Bethany Beach, DE

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  • Performance
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Key Performance Metrics

Market snapshot

Performance indicators for the Bethany Beach short-term rental market based on reliable data.

Listings

652 / 2239

Reliable / Active

Cap Rate

2%

Middle-Earners Gross Yield

Revenue

$22,195

Middle-Earners Revenue

Occupancy

53%

Middle-Earners Occupancy

Home Value

$929,479

Median Home Sale Price

Top Earners

$59,213

Top-Earners Revenue

Bethany Beach

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Bethany Beach.

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B

Generally Investor friendly

Bethany Beach Regulations

Bethany Beach clearly permits STRs with a straightforward per‑unit license ($100) and semi‑annual tax remittance; compliance involves safety certification and routine local (7%) plus state (4.5%) taxes, with no meaningful caps. The overall tax burden (≈11.5%) and moderate requirements make it friendly but not extremely investor‑friendly.

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About Bethany Beach

Bethany Beach is a small coastal town in Sussex County, Delaware, situated along the Atlantic Ocean. It has a year-round population of approximately 1,000 residents, though that figure swells dramatically during the summer months when vacationers descend on its wide, sandy beaches. Known as one of Delaware's "Quiet Resorts," Bethany Beach has a family-friendly, low-key atmosphere, offering a more relaxed alternative to some of the busier beach destinations up and down the coast. The town serves as a popular gateway to the broader Delaware Beaches and is located roughly 120 miles, or about a two-and-a-half-hour drive, from major mid-Atlantic cities including Washington, D.C., Baltimore, and Philadelphia.

One of the area's marquee outdoor attractions is Delaware Seashore State Park, which flanks Bethany Beach to the north and south. The park offers swimming, surfing, and sunbathing on its oceanfront beaches, along with kayaking, paddleboarding, and fishing on the bayside. A short drive south of town brings visitors to the Indian River Life-Saving Station, a restored 1904 U.S. Life-Saving Service station that now serves as a museum chronicling shipwreck rescues along the Delaware coast. The station, operated by Delaware State Parks, offers guided tours during the summer season.

Just up the coast, about 10 miles north of Bethany Beach, lies Rehoboth Beach, a slightly larger and livelier beach town known for its mile-long boardwalk, amusement arcades, and tax-free outlet shopping. Further north, near the historic town of Lewes, Cape Henlopen State Park features miles of walking and biking trails, a World War II-era observation tower, and beaches where visitors can sometimes spot dolphins swimming offshore. To the south, about a 30-minute drive across the Maryland border, Assateague Island National Seashore is famous for its wild horses that roam the dunes and marshes, offering a memorable day trip for nature lovers and families.

For short-term rental owners, Bethany Beach offers an appealing combination of small-town charm, family-oriented beaches, and proximity to a varied slate of nearby attractions. The town's quieter atmosphere draws multi-generational families and repeat vacationers, while its central position along the Delaware coast puts guests within easy reach of state parks, historic sites, and the busier entertainment options of neighboring Rehoboth Beach. With a steady summer season, modest shoulder-season appeal, and a strong drive-to market from the major mid-Atlantic population centers, Bethany Beach presents a balanced and dependable base for vacation rental investment.

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