Florida Keys vs. Other Beach Markets: Where Should You Invest in 2026?
We own two STR properties in the Florida Keys and have analyzed 50+ beach markets nationwide. Here's an honest comparison of the Keys against other top coastal vacation rental markets—with real numbers from our portfolio.
When investors think "beach vacation rentals," they usually consider the obvious choices: Outer Banks, Myrtle Beach, Gulf Shores, Destin, or maybe the Carolinas. The Florida Keys often get overlooked—or dismissed as "too expensive."
But after owning two Marathon properties for 3+ years and generating $14,000/month combined revenue, we've learned the Keys offer advantages that other beach markets can't match. We've also learned where other markets beat the Keys.
This guide compares the Florida Keys against 8 other top beach vacation rental markets across 10 key metrics. No hype—just data-driven insights to help you choose the right market for your investment goals.
The 9 Beach Markets We're Comparing
Florida Keys
Marathon, Key Largo, Islamorada
Outer Banks, NC
Nags Head, Kill Devil Hills
Destin/30A, FL
Emerald Coast, Gulf Shores
Myrtle Beach, SC
Grand Strand, North Myrtle
Gulf Shores, AL
Orange Beach, Fort Morgan
Hilton Head, SC
Sea Pines, Palmetto Dunes
Clearwater/St. Pete, FL
Tampa Bay Area Beaches
Tybee Island, GA
Savannah Beach
Cocoa Beach, FL
Space Coast
Head-to-Head Comparison
| Market | Entry Cost | Avg. Nightly | Occupancy | Monthly Rev. | ROI |
|---|---|---|---|---|---|
| Florida Keys | $400K-600K | $280 | 90% | $7,200 | 11.2% |
| Destin/30A | $450K-700K | $320 | 85% | $7,800 | 9.8% |
| Outer Banks | $350K-550K | $260 | 75% | $5,850 | 10.5% |
| Hilton Head | $380K-580K | $240 | 78% | $5,600 | 9.2% |
| Myrtle Beach | $250K-400K | $180 | 82% | $4,400 | 12.5% |
| Gulf Shores | $300K-480K | $210 | 80% | $5,000 | 11.8% |
| Clearwater/St. Pete | $320K-500K | $195 | 85% | $4,950 | 10.2% |
| Tybee Island | $280K-420K | $185 | 72% | $4,000 | 10.8% |
| Cocoa Beach | $260K-380K | $170 | 78% | $3,950 | 11.5% |
*Data based on 2BR/2BA waterfront condos, averaged across 2023-2025. Entry costs include 25% down payment + closing + furnishings.
Detailed Market Analysis
🏆 Florida Keys
✅ Advantages
- Highest occupancy rates (90%+)
- Year-round demand (not seasonal)
- Limited supply (island geography)
- Strong appreciation potential
- Premium positioning possible
- Waterfront/ocean access premium
⚠️ Disadvantages
- Highest entry costs ($400K+)
- Hurricane risk & expensive insurance
- ROGO permit required (limited)
- Remote management challenges
- Higher cleaning costs ($120-150)
Our Take: We own two Marathon properties generating $14,000/month combined. The Keys offer the most consistent cash flow of any beach market we've analyzed—90%+ occupancy year-round is hard to beat. But you need $150K+ cash to get started, and hurricane insurance is expensive ($3K-5K/year).
🏖️ Destin/30A (Emerald Coast)
Best For: Luxury positioning, highest revenue potential, premium beach experience
Verdict: If you have $200K+ to invest and want the highest revenue potential, 30A beats the Keys. But expect 85% occupancy (vs. 90%+ in Keys) and more seasonality.
🎡 Myrtle Beach
Best For: First-time investors, lowest entry costs, high ROI percentage
Verdict: Best ROI percentage but lower absolute revenue than Keys. Great for first-timers with limited capital ($75K-100K to start).
🌊 Outer Banks
Best For: Larger homes, family reunions, week-long bookings
Verdict: Good alternative to Keys if you prefer larger homes and week-long bookings. But 75% occupancy vs. 90%+ in Keys means less consistent cash flow.
🏝️ Gulf Shores / Orange Beach
Best For: Balance of affordability and revenue, family market
Verdict: Solid middle ground between Myrtle Beach (cheap but lower revenue) and Destin (expensive). Similar ROI to Keys but more seasonal.
Which Market Should You Choose?
Decision Framework
Choose Florida Keys if you:
- ✅ Have $150K+ cash to invest
- ✅ Want the highest occupancy rates (90%+)
- ✅ Prefer year-round demand over seasonality
- ✅ Value limited supply & appreciation potential
- ✅ Can handle remote management
- ✅ Are comfortable with hurricane risk
Choose Destin/30A if you:
- ✅ Have $200K+ cash to invest
- ✅ Want highest revenue potential ($8K+/month)
- ✅ Can accept more seasonality
- ✅ Want luxury positioning
Choose Myrtle Beach if you:
- ✅ Have limited capital ($75K-100K)
- ✅ Want highest ROI percentage (12.5%)
- ✅ Are a first-time STR investor
- ✅ Can accept lower absolute revenue
Choose Gulf Shores if you:
- ✅ Want balance of affordability & revenue
- ✅ Have $100K-120K cash
- ✅ Prefer family-friendly positioning
- ✅ Can handle seasonal fluctuations
The Bottom Line
After owning properties in the Florida Keys and analyzing 50+ beach markets, here's our honest take:
- Best overall for experienced investors: Florida Keys (highest occupancy, year-round demand)
- Best for maximum revenue: Destin/30A (if you have $200K+ to invest)
- Best for first-timers: Myrtle Beach (lowest entry cost, highest ROI %)
- Best balance: Gulf Shores (moderate cost, solid returns)
The "best" market depends on your capital, risk tolerance, and investment goals. Our Keys properties generate $14,000/month combined with 90%+ occupancy—but we had to invest $268K total to get there.
If we were starting over with $100K cash, we'd probably start in Gulf Shores or Myrtle Beach, prove the model, then scale into the Keys once we had more capital.