Best Beach Vacation Rental Market in 2023?

[Matthew W.]

My wife and I are looking to purchase a beach vacation property where we can take the kids once or twice per year and then rent most of the year. We are not tied to a particular coastal market, since we understand that certain areas have higher taxes/fees/regulations/hostility to STR/flood insurance/etc.

I put together a 'short list', but please feel free to propose markets not listed! We really do want the most bang for the buck, and we're happy to consider sleepy areas or 'up-and-coming' destinations. It's probably relevant to disclose we have only owned 2 inland properties and are NOT experts at this, but appreciate your guidance and knowledge sharing. :)

Potential Markets:

Gulf Shores, AL

Corolla, NC

Rockaway Beach, OR

Myrtle Beach, SC

Charleston, SC

Port Aransas, TX

Ocean Shores, WA

** I assume the California coastline is not cost-effective, I never see it on a list of recommended vacation rental.

** We love and have connections to Hilton Head Island, SC but know it is hostile to STRs.

** Slight bias against Florida due to anticipated stress and anxiety of watching a hurricane hit your vacation home annually, ha.

[Brian Barch]

Emerald coast is great as well.

But if I can make a suggestion. I would only buy a personal vacation/STR property if it was within driving distance such that you could use it for the weekend many times a year.
if it involved flying, I would simply buy an STR for investment purposes and then vacation wherever we wanted. Here’s why:

if you can only go once/twice a year, I think you are going to spend 50% of that time working on the place. Cleaning, restocking, rebuying broken furniture, hanging up new art, meeting with a general contractor, etc. your kids will be expecting the beach, and yet you will be hanging up wall art. 

[Andrew Steffens]

STR PM in FL here - I think media sensationalism has contributed to your bias about fear of hurricanes. I am originally from NJ and Sandy did more damage there than I have ever seen in FL. That is what insurance is for :)

Insurance is a royal pain in the *** right now, but is still doable with the returns on the right property.  What is your pricepoint on a purchase?

[Brandon Greenplate]

STR rental specialist & broker here in Hilton Head. My 6 bedroom (1.2m pp) will do 250-300k in 2023. Happy to get anyone up to speed that is interested in looking closer at an STR in my market.

[Ty Keller]

I'm actively lending in Navarre Beach, Pensacola, Santa Rosa County, 30A, Florida.  Navarre Beach is drawing a lot of investor interest as places like Destin have grown so much already. 

[Sarah Kozlik]

The Isle of Palms near Charleston does very well.  A 1.5-2.5 M home will do ~ 250k+ depending if the house has a pool etc.  Feel free to reach out if you would like to do a call to chat more about it.

Thanks!

[Nancy Bachety]

If you only want to visit once or twice a year, I agree with @Brian Barch 100%. We have several homes in three markets that we use ourselves year round. Rental income finances everything in all of them including all the custom upgrades and upkeep done mostly by hired hands. That said, tomorrow morning we’re flying to Hawaii for a two week “true” vacation. Staying in Hilton’s. 
Smokey Mountains for the win.

[John Underwood]

I'd would personally look at Myrtle Beach. Lots to do there.

[Katie Hole]

I am an agent in Myrtle Beach SC and would be happy to help answer any questions for here and get you set up with some properties to look over.

[Michael Weigum]

Hi @Matthew W.

Myrtle Beach has been a great investment for me. I'm happy to answer any questions you may have.

[Brooklyn McCarty]

We have a property in Gulf Shores & we love it there. 

[January Johnson]

Quote from @Ty Keller:

I'm actively lending in Navarre Beach, Pensacola, Santa Rosa County, 30A, Florida.  Navarre Beach is drawing a lot of investor interest as places like Destin have grown so much already. 

Totally different vibe in Navarre Beach vs PCB/Destin/everywhere else.  It might even be closer to the Forgotten Coast (Port St Joe, Apalachicola, St. George Island, and Cape San Blas.

[Patricia Andriolo-Bull]

I was going to ask "Why not FL?" but you answered that.  I know another poster said there is a lot of media sensationalism and I only sort of agree.  I have a property in Fairfield CT (hit by Irene in 2011 then Sandy in 2012) which were pretty devastating and am now in Marco Island (hit by Irma right before I purchased) and now hit by Ian (though not as mad) and a condo in the Dominican Republic (hit by countless storms).  It is scary and frustrating and can be expensive.  I will say, all of my insurance rates have gone up significantly and I'm terrified for next year.  That said, I still think Florida is a great place to invest.  My condo in Marco Island is doing very well but prices have gone up significantly the last two years so I'm not sure how people make the economics work purchasing now.  I've considered buying another if the economics work, so the hurricanes haven't quite scared me off.  I figure, there is something everywhere (tornados, wild fires, regulations).  Just be sure to account for costs associated with different potential expenses and do your due diligence on where you buy.

