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.
Estimated Annual Performance
* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.
Why Investors Choose Rehoboth Beach
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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