The beach on Okaloosa Island is great and there are tons of tourists, which ensures good occupancy rates.

I could have 100% occupancy charging only $50 a night but the margin is so low on my labor, not to mention the wear and tear (and clientele attracted to that price point) on my property.

If the grass is greener they will jump it sounds and then you will have to deal with a vacancy and you are most likely going to have to lower the price anyway to attract a renter and take a gamble on someone new. 

Nearby attractions are helpful for non-show days.

When you sell in the future you might be able to get more by selling the lots separately, or it could be more attractive for someone to buy both lots and sell off the lot themselves.

According to a report by the TN Dept. of Tourist Development, there are 43,000 daily visitors to Chattanooga. 

I can see where you wouldn't want to have all the linens and towels out as they will get worn, but the expense isn't that much and it sure makes it attractive to workers on the move.

With rising inflation travelers are still traveling, but tightening up their budgets a bit - a well-done apartment at 50% the nightly rate of a cabin/home rental is attractive to many.  

Do you have any recommendations on amenities that will attract responsible low impact guests over the riffraff? 

Get a feel for the type of people that live theirOne of the reason condos/townhomes look so attractive is their low price, but you really should look at what the $300-$400/mo is going to do for you.