[Michael Baum]

Hey @Matthew W., Ocean Shores has a pretty fluid STR regulation situation. You will need to call the city/county (Grays Harbor CTY) to see where they are at before really digging in.

[Bob Stevens]

Myrtle beach is in high demand, Matter of fact I am currently in an ocean front unit 10 min south of Myrtle Beach, Garden City, 

[Jon Puente]

Quote from @Brandon Greenplate:

STR rental specialist & broker here in Hilton Head. My 6 bedroom (1.2m pp) will do 250-300k in 2023. Happy to get anyone up to speed that is interested in looking closer at an STR in my market.

Hey Brandon, we might have to chat about this! Very interested in the STR game.

[Myrtle Mike Thompson]

@Matthew W. I'll echo the sentiment shared by a few of my colleagues above. Myrtle Beach is a great place to invest. Decades of regional tourism and STR-friendly regulations. Moderate taxes and insurance rates. Very few hurricane impacts. And I can find my clients a good return at any price point... you don't have to spend a million bucks. That being said, you might want something closer to home (assuming you're still in Colorado). The journey from Colorado to Myrtle Beach with kids in tow warrants you staying for a week at a time. Coming April - October would eat into your profit. We have a phenomenal airport and they continue adding routes as the population here is growing, but there are still no direct flights from Denver to Myrtle Beach in the offseason... Ughh. So you've got a full day of travel and then the weather November - March is pretty unreliable. I walked the beach in a T-shirt on New Years Day and this week it's mid-50s and raining. I know what traveling with kids is like, so just some food for thought. I wonder if the Texas beach towns would be a good fit.

[Jeremy Reynolds]

I'm obviously partial because I live and invest in MB. I just closed a deal with investors from Vail, CO last month. VERY STR friendly with varying price points. I'd love to help you when you choose MB. Check my profile for references.

Best of luck!

[Clark Smith]

My wife and I owned two STRs in Port Aransas. We were successful with ours, and the town is fairly STR friendly. Also a plus for Texas is no income tax!

I will warn you though, we also watch hurricanes here on the Texas coast. Port Aransas got hit hard in 2017 by Hurricane Harvey. I definitely recommend a good insurance policy for any coastal property you buy.

Good luck on the search!

[Wilson Hunter]

It sounds like you want to buy a vacation home more than a vacation rental investment. I think you should either go all-in on crunching those investment numbers to find a market that works best or figure out where you want to vacation and then be happy if it mostly pays for itself in rent. Going 50/50 on it in the analysis is hard to do.

[Anne Kimble]

Gulf shores. It’s very much family oriented. Easy flight into Pensacola, but will have even better access when commercial commit to routes into GS.

[Timothy Reed]

We have two in Myrtle Beach and love it there. We have condos in a resort with great amenities and no risk of flooding due to hurricanes. At least to our units. The resort has their own insurance four the grounds etc. 

[Brandon Greenplate]

Quote from @Jon Puente:

Quote from @Brandon Greenplate:

STR rental specialist & broker here in Hilton Head. My 6 bedroom (1.2m pp) will do 250-300k in 2023. Happy to get anyone up to speed that is interested in looking closer at an STR in my market.

Hey Brandon, we might have to chat about this! Very interested in the STR game.

 Just shot you a PM

[Jay Thomas]

Myrtle Beach is definitely worth considering if you're looking for a great place to live. Real Estate prices are competitive and the area offers plenty of activities, from outdoor recreation to shopping. Whether you're interested in a beachfront condo or a cozy home away from the hustle and bustle, Myrtle Beach has something for everyone. Plus, with its close proximity to other major cities like Charleston and Wilmington, there's always something new to explore! All things considered, it's no wonder so many people choose Myrtle Beach for their new home.

[Melissa Haworth]

I would highly recommend you taking a look at our market on the Emerald Coast of Florida.  (Panama City Beach to Ft Walton Beach).  There is a high demand for short term rentals here.  Our area is best known for its beautiful beaches and year-round warm weather, making it a popular tourist destination. I would be more then happy to jump on a call with you and share my personal numbers on my properties and answer any other questions.

[Jessica Parker]

Hi @Matthew W. I live in Navarre, FL (Emerald Coast, Panhandle of Florida) It's a great up and coming vacation destination spot. I moved here a year ago and absolutely love it here. I really don't think you can beat the beaches here, I'm happy to share some legit pictures of the beach I have taken as I go quite often, the clarity of the water is unbelievable at times, like a dream. Get in while you can and it's still fairly affordable. I'm sure the prices are only going to go up. Right now there are no STR restrictions unless you are in an HOA. I had a STR all of last year, 5 minutes to the beach, (it did great!!) and now I'm building a 2/1 guest house in my backyard for the upcoming season! Feel free to DM me if you would like to chat, also happy to talk over a call.