Cape Coral, FL, a popular vacation destination, has emerged as one of Florida’s most dynamic short-term rentals (STR) investment markets. With more than 400 miles of navigable canals, direct Gulf access, and a lifestyle built around marinas, dining, and recreation, the city offers a blend of affordability and waterfront living. For investors, the question isn’t whether Cape Coral is attractive; it is which neighborhoods deliver the best mix of occupancy, nightly rates, and long-term growth potential.
Demand here is highly segmented. Luxury waterfront homes near marinas command premium average daily rates (ADR), while centrally located pool homes capture family travel at lower price points. Seasonality is pronounced, but amenityârich communities like Cape Harbour and Tarpon Point smooth out the shoulder months with their “dinnerâandâdock” lifestyle. Add in Cape Coral’s ranking among the top U.S. housing markets for 2025, and the city stands out as a destination where lifestyle appeal and yield converge.
Cape Coral ranked among the top U.S. housing markets for 2025 (Realtor.com), reinforcing its attractiveness for STR investors. Gross yields in leading ZIP codes are often in the 8–9% range, with premium waterfront properties commanding the highest average daily rates (ADRs).
What’s Hot Right Now
- Gulfâaccess waterfront with heated pools and docks. Highest ADRs and weekend occupancy; proximity to marinas and quick access to open water are key.
- Walkable marina/resort nodes (Cape Harbour, Tarpon Point). The “dinnerâandâdock” lifestyle sustains bookings beyond peak months. Guests actively filter for “marina” and “walkable dining.”
- Renovated 3–4BR homes for family groups. Flexible layouts for multi-week stays. Petâfriendly features and fenced yards add measurable lifts in bookings.
- Southeast beachâadjacent (Yacht Club, Downtown Cape Coral). Strong demand for short stays, nightlife, and eventâdriven travel.
- 33904 and 33914 offer the best mix of occupancy and ADR. Fast Gulf access, marinas, and walkability drive conversion and repeat bookings.
- 33990 and 33993 offer lower entry prices and strong pool amenity packages. These areas are groupâfriendly but expect ADR discounts compared to prime waterfront.
HighestâDemand Areas and Why
|
Area / ZIP |
Neighborhood Focus |
Booking Drivers |
Typical Property Type |
|---|---|---|---|
|
Southeast Cape – 33904 |
Yacht Club, Downtown, Four Freedoms Park |
Beach access, nightlife, fast boating access, bridges to Fort Myers & Sanibel |
Waterfront singleâfamily homes with pools; renovated midâcentury |
|
Southwest Cape – 33914 |
Cape Harbour, Pelican, Rose Garden/Tarpon Point |
Marinas, resort dining, boardwalks, premium canal homes |
Newer 3–4BR canal homes with docks and heated pools |
|
Central Cape – 33990 |
Midpoint bridge access, central amenities |
Familyâfriendly, dayâtrip convenience |
3BR pool homes; value waterfront with longer canal runs |
|
Northwest Cape – 33993 |
Burnt Store Rd growth corridor |
Larger lots, newer builds, budgetâfriendly for groups |
New construction pool homes; some freshwater canal front |
|
North Cape – 33909 |
Highway access, affordability |
Budget stays, work crews, midâweek occupancy |
3BR nonâwaterfront homes; townhomes |
Final Thoughts
For investors, the choice comes down to balancing premium ADRs in luxury waterfront ZIPs with valueâdriven yields in emerging corridors. With Cape Coral’s continued growth and national recognition, the city remains a compelling destination for STR investment.
If you’re ready to identify the best areas of Cape Coral for your STR portfolio, let’s connect. With deep knowledge of waterfront communities, builder incentives, and buyer psychology, I can help you pinpoint the neighborhoods that deliver both lifestyle appeal and strong returns.
Reach out today to explore your next Cape Coral investment opportunity — and position your property for maximum occupancy and yield.