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The vacation rental market here on the Emerald Coast has certainly had its challenges in recent years. One of the major conundrums for investors has been finding a vacation rental that can deliver a solid ROI. As you know, this is primarily the result of the supply of vacation rentals exceeding demand, which has put downward pressure on both rates and occupancy.
So, what is a sound strategy for finding the right investment property? It could all start with finding the right community first. While most communities are either flat or pacing behind compared to the same time last year, some areas have been performing better than others and may offer better investment opportunities. Community KPIs are vital for proper guidance. And the best KPI to reference is RevPAR—without a doubt.
Why RevPAR? It’s the best indicator of revenue performance for an investment property (or for an entire community, in this case), as it balances rates with the number of nights a home is booked. Focusing solely on Average Daily Rates or Occupancy skews the broader revenue picture and can result in subpar returns for the investor. A higher RevPAR indicates that the property is generating more revenue from fewer bookings, which has the added benefit of reducing wear and tear on the property itself—and the surrounding community.
Here’s the market analysis of the three best-performing communities on the Emerald Coast relative to the same time last year.
RevPAR Percent (%) Gains by Community: 2025 vs 2024
- Dune Allen – up 10%
- WaterColor – up 6%
- Seagrove – up 4%
If you have any questions, please reach out. Need more granular data insights on a specific community? We can help. Looking for a rental projection—one that’s accurate, honest and free? We can help with that, too.
