Best Places to Buy a Beach Property Investment for Vacation Rentals in 2025

For many real estate investors and short-term rental hosts, owning a beach house in a popular vacation destination is the ultimate investment dream. The steady rental income, stunning ocean views and the long-term appreciation make beachfront property an alluring choice.

In 2025, the vacation rental market is settling into its first post-pandemic "normal" season, creating a critical moment to make informed decisions about your next investment property. These U.S. beach towns offer the perfect mix of location, affordability, natural beauty and consistent demand for vacation property rentals.

Why Beach Property Is a Good Investment in 2025

Oceanfront properties continue to be among the most lucrative forms of vacation rental property due to:

• High demand from tourists, especially during the summer months

• Rental income that spikes during holidays and peak seasons

• Strong property appreciation in coastal towns

• Attractive lifestyle and dual-use potential as a second home

Coastal living isn't just about the scenery — it's about investing in a property that offers both personal enjoyment and long-term income. With the right beach vacation rental property, you can blend leisure with smart real estate investment strategy.

Top 10 Beach Short-Term Rental Markets in 2025

Here are the top U.S. destinations for buying a coastal property that will yield returns in the vacation rental business.

1. Anna Maria Island, Florida

With powdery white sands, crystal-clear waters and building codes that preserve its low-rise, laid-back character, t s F b t delivers a rare blend of beauty and upscale seclusion.

Offering a more relaxed, residential vibe than bustling hubs like Miami or Tampa, Anna Maria Island appeals to travelers seeking privacy, tranquility and high-end accommodations. A favorite spot of the higher end traveler who often books longer stays and pays top-tier rates, this vacation rental market skews toward premium homes and villas that attract affluent guests.

With limited inventory, strong ADRs and consistent demand, the island is a favorite among luxury-focused investors.

According to recent data for Anna Maria Island:

• Median home sale price on Zillow: $438,167

• Occupancy: 75%

• ADR: $744.8

• Annual revenue: $124,800

• RevPAR: $569.9

2. Destin, Florida

Nestled along Florida’s famed Emerald Coast, Destin stands out as a consistently high-performing beach vacation zone. Known for its sugar-white sands and emerald-green waters, Destin continues to attract snowbirds and group travelers in search of both relaxation and recreation.

While new short-term rental permit caps have been implemented east of Highway 98, grandfathered properties remain exempt — preserving their long-term investment property value and scarcity. This regulatory environment has created a stable, competitive market for existing owners.

The area's scenic beauty, deep-sea fishing, golf courses and full-service resorts create broad appeal, keeping occupancy strong even outside of peak summer months. For investors, Destin offers an appealing mix of solid returns, tourism infrastructure and long-term demand in a great location that remains one of Florida’s most reliable coastal bets.

According to recent data for Destin:

• Median home sale price on Zillow: $580,667

• ADR: $378

• Annual revenue: $61,878

• Gross yield: 10.62%

3. Gulf Shores, Alabama

Gulf Shores continues to shine as a top location for beach house investments. The vibrant coastal town draws a steady influx of tourists year-round thanks to its warm climate, family-friendly beaches and reputation as a top-tier vacation destination in the Gulf region. The revamped Gulf State Park conference center also helps boost off-season bookings.

This Alabama beach town delivers a perfect blend of affordability, steady rental income and clear zoning regulations. For investors seeking vacation rental properties with high yields and lower risk, Gulf Shores is a prime location.

According to recent data for Gulf Shores,

• Median home price on Zillow: $430,833

• Occupancy: 58%

• ADR: $392

• Annual revenue: $49,000

• RevPAR: $223.5

4. South Padre Island, Texas

South Padre Island is emerging as a premier destination for savvy investors seeking a vacation rental property--with high occupancy and a lower buy-in. The island benefits from a well-established tourism infrastructure, natural beauty and a clear regulatory environment. It offers scale and liquidity for buyers, and consistent demand from families, college students and international tourists alike.

Whether you're investing in a beach house for personal use or launching a new vacation rental business, South Padre Island offers a unique blend of affordability, high performance and year-round appeal that makes it a standout in 2025.

According to recent data for South Padre Island:

• Median home list price on Zillow: $508,81

• Occupancy: Seasonal 73%+; peak summer exceeds 90%

• ADR: $235–$290

• YOY revenue up 12% since 2024

5. Port Aransas, Texas

Port Aransas has bounced back to pre-Hurricane Harvey levels, with renovated resorts and restored amenities attracting strong tourism once again. With the support of Texas Senate Bill 2036 preventing local bans on short-term rentals, it’s a real estate investment haven.

Rhe town's shoulder seasons stay strong thanks to year-round activities like fishing tournaments and annual sand festivals, supporting rental income beyond just the summer. For investors, Port Aransas offers the perfect mix of regulatory security, cultural appeal and steady demand, cementing its status as a good investment in the vacation rental market.

According to recent data for Port Aransas:

• Median home list price on Zillow: $689,667

• Occupancy: 48%

• ADR: $248

• Annual revenue: $44,000

6. Virginia Beach, Virginia

Virginia Beach draws a loyal visitor base every summer, with travelers returning year after year for its wide beaches and relaxed vibe. Thanks to its large naval presence, strong tourism infrastructure and proximity to Washington, D.C. and Raleigh, the area supports consistent rental income, well beyond peak season.

