Investing in Jacó Vacation Rentals

Jacó is the most accessible beach town in Costa Rica. Ninety minutes from Juan Santamaría International Airport (SJO), it sits on a 3-kilometer crescent of Pacific coastline with consistent surf, a walkable town center, and the kind of tourism infrastructure that keeps guests coming back year after year.

For rental investors, that accessibility translates into something concrete: demand. Jacó draws more repeat visitors than almost any other beach destination in the country. Surfers come for the consistent breaks. Families come for the proximity to San José. Weekend travelers from the Central Valley come because they can leave Friday after work and be on the beach by sunset. Digital nomads stay for months at a time because the town has reliable internet, restaurants, and a social scene that most rural beach towns lack.

This combination of easy access, diverse demand, and relatively affordable entry prices makes Jacó one of the most active vacation rental markets in Costa Rica. It’s also one of the most competitive, which means the difference between a profitable investment and a disappointing one comes down to what you buy, where you buy it, and how you manage it.

This guide covers all three. For a broader look at what makes Jacó special as a destination, see our complete Jacó area guide.

Entry Prices: What Properties Cost in Jacó

Jacó offers a wider range of entry points than most Costa Rica beach markets. You can get into the market for under $200,000 or spend well over a million on a beachfront villa. Here’s what each tier looks like.

Condominiums

Condos are the most common investment property in Jacó, and the most practical for vacation rentals. The town has dozens of condo developments ranging from older walk-up buildings to modern complexes with pools, security, and ocean views.

Type	Price Range	Notes
Older 1-bedroom (walk-up, no pool)	$100,000–$160,000	Lowest entry point. Limited rental appeal without upgrades.
Modern 1-bedroom (pool, security)	$150,000–$220,000	Solid starter investment. Popular with couples and solo travelers.
2-bedroom condo (mid-range)	$200,000–$350,000	The sweet spot for rental income. Families and small groups.
2-3 bedroom (beachfront/ocean view)	$350,000–$550,000	Premium location commands higher nightly rates.
Penthouse / luxury condo	$500,000–$800,000+	Top-floor units with views. Strong rental potential if priced right.

The most common investment profile is a 2-bedroom condo in the $250,000–$400,000 range with pool access and a partial ocean view. These units attract the broadest guest mix and generate the most consistent occupancy.

Villas and Houses

Standalone homes and villas in Jacó range widely. Hillside properties with ocean views are popular with investors targeting the luxury segment, while in-town houses near the beach compete on walkability.

Type	Price Range
In-town house (2-3 bedrooms)	$250,000–$450,000
Hillside villa with pool (3-4 bedrooms)	$400,000–$900,000
Beachfront or luxury villa	$800,000–$2,000,000+

Villas generate higher nightly rates but require more management attention. Pool maintenance, landscaping, and general upkeep add to operating costs. They also tend to attract larger groups, which means more cleaning and more wear on furnishings.

Development Land

For buyers thinking longer-term, vacant land in and around Jacó is still available at prices that have room to grow.

Type	Price Range
Inland lot (within 1 km of beach)	$60,000–$150,000
Hillside lot with ocean view	$100,000–$300,000
Beachfront parcel	$200,000–$500,000+

Building from scratch gives you control over layout and finishes, but construction timelines in Costa Rica are notoriously unpredictable. Budget 12–18 months minimum, and plan for cost overruns of 10–20%. Work with a local architect and builder who know the permitting process.

Occupancy Rates: When Jacó Fills Up

Jacó benefits from multiple demand drivers that spread bookings across the calendar year more evenly than many Costa Rica markets.

Seasonal Patterns

• High season (December through April): 70–90% occupancy. This is dry season, and demand is strongest from North American and European travelers. December, February, and March are peak months. Properties that are priced right and listed early book out weeks in advance.
• Shoulder months (May, June, November): 45–60% occupancy. The transition periods. Rain starts but isn’t constant. Prices drop 20–30% from high season, and the town is noticeably quieter. Weekend demand from San José residents stays steady.
• Green season (July through October): 30–50% occupancy. July and August get a bump from summer travelers (families with school-age kids, mostly North American). September and October are the quietest months. Surf stays strong, which keeps a baseline of bookings.

What Drives Occupancy Year-Round

Proximity to San José. This is Jacó’s structural advantage. The Central Valley has a population of over 2 million, and Jacó is the closest major beach. Weekend getaways from San José generate consistent Friday-to-Sunday bookings even in green season, something that more remote destinations like Santa Teresa or Dominical simply can’t match.

