Top 10 Best States to Buy a Second Home

Direct Answer

The Best Overall state to buy a second home in 2027 is Florida, where a typical vacation home runs from about $400,000 in the Panhandle to $1.2M+ in Naples or Miami Beach, and where no state income tax, year-round rental demand, and deep buyer liquidity make it the most flexible second-home market in the country.

The Best Value pick is Tennessee, where Smoky Mountain cabins near Gatlinburg and Pigeon Forge start around $350,000–$550,000, generate strong short-term-rental income, and carry no state income tax on wages. This list is for buyers who want a real getaway that holds value, can be rented when empty, and fits a budget anywhere from a sub-$400,000 cabin to a $2M+ coastal estate.

Every state below is ranked on real 2026–2027 median prices, tax treatment, rental rules, and carrying costs.

How We Ranked the Top 10

We weighted each state against what second-home buyers actually weigh: cost to own, income potential, taxes, and how easily a home sells later. We leaned on Zillow, Redfin, Realtor.com, AirDNA rental data, and state tax records. The weighting:

• Affordability and price-to-value — 25%
• Tax treatment (income, property, capital gains) — 20%
• Short-term rental income potential — 20%
• Lifestyle and year-round appeal — 15%
• Resale liquidity and appreciation — 10%
• Insurance and carrying cost risk — 10%

A state that offers cheap homes but bans rentals, or great beaches but brutal insurance, drops fast. The winners balance all six.

1. Florida 🏆 BEST OVERALL

Type: Market | Entry price: $0.4M | Best for: Buyers who want sun, no income tax, and easy resale

Florida is the deepest and most liquid second-home market in the U.S. A coastal condo in Destin or Fort Myers starts near $400,000, while single-family vacation homes in Naples, Sarasota, and Miami Beach run $800,000 to well over $2M. The state levies no personal income tax and offers a homestead-style cap on appreciation only for primary residents, but the year-round tourism engine keeps short-term rental occupancy high in markets like Orlando-area Kissimmee, where theme-park demand never sleeps.

With more than 1,000 people moving in per day historically, resale liquidity is unmatched.

Pros:

• No state income tax on rental or earned income
• Year-round rental demand across beach and theme-park markets
• Largest buyer pool in the country for easy resale
• Huge range from $400K condos to $2M+ estates

Cons:

• Homeowners insurance has spiked sharply in hurricane zones
• Some HOAs and cities restrict short-term rentals

Verdict: Florida wins on liquidity, tax treatment, and rental income — the safest all-around second-home bet.

2. Tennessee 💎 BEST VALUE

Type: Market | Entry price: $0.35M | Best for: Cabin buyers who want strong rental cash flow

Tennessee is the value champion. Smoky Mountain cabins around Gatlinburg, Pigeon Forge, and Sevierville start near $350,000 and frequently top $550,000 for larger log homes with hot tubs and mountain views. The Great Smoky Mountains National Park draws over 12 million visitors a year, feeding one of the strongest short-term rental markets in the nation, where well-run cabins gross $45,000–$90,000 annually.

Tennessee charges no state income tax on wages, and property taxes are among the lowest in the country.

Pros:

• Cabins from $350K with strong proven STR income
• No state income tax on wages
• 12M+ annual park visitors drive rental demand
• Low property taxes and reasonable insurance

Cons:

• Mountain-town inventory is competitive and seasonal
• Heavy STR saturation in Pigeon Forge can pressure nightly rates

Verdict: Tennessee is the cash-flow value play — the best second home for buyers who want the property to pay for itself.

3. Arizona

Type: Market | Entry price: $0.45M | Best for: Snowbirds who want winter sun and dry heat

Arizona is the classic snowbird state. Scottsdale and Paradise Valley command $700,000 to multimillion-dollar homes, while Tucson, Mesa, and Surprise offer comfortable winter homes from $400,000–$550,000. The state's flat 2.5% income tax is among the lowest, and the dry climate and golf-heavy communities draw retirees and part-timers from across the Midwest and Canada each winter.

Rental demand peaks November through April, making it ideal for owners who use the home in winter and rent the shoulder seasons.

Pros:

• Low flat 2.5% state income tax
• Strong winter snowbird rental demand
• Dry climate and abundant golf communities
• Wide price range across metro Phoenix and Tucson

Cons:

• Brutal summer heat limits peak-season personal use
• Water-supply concerns weigh on long-term outlook

Verdict: A top snowbird pick — ideal for buyers who want guaranteed winter sun and low income tax.

