The vacation rental market has changed significantly over the past few years, and while we’ve all seen the headlines surrounding the increase in vacation rental inventory, it doesn’t mean that purchasing a vacation home isn’t a good investment—if you know where to buy.
Our 2024 Top 25 Best Places to Buy a Vacation Home report can serve as a helpful resource whether buyers are seeking their first vacation rental or the third in their portfolio.
With all this in mind, savvy vacation rental buyers should focus on homes in desirable destinations, with key amenities like a hot tub, pool, or water view—and those with lower ownership costs to achieve the highest cap rate possible.
As always, it is advised to work with an experienced real estate professional knowledgeable about the local vacation rental market and regulations. A professional property manager like Vacasa can also help prior to purchase with market insights and home revenue projections.
Made up of four beach towns on the Atlantic Coast—Cherry Grove, Ocean Drive, Crescent Beach, and Windy Hill–North Myrtle Beach is a laid-back haven of piers, golf courses, and sandy bays.
Location
At the northern end of the famed Grand Strand Myrtle Beach.
Top homes and amenities
Atlantic-facing condos are extremely popular for their seamless experience, seaside pools, hot tubs, private beach access, and private balconies overlooking the beach.
Guest profile
About three-fourths of overnight visitors to Myrtle Beach come primarily for beach activities (78%), with dining a close second (73%).1
Gross cap rate |
8.10% |
Average revenue |
$27,603 |
Median home price |
$360,747 |
With beautiful beaches, historic attractions, and quaint seaside charm, Dauphin Island has all of the amenities of a popular beach destination with a small-town feel.
Location
Dauphin Island is located on a barrier island of the same name, 45 minutes directly south of Mobile, Alabama.
Top homes and amenities
Guests tend to book large coastal homes with open floor plans, multiple wrap-around decks, and multiple bedrooms to fit large families.
Guest profile
Dauphin Island draws both couples (24%) and big groups of 7 or more people (27%).*
Gross cap rate |
8.00% |
Average revenue |
$53,293 |
Median home price |
$645,330 |
A palm-studded paradise on the Gulf of Mexico, spanning three miles of white sugar sand beaches.
Location
Okaloosa Island sits on the greater Santa Rosa Island, tucked between Destin and Fort Walton Beach.
Top homes and amenities
Most vacation rental options are in stately condo complexes spread across the island that boast large swimming pools and easy beach access—a Florida must.
Guest profile
Every year, close to 5 million visitors2 descend on this area of the Emerald Coast, including Okaloosa Island, Destin, and South Fort Walton. In the past year, 60% of bookings were for 4+ nights.
Gross cap rate |
7.70% |
Average revenue |
$50,292 |
Median home price |
$654,494 |
With 50 miles of scenic coastline and seven small villages, Hatteras is a tranquil, yet beautiful escape with some of the best views on the East Coast.
Location
Hatteras Island is one of many barrier islands in Outer Banks, North Carolina, located off the state’s east coast.
Top homes and amenities
Hotels are sparse on Hatteras Island, so larger groups tend to book spacious vacation rentals, especially those offering private pools, hot tubs, and quick access to the beach.
Guest profile
Guests tend to linger longer on Hatteras Island. Almost 60% of bookings are for 7+ nights.*
Gross cap rate |
7.30% |
Average revenue |
$58,862 |
Median home price |
$805,585 |
Surrounded by majestic glacial peaks, Girdwood enjoys its status as Alaska’s only true resort town (albeit laidback), offering the largest ski area in the state.
Location
Girdwood is located 45 minutes south of Anchorage.
Top homes and amenities
Girdwood’s most attractive hallmark: spectacular ice-capped mountains that encircle the town and nearby posh Alyeska Resort. Guests usually book slopeside condos and homes that offer quick access to the lifts and large windows to frame the alpine views.
Guest profile
Many Girdwood visitors opt for shorter trips or long weekends, with 61% of bookings for 2-3 nights.*
Gross cap rate |
7.20% |
Average revenue |
$34,797 |
Median home price |
$485,429 |
A serene Emerald Coast hideaway with miles of unspoiled white shores and translucent emerald waters.
Location
Nestled between the popular Emerald Coast towns of Destin and Pensacola.
Top homes and amenities
Naturally, the most sought-after spots are houses and condos that sit right on the Gulf (though our research shows most travelers search for the term ‘oceanfront’ versus ‘Gulf-front’). Something else that guests want: A pool to go along with those Gulf views.
Guest profile
Navarre visitors tend to choose condos over houses or townhomes and mostly travel in small groups of 2-4 people.
Gross cap rate |
7.10% |
Average revenue |
$43,439 |
Median home price |
$618,863 |
Gatlinburg shines as the wildly popular gateway to the Great Smoky Mountains National Park, packed with rustic mountainside activities, Appalachian charm, and family-friendly attractions.
Location
In eastern Tennessee, an hour's drive from Knoxville.
Top homes and amenities
Gatlinburg is a favorite for families, who tend to look for large rustic-style cabins with a cozy fireplace, hot tub, and relaxing porch to watch that famous “smoke” roll in.
Guest profile
Many Gatlinburg visitors opt for shorter trips or long weekends, with 63% of bookings for 2-3 nights.*
Gross cap rate |
6.90% |
Average revenue |
$42,708 |
Median home price |
$633,162 |
North Topsail Beach lures guests with its quiet expansive beaches, peaceful maritime forests, and marvelous sunsets over the Atlantic Ocean.
