Rehoboth Beach vs Bethany Beach For Second-Home Buyers

If you are torn between Rehoboth Beach and Bethany Beach for a second home, you are not alone. Both towns deliver classic Delaware shore living, but the day-to-day feel and ownership experience differ in ways that matter for your lifestyle and investment goals. In this guide, you will compare vibe, housing options, rental economics, and rules so you can move forward with clarity. By the end, you will know which beach aligns with how you plan to use your home and what to budget for. Let’s dive in.

Quick take: pick your best fit

• Choose Rehoboth Beach if you want a livelier, walkable boardwalk scene with year-round dining, boutiques, and regular live events within steps of your door.
• Choose Bethany Beach if you prefer a smaller, quieter setting with a relaxed town center and resort-style communities nearby that run on weekly summer rhythms.
• Both towns are about 12 to 13 miles apart, so you can enjoy each one’s restaurants and beaches in a single trip.

Lifestyle and access

Rehoboth vibe and walkability

Rehoboth is known for its classic one-mile wooden boardwalk lined with arcades, walk-up eateries, and shops near a compact, walkable downtown. The city schedules frequent concerts and community events that keep foot traffic active through summer. This energy supports a broad mix of dining and late-evening options that many second-home owners enjoy steps from home. For a feel of the area’s attractions and boardwalk culture, review the regional overview in the Delaware Beaches Visitor Guide. Explore the visitor guide’s beach overview.

Bethany’s quieter scene and resort options

Bethany is branded regionally as a “Quiet Resort,” which reflects its lower-key atmosphere, smaller boardwalk, and calmer evenings. That tone appeals to buyers who value a slower pace close to the ocean. Just south of town, resort neighborhoods like Sea Colony offer private beach access, pools, trams, and on-site amenities that function like a classic resort product. See why Bethany is called the Quiet Resort and review Sea Colony’s community amenities.

Getting around and proximity

Rehoboth and Bethany are roughly 12 to 13 miles apart, or about 20 minutes by car, so day trips between the two are simple for you and your guests. That proximity lets you sample both experiences, even if you buy in just one town.

Housing types and price signals

What you will find in Rehoboth

• Boardwalk and downtown condos, plus small ocean-block cottages that prioritize walkability and quick access to shops and the bandstand.
• In-town single-family beach cottages, many renovated, on gridded streets with mature neighborhood character.
• Newer construction in nearby subdivisions if you want more space, parking, or modern systems while staying close to the beach.

What you will find in Bethany

• In-town bungalows and cottages within a short walk or bike ride to the beach and Garfield Parkway.
• Resort development units such as Sea Colony East and West with private facilities, trams, and rules that favor weekly bookings in peak season.
• Oceanfront and canal-front homes at higher price tiers that reflect premium water access.

How to read the medians

Reported median sale prices can swing month to month because both towns are small and each sale can move the needle. Recent snapshots show Bethany’s median often reads higher than Rehoboth’s, in part because many Bethany transactions are oceanfront or resort properties. Treat citywide medians as a starting point, then focus on micro-markets by block, building, and product type. Expect wide ranges between a small in-town condo and an oceanfront single-family home.

Rental income potential

Market-level indicators

If short-term rental income is part of your plan, market averages are useful for first-pass modeling. AirDNA reports annual averages around an average daily rate of about 507 dollars and occupancy of about 53 percent in Rehoboth, and about 516 dollars ADR with roughly 60 percent occupancy in Bethany. These figures reflect blended listing mixes and do not guarantee performance for any single property. You can explore the market-level dashboards here: Rehoboth Beach overview and Bethany Beach overview.

How to sketch revenue

A simple model starts with ADR times occupied nights, then subtracts taxes, management, cleaning, utilities, maintenance, and insurance. Many owners work with full-service managers who charge about 10 to 30 percent of gross revenue depending on scope. In resort neighborhoods, minimum-stay rules and guest badges may shape your calendar and pricing.

Seasonality and calendars

Both towns are highly seasonal. The strongest demand typically concentrates in June through August, with many weekly bookings in Sea Colony and similar neighborhoods. Shoulder seasons can be steady on weekends, while winter tends to be quieter. Plan for most of your gross revenue to land in summer and build a reserve for off-season carrying costs.

Taxes and licensing at a glance

Compliance is part of the ownership equation and varies by town. Build these items into your plan before you buy.

