Buying a beach house? Short-term rentals in AirDNA's top 10 markets deliver high yield

The best beach rental returns come from towns you've probably never heard of. AirDNA ranks the 10 most attractive markets by yield

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The fantasy of owning a beach house has always carried a certain logic: Buy somewhere people love to visit, let the bookings cover the mortgage, and enjoy it yourself when you can. 

But that only holds in the right market.

Coastal real estate doesn't always yield strong rental returns. The destinations that top travel wishlists — South Beach, Malibu, the Outer Banks — tend to carry acquisition costs that make it nearly impossible for rental income to keep pace. At the same time, second-tier coastal markets and water-adjacent towns often fly under the radar precisely because they don't fit the postcard image of a beach vacation. The gap between perception and performance is where the most interesting opportunities live.

A few structural forces help explain why water-adjacent rentals work as well as they do. Families return to the same stretch of shoreline year after year, often booking months in advance. Stays skew longer, group sizes run larger, and peak-season pricing power can be significant. Add in the premium that walkability to the water commands over comparable inland properties, and the investment case starts to take shape.

The harder question is where, specifically, to buy. High demand and high prices can cancel each other out. Moderate demand and low prices can produce stronger actual returns. Seasonality matters, too. A market with a single three-month peak looks very different from one with genuine shoulder-season draw.

Short-term rental analytics firm AirDNA ranks beach and coastal markets on yield, a key real estate metric that captures the annual return on the initial investment. AirDNA focuses on median listing prices for properties currently on the market and how much income they can generate relative to their purchase price. Realtor.com senior economist Joel Berner adds an important note: Every market on the list sits below the national median home price. Affordability is the common thread.

Here are the 10 best U.S. markets to buy a beach house for a short-term rental.

1. Niagara Falls, N.Y. — Waterfalls, wineries, and year-round pull

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Annual revenue potential: $29,000 | Median listing price: $125,000 | Yield: 15.5%

Niagara Falls leads the list, and its edge has nothing to do with sand. At a median listing price of $125,000 — far below the national figure — the entry cost is low enough that even modest rental income translates into a strong yield. AirDNA chief economist Jamie Lane points to the region's ability to convert day-trippers into multi-night guests, with wineries, outdoor activities, and guided tours extending the season well beyond peak summer weeks.

2. Corpus Christi, Texas — Gulf Coast beaches minus the premium

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Annual revenue potential: $43,000 | Median listing price: $289,945 | Yield: 14.8%

Corpus Christi delivers what many coastal markets promise but can't sustain: real beaches, steady demand, and costs that don't stretch the wallet. The city's Gulf Coast identity, shaped by sand, water sports, and family-friendly attractions, supports reliable bookings, and its position as a weekend drive for Texas travelers reduces dependence on long-haul visitors. Lane describes it as a market where revenue, demand, and acquisition costs align in a way that's harder to find on either coast.

3. Port Arthur, Texas — Fishing, birds, and Cajun culture

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Annual revenue potential: $35,000 | Median listing price: $152,300 | Yield: 14.4%

Fishers and bird watchers flock to Port Arthur for Sabine Lake, Gulf access at Sea Rim State Park, and a Cajun-influenced food culture that separates it from generic beach towns. At a median listing price of $152,300, it ranks among the most affordable markets on the list. Cultural anchors, notably the Museum of the Gulf Coast, encourage return visits, which drives stable occupancy over time.

4. Muskegon, Mich. — Lake Michigan, protected and in demand

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Annual revenue potential: $40,000 | Median listing price: $229,900 | Yield: 13.8%

Supply constraints shape the Muskegon story. Much of the Lake Michigan shoreline in the region is either protected land or low-density residential, limiting the number of waterfront properties available for private ownership. Northern Michigan real estate broker Sander Scott tells Realtor.com that short-term rental scarcity, combined with strong summer tourism, can push seasonal occupancy to high levels. The $229,900 median listing price keeps the yield attractive despite the region's growing profile.

5. Fort Walton Beach, Fla. — Panhandle beaches, small-town scale

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Annual revenue potential: $47,000 | Median listing price: $382,450 | Yield: 13.4%

Fort Walton Beach sits in Florida's Panhandle, where the Gulf's white sand beaches attract steady visitor traffic without the saturation of better-known neighbors. Broker Susan Sharpe describes the beaches as close and rarely overcrowded, with Okaloosa Island's boardwalk offering dining, shopping, and live entertainment. Destin sits just minutes away, giving guests and investors easy access to one of the Gulf Coast's most popular stretches of shoreline.

6. Salisbury, Md. — Eastern Shore access at a discount

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Annual revenue potential: $37,000 | Median listing price: $282,990 | Yield: 13.4%

Salisbury occupies a useful position on Maryland's Eastern Shore. Roughly 30 miles from Ocean City, properties here are priced well below coastal equivalents with direct beach access. Buyers who want Atlantic exposure without oceanfront costs have made it a reliable market. The dynamic works for short-term rental investors for the same reason: Budget-conscious visitors seeking affordable accommodations treat Salisbury as a practical base.

7. West Pensacola, Fla. — Gulf Coast access, inland prices

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Annual revenue potential: $32,000 | Median listing price: $310,000 | Yield: 13.3%

West Pensacola sits minutes from Pensacola Beach but commands significantly lower prices than properties directly on the Gulf. The area draws visitors who come for boating and fishing, with nearby Perdido Key adding a second coastal draw. Buyers here want proximity to the Gulf without paying for a beachfront. For short-term rental investors, the spread between acquisition cost and revenue potential reflects the same logic.

8. Daphne, Ala. — Mobile Bay views and bayfront living

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Annual revenue potential: $58,000 | Median listing price: $389,100 | Yield: 13.3%

Daphne generates the highest annual revenue potential on the list at $58,000 — a figure that reflects both its access to the Gulf Coast system and its proximity to Mobile less than 20 minutes away. The town sits on Mobile Bay rather than the open Gulf, and its identity centers on bayfront leisure. Waterfront recreation, scenic bay views, and coastal vibes draw visitors who want something quieter than a traditional beach resort. Daphne's unique positioning supports both strong bookings and return visits.

9. Port Richey, Fla. — Affordable Gulf access on the Pasco coast

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Annual revenue potential: $36,000 | Median listing price: $249,900 | Yield: 12.9%

Port Richey offers a Gulf Coast lifestyle at a price point that's hard to find in Florida. Visitors come for boating and fishing along the Pasco County coast, with shoreline parks and marina access rounding out the experience. The town's affordability is its defining trait: Properties here still deliver meaningful value relative to what buyers get in Florida's more expensive coastal markets.

10. Michigan City, Ind. — Indiana Dunes and a market on the move

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Annual revenue potential: $43,000 | Median listing price: $352,400 | Yield: 12.3%

Michigan City anchors the Indiana Dunes shoreline on Lake Michigan, drawing visitors with sandy beaches, marina access, and proximity to Indiana Dunes National Park. The market's profile is shifting fast: Realtor.com economist Berner says the median listing price climbed 67.1% year over year, even as the number of listings grew 18.5% over the same period. At a current yield of 12.3%, the returns remain competitive, but keen investors know the window for lower entry points may not stay open long.

Note: Revenue potential, median listing price, and yield figures are from December 2025. Median listing prices reflect entire cities, not beachfront properties specifically.

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