As spring and summer near, investors are turning their attention to beach houses, hoping to profit from the wave of seasonal visitors booking Airbnb and other short-term rentals.
You may not think of beaches when it comes to Niagara Falls, but it tops AirDNA’s list of beachy short-term rental (STR) investments.
AirDNA—a firm that compiles and analyzes Vrbo and Airbnb data—recently identified the 10 top markets for beach and coastal houses.
“Strong beach demand alone doesn’t necessarily translate into the best investment returns: In some coastal destinations, higher home prices can make it harder for rental income to keep pace, while more affordable markets with steady visitor demand often produce stronger yields,” Chloé Garlaschi, communications manager of AirDNA, tells Realtor.com®.
“Proximity to the water also plays a major role in pricing power, with homes close to the shoreline typically commanding higher nightly rates and stronger occupancy.”
To compile the rankings, AirDNA zeroed in on yield—measuring the average revenue potential of homes on the market against their listing prices. Put simply, the company analyzed how much income a property could produce relative to what it would cost to purchase.
“Interestingly, all of these cities on the list have a median list price below the national median. No South Beach or Malibu here,” says Joel Berner, senior economist at Realtor.com. “Affordability is a key draw here when it comes to ROI on a beachfront STR, and these beach towns offer a lower entry point than even the national housing stock at large.”
Here are the top towns for owning a beach house, according to AirDNA—along with their annual revenue potential, median listing price, and current yield.
“These are the median listing prices for the entire city, so expect true beachfront properties to be more expensive,” says Berner. “Immediate water access is highly desirable both for owner-occupants and STR guests, so these properties typically fetch a serious premium.”
Niagara Falls, NY
Ocean/beach/lake attractions: Niagara River/Lake Ontario
Annual revenue potential: $29,000
Median listing price: $125,000
Current yield: 15.5%
“While Niagara Falls is not your typical beach destination, there’s no denying that water access is the main attraction,” notes AirDNA chief economist Jamie Lane.
“Niagara Falls State Park is the main engine, with signature experiences like Cave of the Winds, Maid of the Mist, and the Observation Tower that support multinight stays and peak-season pricing power. Beyond the falls, the region boasts outdoor activities, wineries, and guided tours that help convert day trips into longer stays and support shoulder-season travel.”
Corpus Christi, TX
Ocean/beach/lake attractions: Gulf Coast beach and bayside
Annual revenue potential: $43,000
Median listing price: $289,945
Current yield: 14.8%
“Corpus Christi is a Gulf Coast market investors gravitate toward for a simple reason: real beaches, real demand, and real revenue, without the sky-high buy-in of many oceanfront destinations,” notes Lane. “The city is built around the Texas coastal lifestyle—sand, water sports, family-friendly attractions—and benefits from weekend-drive accessibility for local Texas travelers.”
Port Arthur, TX
Ocean/beach/lake attractions: Gulf Coast Wetlands
Annual revenue potential: $35,000
Median listing price: $152,300
Current yield: 14.4%
“Weekend travelers to Port Arthur are drawn by fishing and birding around Sabine Lake, beach access at Sea Rim State Park, and easy coastal getaways that appeal to families,” says Lane. “Cultural attractions, including the Museum of the Gulf Coast and the city’s Cajun-influenced food scene, help round out stays and support repeat visitation.”
Muskegon, MI
Ocean/beach/lake attractions: Lake Michigan
Annual revenue potential: $40,000
Median listing price: $229,900
Current yield: 13.8%
“Much of the Lake Michigan shoreline in this region is either protected land or low-density residential, which limits the supply of waterfront housing available for private ownership,” Northern Michigan real estate broker Sander Scott, strategic real estate adviser at Real Estate Bees, tells Realtor.com. “Where short-term rentals are permitted, that limited supply combined with strong summer tourism can produce high seasonal occupancy.”
Fort Walton Beach, FL
Ocean/beach/lake attractions: Coastal panhandle tourism
Annual revenue potential: $47,000
Median listing price: $382,450
Current yield: 13.4%
“Fort Walton Beach has a small-town feel, and beaches are close and usually not overpopulated,” Susan Sharpe, broker for EXIT Realty Anchor South in Fort Walton Beach, tells Realtor.com. “The boardwalk on Okaloosa Island provides dining and shopping options, as well as live entertainment and fireworks. Destin is a short drive away.”
Salisbury, MD
Ocean/beach/lake attractions: Eastern shore/coastal spillover
Annual revenue potential: $37,000
Median listing price: $282,990
Current yield: 13.4%
Salisbury is on Maryland’s Eastern Shore, blending small-town charm with convenient access to the Atlantic shoreline. Located about 30 miles from Ocean City, the area attracts buyers and visitors looking for more affordable homes while still being close to the boardwalk and beaches.
West Pensacola, FL
Ocean/beach/lake attractions: Gulf Coast beaches
Annual revenue potential: $32,000
Median listing price: $310,000
Current yield: 13.3%
West Pensacola, FL, is just minutes from Pensacola Beach, making it an appealing spot for buyers who want coastal access without beachfront prices. The area attracts visitors who enjoy boating and fishing, with nearby destinations such as Perdido Key enhancing the region’s beach appeal.
“West Pensacola appeals to buyers who want to be near the Gulf Coast without paying the higher prices seen in some other coastal markets,” real estate agent and investor Ron Myers of Ron Buys Florida Homes tells Realtor.com.
Daphne, AL
Ocean/beach/lake attractions: Gulf Coast system
Annual revenue potential: $58,000
Median listing price: $389,100
Current yield: 13.3%
This relaxed coastal community sits less than 20 minutes from Mobile, AL, and offers easy access to waterfront recreation along Mobile Bay. While the area isn’t directly on the Gulf, visitors enjoy scenic views of the bay and a coastal lifestyle centered more on bayfront leisure than traditional beachfront living.
Port Richey, FL
Ocean/beach/lake attractions: Gulf-coastal lifestyle with boating and fishing
Annual revenue potential: $36,000
Median listing price: $249,900
Current yield: 12.9%
Port Richey, FL, is a small Gulf Coast community where visitors enjoy boating and fishing. The area offers a more relaxed beach lifestyle, while still being close to shoreline parks and marina access along the Pasco County coast.
“Port Richey stands out because it is more affordable,” says Myers. “It’s the kind of place where buyers feel they can still get more for their money compared to some of Florida’s more expensive areas.”
Michigan City, IN
Ocean/beach/lake attractions: Indiana Dunes lakeshore tourism
Annual revenue potential: $43,000
Median listing price: $352,400
Current yield: 12.3%
Michigan City, IN, is a popular Lake Michigan shoreline community known for its sandy beaches and marina access. Berner notes that Michigan City’s median listing price climbed 67.1% year over year, even with listings up 18.5% during the same period. “The word is out on this beach town and it has created a hot local housing market,” he says.
