Florida’s southwest coast has been a hotbed for real estate growth in recent years. Waterfront homes are plentiful. Costs are competitive. It’s nearly always 75° and sunny.
It’s an attractive place to invest, particularly with the growth of the vacation rental market and the region’s huge tourism draw. The Fort Myers area, which includes Cape Coral, Sanibel Island, and Estero, attracted an estimated 4.8 million visitors in 2017. The Naples area, covering Marco Island, and Bonita Springs, brought in another 1.7 million.
To show just how great the potential is, our new Vacation Rental Performance Reports contain key data on rental income, occupancy rates, booking windows, and vacation rental inventory for these areas.
Download them to see why this region is a popular answer for investors who want to buy a vacation home they can use for short-term rental.
Fort Myers and Naples see strong demand for vacation rental
We identified a number of factors driven by tourism that are making the Fort Myers and Naples areas such attractive places to own vacation rentals:
High occupancy rates
In Cape Coral, Estero, Sanibel Island, and Fort Myers, top-performing properties see occupancy rates north of 90% throughout the winter months. But even properties at the median hit rates above 80% in February and March.
A similar trend takes place in Naples, Bonita Springs, and Marco Island, where top performers see occupancy rates above 80% six months out of the year.
With high occupancy rates standard for the area, it should be easy to keep bookings on the calendar during these peak periods. The challenge is to set yourself apart from the competition so you can command higher rates, secure high-season bookings sooner, and fill up your shoulders season as well.
Long length of stays
In the Fort Myers area, guests typically book vacation rentals for 9-10 days during the high season and over 5 days during the low season.
It’s even longer in the Naples area with guests staying over 10 days during the high season and 5-6 days during the low season.
Week-long bookings are great for homeowners because they bump up the amount you earn with each booking. You’re not struggling to get reservations on the calendar and you don’t have to deal with as much turnover, so you earn more with less work.
How much can you earn with a vacation rental in the Fort Myers area?
Our report presents a full overview of what you can expect to make if your property performs at the 50th percentile (the median of the market) or the 75th percentile (the top quarter of the market). One of the most interesting findings is that two-bedroom properties actually outperform three-bedroom homes for rental income.
Typically, the larger the property, the more money you make. But if you’re choosing between a two- and three-bedroom property in this area, it’s actually a better investment to get the smaller home. Here’s a look:
With a two-bedroom property, you can earn $18,550 in yearly revenue at the median. At the 75th percentile, you can earn $31,695.
With a three-bedroom property, you can earn $18,660 in yearly revenue at the median and $28,653 at the 75th percentile.
How much can you earn with a vacation rental in the Naples area?
In Naples, the vast majority of the vacation rental market is made up of two- and three-bedroom properties. Smaller homes (studios and 1-bedrooms) and larger homes (5-6 bedrooms) make up a small fraction of the market, but can still prove to perform well or even better than the competition.
With a one-bedroom property, you can earn $17,416 in yearly revenue at the median. At the 75th percentile, you can earn $27,079.
With a two-bedroom property you can earn $14,282 in yearly revenue at the median and $21,742 at the 75th percentile.
In areas like Marco Island, Bonita Springs, and Fort Myers, your earning potential doesn’t always depend on the size of the home. It’s important to evaluate the market and find pockets where there’s untapped demand.
How to succeed with a vacation rental in these areas
The difference between properties that perform at the median and top of the market depends on a number of factors, including the quality of the property, the location, and the amenities.
If you’re thinking about purchasing a vacation rental in this area or updating a property you already own, here are some of the key features that guests want:
- High-end furniture
- Updated kitchens
- Proximity to beaches
- Beach supplies (towels, drying racks, chairs, pool toys)
- Outdoor spaces
Our data shows that with these amenities, you have the potential to generate more bookings at higher rates throughout the year.
Download our full report for more details
There’s huge opportunity with vacation rental in the Fort Myers and Naples areas. Download the full report and learn what to expect when starting a vacation rental business.
● Rental income potential by property size
● Average occupancy by property size
● Average daily rate by property size
● Average days booked in advance
● Average length of stay
● Vacation rental inventory by property size
● Occupancy rate by month
The Fort Myers and Naples
Vacation Rental Performance Reports
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