Roatán Airbnb ROI: Real Vacation Rental Numbers from the Island
Daniellie Hynds
April 9, 2026 · 12 min read
What does vacation rental income actually look like on a Caribbean island where property prices haven't caught up yet? Here are the numbers — based on properties we've managed and sold since 1998.
The pitch for Caribbean vacation rental investing usually starts with a sunset photo and ends with a projected return that no one can verify. We're going to skip the sunset and go straight to the math.
Roatán sits in a sweet spot that's hard to find in the Caribbean: property prices that are still accessible, a proven tourism market anchored by the world's second-largest barrier reef, and carrying costs low enough that your rental income doesn't get eaten alive by taxes and HOA fees before you see a return.
Here's what the numbers actually look like.
The Nightly Rate Range
Vacation rental rates on Roatán vary by property type, location, and season. Based on properties we've managed and sold since 1998, here are the ranges you can realistically expect:
Condos (1–2 bedroom, West Bay / West End):
High season (December–April): $150–$300/night
Low season (May–November): $90–$175/night
Homes (2–4 bedroom, beachfront or ocean view):
High season: $250–$600/night
Low season: $150–$350/night
Luxury properties (4+ bedroom, premium locations):
High season: $500–$1,200+/night
Low season: $300–$700/night
These aren't aspirational numbers from a listing optimizer — they reflect what guests actually pay on Airbnb, VRBO, and direct bookings for well-maintained, well-marketed properties on the island.
Occupancy: The Seasonal Reality
Roatán has a strong vacation rental market with clear seasonal patterns. High season runs December through April, driven by North American winter travelers, spring breakers, and the diving community.
Realistic occupancy expectations for a well-managed property:
High season (Dec–Apr): 70–85% occupancy
Shoulder months (Nov, May): 50–65% occupancy
Low season (Jun–Oct): 35–55% occupancy
Annual blended average: 55–70% for a well-marketed property
The island doesn't shut down in low season the way some Caribbean destinations do. Roatán's reef diving is year-round, the cruise ship port brings day visitors, and a growing digital nomad population is extending stays beyond the traditional tourist calendar. But your financial model should be built on conservative occupancy assumptions — the upside takes care of itself.
The Cost Side: What Eats Into Your Return
This is where most Caribbean investment pitches fall apart. They show you gross rental income and quietly skip the expenses. Here's the full picture:
Property management: 20–30% of rental income
Full-service management on Roatán includes marketing, booking management, guest communication, cleaning coordination, maintenance, and monthly reporting. The 20–30% range is standard for the island. Some owners self-manage from abroad using a local caretaker, but most investors — especially those who don't live on-island — find that professional management more than pays for itself in higher occupancy and fewer headaches.
Property taxes: 0.25–0.35% of municipal value annually
This is one of Roatán's biggest advantages. Municipal assessments are typically well below market value, so the actual annual tax bill on a $300,000 property might run $300–$500. Compare that to Florida, where you'd pay $3,000–$6,000+ on the same value.
Closing costs (one-time): ~4–5% of purchase price
Legal fees (1–2%), transfer tax (1.5%), registration (0.3%), notary, and title insurance. Budget this into your acquisition cost.
Utilities and maintenance: $300–$800/month
Electricity, water, internet, cleaning supplies, pool maintenance (if applicable), and general upkeep. Power infrastructure has improved significantly but backup generators and water cisterns are standard — factor replacement costs into your long-term budget.
Insurance: Varies by property type and coverage level. Available from international carriers.
Platform fees: Airbnb takes 3% from hosts (plus guest fees). VRBO charges 5–8% or a flat subscription. Direct bookings avoid these but require marketing investment.
Running the Numbers: A $300K Condo Example
Let's model a realistic scenario for a 2-bedroom West Bay condo purchased at $300,000:
Gross rental income (conservative):
High season (5 months × 75% occupancy × $200/night × 30 days) = $22,500
Low season (7 months × 45% occupancy × $130/night × 30 days) = $12,285
Annual gross: ~$34,800
Annual expenses:
Property management (25% of gross): $8,700
Property taxes: ~$400
Utilities and maintenance: $6,000
Insurance: $1,200
Platform fees (avg 4%): $1,392
Reserves for repairs/replacement: $2,000
Total expenses: ~$19,700
Net operating income: ~$15,100
Net yield on $300K purchase: ~5.0%
That's a conservative number. Properties in prime locations with strong reviews and professional photography often outperform these assumptions. And the 5% yield doesn't account for property appreciation — which, while not guaranteed, has been positive in Roatán's key neighborhoods over the past decade.
How This Compares to Other Markets
The Roatán math looks different from comparable Caribbean and warm-weather markets because the entry cost is lower and the carrying costs are dramatically lower:
Roatán | Florida (Gulf Coast) | Cabo San Lucas | Tulum | |
|---|---|---|---|---|
Entry price (2BR condo) | $250–$400K | $350–$600K | $300–$500K | $200–$400K |
Annual property tax | $300–$500 | $3,000–$6,000+ | $500–$1,500 | $300–$800 |
Management fees | 20–30% | 20–35% | 25–35% | 25–40% |
HOA/maintenance | $200–$500/mo | $300–$800/mo | $200–$600/mo | $150–$400/mo |
Foreign ownership | Full rights | Full rights | Fideicomiso trust required | Fideicomiso trust required |
Capital gains tax | 10% | 15–20% (federal) | 25–35% | 25–35% |
The combination of full foreign ownership rights (no trust structure needed), low property taxes, and accessible entry prices makes Roatán's risk-adjusted return compelling — especially for US investors already familiar with Caribbean tourism demand.
What Makes a Property Perform Well
Not every property on the island generates strong rental returns. The ones that do share a few characteristics:
Location matters most. West Bay beachfront and West End walkable properties consistently outperform. Proximity to the reef, restaurants, and dive shops drives bookings. Remote properties need to be significantly cheaper to justify the occupancy trade-off.
Professional photography is non-negotiable. Listings with professional photos get 2–3x the click-through rate. On an island this photogenic, there's no excuse for phone photos.
Reviews compound. The first 10–15 five-star reviews create a flywheel effect. Early pricing strategy (slightly below market to build velocity) pays dividends in long-term occupancy.
Maintenance is your moat. In a tropical climate, things corrode, leak, and break faster. Properties that are consistently well-maintained earn repeat guests and higher ratings. Deferred maintenance shows up in reviews before it shows up in your inspection.
The Buying Process Is Simpler Than You Think
The typical purchase takes 30 to 60 days. Foreigners can own property with the same rights as citizens. Power of attorney is standard for international buyers who can't be present at closing. Title insurance is available from international companies.
Total closing costs run approximately 4–5% of purchase price. There are no surprise fees when you work with the right team.
We've written a complete step-by-step guide: How to Buy Property in Roatán: The Complete 2026 Guide →
Is Now the Right Time?
High season is winding down, which means two things for buyers: sellers are motivated after peak showing season, and you'll have time to close and prepare for next winter's rental calendar. The smartest investors we work with buy in the shoulder months and launch their listings before high season returns in December.
Roatán isn't a speculative play — it's a cash-flow play on an island with proven tourism demand, a growing infrastructure, and property prices that still have room to move. The math works today. Whether it works better or worse next year depends on how quickly the rest of the market catches on.
Browse investment properties →
Talk to our team about rental income potential → — We'll run the numbers on specific properties with you.
Roatan Real Estate by Advantage has been the island's trusted brokerage since 1998. All figures in this article are based on our brokerage's experience managing and selling vacation rental properties on Roatán. Individual results vary based on property type, location, management, and market conditions. This article is for informational purposes and does not constitute financial or investment advice.
