Introduce
Cape Coral, a city in Southwest Florida, has been gaining popularity as a tourist destination over the years. The city is known for its beautiful beaches, water sports, and fishing opportunities, making it an ideal location for vacationers.
Market Overview
To understand the dynamics of the short-term rental market in Cape Coral, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 49.36% of inventory. This is followed by 3 and 1-bedroom homes at 25.67% and 13.13% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Cape Coral experienced an depreciation of –6.05. This data indicates a significant decrease in property values.
Median Home Value
As of January of 2025, Homes in Cape Coral have depreciated by -6.05%. The median home value in Cape Coral is $370,300 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Cape Coral boasts a significant Airbnb rental market, with approximately 3,558 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $267. The Average Daily Rate is the highest for 5-bedroom homes ($420) followed by 4-bedrooms and 2 bedrooms at $332 and $290 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 50% for Airbnb rentals in Cape Coral. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Cape Coral ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 12.45% in Cape Coral. This figure suggests that short-term rentals in the city offer a favorable return on investment. Cape Coral is ranked #50 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Cape Coral earn an average of $30,788 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Regulations
Cape Coral’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
Property Tax
According to SmartAsset, the average property tax in Cape Coral is 0.95%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
