Florida – One of the best states for short-term rentals
Florida is one of the best short-term rental marketplaces in the world, offering investors a favorable regulatory environment, a diverse range of attractions, and a strong tourism industry. With high demand for vacation rentals and strong rental income potential, investing in Florida's short-term rental market can be a lucrative opportunity for investors.
Florida is one of the best states for short-term rental due to its year-round warm climate, diverse attractions, and a thriving tourism industry – it is one of the most popular vacation destinations in the world, attracting millions of visitors each year. In this blog, we’ll break down the top 5 cities by revenue percental to invest in Florida and provide some additional information to help you find the most profitable area in the sunshine state for your investment strategy. But, before we dive into the data, check out some interesting facts about the “sunshine state.”
In 1513, the Spanish explorer Juan Ponce de León became the first recorded European to set foot on what is now Florida. He named the area "La Florida," meaning "land of flowers." During the late 1800s and early 1900s, Florida experienced a land boom as people flocked to the state to take advantage of the warm weather and the development of new industries such as tourism and agriculture. Florida was nicknamed the "Sunshine State" because it is one of the sunniest states in the US, with an average of over 230 sunny days per year.
Florida has the longest coastline of any state in the contiguous United States, stretching over 1,350 miles. This coastline includes some of the most beautiful beaches in the world, such as Miami Beach, Clearwater Beach, and Siesta Key Beach. Florida is also home to the world's largest concentration of springs, with over 700 freshwater springs located throughout the state. These springs provide a unique and important habitat for a wide variety of aquatic plants and animals. In addition, Florida is home to the largest subtropical wilderness area in the United States, the Everglades National Park. This unique ecosystem covers over 1.5 million acres and is home to a wide range of plant and animal species, including the endangered Florida panther and the American crocodile.
STR Insights data illustrates the top 5 cities in Florida with the best cash flow based on their revenue percentile and return on investment percentage - but, what is revenue percentile in and ROI in our data?
The revenue percentile that is used to determine revenue estimates. For example, if the revenue percentile is set to 75, revenue estimates represent listings that are performing better than 75% of all other listings in the given market.
ROI for a market is determined by dividing the average revenue in that market by the average valuation in that market.
90th Revenue Percentile
75th Revenue Percentile
50th Revenue Percentile
While this data sheds some light on the top markets to invest in Florida, all investors have a unique strategy that is dependent on a number of factors including budget, cost of doing business in the city of interest, and where long term appreciation may be better to offset a small initial ROI for the first few years into a short-term rental investment.
Florida continues to have a high demand for short-term rentals due to its robust tourism industry, with millions of visitors arriving each year to enjoy its beaches, theme parks, and other attractions. This high demand for vacation rentals has created a lucrative market for short-term rental investors, with a wide range of options available to visitors, from luxurious villas to affordable single family homes, and a multitude of condos. Regardless of where you choose to invest in Florida, it’s best to take a date-driven approach to your investment. STR Insights provides the best data in on the market to fit your unique investment strategy in the sunshine state.