Tamarindo, Jacó, Santa Teresa, Manuel Antonio, La Fortuna and the Central Valley compared: what drives demand, who the guests are and what to check before you buy.
Not every Costa Rican beach town is a good rental market. Demand, competition, access and what guests will pay differ a great deal from one place to the next, and a home in the wrong spot can sit empty while one a few kilometres away stays booked.
This guide compares the main rental markets: what drives demand in each, who the guests are, and what to check before you buy. It does not rank them by a single number, because published performance figures disagree and change. It gives you a way to compare them and the questions to ask.
The short answer. The busiest, most established markets are Tamarindo and the Guanacaste coast, Jacó on the Central Pacific, Santa Teresa and the southern Nicoya Peninsula, and Manuel Antonio. La Fortuna is the main inland market. The Central Valley suits long-term and furnished rentals instead. The best market for you depends on the guest you are targeting and how much work you want to put in.
What the data says, and its limits
Two analytics providers estimate Costa Rica’s average short-term rental occupancy at roughly 44% to 50% and average nightly rates at roughly $204 to $208 across the country. Their methods, listing counts and time periods differ, so treat these as a broad picture, not a forecast. One provider reports that Jacó and Tamarindo are the markets with the most active listings, about 2,000 and about 1,400 respectively, which means they are busy but also competitive.
Two things follow from this. First, average occupancy is lower than many marketing brochures suggest, so model conservatively. Second, a well-located, well-managed property can beat the average, and a poorly located one will fall well short of it. Our guide to what owners really pay shows what is left after costs.
The main markets compared
| Market | What drives demand | Typical guest | What to watch |
|---|---|---|---|
| Tamarindo and Playa Langosta | Surf, restaurants, nightlife, the airport in Liberia about an hour away. | International visitors, families, groups. | The most competition; location within town matters a great deal. |
| Playas del Coco, Hermosa and Papagayo | Airport proximity, diving, resorts and golf. | Families and couples from North America. | Resort-area rules and fees; quieter off-season. |
| Santa Teresa and Mal País | Surf, yoga and wellness, a bohemian atmosphere. | Younger travellers, remote workers, longer stays. | Long drive and ferry or road access, unpaved roads and dust, fewer services. |
| Jacó, Hermosa and Herradura | Closest beach to San José (roughly two hours by Route 27), surf and nightlife. | Domestic weekenders as well as international visitors. | Busier, more urban feel; weekend and holiday peaks. |
| Manuel Antonio and Quepos | National park, wildlife, ocean views. | International tourists, couples, families. | Hilly terrain and access; a well-established, competitive market. |
| La Fortuna and Arenal | Volcano, hot springs and adventure tourism. No beach. | International tourists, families. | Inland and rainier; different guests from the coast. |
| Nosara | Surf, yoga and wellness. | Wellness travellers, longer stays. | Limited access and supply; very location-sensitive. |
| Escazú and Santa Ana | Corporate relocations, expats, medical and business visitors. | Furnished long-term tenants. | Steadier, lower-variance income than vacation rentals; not a holiday market. |
Market by market
Tamarindo and Guanacaste
Tamarindo is the largest and most visible market in Guanacaste, with the airport close by and a full town around it. It is a good fit if you want a proven rental location and are prepared for competition. See our Tamarindo guide and our Guanacaste buyer’s guide for the neighborhoods.
Santa Teresa and the southern Nicoya Peninsula
Santa Teresa and Mal País attract surfers, remote workers and wellness travellers, and they have a distinctive character. The trade-off is access and infrastructure: the trip is long, many roads are unpaved, and services are thinner than in Tamarindo or Jacó.
Jacó and the Central Pacific
Jacó is the closest beach to San José, which gives it strong weekend and holiday demand from Costa Ricans as well as from international visitors. It is a busier, more urban beach town than Santa Teresa or Nosara, and the quieter beaches nearby, Hermosa and Herradura, offer a calmer alternative.
Manuel Antonio, La Fortuna and Nosara
Manuel Antonio has strong international demand because of the national park. La Fortuna is the main inland market, built on the volcano and adventure tourism. Nosara has a loyal surf and wellness following but limited supply. Each can work; each has quirks of access, terrain or season, so visit and talk to local managers before you buy.
The Central Valley
If you would rather have steadier income than a holiday market can give, furnished long-term rentals in Escazú and Santa Ana serve expats, corporate relocations and visiting professionals. It is less glamorous and less volatile, and it does not depend on tourist seasons. See our beach vs city guide for how the two areas differ.
How to pick a rental market
- Start with the guest. Families, surfers, wellness travellers, domestic weekenders and corporate tenants want different things.
- Ask for real data. Request 12 months of booking history for the exact property, or from a local manager for the immediate area, not a regional average.
- Check access. Distance from the airport, road quality and the walk to the beach or town all shape reviews and bookings.
- Price the full cost stack. Management, platform fees, maintenance, utilities and insurance, as in our rental-costs guide.
- Check the rules. Short-term rentals are regulated; see below.
Rules you need to know
Short-term rentals are regulated under Costa Rica’s law on non-traditional lodging (Law 9742), which requires hosts to register with the tourism institute (ICT) for stays between 24 hours and a year. Stays under 30 days are generally subject to 13% VAT, and municipal operating licences and local zoning can apply. Tax reporting and enforcement have been tightening, so confirm your obligations, including income-tax treatment, with a Costa Rican accountant before you rely on any return figure. If the home is in a condominium or gated community, check that its rules allow short-term rentals.
Frequently asked questions
What is the best place in Costa Rica for a vacation rental?
What occupancy should I expect?
Do I need a licence to rent my property short-term?
Are long-term rentals a better choice than vacation rentals?
Can I use the property myself and still rent it?
Talk to us about a rental investment
We can help you compare markets, connect you with local managers and look at realistic net-income numbers before you commit. Tell us what you are looking for, or browse Guanacaste, Jacó and the Central Pacific and Santa Teresa.
Occupancy and rate figures are broad averages from third-party analytics providers, which use different methods and time periods; they are not forecasts or guarantees of income. Distances and market characteristics are approximate and change. Rental regulations and tax rules change, so confirm them with the tourism institute and a Costa Rican accountant. This is general information, not financial, tax or legal advice.