Fenwick Island, Delaware Short-Term Rental Market
Fenwick Island, DE STRs averaged $269/night at 35.3% occupancy in April 2026, peaking at $345/night in July.
Quick Answer: Fenwick Island, Delaware is an active short-term rental market. average occupancy is 35%. average monthly revenue is $2,084. average daily rate is $269. the top operator is Vacasa with 2,346 listings. market score is 49/100 (grade D).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Fenwick Island is a small coastal town at Delaware’s southern border, part of what is marketed as ‘The Quiet Resorts’ alongside Bethany Beach and South Bethany. With a year-round population of just 389, the town swells dramatically each summer as second-home owners and vacation renters fill the stock of beach properties that dominate local inventory.
In April 2026, the market posted a 35.3% average occupancy rate and a $268.61 average daily rate, yielding a RevPAR of $94.77. Average monthly revenue per listing was $2,084. Year-over-year, occupancy declined 12.5 percentage points and revenue fell 9.4%, while ADR rose 9.2% — a pattern reflecting fewer booked nights at higher nightly prices, which can indicate demand softening or seasonal timing differences.
The inventory is almost entirely entire-place listings: 14,952 of approximately 15,095 tracked units are entire-place, with just 154 private rooms and 1 shared room. VRBO-only listings (3,920) slightly outnumber Airbnb-only (2,610), while 8,577 properties appear on both platforms. Two-bedroom properties are the most common (4,712 units), closely followed by 3-bedroom (4,397), then 4-bedroom (2,232), 1-bedroom (2,126), and 5-bedroom (1,628). The overall market score is 48.7, with revenue growth at 91.5 — one of the strongest growth signals in the data — partly offset by lower rental demand (47.5) and seasonality (42.6) scores.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 25% | $272 | $2,023 |
| Feb | 35% | $256 | $2,004 |
| Mar | 40% | $249 | $2,030 |
| Apr | 39% | $262 | $2,334 |
| May | 47% | $304 | $2,768 |
| Jun | 70% | $349 | $5,336 |
| Jul | 79% | $345 | $6,758 |
| Aug | 78% | $342 | $6,733 |
| Sep | 45% | $282 | $3,338 |
| Oct | 26% | $249 | $2,040 |
| Nov | 25% | $256 | $1,898 |
| Dec | 31% | $277 | $2,111 |
Top Short-Term Rental Operators in Fenwick Island
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 2,346 | 60,626 | ★ 4.36 |
| 2 | Coastal Resort Rentals | 355 | 1,646 | ★ 4.39 |
| 3 | Shoreline Properties | 349 | 1,861 | ★ 4.28 |
| 4 | Central Reservations | 328 | 4,890 | ★ 4.53 |
| 5 | VacayHome Connect | 312 | 593 | ★ 4.18 |
What Kind of STR Should I Buy in Fenwick Island?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 2,126 |
| 2 bed | 4,712 |
| 3 bed | 4,397 |
| 4 bed | 2,232 |
| 5 bed | 1,628 |
ADR by Property Tier
| Entire Home | $271 |
| Luxury | $391 |
| Professionally Managed | $287 |
Revenue by Dwelling Type
| Apartment | $1,784 |
| Entire Place | $2,098 |
| House | $2,685 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 17.3% |
| vrbo | 25.9% |
| both | 56.8% |
Investment Analysis
At a typical home value of $1,019,244 for the Fenwick Island area, STR investment requires significant upfront capital. Using the April 2026 average monthly revenue of $2,084, an annualized figure of approximately $25,008 implies a gross yield of roughly 2.5% — well below the threshold where STR income alone covers a mortgage. Summer peak performance substantially changes the picture: July revenue averages $6,758 per listing, and the three core summer months (June through August) together average over $6,200 per month, which means the bulk of annual income concentrates in a narrow window.
Houses outperform apartments: houses average $2,685 per month versus $1,784 for apartments, a $901 gap. Entire-place listings average $2,098. At the luxury tier, average nightly rates reach $391.23, a 46% premium over the all-listing $268.61. Professionally managed properties average $286.75 per night, a modest 7% premium over the market average.
The revenue growth score of 91.5 and ADR growth of +9.2% year-over-year suggest pricing power remains intact even as occupancy contracted. Investors considering entry should weigh the compressed yield against property appreciation potential in a high-value coastal market with limited land supply.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Fenwick Island STR guests book an average of 52.4 days in advance, giving operators a roughly 7-to-8-week pricing window before a reservation is confirmed. This lead time is typical for a coastal vacation market where peak-week bookings (Fourth of July, Memorial Day, Labor Day) are often reserved several months out, while shoulder-season stays fill closer to the arrival date.
Average length of stay is 3.38 nights, consistent with a mix of long-weekend and short-vacation demand rather than full-week rentals. At 3.38 nights per booking and 35.3% occupancy in April (approximately 10-11 booked nights per month), operators average 3 bookings per month in shoulder season. In peak July at 79% occupancy, that rises to roughly 7 bookings per month at 3.38 nights each. The near-weekly average stay also suggests that 7-night minimum policies during peak weeks may be practical for maximizing revenue while reducing turnover costs during the highest-demand period.
Short-Term Rental Regulations
Short-term rentals are legal in Fenwick Island and permitted townwide for licensed owners, but every owner who rents must obtain a Town rental license annually and remit lodging taxes. The Town offers separate short-term and long-term rental license applications. The rental landlord license fee is $185, renewed each calendar year (due January 1).
Owners file a Short Term Gross Rental Tax form twice annually — due May 30 and November 30. Effective January 1, 2026, total lodging taxes for short-term rentals were set at 12%, equalized with the hotel rate. This breaks down as approximately 4.5% Delaware state lodging tax (effective January 1, 2025) plus a 7.5% town local rate.
There is no owner-occupancy requirement, no primary-residence requirement, and no identified cap on annual rental nights. No cap or moratorium on total STR units was found in the available data. Enforcement focuses on common compliance issues: noise, parking, trash management, permit display, and unremitted taxes; penalties include fines, permit suspension, or legal action. Enforcement severity is rated moderate.
Investors should confirm current requirements and any zone-specific limits directly with Fenwick Island Town Hall at 302-539-3011.
Market Comparison
Fenwick Island’s April 2026 occupancy of 35.3% is below the U.S. STR median of approximately 55%, but April is deep off-season for this market — the same property will run at 79% in July. The $268.61 ADR is modestly above the national median of approximately $220, consistent with premium coastal pricing.
The occupancy year-over-year decline of 12.5 percentage points is notable and warrants attention. ADR growth of +9.2% suggests operators are raising rates, but the net effect is a 9.4% revenue decline — fewer nights at higher prices. Whether this reflects demand softening, increased competition, or seasonal calendar shifts is not determinable from the data alone.
Vacasa dominates professional management here with 2,346 listings and a 4.36 average rating across 60,626 reviews — by far the largest operator. Coastal Resort Rentals (355 listings, 4.39 rating) and Shoreline Properties (349 listings, 4.28 rating) are the next largest. Central Reservations operates 328 listings at a 4.53 rating. Together, the top four operators account for approximately 3,378 listings, representing roughly 22% of the estimated total inventory.
Frequently Asked Questions About Fenwick Island, Delaware
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