(Gross Yields from 9.97%, 58% Occupancy Rate)
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For this analysis, we have used the trailing twelve months (July 1st, 2021 to June 30th, 2022).
Active Rentals
There are 6945 active rentals in Palm Beach County, Florida. Almost 85% of all listings are 1 and 2 bedrooms.
Larger homes catering to bigger parties and families are potentially undersupplied. There are only 371 active 4 & 5-bedroom homes.
Average Daily Rate (Nightly Price)
The Average Daily Rate for rentals in Palm Beach, Florida is $179 dollars.
Throughout the year, the rate only fluctuates by $39 from the mean with the highest Average Daily Rate in March 2022 ($218) and the lowest in August 2021 ($140).
Occupancy Rate
The average occupancy rate was 62% for the period from July 2021 through June 2022.
The lowest occupancy rate was in August 2021 at 28% and the highest was in March 2022 at 90%.
The average occupancy rate is the highest for 4 and 1-bedroom homes, 66% and 64% respectively.
Get projections on revenue, average daily rate, cap rates, and a lot more.
High-Performance Properties
Chalet’s research shows that studios have the highest percentage of homes in the high-yield territory (20%) and could be and therefore could be a good strategy for this market.
Chalet considers properties with a gross yield greater than 15% as high-yield properties. Gross yield equals Gross Income/Purchase Price
Annual Revenue
The median revenue is the highest in May of 2022 at $6100 and the lowest in September 2021 at $1300.
Short-term rentals in Palm Beach County generate a median revenue of $49,194 annually. The highest median revenue for rentals in Palm Beach County is for 5 bedrooms at $118600.
Throughout the year, monthly revenue fluctuates the most for 5-bedroom homes and the least for 1-bedroom homes. More conservative investors should look into 1 bedroom investment properties as data shows they are the most stable and predictable.
Demand
Most of the Palm Beach county short-term rental guests are domestic guests from the United States, though March is when the presence of international guests is most noticeable.
However, international guests in March barely crossed the 1% threshold of total guests in Palm Beach County. The majority of international guests visit from Canada and the United Kingdom.
The majority of Palm Beach County guests come from U.S. cities not located within driving distance.
Other Facts
The average property tax rate is 0.99% according to SmartAsset. That’s slightly lower than the 1.07% national average.
According to Zillow, homes in West Palm Beach appreciated 35.5% year-over-year (YoY) and the median home price for active listings was 536,817 (as of September 2022).
Homes in Palm Beach County average 46 days on the market according to data from Redfin.
The BLS reported that the unemployment rate in Palm Beach fell to 2.9% in August of 2022, which is lower than the national average of 3.8%.
