Destin Florida… what vacancy rates are assumed?

[Justin Manges]

Can anyone give me an idea what kind of vacancy rate I should plan for in a STR in Destin, FL?

[Matt "Roar" Gardner]

@Justin Manges - As a realtor and investor in the Destin market, I commonly tell my clients, "It depends."

The average band for occupancy is between 40-60%, with some properties able to achieve 80+%! This is average occupancy through the year, but realize we are a very seasonal market here, which dictates both the occupancy and rental rates.

A 1-2 bedroom condo directly on the beach will most likely see the highest occupancy, due to the fact that they are a common target for snow birds to help with the off season dip. However, a 1-2 bedroom condo won't be able to charge nearly as much of a premium rate in the high season because they are a dime a dozen.

If you're able to get into the larger homes (5+ bedrooms), you may see lower occupancy, but you'll be able to charge much more of a premium on your rates in the high season merely due to less competition.

I hope that helps?!