Surf. Jacó’s beach break works at all tides and most swell directions, making it one of the most consistent surf spots in Central America. Surf travelers tend to book longer stays (1–4 weeks) and are less seasonal than typical beach tourists. Nearby Playa Hermosa adds a world-class option for experienced surfers just 10 minutes south.

Events and tournaments. Surf competitions, fishing tournaments at nearby Los Sueños Marina, music festivals, and national holidays create demand spikes throughout the year.

Digital nomads and long-term stays. Jacó’s infrastructure (fiber internet, coworking spaces, restaurants, nightlife) makes it popular with remote workers who book 2–8 week stays. These guests fill gaps between short-term bookings and reduce vacancy.

Annual blended occupancy for a well-managed 2-bedroom condo in a good location: 55–70%. That translates to roughly 200–255 booked nights per year.

Guest Mix: Who Rents in Jacó

Understanding your typical guest helps you make better decisions about furnishing, pricing, and which platforms to prioritize.

Surfers (25–30% of bookings). Jacó’s most consistent guest segment. They book year-round, stay longer than average (5–14 nights), and care more about proximity to the beach and board storage than luxury finishes. They also tend to book on shorter notice and be flexible on dates, which helps fill last-minute gaps.

Families (25–30%). The largest high-season segment. Families with kids book 2–3 bedroom condos or villas, typically for 5–7 nights during school breaks. They value pools, security, air conditioning, and walkability to restaurants. This segment drives the strongest nightly rates in December through April.

Couples (15–20%). Honeymoons, anniversaries, and getaways. Couples book across all seasons and gravitate toward well-designed 1-bedroom condos or boutique-style properties. They’re often willing to pay more for aesthetics and views.

Groups (10–15%). Bachelor/bachelorette parties, friend trips, family reunions. Groups book larger villas and are less price-sensitive per person. They tend to be higher-maintenance guests (more cleaning, more noise, more wear) but generate strong per-night revenue.

Digital nomads and long-stay guests (10–15%). Monthly or multi-week bookings at discounted nightly rates. Lower revenue per night but near-zero vacancy and minimal turnover costs. A good strategy for green season months when short-term demand drops.

Neighborhoods: Where to Buy in Jacó

Jacó is a small town, but location within the town meaningfully affects rental performance. Here’s how the main areas compare.

North Jacó (Toward Herradura)

The quieter end of town. North Jacó has some of the newer condo developments and tends to attract families and couples who want beach access without the noise of the town center. Properties here are slightly more affordable than beachfront central locations.

Pros: Quieter, newer construction, closer to Los Sueños and Herradura Bay. Cons: Farther from restaurants and nightlife. Guests without a car may feel isolated.

Central Jacó (Beachfront Strip)

The heart of the action. Central Jacó runs along the main beach road (Avenida Pastor Díaz) with direct beach access, restaurants, shops, and nightlife within walking distance. This is where most vacation rental demand concentrates.

Pros: Walkability, highest occupancy potential, appeals to the broadest guest mix. Cons: Higher prices per square meter, more street noise, parking can be tight.

South Jacó (Toward Playa Hermosa)

The southern end of town transitions toward Playa Hermosa. Properties here are often hillside with ocean views, slightly removed from the beach but compensating with space and scenery.

Pros: Ocean views, larger lots, quieter, proximity to Playa Hermosa surf. Cons: Steeper roads (some require 4x4), farther from town amenities, often needs a car.

Playa Agujas

A small neighborhood between Jacó and Herradura, Playa Agujas offers a more residential feel with beach access to a calmer stretch of coast. It’s less developed than central Jacó, which is either a pro or a con depending on your investment thesis.

Pros: Lower prices, calmer beach (good for families with young kids), less competition. Cons: Limited walkability to Jacó’s amenities, less name recognition with international guests.

Beachfront vs. Inland: The Trade-Off

Beachfront properties in Jacó command 20–40% higher nightly rates than equivalent inland properties. But they also cost more to buy, more to maintain (salt air is hard on everything), and more to insure. The ROI math doesn’t always favor beachfront, especially when you factor in the higher purchase price.

A well-located property one or two blocks from the beach, in a development with a pool and ocean views, often delivers better returns than a beachfront unit at twice the price.

ROI Expectations: What the Numbers Look Like

Let’s run through a realistic scenario for the most common investment profile: a 2-bedroom condo purchased for $300,000. These projections are based on market comparable data from similar properties in Jacó.

