The vacation rental market has changed significantly over the past few years, and while we’ve all seen the headlines surrounding the increase in vacation rental inventory, it doesn’t mean that purchasing a vacation home isn’t a good investment—if you know where to buy.
Vacasa’s 2025 Top 25 Best Places to Buy a Vacation Home report can serve as a helpful resource whether buyers are seeking their first vacation rental or the third in their portfolio.
With all this in mind, savvy vacation rental buyers should focus on homes in desirable destinations, with key amenities like a hot tub, pool, or water view—and those with lower ownership costs to achieve the highest cap rate possible.
Before reviewing some of the top 25 best vacation home places, here’s an overview of this year’s vacation rental real estate market trends:
Inventory
Inventory on the market is slowly increasing following the past few years of historically low listings. The increase in inventory will favor buyers, giving them more options and increased bargaining power.
Pricing and Affordability
Average home prices continue to climb, but are starting to slow in some markets, meaning homes are on the market for a longer period of time. Because of this, we could start to see some markets shift from a seller’s market to a buyer’s market.
Interest Rates
Interest rate cuts in 2024 were beneficial for many buyers, however, interest rates are not expected to stabilize in 2025 and we may continue to see volatility.
Cap Rates (or, the annual rate of return on investment)
There is continued downward pressure on cap rates as home prices climb and vacation rental revenue dips from the peaks of 2021 and 2022. Higher ownership costs (insurance, HOA, utilities, etc.) have also had an impact on cap rates.
As always, it is advised to work with an experienced real estate professional knowledgeable about the local vacation rental market and regulations. A professional property manager can also help prior to purchase with market insights and home revenue projections.
1. North Myrtle Beach, SC
Made up of four beach towns on the Atlantic Coast—Cherry Grove, Ocean Drive, Crescent Beach, and Windy Hill–North Myrtle Beach is a laid-back haven of piers, golf courses, and sandy bays located at the northern end of the famed Grand Strand Myrtle Beach. Top homes and amenities include Atlantic-facing condos are extremely popular for their seamless experience, seaside pools, hot tubs, private beach access, and private balconies overlooking the beach.
North Myrtle Beach by the numbers:
- Gross cap rate: 8.10%
- Average revenue: $27,603
- Median home price: $360,747
2. Dauphin Island, AL
Dauphin Island is located on a barrier island of the same name, 45 minutes directly south of Mobile, Alabama. With beautiful beaches, historic attractions, and quaint seaside charm, it has all the amenities of a popular beach destination with a small-town feel. Guests tend to book large coastal homes with open floor plans, multiple wrap-around decks, and multiple bedrooms to fit large families.
Dauphin Island, AL by the numbers:
- Gross cap rate: 8.00%
- Average revenue: $53,293
- Median home price: $645,330
3. Okaloosa Island, FL
A palm-studded paradise on the Gulf of Mexico spanning three miles of white sugar sand beaches, Okaloosa Island sits on the greater Santa Rosa Island, tucked between Destin and Fort Walton Beach. Most vacation rental options are in stately condo complexes spread across the island that boast large swimming pools and easy beach access—a Florida must.
Okaloosa Island, FL by the numbers:
- Gross cap rate: 7.70%
- Average revenue: $50,292
- Median home price: $654,494
4. Hatteras Island, NC
Hatteras Island is one of many barrier islands in Outer Banks, North Carolina located off the state’s east coast. It is a standout with 50 miles of scenic coastline and seven small villages. Hatteras is a tranquil yet beautiful escape with some of the best views on the East Coast. Hotels are sparse on Hatteras Island, so larger groups tend to book spacious vacation rentals, especially those offering private pools, hot tubs, and quick access to the beach.
Hatteras Island, NC by the numbers:
- Gross cap rate: 7.30%
- Average revenue: $58,862
- Median home price: $805,585
5. Girdwood, AK
Surrounded by majestic glacial peaks, Girdwood enjoys its status as Alaska’s only true resort town (albeit laidback), offering the largest ski area in the state. Girdwood is located 45 minutes south of Anchorage and offers visitors a spectacular hallmark of ice-capped mountains that encircle the town and nearby posh Alyeska Resort. Guests usually book slopeside condos and homes that offer quick access to the lifts and large windows to frame the alpine views.
Girdwood, AK by the numbers:
- Gross cap rate: 7.20%
- Average revenue: $34,797
- Median home price: $485,429
6. Navarre, FL
A serene Emerald Coast hideaway with miles of unspoiled white shores and translucent emerald waters, Navarre is nestled between the popular Emerald Coast towns of Destin and Pensacola. Naturally, the most sought-after spots are houses and condos that sit right on the Gulf, though our research shows most travelers search for the term ‘oceanfront’ versus ‘Gulf-front’. Something else that guests want: A pool to go along with those Gulf views.
Navarre, FL by the numbers:
- Gross cap rate: 7.10%
- Average revenue: $43,439
- Median home price: $618,863
7. Gatlinburg, TN
Gatlinburg shines as the wildly popular gateway to the Great Smoky Mountains National Park, packed with rustic mountainside activities, Appalachian charm, and family-friendly attractions. Located in eastern Tennessee (an hour’s drive from Knoxville), Gatlinburg is a favorite for families, who tend to look for large rustic-style cabins with a cozy fireplace, hot tub, and relaxing porch to watch that famous “smoke” roll in.
Gatlinburg, TN by the numbers:
- Gross cap rate: 6.90%
- Average revenue: $42,708
- Median home price: $633,162
8. North Topsail Beach, NC
North Topsail Beach lures guests with its quiet expansive beaches, peaceful maritime forests, and marvelous sunsets over the Atlantic Ocean. It is located in the northernmost 11 miles of Topsail Island, about 30 miles from Wilmington. The tranquil and uncrowded shorefront is dotted with beach houses large enough to accommodate large groups, with beach access and Atlantic views topping the wish list of amenities.
North Topsail Beach, NC, by the numbers:
- Gross cap rate: 6.70%
- Average revenue: $54,864
- Median home price: $831,397
9. Corolla, NC
Corolla is known for its relaxed luxury, where travelers are just as happy kicking back in sandy flip-flops as they are indulging in upscale eateries and an afternoon at the spa. Located in the northernmost region of the Outer Banks, between the Currituck Sound and the Atlantic Ocean, Corolla vacation home real estate offers mostly spacious (even upscale and palatial) houses. Many guests expect luxuries such as an oceanfront location, beach access, and pools.
Corolla, NC by the numbers:
- Gross cap rate: 6.60%
- Average revenue: $80,785
- Median home price: $1,219,361
10. Truro, MA
Truro is known as the “Outer Cape,” at the northern tip of Cape Cod. This bucolic village is nostalgic of ‘old Cape Cod’, with quiet wild natural beauty and vacation homes tucked amongst the trees. Travelers come here looking for a tranquil escape on the Cape Cod National Seashore. Homes offering peaceful privacy are most desirable, along with Cape Cod Bay views and quick access to the dune beaches.
Truro, MA, by the numbers:
- Gross cap rate: 6.60%
- Average revenue: $41,252
- Median home price: $636,400
Read on to discover the full top 25 list: Best Places to Buy a Vacation Home Report.
Vacasa is a leading vacation rental partner, providing expert care to more than 38,000 vacation homes in the most sought-after destinations.