According to Chalet Data, West Palm Beach’s short-term rental market is defined by sharp contrasts. Yield leaders cluster in accessible, mid-priced neighborhoods, while luxury zones trade off higher nightly rates for lower returns. Across the city, gross yields range from 11.5% in Dreher Park Neighborhood Association down to 3.9% in Flamingo Park, with entry prices swinging from $439,000 to over $1.3 million. The city sits in the 71st percentile for gross yield among U.S.
markets, and demand is holding strong against home value trends, prices are down 3.8% citywide, but occupancy and ADR are both up. This year’s data shows a market where winter and spring still dominate the booking calendar, but supply is tightening. For buyers, the right neighborhood choice means balancing price, seasonality, and guest demand drivers.
West Palm Beach Short-Term Rental Market at a Glance
- Median gross yield: 11.2%
- Annual revenue (headline): $45,200
- Active-operator annual revenue: $44,100
- Median occupancy rate: 53%
- Average daily rate (ADR): $233
- Median home value: $405,000 (YoY -3.8%)
- Active full-time listings: 1,281
- US gross yield rank: #137 (71st percentile)
- Data period is July 2025 – June 2026
The Best West Palm Beach Neighborhoods for Airbnb, Ranked by Yield
| Rank | Neighborhood | Gross Yield | Annual Revenue | Median Home Value | ADR | Occupancy | Active Listings |
|---|---|---|---|---|---|---|---|
| 1 | Dreher Park Neighborhood Association | 11.5% | $50,400 | $439,000 | $231 | 60% | 62 |
| 2 | Singer Island | 6.4% | $56,400 | $883,900 | $321 | 52% | 150 |
| 3 | Old Northwood Historic Neighborhood | 6.0% | $58,700 | $978,300 | $271 | 53% | 35 |
| 4 | Grandview Heights Neighborhood Association | 5.8% | $54,700 | $940,400 | $298 | 52% | 46 |
| 5 | Prospect Heights | 5.6% | $35,400 | $633,400 | $188 | 56% | 48 |
| 6 | West Palm Beach Downtown Neighborhood Association | 4.6% | $27,400 | $598,400 | $176 | 45% | 67 |
| 7 | South End Neighborhood Association | 4.2% | $54,800 | $1,303,000 | $278 | 48% | 83 |
| 8 | Flamingo Park Neighborhood Association | 3.9% | $44,600 | $1,156,400 | $347 | 53% | 37 |
Source note: Data as of July 11, 2026. Each listing’s annual revenue is calculated from its own ADR multiplied by occupancy and 365 days, using trailing 12-month data and reported as gross before expenses. The table shows the median listing’s revenue, ADR, and occupancy, which are computed independently, so multiplying ADR by occupancy will not reproduce the revenue figure.
Gross yield divides the median revenue by the median home value (Zillow Home Value Index). See methodology for details. The active-operator revenue filters to listings with consistent booking activity, providing a more realistic underwriting benchmark than the headline average.
1. Dreher Park Neighborhood Association: City’s Top Yield, Winter-Heavy Demand
Dreher Park Neighborhood Association leads West Palm Beach for gross yield at 11.5%, a mark that lands in the 73rd percentile nationally. This neighborhood’s advantage is rooted in its balance of moderate home values, median price sits at $439,000, down 4.5% year-over-year, and robust guest demand. Occupancy here is the city’s highest at 60%, with winter driving the calendar. February occupancy peaks at 85% and winter accounts for 35% of annual revenue.
Guests booking a 2-bedroom property will find it is the most common option, but 3-bedrooms command the highest earnings, making this a flexible play for both small and larger group rentals. ADR holds steady at $231, right in line with the city average, but the real story is consistency. Listings saw no occupancy change year-over-year, while ADR jumped 36% and supply dropped 27%, pointing to a market where demand is outpacing new inventory.
For investors, Dreher Park’s payback period is just 8.9 years based on active-operator revenue, one of the shortest in the city. The combination of high occupancy, balanced seasonality, and approachable entry price makes this a standout for buyers seeking reliable income with less volatility. For those wanting a deeper dive into revenue by bedroom and season, the Dreher Park analytics page unpacks the full performance picture.
| Gross yield | 11.5% |
| Annual revenue | $50,400 |
| Active-operator revenue | $49,570 |
| Occupancy | 60% |
| ADR | $231 |
| Median home value (YoY) | $439,000 (-4.5%) |
| Full-time listings | 62 |
Who this market is ideal for: Buyers seeking high-yield, steady bookings, and a manageable entry price.