4. South Carolina

Type: Market | Entry price: $0.4M | Best for: East Coast beach buyers who want value

South Carolina blends Lowcountry charm with East Coast accessibility. Myrtle Beach condos start near $300,000–$400,000, while Hilton Head and Kiawah Island homes run $700,000 to several million. Property taxes on second homes are higher than primary residences here, but overall costs stay reasonable, and the drive-to location from the Northeast and Mid-Atlantic keeps rental demand steady spring through fall.

Hilton Head alone draws 2.5 million+ visitors a year.

Pros:

• Affordable beach entry near $300K–$400K in Myrtle Beach
• Drive-to access from the entire Eastern Seaboard
• Strong family-vacation rental demand
• Upscale options at Kiawah and Hilton Head

Cons:

• Second-home property tax rate is higher than primary
• Coastal insurance costs are rising

Verdict: A strong East Coast value — best for buyers who want a drive-to beach home that rents well.

5. Texas

Type: Market | Entry price: $0.4M | Best for: Buyers who want lake or Hill Country homes and no income tax

Texas offers no state income tax and a huge spread of second-home options. Hill Country towns like Fredericksburg and Wimberley run $450,000–$900,000, lake homes on Lake Travis or Lake LBJ start near $500,000, and Gulf Coast condos in Port Aransas and Galveston begin around $350,000.

The state's strong economy and in-migration support resale, while wine-country tourism around Fredericksburg fuels a robust STR market.

Pros:

• No state income tax
• Diverse lake, Hill Country, and coastal options
• Strong in-migration supports resale liquidity
• Booming Fredericksburg wine-tourism rental market

Cons:

• Property taxes are among the highest in the nation
• Coastal homes carry hurricane insurance costs

Verdict: A flexible no-income-tax pick — best for buyers drawn to Hill Country wine country or lake life.

6. North Carolina

Type: Market | Entry price: $0.4M | Best for: Buyers who want mountains and beaches in one state

North Carolina uniquely offers both mountains and coast. Asheville and the Blue Ridge see homes from $450,000–$800,000, while Outer Banks beach houses run $500,000 to $1.5M+. The state's flat 4.25% income tax is dropping over time, and both regions draw heavy tourism — Asheville for fall leaf season and breweries, the Outer Banks for summer beach weeks.

Buyers can pick climate and scenery to match their lifestyle.

Pros:

• Both mountain and beach markets in one state
• Declining flat state income tax (4.25%)
• Strong seasonal rental demand in both regions
• Asheville's year-round tourism economy

Cons:

• Outer Banks insurance and storm exposure are high
• Mountain inventory near Asheville is tight

Verdict: The best dual-climate pick — ideal for buyers torn between mountains and the shore.

7. Colorado

Type: Market | Entry price: $0.6M | Best for: Ski-town buyers who want year-round mountain use

Colorado is the premier ski-second-home state. Summit County towns like Breckenridge and Frisco run $700,000 to $2M+, while Steamboat Springs and Winter Park offer relatively better value from $600,000–$900,000. Mountain homes here earn in both winter ski season and summer hiking-and-festival season, giving true year-round rental potential.

The flat 4.4% income tax is moderate, and resort-town resale stays strong.

Pros:

• True four-season rental demand in ski towns
• Strong long-term appreciation in resort markets
• Year-round outdoor lifestyle appeal
• Steamboat and Winter Park offer relative value

Cons:

• High entry prices in marquee towns like Breckenridge
• Some resort towns cap or license short-term rentals

Verdict: The top ski pick — best for active buyers who want a mountain home they'll use all year.

8. Georgia

Type: Market | Entry price: $0.35M | Best for: Lake and coastal buyers who want Southern value

Georgia offers underrated second-home value. Lake Oconee and Lake Lanier homes start near $400,000 and rise to $1.5M+ on the water, while Tybee Island and St. Simons coastal cottages begin around $450,000.

The state's flat 5.39% income tax is declining, and proximity to Atlanta's large affluent population keeps lake-home demand and resale healthy. Tybee's beach tourism supports solid STR income.

Pros:

• Lake homes from $400K within reach of Atlanta
• Declining flat state income tax
• Strong coastal STR demand on Tybee and St. Simons
• Lower carrying costs than Florida or the Carolinas

Cons:

• Lake-home inventory turns over slowly
• Coastal storm exposure on barrier islands

Verdict: A quiet value pick — best for buyers who want a Southern lake or coastal home near a major metro.

9. Utah

Type: Market | Entry price: $0.6M | Best for: Buyers who want world-class skiing and red-rock scenery

Utah pairs elite skiing with red-rock desert. Park City homes run $900,000 to multimillion, while St. George in the south offers warm-weather homes from $500,000–$700,000 near Zion.

