Mid-Atlantic7.1% 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.

7.1%
Avg Cap Rate
Net operating income / price
60%
Avg Occupancy
Annual average
$355
Avg Nightly Rate
All property types
$545K
Median 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 median 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

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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