As we enter 2026, Florida vacation rental owners are reevaluating their strategies. With changing tourism patterns, evolving short-term rental (STR) regulations, and shifting market dynamics, a key question arises:
Is it time to sell your vacation rental or keep renting it out?
Read on to explore that decision through the lens of real estate trends, income potential, lifestyle changes, and risk management. Whether you’re feeling host fatigue or weighing ROI, we’ll help you make an informed, strategic move.
Florida’s 2026 STR Market Outlook: Stabilization, Not Saturation
Florida continues to dominate the U.S. short-term rental market, accounting for 26% of national STR activity and generating nearly $30 billion annually. However, the market is maturing. The exuberance of the post-pandemic boom is giving way to a more sustainable but competitive landscape.
Key Trends for 2026:
- Occupancy rates: Down slightly (1% dip projected), but stabilizing.
- ADR (Average Daily Rate): Forecast to rise modestly by 1.5%, with stronger momentum expected in 2027.
- Supply: STR listings are projected to grow by 4.6%, indicating renewed investor interest but also tighter margins.
- Revenue dynamics: Profitability now hinges on operational excellence, not rising rates.
- Regulations: Efforts to centralize Florida’s STR laws have stalled; localized restrictions remain a patchwork to navigate.
Tourism Tailwinds: Demand Resilience Through 2026
Tourism. The lifeblood of Florida’s vacation rental economy remains strong and poised for continued growth.
- 2023 visitation: 156.9 million travelers
- 2026 forecast: 162.3 million, with sights set on 186 million by 2030
Major 2026 tourism drivers:
- FIFA World Cup: Global exposure and statewide travel surge
- U.S. Semiquincentennial: Celebration of America’s 250th birthday expected to boost both domestic and international visits
- Return of international travel: Following 2025’s lull, European and Canadian tourism is rebounding
- Resilient domestic demand: Florida’s year-round appeal remains unmatched
Regional Performance: Where Your Property Stands
Central Florida (Orlando, Kissimmee, I-4 Corridor)
- Orlando STRs average $35,000/year in revenue
- ADRs: $113–$142, with occupancy between 48%–66%
- High guest turnover and strong international mix
- Consistent theme park draw and infrastructure investment
Southwest Florida (Naples, Fort Myers, Lee & Collier Counties)
- Rebounding post-storms with enhanced marketing and infrastructure
- Collier County saw a 5.8% rise in tourist tax revenue in 2025
- The luxury segment in Naples and Marco Island remains robust
Gulf Coast & Tampa Bay
- Tampa: ADRs ~$165, occupancy ~62%, post-oversupply recovery underway
- St. Pete & Sarasota: Luxury STRs command premium pricing
Panhandle & Northeast Florida
- Destin & Panama City Beach: High ADRs ($400+) in peak season
- Jacksonville: Affordable entry point, with steady 2.5–4.5% appreciation forecasted
Florida Real Estate Forecast: Market Bottoming in 2026
After a softening in 2024–2025, the Florida housing market is expected to stabilize by mid-2026:
- Statewide median price: ~$374,000 (down 5% YoY)
- Cape Coral: Declines up to 10.2%, poised for rebound
- Miami: Slight appreciation (1.1%) continues due to cash-heavy international buyers
- Condo segment: Lags behind, with 10.8% annual depreciation
- Inventory: Rising to 5–6 months, creating a more balanced buyer’s market
Financial Decision-Making: Selling vs. Renting ROI
Let’s break it down:
Renting ROI = (Net Annual Income) ÷ (Total Investment)
Selling ROI = (Net Sale Proceeds After Taxes) ÷ (Total Investment)
Consider These Inputs:
- Projected sale price and closing costs
- Annual STR income (net of management, insurance, and maintenance)
- Mortgage payoff
- Tax implications (capital gains, depreciation recapture)
- Time, stress, and opportunity cost
Renting offers ongoing cash flow, appreciation, and potential 1031 exchange benefits.
Selling delivers liquidity, freedom from operational burden, and possible tax breaks if you qualify for the $250K/$500K capital gains exemption.
Owner Burnout: The Hidden Cost of STRs
Running an STR is rewarding, but it’s far from passive.
Burnout Warning Signs:
- Inconsistent pricing or stale listings
- Negative reviews are tied to responsiveness or cleanliness
- Dread around turnovers or guest messaging
- Overwhelm from regulatory compliance or rising insurance
Mitigation Options:
- Hire full-service management (20–30% of revenue)
- Outsource turnovers and guest communications
- Embrace automation—but don’t rely on it blindly
- Explore converting to a long-term rental (LTR)
Scenario Planning: Tailor Your Strategy to the Market
| Scenario | STR ROI | Sale ROI | Best Option |
| High demand, rising values | High | High | Rent or Sell |
| Market correction, low tourism | Moderate | Moderate | Sell or Convert to LTR |
| Flat market, stable demand | Moderate | Moderate | Rent if profitable |
| Regulatory tightening | Low | Moderate | Sell or Exit STR |
| Retirement or lifestyle change | Variable | High | Sell |
A Framework for Your Decision
✅ Run Financial Models
Incorporate realistic assumptions for income, expenses, insurance, taxes, and interest rates.
✅ Monitor Local Market Dynamics
Regulations, ADRs, buyer demand, and insurance rates can vary drastically by zip code.
✅ Align with Personal Goals
Is this property still aligned with your lifestyle, capacity, and priorities?
✅ Maintain Flexibility
If you own multiple properties, consider a hybrid approach: sell one, hold another.
✅ Time Your Exit Strategically
If selling, consult a Realtor who can help you navigate capital gains exclusions, depreciation recapture, and market timing.
Should You Sell or Keep Renting in 2026?
The right answer is the one that best aligns financially, personally, and strategically.
- If your property is cash-flowing, professionally managed, and in a growth market, holding may be your best move.
- If you’re tired, managing solo, or facing uncertainty, a well-timed exit could maximize returns and peace of mind.
Need Help Deciding? Let’s Talk Strategy
If you’re on the fence, now is the time to run the numbers, weigh your priorities, and consider your next steps. Whether you’re exploring a sale, refinancing, or looking to improve your rental’s performance, a customized consultation can make all the difference.Connect with Mike Chen—a licensed Realtor and Airbnb Superhost who helps Florida STR owners like you make profitable, stress-free transitions. Whether you’re selling, scaling, or simply looking for clarity, Mike offers the local expertise, financial modeling, and management insight to guide your decision.
