Why Lake Worth Beach Is a Hidden Gem for Short-Term Rental Investment

When most people think of South Florida real estate, their minds go straight to Palm Beach or Miami. But if you’re an investor looking for high returns, a vibrant community, and major coastal lifestyle appeal, Lake Worth Beach deserves a spot at the top of your list. 🌴✨

This eclectic, artsy, and beachside town has quietly become one of the best short-term rental (STR) investment opportunities in Palm Beach County—and savvy investors are starting to take notice. Let’s dive into what makes Lake Worth Beach a hidden gem for Airbnb and vacation rentals.

1. Location, Location… and Lifestyle 🏖️

Lake Worth Beach is perfectly situated between West Palm Beach and Delray Beach—two highly popular destinations that often come with higher price tags. Here, you’ll find:

• Direct beach access with a lively pier, sandy stretches, and turquoise waters.

• A thriving downtown district filled with restaurants, coffee shops, and live music.

• Easy access to boating, golf courses, and farmer’s markets.

It’s the kind of place that attracts year-round visitors—snowbirds in the winter, families in the summer, and festival-goers all year long. For STR owners, that means steady occupancy rates and happy guests.

👉 Want more lifestyle inspo? Check out our Best Neighborhoods in West Palm Beach for Airbnb guide.

2. Affordable Entry Point Compared to Palm Beach

While Palm Beach Island real estate is iconic, it’s also out of reach for many investors. Lake Worth Beach offers a more accessible price point, giving investors the chance to own a coastal property without breaking the bank.

Plus, homes here have plenty of character—historic cottages, Spanish-style bungalows, and colorful beach houses that photograph beautifully for Airbnb listings.

👉 Pro tip: We can help you find the right STR-ready property and even guide you through Airbnb design tips to maximize bookings.

3. Strong Tourism & Community Events 🎨🎶

Lake Worth Beach is more than just sand and surf. It’s known for its vibrant arts scene and community events, like:

• The annual Street Painting Festival (one of the largest in the U.S.)

• Weekly Green Markets

• Cultural performances at the Lake Worth Playhouse

These attractions bring in visitors who want more than just a “day at the beach”—they’re looking for a local, cultural experience. And short-term rentals are the perfect fit for that kind of traveler.

4. Investor-Friendly Market Dynamics 💡

Palm Beach County continues to see rising demand for vacation rentals, thanks to Florida’s tourism-friendly policies and no state income tax. Lake Worth Beach is especially appealing because:

• It offers higher cap rates compared to neighboring luxury markets.

• There’s a strong mix of local and tourist demand, ensuring bookings year-round.

• The city has a supportive vibe toward the vacation rental community (with guidelines you’ll want to understand—don’t worry, we’ll walk you through them).

For investors, that means better cash flow potential and long-term appreciation.

💡 Case Study: The Palmway Hideaway — A Real Example of STR Success in Lake Worth Beach

One of the best examples of how profitable Lake Worth Beach short-term rentals can be is The Palmway Hideaway, a beautifully renovated 3-bedroom, 2-bathroom pool home located just minutes from the Intracoastal and downtown.

Purchased for $600,000, this property has proven to be a true income-producing asset—generating over $94,000 in gross rental income in the past 12 months alone.

With a heated pool, covered patio lounge, and bright tropical design, Palmway Hideaway consistently attracts families, couples, and groups seeking that laid-back coastal vibe Lake Worth Beach is known for. Strong year-round occupancy and repeat guests have made this property a standout performer in SoFlo Coastal Stays’ portfolio.

You can explore the full property and see what makes it such a guest favorite here:
👉 View The Palmway Hideaway

Key Takeaways:

• 📈 Annual Revenue: $94,000

• 💰 Purchase Price: $600,000

• 🌴 ROI Driver: High occupancy + premium nightly rates from design-forward amenities

• 🏖️ Location Advantage: 5 blocks from the Intracoastal & minutes to downtown Lake Worth Beach

Why Work With SoFlo Coastal Group? 🌊

At SoFlo Coastal Group, we specialize in helping buyers, sellers, and investors unlock the potential of Palm Beach County real estate. Whether you’re looking to buy your first STR, scale your portfolio, or need co-hosting and management support, we’ve got you covered.

✨ We don’t just sell homes—we help you build vacation rental businesses that thrive.

📲 Ready to explore Lake Worth Beach STR opportunities? Call or DM me today:

Melissa Naman, REALTOR®
📲 732.754.9323
🔗 @melissa.buy.sell.invest