2. Singer Island: Premium ADR, Resort-Driven Upside
Singer Island stands out for its luxury profile. Median ADR is $321, nearly $90 above the city average, and annual revenue leads the city at $56,400. Home values are steep at $883,900, down 5.9% from last year, which holds gross yield to 6.4% (21st percentile nationally). Occupancy is 52%, with a pronounced seasonal swing. March occupancy peaks at 79%, but September drops to just 18%.
The season’s appeal to snowbirds and vacationers seeking direct beach access drives 63% of annual revenue to winter and spring. Larger homes are attractive for group stays, since while 2-bedrooms are prevalent, 3-bedrooms generate the highest earnings. Market momentum stands out. Occupancy rose 14% and ADR surged 38% while listings shrank 9%, a classic supply squeeze. For a full breakdown of revenue by property type and season, see the Singer Island analytics.
Buyers here are underwriting for luxury. Payback stretches to 16 years, but the upside is in ADR and event-driven demand. This is a fit for investors with capital to deploy in a premium, tourism-driven submarket.
| Gross yield | 6.4% |
| Annual revenue | $56,400 |
| Active-operator revenue | $55,269 |
| Occupancy | 52% |
| ADR | $321 |
| Median home value (YoY) | $883,900 (-5.9%) |
| Full-time listings | 150 |
Who this market is ideal for: Buyers seeking high nightly rates and a luxury guest segment, willing to accept a longer payback horizon.
3. Old Northwood Historic Neighborhood: Historic Character, Surging Demand
Old Northwood Historic Neighborhood offers a blend of architectural charm and strong revenue performance. Median annual revenue is $58,700, topping every other neighborhood on this list, while occupancy matches the city at 53%. ADR sits at $271, comfortably above the city median. The home value, though, is a steep $978,300, up 13.3% year-over-year, which compresses gross yield to 6.0%, just the 18th percentile nationally.
Seasonality is sharp. February occupancy spikes to 79% with a $361 ADR, while September drops to 32%. Winter alone delivers 39% of annual revenue, the highest seasonal concentration in the city. Momentum is striking here. Occupancy is up 80% and ADR up 46%, even as listings fell 18%. That’s a clear sign of surging demand outpacing supply, likely driven by the area’s unique historic homes and proximity to downtown.
With a payback period of nearly 17 years, this neighborhood is best suited for buyers prioritizing appreciation and long-term upside over immediate cash flow. The Old Northwood analytics page details revenue by property type and booking patterns for those weighing a premium purchase.
| Gross yield | 6.0% |
| Annual revenue | $58,700 |
| Active-operator revenue | $57,717 |
| Occupancy | 53% |
| ADR | $271 |
| Median home value (YoY) | $978,300 (+13.3%) |
| Full-time listings | 35 |
Who this market is ideal for: Buyers seeking historic homes and strong appreciation potential, with patience for a longer payback.
4. Grandview Heights Neighborhood Association: Steady Bookings, Summer Resilience
Grandview Heights Neighborhood Association delivers a steady performance profile. Median annual revenue is $54,700, with occupancy at 52% and ADR at $298. Home values have dipped 5.8% to $940,400, which keeps gross yield at 5.8%, the 17th percentile nationally. What sets Grandview Heights apart is its balanced seasonality. Winter, spring, and summer each contribute at least 25% of annual revenue, with summer bookings holding up better than most city peers.
February is the high point for occupancy at 67% and ADR at $351, while September sees occupancy fall to 37%. The market’s momentum is positive. Occupancy is up 9%, ADR has soared 69%, and listings are down 17%. That combination signals strengthening demand and pricing power, even as supply contracts. The Grandview Heights analytics page provides a closer look at how these trends play out by property size and guest segment.
Buyers here are underwriting for stability. Payback is 18 years, but the area’s resilience across seasons appeals to those seeking consistent bookings year-round.
| Gross yield | 5.8% |
| Annual revenue | $54,700 |
| Active-operator revenue | $52,221 |
| Occupancy | 52% |
| ADR | $298 |
| Median home value (YoY) | $940,400 (-5.8%) |
| Full-time listings | 46 |
Who this market is ideal for: Buyers prioritizing year-round bookings and a walkable, established neighborhood feel.
