Destin, Florida, is a popular vacation destination located in Okaloosa County. With its beautiful beaches, warm weather, and various tourist attractions, it’s no wonder that the (Airbnb) short-term rental market in Destin is thriving.
In this guide, we’ll take a closer look at the short-term rental market in Destin and why it’s an attractive location for both tourists and investors.
Market Overview
To understand the dynamics of the short-term rental market in Destin, let’s delve into some key statistics and figures.
Supply
AS of October 2024, the most popular homes are 3-bedroom homes, comprising 26.36% of inventory. This is followed by 2 and 4-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Destin experienced an depreciation of -6.05%. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Destin have depreciated by -6.05%. The median home value in Destin is $602,700 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Destin boasts a significant Airbnb rental market, with approximately 4,008 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $386. The Average Daily Rate is the highest for 5-bedroom homes $521, followed by 4-bedrooms and 3 bedrooms at $460 and $410 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 52.42% for Airbnb rentals in Destin. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Destin ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 9.03% in Destin. This figure suggests that short-term rentals in the city offer a favorable return on investment. Destin is ranked #64 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Destin earn an average of $35,599 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Hosts
The market is dominated by property management firms. The largest host is Vacasa Florida with 4.60% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Destin is 1.65%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in Destin come outside of Florida. 4.50% of all guests are from Atlanta followed by Houston with 2.10%.
Regulations
Destin’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
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Median Household Income and Population Size
The median household income in Destin is $81,468 according to Data USA. This is higher than the median household income for the state of Florida and the United States. The population size of Destin is 14,482, according to Data USA.
Sports Teams and Colleges
There are no professional sports teams based in Destin, Florida. However, there are several colleges located in the nearby area, including the University of West Florida and Pensacola State College.
Crime Rate
The crime rate in Destin is lower than the average crime rate for the state of Florida and the United States, according to Neighborhood Scout. This makes it a safe location for tourists and residents alike.
Visitors and Tourist Attractions
Visitors to Destin come from all over the United States, with a significant number of tourists coming from neighboring states like Alabama, Georgia, and Tennessee. According to the Destin Chamber of Commerce, the total number of visitors to Destin each year is over 6 million.
The most prominent tourist attractions in Destin include its
- Destin Harbor Walk: This popular boardwalk offers plenty of shopping, dining, and entertainment options along the harbor.
- Big Kahuna’s Water and Adventure Park: A popular destination for families, this park offers a variety of water rides, mini-golf, and other attractions.
- The Track Family Recreation Center: A fun spot for go-karts, laser tag, and other amusement park-style attractions.
- Henderson Beach State Park: A beautiful, serene beach park with crystal-clear waters and plenty of recreational opportunities.
- The Gulfarium Marine Adventure Park: A fascinating park where visitors can learn about and interact with marine life, including dolphins, seals, and more.
- The Destin History and Fishing Museum: A unique museum that provides a look into the history of the area and the fishing industry that once flourished here.
These attractions, along with the beautiful beaches and stunning natural scenery, make Destin a top destination for tourists and vacationers.
Conclusion
In conclusion, Destin, Florida, is a prime destination for short-term rental investments. It is a market that is very commonly featured in articles analyzing best-performing Airbnb markets in Florida. With its ideal location, affordable property taxes, favorable regulation, and strong demand, the short-term rental market in Destin offers a profitable opportunity for real estate investors. Whether you’re a seasoned investor or starting out, Destin is a market worth considering.