Location
This town is located in the northernmost 11 miles of Topsail Island, about 30 miles from Wilmington.
Top homes and amenities
The tranquil and uncrowded shorefront is dotted with beach houses large enough to accommodate large groups, with beach access and Atlantic views topping the wish-list of amenities.
Guest profile
Longer stays, bigger groups. About 33% of bookings came from groups of 7 or more guests. While 47% of bookings were for weeklong stays or longer.*
Gross cap rate |
6.70% |
Average revenue |
$54,864 |
Median home price |
$831,397 |
Corolla is known for its relaxed luxury, where travelers are just as happy kicking back in sandy flip-flops as they are indulging in upscale eateries and an afternoon at the spa.
Location
In the northernmost region of the Outer Banks, between the Currituck Sound and the Atlantic Ocean.
Top homes and amenities
Corolla vacation home real estate offers mostly spacious (even upscale and palatial) houses, with many guests expecting luxuries such as an oceanfront location, beach access, and pools.
Guest profile
The average group size is 4.9 people, mostly families or even multiple families. About 88% of stays are for 5 or more nights.3
Gross cap rate |
6.60% |
Average revenue |
$80,785 |
Median home price |
$1,219,361 |
This bucolic village is nostalgic of ‘old Cape Cod’, with quiet wild natural beauty and vacation homes tucked amongst the trees.
Location
Truro is known as the “Outer Cape,” at the northern tip of Cape Cod.
Top homes and amenities
Travelers come looking for a tranquil escape on the Cape Cod National Seashore. Homes offering peaceful privacy are most desirable, along with Cape Cod Bay views and quick access to the dune beaches.
Guest profile
Truro is a big draw for couples, likely due to its romantic and isolated setting. About 65% of bookings were for 2 guests.*
Gross cap rate |
6.60% |
Average revenue |
$41,252 |
Median home price |
$636,400 |
Gross cap rate: 6.00%
Median home price: $915,555
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*Vacasa guest data September 2023 - August 2024
To determine its ranking of top vacation rental markets, Vacasa appended Zillow home value estimates for each property in its portfolio (via a third-party provider), with actual vacation rental performance data from the last 12 months for vacation destinations throughout the country where Vacasa and its licensed subsidiaries manage vacation rentals. To determine average gross rental income (homeowner revenue made from bookings, excluding any fees) for a market, we used actual Vacasa performance data for markets where Vacasa manages more than 10 units.
A gross cap rate was calculated for each market by dividing each home's estimated value by actual trailing twelve months (TTM) revenue.
Local regulations vary by jurisdiction and the transfer of a property to a new owner may affect its ability to be used as a vacation rental. Generally, all vacation rental regulations are subject to change, which may affect your ability to use a property as a vacation rental in the future. Buyers should always check current local regulations prior to making an investment decision.
California licenses
Vacasa Seasonals Inc.
California DRE #02160171
Vacation Palm Springs Real Estate, Inc.
California DRE #01523013
Vacasa offers property management and other real estate services directly through Vacasa LLC and through Vacasa LLC's licensed subsidiaries. Click here for more information about Vacasa's licensed real estate brokerage/property manager in your state. Vacasa’s licensed real estate brokerages/property managers include: Vacasa Alabama LLC; Vacasa Arizona LLC; Vacasa of Arkansas LLC; Vacasa Colorado LLC (Micah Victory); Vacasa Delaware LLC, 302-541-8999; Vacasa Florida LLC; Vacasa Illinois LLC 481.014072, Micah Victory Managing Broker Lic# 471.021837; Vacasa Louisiana LLC, Dana MacCord, Principal Broker, ph 504.252.0155 (Licensed in LA); Vacasa Michigan LLC, 602-330-9934; Vacasa Missouri LLC, Vicki Lyn Brown, Designated Broker; Vacasa Nevada LLC; Vacasa New Hampshire LLC,45 NH-25, Meredith, NH 03253, Susan Scanlon, Broker of Record; Vacasa Minnesota, Broker: Micah Victory, license #40877637; Vacasa New Mexico LLC, 503-345-9399; Vacasa New York LLC, 888-433-0068, Susan Scanlon, Real Estate Broker; Vacasa North Carolina LLC; Vacasa Oregon LLC; Vacasa Pennsylvania LLC; Vacation Palm Springs Real Estate, Inc., California DRE #01523013, Mark Graham, California DRE #00700720; Vacasa Real Estate LLC (licensed in Texas, Debra Brock, Designated Broker); Vacasa Real Estate LLC (licensed in Washington, Robert Brush, Designated Broker); Vacasa Seasonals Inc., California DRE #02160171, Lisa Renee Stevens, California DRE #01485234; Vacasa South Carolina LLC; Vacasa South Dakota LLC; Vacasa Tennessee LLC; Vacasa Vacation Rentals of Hawaii LLC, 69-201 Waikoloa Beach Dr. Ste. #2F17, Waikoloa, HI 96738; Vacasa Vacation Rentals of Montana LLC, Terah M. Young, Licensed Property Manager; Vacasa Virginia LLC; Vacasa Wisconsin LLC; Vacasa Wyoming LLC. In Canada, this advertisement is provided by Vacasa Canada ULC, CPBC lic. number 75826, 172 Asher Rd. V1X 3H6 Kelowna, BC.