Location is one of the biggest drivers of both purchase price and rental income for a
vacation rental home. In coastal markets like Cape Cod, Martha’s Vineyard, and Nantucket
(and beach destinations nationwide), even small differences—walkability, water views, and proximity to the shoreline—
can have an outsized impact on demand.
Not surprisingly, many vacationers prefer to be within walking distance—roughly a half mile or less—of a
beach and are often willing to pay a premium for that convenience. Homes this close to the water typically command
higher purchase prices as well, compared with properties located farther inland.
The ocean isn’t the only draw
While the ocean is a major attraction, it isn’t the only one. The region is home to hundreds of lakes and ponds, and
properties near freshwater are often more affordable—both for buyers and for renters—than those near the ocean.
Lakes and ponds offer many of the same pleasures vacationers seek: swimming, kayaking, and fishing, often in a more
tranquil setting. Homes that sit on the water (not necessarily beachfront) or offer a water view are
especially desirable. Guests frequently mention how much they enjoy morning coffee or an evening glass of wine while
taking in the view—and they are often willing to pay more for that experience.
How proximity to salt water can affect rental rates
While every market is different, rental pricing in coastal areas often follows a clear pattern:
walkability and water access tend to increase demand, and demand often supports higher rates.
The ranges below are intended as a practical framework—use comparable rentals in your specific area to confirm what’s
realistic for the home you’re evaluating.
Typical weekly-rate premiums by location (ranges vary by town and season)
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Walk to beach vs. inland: often 20–35% higher
Homes within a short walk of the beach (generally a half mile or less) frequently command higher weekly rates than
comparable inland properties. Guests value the ability to stroll to the beach—even without a water view.
-
Waterfront vs. inland: often 30–45% higher
True waterfront properties typically generate stronger demand and command higher rates than inland rentals. Not all
waterfront is the same: some homes sit directly on salt water but lack a usable beach, while others are located on
ponds or lakes and offer a different (sometimes more serene) experience.
-
Beachfront vs. inland: often 70–120% higher
Homes where guests can step directly onto the sand and enjoy unobstructed ocean views tend to occupy the highest
tier. True oceanfront properties often achieve higher rates than lakefront or pond-front homes, reflecting both
demand and the perceived prestige of ocean frontage.
The most desirable (and typically most expensive) combination is often a property that is both walkable to a
beach and offers a water view—or is waterfront with convenient access to a
usable beach. When guests can enjoy the water in multiple ways, they often expect a premium experience—and the rate
tends to follow.
Freshwater waterfront: value opportunities for buyers
In many Cape and Islands areas, lakefront and pond-front homes can deliver a compelling mix of
water-oriented vacation appeal at a more approachable purchase price than ocean-adjacent property.
These homes can be especially attractive when they’re “activity-ready.” Providing kayaks, paddleboards, or other
watercraft (where appropriate) can increase appeal and help justify stronger rental rates by turning the property into
an easy, all-in-one retreat.
Investor takeaway: use location to define your strategy
When you’re evaluating a vacation rental purchase, location isn’t just a feature—it’s a strategy. Ocean proximity and
walkability may support higher peak-season rates, while freshwater or inland settings may offer a lower cost of entry
and strong family appeal.
- Start with demand: What do guests consistently pay more for in that specific town or neighborhood?
- Confirm with comparables: Compare homes with similar size, condition, and amenities.
- Think about seasonality: Some locations perform best in peak weeks; others attract broader shoulder-season stays.
- Match the property to the experience: Walkable beach, water views, or “on-the-water” access should feel effortless for guests.
FAQ: Location and vacation rental pricing
Q: How close to the beach do guests want to be?
A: Many guests strongly prefer homes within roughly a half mile of a beach. Walkability is a major
convenience factor and can influence both demand and pricing.
Q: Are lakefront and pond-front rentals competitive with ocean locations?
A: They can be. Freshwater settings often offer a quieter experience and can be more affordable for
buyers and renters, while still delivering the water-based activities many vacationers want.
Q: What location features justify higher weekly rates?
A: Walkability to a beach, water views, and true waterfront access are among the most common drivers
of pricing premiums. The strongest results usually come from a combination of convenience and an experience that feels
distinctly “vacation.”
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