Are you or someone you know in the market for a beach home you can rent out and use to generate additional income? Look beyond the well-trod destinations for the best investment, according to the fast-growing online vacation rental tech company Vacasa.
Ocean Shores, a small vacation town on Washington state’s Point Brown peninsula, took the top spot in Vacasa’s new report of the best cities in which to buy a beach home to rent out.
The town known for its sandy dunes and abundant razor clams promises some of the highest returns as a rental investment.
The report, which looked at the cap rate — the average properties’ net operating income over fees and the cost of maintenance, divided by the total property purchase price — and calculated how much rental income a property could generate over the course of a year. To come at these numbers, Vacasa looked at over 400,000 properties from Vacasa and other companies like Airbnb.
With a median home price of $239,460, a vacation rental in Ocean Shores can generate a median of $32,383 a year and has a cap rate of 7.6 percent.
Myrtle Beach, South Carolina, and Florida’s Panama City Beach and Santa Rose Beach came close behind at 7.4 and 6.1 percent cap rate, respectively.
“Topping our list is a small town on the coast of Washington State,” reads the report. “If that doesn’t immediately conjure up images of tropical breezes and suntanned skin, you’re right. Ocean Shores is known for its stretch of beaches and waterways, perfect for those seeking outdoor adventure in the Pacific Northwest.”
Check out Vacasa’s full list of the top 10 places to buy a beach house in the US here: