SW Cape Coral (Gulf-access)

The most desirable quadrant - direct sailboat/Gulf-access canal homes that command a 40-80% premium and generate the strongest short-term-rental income, with no citywide STR ban making Cape Coral unusually investor-friendly.

The highest wind/flood insurance in the city ($8K-20K+/yr in AE/VE zones), older seawalls, and correction-driven price softening; verify the FEMA flood zone, seawall condition, and run STR income net of 20-30% management and 15-25% vacancy, not gross. As of January 2026, Citizens now requires flood insurance for wind coverage on homes insured at $400K+, and combined wind-plus-flood premiums can run $4,500-8,000+ a year - underwrite the full insurance cost, not just the mortgage.

Short-term-rental investors with a 5+ year horizon who correctly budget coastal insurance and manage actively.