STR in Orlando vs Other Florida Areas

Carolina, RI · Member since 2016 · 4 posts · 7 votes

I have been looking at buying either a Condo or a House in the Orlando/Davenport area for a STR. We were looking at this area primarily due to us vacationing in this area 3-5 times a year however I am getting the feeling that the market is over saturated and may not be the best investment area. I don't want to carry a non-cash/minimal cash flowing asset when there may be better performing areas. What other areas of Florida would you recommend I look at for cash flowing STR properties? Also concerned about homeowners insurance in this area so perhaps should look in a different state (NC or SC). Thank you.

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Shawn McCormickPro Member

Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes

@Noelle Maine One of the big reasons buying a STR out of state is buying one in an are where you enjoy going. If you come to Orlando alot and will get good use out of the unit, that checks a big box. And being involved in your unit (maintenance, decor, repairs, guest experience) goes a long way to ensuring your success.

Orlando sees (currently) over 70 million visitors a year and with EPIC theme park just opening last week, next years numbers are sure to increase. So we do have more units than anywhere for good reason. You do have to be better than hotels and other units to stand out, get the reviews you need and offer what your competitors can't/won't. Other markets seem to be dwindling and over regulating, where Kissimmee/Davenport embrace STR. We are literally built for it.

I would second @John Underwood in saying to stay away from condos. They are too plentiful, the HOA will eat up all profit and you are directly competing with thousand of other small units and thens of thousands of hotel rooms.

You can cash flow here, but you make your money when you buy. Buy a unit in a great community and close to the parks, either commit to being the best host or hire the best PM and you can do it.

Best of luck

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Andrew Street
Member since 2019 · 1k+ posts · 292 votes
1y
Hey - Noelle! Totally understand your concerns — the Orlando/Davenport area is popular, but with how crowded the STR market is getting (plus those rising insurance costs), it's smart to explore other options. Florida still has some solid pockets for cash flow, but branching out to other states like NC or SC could definitely offer more stability and better returns.

It really comes down to your goals — personal use vs. pure cash flow — and how hands-on you want to be. I’ve been looking into a few different markets myself and would be happy to share what I’ve found.

Happy to connect anytime!
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
1y
I have heard over and over again how saturated Orlando is.
I would recommend a house over a Condo all day and twice on Sunday. There are many reasons why that have been posted on here in the past.
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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
1y
Quote from @Noelle Maine:

I have been looking at buying either a Condo or a House in the Orlando/Davenport area for a STR. We were looking at this area primarily due to us vacationing in this area 3-5 times a year however I am getting the feeling that the market is over saturated and may not be the best investment area. I don't want to carry a non-cash/minimal cash flowing asset when there may be better performing areas. What other areas of Florida would you recommend I look at for cash flowing STR properties? Also concerned about homeowners insurance in this area so perhaps should look in a different state (NC or SC). Thank you.
I own a house in 4 corners. It loses money every year. I consider it a luxury and I can use it while I'm making upgrades and repairs so that's a benefit, and I can afford it to lose money. I guarantee you will not cash flow especially if you plan on using it at all. I have personal reasons for keeping this STR - my father lives 10 minutes away - but if not I would sell it.
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
1y
Orlando is definitely over saturated. There are other markets in FL where you can cash flow. I have sold and managed for people who were like you looking in Orlando because they vacation there, into the Tampa market. You can be cash flow positive and be 45-60 mins from Kissimmee, if that is tolerable.

[email protected]813-563-0877
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Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 996 posts · 1k+ votes
1y
Orlando is the most saturated STR market in the country.
BUT
That means acquisition prices have come way down, both because of a saturation of listings for sale, and also lessor returns making people who bought at the top panic to get out even at lower prices.
I think there is pain to come for a lot of other STR markets, whereas Orlando has already had that pain in a lot of ways. More likely already at or near the bottom of home prices, whereas other markets could see a precitous drop if their performance doesn't turn around.
With that said, that means theming etc. If you're doing turn-key, Orlando ain't the place. A regular house here is like a crappy shack somewhere else, people aren't interested and your rates will be bottom of the barrel. Put a nice theater/game room and a couple theme rooms, you can do alright given how much home prices have come down. The people that bought in Champions Gate for $950k are getting crushed now. For $550k, it's more doable.
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Melissa HaworthBusiness Member
Real Estate Agent · The Panhandle | The Emerald Coast | Panama City Beach | Destin · Member since 2017 · 269 posts · 103 votes
1y
You're spot on to be thinking critically about saturation and long-term cash flow, especially with the Orlando/Davenport area being such a well-known STR hub. While it's great for personal use (and certainly magical for families), the sheer volume of listings can make it tougher to stand out unless you're offering something truly unique.