The Sandbridge neighborhood, in particular, offers a quieter, more residential alternative to the busy resort strip — ideal for travelers seeking space, ocean views and a slower pace. With clear regulations and permit caps, Virginia Beach provides investors with a transparent operating environment.

Blending scenic ocean shores with a strong local economy and year-round demand, this coastal town is a compelling option for investors looking to diversify their vacation rental property portfolio with lower volatility and long-term upside.

According to recent data for Virginia Beach:

• Median home sale price on Zillow: $373,833

• Occupancy: 57%

• ADR: $353.7

• Annual revenue: $30,800

• RevPAR: $200.2

7. Ocean City, Maryland

With more relaxed short-term rental regulations and a thriving summer festival scene, Ocean City remains a popular vacation destination on the East Coast. It's a favorite among families and weekenders, supporting year-round vacation rental opportunities.

Ocean City’s small town charm, walkable vibrant downtown and appeal to beach lovers make it a favorite for both vacationers and property investors alike.

According to recent data for Ocean City:

• Median home sale price on Zillow: $455,800

• Occupancy: 56%

• ADR: 336.8

• Annual revenue: $27,600

• RevPAR: $189.5

8. Myrtle Beach, South Carolina

Myrtle Beach is the most affordable beach house market on this list, and its vibrant tourism industry makes it a consistent performer. Direct flights have expanded in 2025, and proposed short-term rental caps were shelved after successful lobbying, making it one of the most accessible vacation markets.

This popular beach town offers a wide range of beach condos and houses, drawing both families and solo travelers. With strong infrastructure, nightlife and events, it’s an ideal destination for first-time investors seeking rental income and consistent demand.

According to recent data for Myrtle Beach:

• Median home sale price on Zillow: $268,000

• Occupancy: 56%

• ADR: $247.9

• Annual revenue: $26,400

• RevPAR: $136.9

9. Wildwood, New Jersey

Known for its boardwalks and old-school Americana charm, this beach town is ideal for investors looking to diversify beyond southern markets. The area blends nostalgia with high foot traffic, drawing couples, large groups and seasonal travelers in large numbers during the summer months. New Jersey’s occupancy tax and clear licensing structures also make it legally straightforward.

According to recent data for Wildwood:

• Median home sale price on Zillow: $469,300

• Occupancy: 54%

• ADR: $276

• Average monthly revenue: $3,542

10. Outer Banks, North Carolina

Known for its wild dunes, windswept beaches and rich maritime history, the Outer Banks remains a perennial favorite among both travelers and investors. This string of barrier islands off the coast of North Carolina offers a unique blend of natural beauty and small-town character, with iconic landmarks like the Cape Hatteras Lighthouse and the Wright Brothers National Memorial adding cultural value.

The area features a wide range of beach houses, from classic cottages to upscale oceanfront estates — many with direct beach access and panoramic water views. While more seasonal than other markets, the strong nightly rates and long-standing tourism appeal help balance returns.

For investors seeking to own a slice of one of America’s most iconic beach regions, the Outer Banks delivers both lifestyle and long-term growth potential, making it a compelling vacation property play in 2025.

According to recent data for Outer Banks:

• Median home list price on Zillow: $694,917

• Occupancy: 60%

• RevPAN: $108

Macro Trends Shaping the Vacation Rental Investment Landscape

Drive-to domination

As inflationary pressures continue to impact Americans, they are choosing to holiday closer to home. This means beach houses near major metros have a competitive edge. Think Gulf Shores (drivable from Atlanta), Virginia Beach (from D.C.) and Wildwood (from New York City).

Insurance and climate pressures

As Florida homeowners continue to face significantly high insurance rates, some investors are shifting focus westward. Markets like South Padre and Gulf Shores offer similar views at lower risk and lower premiums. Always factor in climate-adjusted operating expenses when modeling returns.

Regulatory clarity wins

The so-called "Goldilocks Zone" of STR regulation — neither overly restrictive nor unregulated — is ideal. Cities like Myrtle Beach and Ocean City have licensing systems that attract professional hosts, elevate ADRs and limit market chaos.

Actionable Tips for Short-Term Rental Property Investors

• Verify insurance (wind, flood, hurricane) before purchasing a beach house.

• Use a dynamic pricing tool like that offered by Hostaway to capture 40–60% revenue spikes during holidays.

• Build a local vendor bench for cleaners and maintenance — the #1 limiter of occupancy in peak-season short-term rentals.

The best beach property for 2025 isn’t about hype—it’s about data. Look for consistent performance, predictable regulations, and resilience in climate and insurance factors. Whether you’re new to the vacation rental business or expanding your investment property portfolio, this year offers incredible opportunities to invest.

Combine the right market with the right strategy and tools and your vacation rental property could deliver both joy and cash flow.

How Hostaway Can Help

Hostaway, the leading all-in-one vacation rental software, is the ideal partner for your 2025 beach property investment journey. Our comprehensive suite of tools is designed to streamline the entire process, starting from efficient property management, channel distribution and dynamic pricing to automated bookings and insightful data analytics.

Looking to get started? Book a demo today and let our product specialists walk you through how Hostaway can maximize your ROI on any vacation rental property.