-term rental via sites like Airbnb and VRBO can be a very wise investment — if you choose the right location. Properties near the beach can be particularly lucrative, as many people desire proximity to the water for their seasonal getaways.

Realtor.com has identified the best places to buy a beach home as a rental property by comparing a home’s average annual returns to what you’d have to pay for it — also known as the yield. Based on this analysis, these are the best places to buy a beach property if you’re looking for short-term rental income.

1. Pawleys Island, South Carolina

Median home price: $497,237
Annual revenue potential: $41,995
Expected yield: 19.8%

2. Michigan East Coast, Michigan

Median home price: $208,513
Annual revenue potential: $20,265
Expected yield: 16.7%

3. Cape San Blas, Florida

Median home price: $798,807
Annual revenue potential: $64,264
Expected yield: 12.8%

4. Gulfport and Biloxi, Mississippi

Median home price: $303,930
Annual revenue potential: $23,646
Expected yield: 12.4%

5. Wilmington, Delaware

Median home price: $614,856
Annual revenue potential: $35,361
Expected yield: 11.2%

6. Lincoln City/Newport, Oregon

Median home price: $597,379
Annual revenue potential: $43,241
Expected yield: 11.10%

7. Grays Harbor, Washington

Median home price: $421,627
Annual revenue potential: $29,331
Expected yield: 11%

8. Outer Banks, North Carolina

Median home price: $705,939
Annual revenue potential: $34,237
Expected yield: 10.5%

9. Corpus Christi, Texas

Median home price: $541,169
Annual revenue potential: $27,154
Expected yield: 10.4%

10. Gulf Shores, Alabama

Median home price: $615,535
Annual revenue potential: $112,281
Expected yield: 10.3%

Data is sourced from Realtor.com and is accurate as of June 23, 2024.

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