If your goal is stronger cash flow and less saturation, I’d suggest expanding your search to Florida’s Panhandle specifically Destin and Panama City Beach. These markets tend to fly a bit more under the radar for out-of-state investors, but they pack a serious punch in peak-season returns. We're talking beachfront appeal, strong tourism draw, and a bit more breathing room when it comes to competition. Plus, many properties here are either fully managed or Airbnb-ready, making them investor-friendly.

You mentioned concerns about insurance and that’s fair. Rates have crept up across Florida, but the Panhandle can sometimes offer more manageable premiums compared to South Florida. Still, it’s wise to get quotes early in your due diligence process to avoid surprises.

As for out-of-state alternatives: parts of the Carolinas are solid bets, especially the mountain or coastal markets in NC (think Asheville or the Outer Banks), but Florida's no state income tax and year-round beach demand still give it a leg up for many investors.

Happy to chat more if you’d like any specific numbers or market insights
[email protected]469-658-2869
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Shawn McCormickPro Member
Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
1y
@Noelle Maine One of the big reasons buying a STR out of state is buying one in an are where you enjoy going. If you come to Orlando alot and will get good use out of the unit, that checks a big box. And being involved in your unit (maintenance, decor, repairs, guest experience) goes a long way to ensuring your success.

Orlando sees (currently) over 70 million visitors a year and with EPIC theme park just opening last week, next years numbers are sure to increase. So we do have more units than anywhere for good reason. You do have to be better than hotels and other units to stand out, get the reviews you need and offer what your competitors can't/won't. Other markets seem to be dwindling and over regulating, where Kissimmee/Davenport embrace STR. We are literally built for it.

I would second @John Underwood in saying to stay away from condos. They are too plentiful, the HOA will eat up all profit and you are directly competing with thousand of other small units and thens of thousands of hotel rooms.
You can cash flow here, but you make your money when you buy. Buy a unit in a great community and close to the parks, either commit to being the best host or hire the best PM and you can do it.
Best of luck
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- JD MartinBusiness Member
  Moderator
  Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
  1y
  Quote from @Shawn McCormick:
  
  @Noelle Maine One of the big reasons buying a STR out of state is buying one in an are where you enjoy going. If you come to Orlando alot and will get good use out of the unit, that checks a big box. And being involved in your unit (maintenance, decor, repairs, guest experience) goes a long way to ensuring your success.
  
  Orlando sees (currently) over 70 million visitors a year and with EPIC theme park just opening last week, next years numbers are sure to increase. So we do have more units than anywhere for good reason. You do have to be better than hotels and other units to stand out, get the reviews you need and offer what your competitors can't/won't. Other markets seem to be dwindling and over regulating, where Kissimmee/Davenport embrace STR. We are literally built for it.
  
  I would second @John Underwood in saying to stay away from condos. They are too plentiful, the HOA will eat up all profit and you are directly competing with thousand of other small units and thens of thousands of hotel rooms.
  You can cash flow here, but you make your money when you buy. Buy a unit in a great community and close to the parks, either commit to being the best host or hire the best PM and you can do it.
  Best of luck
  
  We are doing somewhat better than last year and our guests are reporting spending and enjoying a lot of time at the new Universal, but we are still down from 2022 and 2023.
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  Skyline Properties
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Talita Belardo
Property Manager · Memories Vacation Home Management LLC · Member since 2025 · 6 posts · 4 votes
1y
Hi @Noelle Maine

I completely understand your concerns — the Orlando/Davenport area is definitely popular for short-term rentals, which means it's competitive, but with the right property and strategy, it can still be a strong investment.

If you're still considering your options, I’d love to help. I specialize in short-term rental management here in Florida and also assist investors in identifying the best-performing areas and properties — whether in Central Florida or elsewhere in the state.

If you have a few properties you’re looking at (in Florida or even in other states), I’d be happy to run a free rental income estimate for each one so you can see which has the best potential for cash flow. This might help guide your decision before you buy — no strings attached.

Let me know if you'd like me to take a look — I’m happy to help!

Warm regards,
Talita
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