5. Prospect Heights: Value Play with Spring Upside
Prospect Heights offers a more accessible entry point for investors. Median home value is $633,400, up 4.1% from last year, and gross yield stands at 5.6%. Annual revenue is $35,400, with occupancy at 56%, the second highest among ranked neighborhoods. ADR is lower at $188, but this is offset by a strong spring surge. March occupancy peaks at 75% and ADR hits $216, while spring and winter together deliver 67% of annual revenue.
In Prospect Heights, the most common property is a 1-bedroom, which earns $18,494 per year at a $110 ADR. Momentum is robust. Occupancy rose 18%, ADR climbed 64%, and listings fell 15%. For buyers seeking a shorter payback, Prospect Heights matches Grandview Heights at 18 years, but with a lower price point and a guest mix that leans toward value-focused travelers. The Prospect Heights analytics page reveals more on how bedroom mix and seasonality affect returns.
This is a fit for buyers who want a lower-cost entry and are comfortable with moderate, but rising, returns driven by seasonal demand.
| Gross yield | 5.6% |
| Annual revenue | $35,400 |
| Active-operator revenue | $35,271 |
| Occupancy | 56% |
| ADR | $188 |
| Median home value (YoY) | $633,400 (+4.1%) |
| Full-time listings | 48 |
Who this market is ideal for: Buyers seeking a value entry, strong spring bookings, and a neighborhood with upside momentum.
6. West Palm Beach Downtown Neighborhood Association: Urban Access, Lower Yields
Price-conscious investors will notice that this downtown market sits in the 7th percentile for gross yield among 501 US markets, with a median of 4.6% compared to the national median of 9.0%.
Home values average $598,400, reflecting a slight decline of 1.2% over the past year, and annual revenue for active operators is $26,834. The payback period stretches to roughly 22.3 years at current earnings, underscoring the premium buyers pay for central location and access to amenities rather than for high-yielding cash flow.
Seasonality shapes returns here, with occupancy peaking at 64% in February when average daily rates reach $254, then dropping to just 29% in May. Winter delivers the largest share of annual revenue at 37%, but spring and fall together still provide nearly half the year’s income, supporting steady demand from both leisure and business segments.
The bedroom mix is dominated by one-bedroom listings (50 out of 67 full-time), which generate $23,996 per year at a $172 ADR, while two-bedrooms command higher revenue at $27,044. The 10% listing drop over the year, alongside a 3% occupancy and 43% ADR jump in June, signals a market adjusting to tighter supply and rising rates, driven by ongoing demand for urban stays.
The Downtown analytics page shows how property size and location affect returns in this urban core.
Downtown is best for buyers who want proximity to events, nightlife, and business travelers, and are comfortable underwriting for lower yields in exchange for central access.
| Gross yield | 4.6% |
| Annual revenue | $27,400 |
| Active-operator revenue | $26,834 |
| Occupancy | 45% |
| ADR | $176 |
| Median home value (YoY) | $598,400 (-1.2%) |
| Full-time listings | 67 |
Who this market is ideal for: Buyers prioritizing urban access and business travel demand, with a tolerance for lower returns.
7. South End Neighborhood Association: High-End Homes, Seasonal Peaks
Price points in South End Neighborhood Association tower above the rest of West Palm Beach, with a median home value of $1,303,000 that has surged 16.3% year-over-year. This luxury comes with a tradeoff. The gross yield of 4.2% puts the neighborhood in just the 6th percentile nationally, far below the US median of 9.0%.
Still, occupancy rates here edge out the national median, averaging 48%, and the ADR of $278 outpaces most US markets, supporting headline annual revenues of $54,822 for all listings and $53,374 for active operators.
Seasonality shapes investor returns, as winter alone delivers 36% of annual revenue and February peaks at 82% occupancy with a $323 ADR, while September occupancy drops to just 36%. The dominant three-bedroom segment, with 24 active listings earning $62,589 per year at a $432 ADR, reflects a market catering to upscale, group-oriented travelers.
