6 Best AirBnB Florida Markets for Investors 2022
Investors looking to maximize revenue, vacation on their own, or invest on a budget will find Florida accommodates every vacation rental strategy.
Florida is one of the most tried and true AirBnB states because of its year round sunshine and nonstop travelers. Its popular and varied tourist attractions draw in all types of visitors and tourists. And consistent short-term stays at your AirBnb means consistent income.
Here, we’ll break down which real estate markets in Florida you should have your eye on and why.
Top Florida Markets for Vacation Rental Investing
- Miami Beach: Best Overall
- Kissimmee: Personal Use
- Key West: High-End Properties
- Daytona Beach: Budget Properties
- Clearwater Beach: Highest Cap Rates
- St. Petersburg: Fastest Appreciation
The best AirBnB markets in Florida are:
Miami Beach: Best Overall
- Short-term rental income (monthly): $4,093
- Average daily rates: $254
- Occupancy rate: 73%
- Median home price: $498,000
Miami Beach is an appealing market to AirBnb investors because it attracts people and tourists for a myriad of reasons. Potential guests can range from young people staying awhile for short-term work, to tourists vacationing from within the US and abroad.
Short-term renters are attracted to Miami Beach Airbnbs because Miami Beach boasts breathtaking beaches, all sorts of property types and varied tourist attractions. Beaches aside, visitors can enjoy special parts about the city like its Art Deco Historic District, Bayside Marketplace, Miami Seaquarium, and more. Renters feel comfortable knowing they can find housing accommodations and fun activities without much hassle.
AirBnb investors setting their sights on the Miami Beach market need to keep their finger on the pulse of the current market. Miami Beach’s median listing home price is $498.000 and investors can find cap rates of 5% or higher.
Idyllic year-round weather and picture-perfect beaches, mixed with the medley of activities to choose from, contribute to Miami Beach’s thriving Airbnb market. A strong renter’s market leads to consistent occupancy which leads to consistent revenue.
Kissimmee: Personal Use
- Short-term rental income (monthly): $4,243
- Average daily rates: $273
- Occupancy rate: 73%
- Median home price: $362,000
Kissimmee, FL is located about 20 miles outside of Orlando and is the optimal location for vacationing families to rent an Airbnb. From an investor’s perspective, owning a property in this family-friendly area will put you right in the middle of one of Florida’s most visited areas.
While visitors typically call Kissimmee their temporary home for the duration of their stay, it’s Orlando’s famous attractions that draws them in. Walt Disney World, SeaWorld, the Kennedy Space Center, and Universal Studios are just a few widely known family-oriented theme parks and adventures that visitors come to Florida to experience. Kissimmee is attractive for travelers because of its proximity to Orlando and its affordability – they’re looking for short-term, inexpensive housing while enjoying a family vacation.
Investors can find cap rates over 5% on a median home price of $362,000.
Kissimmee AirBnb is a wise investment since the area consistently attracts vacationing families. Family-sized groups need more rooms and beds than smaller groups and more rooms and beds means more revenue.
Key West: High-End Properties
- Short-term rental income (monthly): $7,850
- Average daily rates: $472
- Occupancy rate: 78%
- Median home price: $1,100,000
Key West, FL is the southernmost point of the contiguous US and is known for having its own laid-back, eccentric appeal and high-end properties. Median home listing price in Key West is $1.1 million and cap rates above 6% are not uncommon.
The Key West housing market and estimated monthly income of almost $8,000 is higher than other markets on this list, but the people who visit here know what to expect. Investors are usually interested in adding short-term, AirBnb rentals from this market to their portfolios because it attracts renters who don't mind spending money for more costly lodging to experience the town.
Visitors find Key West appealing because it’s like a hideaway from more bustling crowds in other parts of Florida and has one-of-a-kind tourist attractions and activities. Travelers can opt to take part in water-sports and water-based activities like sailing, snorkeling or glass-bottom boat trips. They also can visit widely known, unique tourist hotspots like Ernest Hemingway’s home-turned-museum to learn more about the author’s life, Duval St. to party and shop, or Mallory Square for the daily Sunset Celebration.
Short-term renters and travelers who visit Key West are attracted to the city because of things like its nightlife, watersports, celebration-worthy sunsets, and quirky flair – and they’re more than willing to pay the price to enjoy it!
Daytona Beach: Budget Properties
- Short-term rental income (monthly): $3,025
- Average daily rates: $201
- Occupancy rate: 77%
- Median home price: $274,000
Daytona Beach is famous for a few things, but one little known fact about the town is how inexpensive its real estate is. Potential investors flock to this area because of its affordable properties and low monetary investment to get their foot in the door. Properties in Daytona Beach have a median home list price of $274,000 can sometimes have cap rates of 6.5% The not-so-costly housing isn’t only attractive to AirBnb investors, it’s a large reason why tourists plan their stays here.
Travelers with their sights set on Daytona Beach vacationing can get the best of both worlds – a place to stay that won’t break their pockets and attractive tourist activities. They’re able to watch car races at the renowned Daytona International Speedway during the day and drive right on its 23 miles of white sand beaches to view the sunset at night without the stress of paying too much for short-term housing.
Clearwater Beach: Highest Cap Rates
- Short-term rental income (monthly): $4,175
- Average daily rates: $279
- Occupancy rate: 77%
- Median home price: $367,000
Clearwater Beach says it all in its name; it’s famous for its clear water beaches. Short-term investors look to this market for its consistent foot traffic and its proximity to the Gulf Coast and two airports. They know that the ease of accessibility for travelers means more consistent occupancy which means consistent revenue. Median home listing price in the area is $367,000 and the homes can have a cap rate slightly above 6%.
Families and groups of people visit Clearwater Beach year round for its small-town atmosphere, family-friend activities, and convenience. They take pleasure in watching the sun set over clear waters at Pier 60, getting around without the need for a car, and the trip-planning hack of having both St. Petersburg and Tampa airports nearby. Water activities like visiting the Clearwater Marine Aquarium to see rescued dolphins and sea turtles, and sailing from the Clearwater Marina are the kinds of adventures that keep Clearwater Beach with nonstop travelers looking for a place to stay.
St. Petersburg: Fastest Appreciation
- Short-term rental income (monthly): $3,197
- Average daily rates: $207
- Occupancy rate: 88%
- Median home price: $403,000
St. Petersburg’s appreciation rate is what piques the interest of investors. As of 2021, this town appreciated 185.9% over the ten years prior, putting it in the top 10% nationally for real estate appreciation. The current median home listing price is $403,000 and investors can expect cap rates above 5%.
Travelers, on the other hand, flock to this area to experience record-breaking weather. St. Petersburg holds the record for most consecutive days of sunshine, 768 days; the city is appropriately nicknamed Sunshine City. Visitors can also enjoy Fort de Soto Park for a waterfront escape or the St. Pete Pier for some sightseeing. This town is an even-paced, sunshine ridden destination tourists love to visit.
The Florida AirBnb market is persistent and consistent in its tourism and, by proxy, its short-term rental market. These markets are appealing for different reasons, but for an overall great investment, look into Miami Beach. Be sure to keep an eye on how the local housing market is performing and why potential short-term renters would want to visit.