This Alabama city is one of the best places to buy a rental beach house – Cape San Blas in top 10!!!

Gulf State Park

Visitors enjoy a day at the beach on the sugar white sand of Gulf State Park in Gulf Shores, Alabama. ( file photo/Joe Songer)Joe Songer


A holiday at the beach is nice. Making money, for some, is nicer.

A new list from shows you how to do both, and one Alabama city is your destination.

The real estate site teamed up with AirDNA, a vacation analytics site, to figure out the top 10 cities where you can buy a beach house as an investment – for use as a short-term rental.

To calculate the numbers, the site looked at median home prices, average annual rental revenue, expected yields, and any regulations that might complicate your plans. Airbnb, VRBO, and other sites can make things easier, but owners have to compare a home’s annual returns to its cost – otherwise known as the property yield.

At the top of the list is Pawley’s Island, S.C., which has an expected yield of about 19.8%

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

According to the site, potential buyers need to be aware of the city’s lodging tax requirements, which include 4% to the state, 2% to Baldwin County, and 9% to the city if the house is inside the corporate limits. Outside, and you owe 4.5%.

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