The payback horizon is lengthy, about 24.4 years at current gross revenues, so buyers should be prepared for a long-term hold. Recent trends show a 68% ADR jump and a 17% reduction in listings, indicating that tighter supply is enabling higher pricing, even as occupancy slipped 4% year-over-year. For a full breakdown of returns and seasonality, see the South End analytics page.
This neighborhood suits buyers with capital to invest in high-end properties who are focused on seasonal, high-paying guests and long-term appreciation.
| Gross yield | 4.2% |
| Annual revenue | $54,800 |
| Active-operator revenue | $53,374 |
| Occupancy | 48% |
| ADR | $278 |
| Median home value (YoY) | $1,303,000 (+16.3%) |
| Full-time listings | 83 |
Who this market is ideal for: Buyers seeking luxury inventory, high seasonal rates, and long-term appreciation potential.
8. Flamingo Park Neighborhood Association: Boutique Appeal, Compressed Returns
Price trends in Flamingo Park Neighborhood Association reflect its boutique, historic character, with a median home value of $1,156,400 and annual appreciation at 6.8%. The area delivers a median gross yield of just 3.9%, placing it in the 5th percentile nationally and well below the US median of 9.0%.
High nightly rates set this neighborhood apart, as the average daily rate hits $347, far above the US median of $232, while occupancy remains solid at 53%. These premium rates are driven by the unique, upscale inventory and the neighborhood’s established reputation for charm and exclusivity, which attracts guests willing to pay for a distinctive stay.
Seasonality plays a significant role in revenue generation, with March occupancy peaking at 75% and an ADR of $385, while September occupancy drops to 36%. Winter and spring together account for 61% of annual revenue, highlighting the importance of timing for maximizing returns.
Despite a 3% year-over-year dip in occupancy, ADR jumped 32% and listings fell 16%, indicating that tighter supply and higher pricing are offsetting softer demand. For underwriters, the ~26.1-year payback period signals a long-term hold strategy is essential, as compressed yields and high entry prices mean returns accrue slowly, but the market’s resilience in ADR growth demonstrates pricing power even in a shifting landscape.
The Flamingo Park analytics page details how boutique properties perform in this high-ADR, low-yield environment.
This neighborhood is a fit for buyers who value historic charm, are comfortable with a longer payback period (26.1 years), and want to target guests seeking a unique, upscale stay.
| Gross yield | 3.9% |
| Annual revenue | $44,600 |
| Active-operator revenue | $44,347 |
| Occupancy | 53% |
| ADR | $347 |
| Median home value (YoY) | $1,156,400 (+6.8%) |
| Full-time listings | 37 |
Who this market is ideal for: Buyers seeking boutique, historic properties and are comfortable with lower yields in exchange for premium rates.
How to read these rankings before you buy
Gross yield is a useful first filter, showing the relationship between annual rental revenue and home price, but it does not account for operating expenses, taxes, or vacancy risk. The headline revenue figure averages all listings in the neighborhood, while the active-operator benchmark filters to those with sustained booking activity, this is the number a committed buyer should use for underwriting. Occupancy and ADR are reported as medians and can mask wide variation by property type and season.
These rankings highlight which neighborhoods are outperforming at the median, but every property is unique. Seasonality, local guest demand, and property-specific amenities can drive results far above or below the median. Always verify at the property level, and use these rankings as a starting point for deeper due diligence.
How to Act on This
Buying a short-term rental in West Palm Beach means weighing more than just yield. Neighborhoods with high ADRs and luxury homes often require larger upfront investments and come with longer payback periods, but they can deliver strong appreciation and attract premium guests. More accessible areas like Dreher Park or Prospect Heights offer better yields and shorter payback horizons, but may see more competition and less upside from home value growth.
Seasonality is pronounced, with winter and spring driving the bulk of bookings. Investors should plan for slower months and ensure their underwriting reflects the city’s occupancy swings. Regulatory rules are in flux, buyers must verify current short-term rental regulations and HOA restrictions before committing. For all West Palm Beach properties, a 6% Palm Beach County Tourist Development Tax applies to stays under six months, in addition to state sales tax (6.5% in Palm Beach County).
Work with a local short-term rental agent who understands the nuances of each neighborhood and can help you navigate both compliance and guest demand. Connect with a West Palm Beach agent to get tailored guidance and unlock the right submarket for your goals.