Delaware state STR lodging tax

Delaware imposes a statewide short-term rental lodging tax of 4.5 percent on stays entered into on or after January 1, 2025. The state also outlines who must collect and remit, including platforms and, in some cases, owners. Review the state’s guidance in the Delaware Division of Revenue STR FAQs.

Rehoboth licensing and city rental tax

Rehoboth requires a Residential Rental License that includes an application, annual renewal, self-inspection, occupancy limits, and a local 24/7 contact. The city also collects a rental tax of 7 percent on owner-rented homes. For details, see the city’s Residential Rental License information and its page on lodging and rental taxes.

Bethany licensing and local taxes

Bethany Beach requires annual business and rental licensing, safety certification, and remittance of rental taxes according to its published schedule. The town code outlines timing, forms, and enforcement. Confirm current percentages and fees with Town Hall before you finalize a model. Start with the Bethany Beach municipal code.

HOA and resort rules

Resort communities like Sea Colony have HOA rules that affect rentals and guest access. Expect badge systems, tram rules, guest fees in peak season, and specific policies on weekly stays. Ask for current HOA documents before you write an offer.

Ownership costs to plan for

Flood and wind considerations

Many ocean-block and oceanfront properties fall within FEMA Special Flood Hazard Areas. Lenders typically require flood insurance for in-zone homes, and premiums vary by elevation and mitigation features. You can look up a property’s official designation using the FEMA Flood Map Service Center. Also plan for hurricane or named-storm deductibles and wind endorsements that can raise overall insurance costs compared with inland homes.

Financing for second homes or investments

Lenders treat second homes and investment properties differently than primary residences. Expect larger down payments and cash reserve requirements, and note that coastal appraisals and insurance availability can influence terms. The right local lender can help you navigate these factors.

Quick decision checklist

• Goal first: prioritize either personal retreat or rental yield. If rental income is key, model ADR times occupancy using AirDNA market data, then subtract management, cleaning, and all taxes.
• Vibe fit: if you want a lively boardwalk and late dining, lean toward Rehoboth. If you want a quieter town center and resort-style amenities, lean toward Bethany.
• Product type: prefer a small walkable condo or in-town cottage at a wider range of price points in Rehoboth, or a resort condo and oceanfront stock that often skew higher in Bethany.
• Rules and friction: read the city and HOA rules. Rehoboth posts clear licensing and a 7 percent rental tax. Bethany licenses and taxes rentals through Town Hall. Build compliance and timing into your plan.
• Risk and resilience: check FEMA flood maps, ask insurers for quotes early, and budget for storm hardening where needed.

Smart next steps

• Get neighborhood-level comps and active inventory that match your exact product type and proximity to the ocean.
• Build a property-specific rental pro forma using AirDNA benchmarks and manager quotes for your target building or block.
• Confirm licensing steps and taxes with the city or town and request HOA rules before you go under contract.
• Run a flood map lookup and request insurance quotes so you understand premiums and deductibles up front.

Ready to compare homes, run the numbers, and tour the best-fit neighborhoods? Connect with Shore4U Real Estate to Discover Your Perfect Beach Home.

FAQs

What are the main differences between Rehoboth and Bethany for second-home buyers?

• Rehoboth offers a livelier, walkable boardwalk scene with more dining and nightlife, while Bethany emphasizes a quieter town center with nearby resort communities and a calmer pace.

How do Delaware short-term rental taxes work at the beach?

• Delaware adds a 4.5 percent state STR lodging tax, and each town applies its own rental or lodging taxes and licensing; review the state FAQs and your town’s rules before renting.

Which town shows stronger average short-term rental occupancy?

• AirDNA reports recent market averages around 53 percent occupancy in Rehoboth and about 60 percent in Bethany, with performance varying by property type and location.

What types of homes are common in each town?

• Rehoboth features boardwalk-area condos and in-town cottages; Bethany offers in-town bungalows plus resort-style condos in places like Sea Colony and higher-tier oceanfront homes.

Do resort communities like Sea Colony change how rentals work?

• Yes. HOAs often require guest badges, follow tram rules, and favor weekly peak-season stays, which can shape your pricing, calendar, and guest access.

How far apart are Rehoboth Beach and Bethany Beach?

• They are about 12 to 13 miles apart, generally a 20-minute drive, which makes it easy to enjoy both in a single stay.

What should I budget for professional rental management?

• Full-service management commonly ranges from about 10 to 30 percent of gross rental revenue depending on services like marketing, bookings, and maintenance coordination.