This Alabama City is a Top Choice for a Rental Beach House Investment

This Alabama City is a Top Choice for a Rental Beach House Investment

[TheChronicle] - A beach holiday is delightful, but for some, making money is even more appealing.

A new list from Cotton State Chronicle shows you how to achieve both, and one Alabama city stands out as your perfect destination.

The real estate site collaborated with AirDNA, a vacation rental analytics service, to identify the top 10 cities where buying a beach house is a smart investment for short-term rentals.

To compile their rankings, they examined median home prices, average annual rental revenue, expected yields, and any regulations that might affect your investment. While platforms like Airbnb and VRBO can simplify the process, owners must compare a property's annual returns to its costs—commonly referred to as the property yield.

Leading the list is Pawley’s Island, S.C., boasting an expected yield of about 19.8%.

Gulf Shores, Alabama, secures the No. 10 spot with a median home price of $615,535 and an annual revenue potential of $112,281, resulting in an expected yield of 10.3%.

According to the report, potential buyers should be mindful of Gulf Shores' lodging tax requirements, which include a 4% state tax, 2% Baldwin County tax, and 9% city tax if the house is within the corporate limits. Properties outside these limits are subject to a 4.5% tax.

Other attractive destinations on the list include Cape San Blas, Fla., Gulfport-Biloxi, Miss., and Corpus Christi, Texas.