The flat 4.55% income tax is moderate, and Utah's strong economy and population growth support appreciation. Park City's Sundance-and-ski calendar drives premium winter rentals, while St. George attracts golf-and-hiking retirees.

Pros:

• World-class skiing at Park City and Deer Valley
• St. George offers warm-weather desert alternative
• Strong state economy and home appreciation
• Year-round outdoor recreation appeal

Cons:

• Park City is one of the priciest ski markets in the U.S.
• Limited inventory in both flagship markets

Verdict: A premium dual-climate pick — best for buyers who want both ski and desert options in one state.

10. Idaho

Type: Market | Entry price: $0.5M | Best for: Buyers who want mountain-lake living with growth upside

Idaho has emerged as a fast-appreciating second-home state. Coeur d'Alene lakefront and near-lake homes start near $550,000 and climb past $2M on the water, while McCall and Sun Valley offer ski-and-lake homes from $600,000–$1.5M. The flat 5.695% income tax is offset by strong appreciation driven by heavy in-migration from the West Coast.

Resort and lake demand supports both summer and winter rentals.

Pros:

• Strong appreciation from West Coast in-migration
• Year-round lake and ski recreation
• Coeur d'Alene's growing resort economy
• Lower density and big-sky lifestyle appeal

Cons:

• Prices have risen fast, compressing value
• Remote markets like Sun Valley have thin inventory

Verdict: The growth-upside pick — best for buyers betting on continued Mountain West appreciation.

Which One Is Right for You?

What to Look For

• State and property tax treatment — No-income-tax states like Florida, Tennessee, and Texas keep more rental income in your pocket, but watch second-home property-tax surcharges in places like South Carolina.
• Short-term rental rules — Confirm city and HOA STR ordinances before you buy; some resort towns in Colorado and parts of Florida cap or license rentals.
• Insurance reality — Coastal Florida and the Outer Banks carry steep and rising premiums; budget the real number, not the listing estimate.
• Resale liquidity — Florida's massive buyer pool sells fast; thin markets like Sun Valley can take months to move.
• Year-round vs seasonal use — Ski and lake states like Colorado and Idaho earn in two seasons, while a summer-only beach can sit empty half the year.
• Carrying cost math — Add HOA, insurance, taxes, and management before assuming rental income covers the mortgage.

What matters less than the hype: chasing the absolute lowest sticker price. A cheap home in a market with no rental demand or thin resale can cost more over time than a pricier home in a liquid, high-demand state.

FAQ

What is the best state to buy a second home overall? Florida ranks first for its lack of state income tax, year-round rental demand, and the deepest buyer pool in the country for easy resale, with homes ranging from $400K condos to $2M+ estates.

What is the best-value state for a second home? Tennessee offers Smoky Mountain cabins from about $350,000 with strong short-term-rental income and no state income tax on wages, making it the top cash-flow value.

Which states have no income tax for second-home owners? Florida, Tennessee, and Texas levy no personal income tax, which protects rental and earned income — though Texas offsets this with high property taxes.

Which states are best for short-term rental income? Tennessee (Smoky Mountain cabins) and Florida (theme-park and beach markets) consistently produce the strongest, most reliable short-term rental income.

Are second-home property taxes higher than primary residences? In some states, yes. South Carolina taxes second homes at a higher assessment ratio than primary residences, and Texas has high property taxes overall, so always confirm the rate before buying.

Which states are best for ski second homes? Colorado (Breckenridge, Steamboat), Utah (Park City), and Idaho (Sun Valley, McCall) lead for ski homes with four-season rental potential.

Bottom Line

For 2027, Florida is our Best Overall state for a second home — no income tax, year-round rental demand, and unmatched resale liquidity across a $400K–$2M+ range. Tennessee is our Best Value, with Smoky Mountain cabins from about $350,000 that pay for themselves through strong rental income.

If you want winter sun, dual-climate flexibility, ski access, or growth upside, use the decision tree above to route yourself to Arizona, the Carolinas, Colorado, Utah, or Idaho. Buy on tax treatment, rental rules, and carrying-cost math — not just sticker price — and your second home will be an asset, not a burden.

Sources

• Zillow — state-by-state home value and market data
• Redfin — second-home and vacation market trends
• Realtor.com — vacation home buying guides
• AirDNA — short-term rental market data
• Mansion Global — luxury second-home markets
• Robb Report — vacation real estate coverage
• Wall Street Journal — real estate and second-home market
• Tax Foundation — state income and property tax data
• National Association of Realtors — vacation home research

*Best states for a second home review — second home state reviews, rating, best second home states 2027, and a review of where to buy a vacation home for buyers.*