Top Places to Buy a Beach House

May 10, 2019

Some homeowners may be lured to a beachfront home not just for their own enjoyment but to turn the property into a money-making vacation rental. 

Vacasa, a vacation rental management firm, ranked vacation rental markets based on aggregate cap rates (the ratio of a property’s net operating income over its cost). Here are the top 10 places that topped Vacasa's list as the best places to buy a beach house in 2019:

1. Ocean Shores, Wash.

  • Cap rate: 7.6%
  • Median home cost: $239,460
  • Median annual gross rental revenue: $32,383

2. Myrtle Beach, S.C.

  • Cap rate: 7.4%
  • Median home cost: $249,999
  • Median annual gross rental revenue: $32,546

3. Panama City Beach and Santa Rosa, Fla.

  • Cap rate: 6.1%
  • Median home cost: $419,900
  • Median annual gross rental revenue: $44,555

4. Gulf Shores, Ala.

  • Cap rate: 5.8%
  • Median home cost: $409,900
  • Median annual gross rental revenue: $39,045

5. Galveston Island and Port Bolivar, Texas

  • Cap rate: 5.6%
  • Median home cost: $329,900
  • Median annual gross rental revenue: $40,791

6. Kauai, Hawaii

  • Cap rate: 5.4%
  • Median home cost: $696,028
  • Median annual gross rental revenue: $61,117

7. Ocean City, Md.

  • Cap rate: 5.4%
  • Median home cost: $285,000
  • Median annual gross rental revenue: $30,769

8. Key West, Fla.

  • Cap rate: 5%
  • Median home cost: $788,500
  • Median annual gross rental revenue: $67,204

9. Marathon to Long Key, Fla.

  • Cap rate: 4.9%
  • Median home cost: $619,900
  • Median annual gross rental revenue: $57,918

10. Cocoa Beach, Fla.

  • Cap rate: 4.7%
  • Median home cost: $339,000
  • Median annual gross rental revenue: $31,082
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