Buying a Vacation Home on Anna Maria Island to Rent: Can It Pay for Itself?
Anna Maria Island is one of Florida’s most desirable coastal markets, and owning a vacation home here isn’t just a lifestyle upgrade — it can be a smart investment. Let’s break down the numbers using an example: a $2.55 million empty lot currently listed on the island.
Initial Investment Breakdown
Lot Price: $2,550,000
Hypothetical Down Payment (30%): $765,000
Estimated Build Cost (Luxury 4–6BR Home): $1,500,000–$2,000,000
Total Investment Range: $4.05M–$4.55M
Loan Amount (70% of lot + build): ~$3M
Estimated Monthly Mortgage (6.5% over 30 years): ~$18,960
Rental Income Potential
High Season (Dec–Apr): $1,800–$2,500/night
Mid Season (May–Aug): $1,200–$1,600/night
Low Season (Sep–Nov): $800–$1,000/night
Average Occupancy: 65–75% annually
Estimated Gross Income:
High-end: ~$450K–$550K/year
Mid-range: ~$300K–$400K/year
Operating Costs & Fees
Property Insurance: $12,000–$18,000/year
VRBO/Airbnb Fees: ~3% of gross income
Cleaning Fees: $200–$300 per turnover
Pool Maintenance: $150–$250/month
Lawn Care: $100–$200/month
Utilities & Internet: $500–$800/month
Sales & Tourist Tax: ~12% of rental income
Repairs & Reserve: ~$10,000/year
Estimated Annual Expenses: ~$80K–$120K (excluding mortgage)
Owner Use vs. Rental Strategy
You can block off 4–6 weeks per year for personal use — holidays, birthdays, or just beach resets — and still maintain strong rental performance. The key is to avoid peak season blackouts unless you’re willing to trade income for lifestyle.
Payoff Timeline
Assuming:
$4.3M total investment
$400K gross rental income
$100K operating costs
$300K net income annually
Estimated Payoff Time: ~14–15 years (excluding appreciation and tax benefits)
Owning a vacation rental on Anna Maria Island is a blend of lifestyle and long-term strategy. With smart scheduling, professional management, and realistic expectations, your beach home can pay for itself — and still leave room for sunset cocktails on the lanai.
Disclaimer: Information is based on Zillow and local Anna Maria Island Real Estate listings, and public information. We use a simple mathematical formula to calculate our number. We do our best to provide accurate information.
