Mid-Atlantic8.6% avg cap rate

Rehoboth Beach, DE

DC's beach - tax-free shopping and summer demand

Rehoboth Beach is the primary beach destination for Washington DC and Baltimore - a 3-hour drive market from 10+ million metro residents. Delaware's complete absence of sales tax makes it a shopping destination on top of the beach, and the boardwalk scene, outlet malls, and LGBTQ+-friendly culture create a diverse visitor base with strong year-round shoulder demand relative to comparably sized beach towns.

8.6%
Avg Cap Rate
Net operating income / price
60%
Avg Occupancy
Annual average
$355
Avg Nightly Rate
All property types
$545K
Avg List Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
60% occ × $355/night
$77,745
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $31,098
Est. net operating income
Before mortgage & depreciation
$46,647
At $545K avg price
Implied cap rate
8.6%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Rehoboth Beach

No Delaware sales tax - adds a shopping-tourism demand layer
Primary beach for DC and Baltimore metro (10M+ residents)
LGBTQ+-welcoming community supports diverse year-round events
Lower entry prices than Outer Banks or Cape Cod
Peak season: Memorial Day - Labor Day
Top property types: Single Family, Cottage, Condo, Townhouse
Primary zip: 19971, 19966, 19930

Rehoboth Beach STR investing, answered

Is Rehoboth Beach, DE a good short-term rental market?

Rehoboth Beach is a Mid-Atlantic STR market averaging a 8.6% cap rate, 60% annual occupancy, and $355/night across STR-viable listings. Rehoboth Beach is the primary beach destination for Washington DC and Baltimore - a 3-hour drive market from 10+ million metro residents. Delaware's complete absence of sales tax makes it a shopping destination on top of the beach, and the boardwalk scene, outlet malls, and LGBTQ+-friendly culture create a diverse visitor base with strong year-round shoulder demand relative to comparably sized beach towns.

What is the average Airbnb occupancy rate in Rehoboth Beach?

STR-viable properties in Rehoboth Beach average about 60% occupancy across the year. Peak season is Memorial Day - Labor Day. Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.

How much do short-term rentals earn in Rehoboth Beach?

At $355/night and 60% occupancy, a typical Rehoboth Beach STR grosses roughly $77,745 per year before expenses, leaving an estimated $46,647 in net operating income against a $545K average price, an implied 8.6% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in Rehoboth Beach?

The strongest-performing STR property types in Rehoboth Beach are Single Family, Cottage, Condo, Townhouse. No Delaware sales tax - adds a shopping-tourism demand layer. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in Rehoboth Beach?

STR-viable listings in Rehoboth Beach average around $545K. Primary STR ZIP codes include 19971, 19966, 19930. Combined with the market's 8.6% average cap rate, that price level sets the return baseline you'd underwrite against.

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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