Year 1 Projection (Conservative)

Item	Amount
Gross rental revenue	$29,000
Management fee (20–25%)	($6,500)
Platform commissions (3–15%)	($2,200)
Cleaning costs	($3,500)
HOA/condo fees	($4,800)
Property taxes	($400)
Insurance	($1,200)
Utilities	($2,800)
Maintenance/furnishing reserves	($2,000)
Net operating income	$5,600
Net yield on $300,000	1.9%

Note: Year one is always challenging. Properties with prime locations (beachfront, ocean views) and superior management can achieve $35,000–$40,000 in gross revenue, improving net yields to 3–4%. The figures above represent a conservative baseline for a standard two-bedroom condo in a mid-tier location.

How Returns Build Over Time

Year one is always the weakest. Your listing is new, you have zero reviews, and you’re still dialing in pricing. By year 2–3, well-managed properties typically see:

• 15–25% revenue growth from the year-one baseline as reviews accumulate and platform algorithms favor your listing
• Repeat guests who book direct (no platform commission), improving margins
• Optimized pricing as you learn your market’s seasonal patterns

Market Performance by Property Type

Based on comparable property data from Jacó, here’s what different property types earn annually in gross revenue:

Property Type	Conservative	Mid-Range	Top Performer
1-bedroom condo	$12,000	$15,000	$18,000
2-bedroom condo (standard)	$20,000	$27,000	$34,000
2-bedroom (beachfront/ocean view)	$35,000	$39,000	$45,000
3-bedroom condo	$22,000	$27,500	$30,000

Location drives the performance spread. Beachfront and ocean-view properties in developments like Paloma Blanca command the premium end of these ranges. Mid-tier locations (good amenities, walkable to beach) perform in the middle. Basic inland properties without pools or views land at the conservative end.

Five-Year View

Over five years, factoring in revenue growth (stabilizing around year 3) and modest property appreciation:

• Cumulative net rental income (5 years): $40,000–$70,000
• Property appreciation (3–5% annually on $300,000): $47,000–$83,000
• Total 5-year return: $87,000–$153,000, or roughly 29–51% on the initial investment

Compared to Los Sueños, Jacó offers lower entry prices and potentially higher cash-on-cash yields in the early years, but with less price stability and more management complexity. Los Sueños has resort infrastructure that generates its own demand; Jacó requires more active marketing and management to capture your share of a competitive market.

Personal Use Consideration

Many owners use their property 2–6 weeks per year. Every week you use the property costs roughly $800–$1,500 in forgone rental income (depending on season). High-season personal use is the most expensive decision an owner can make, so if you plan to visit in December or March, factor that into your projections.

Risks and Considerations

Every market has its downsides. Here’s what to watch for in Jacó.

Market Saturation

Jacó has more vacation rental inventory per square kilometer than almost any beach town in Costa Rica. That competition puts downward pressure on rates, especially in green season. The properties that thrive are the ones with professional photography, strong reviews, and active pricing management. The ones that struggle are self-managed, poorly photographed, and priced based on what the owner hopes to get rather than what the market will bear.

Seasonality

Despite its year-round demand drivers, Jacó still has a meaningful seasonal swing. September and October can be very slow. Owners need to budget for 2–3 months of low occupancy and resist the temptation to drop rates so far that they attract guests who don’t respect the property.

HOA and Condo Fees

Monthly HOA fees in Jacó condo developments range from $200–$600 per month. Some developments have special assessments for major repairs (roof, elevator, pool resurfacing) that can add $2,000–$10,000 in unexpected costs. Always review HOA financials and reserve fund status before purchasing.

Property Management Quality

Management quality varies widely in Jacó. Some companies are responsive, data-driven, and genuinely focused on maximizing owner revenue. Others are order-takers who list your property and wait for bookings. The difference in annual revenue between good and mediocre management can be $8,000–$15,000.

Key questions to ask any management company:

• What platforms do you list on?
• Do you use dynamic pricing tools?
• What’s your average response time to guest inquiries?
• Can I see revenue reports from comparable properties?
• What’s your maintenance and inspection protocol?

For guidance on evaluating property managers, see our guide to choosing a property manager in Costa Rica.

Construction Quality

Not all Jacó developments were built to the same standard. Older buildings (pre-2010) may have issues with water intrusion, electrical systems, or structural maintenance. Always get a property inspection from a qualified local inspector before purchasing. Newer developments generally meet better building standards, but check the developer’s track record regardless.

Legal and Tax Considerations

Foreign buyers can own property directly in Costa Rica, but most investors use a local corporation (S.A. or S.R.L.) for liability protection and estate planning flexibility. Learn more about holding companies for Costa Rica property. Rental income is subject to Costa Rican taxes, and the rules around short-term rental taxation continue to evolve. Our Costa Rica rental income tax guide explains what property owners need to know about tax obligations and filing requirements.

For an overview of the regulatory landscape, see our guide to vacation rental regulations in Costa Rica.

Making Jacó Work as an Investment

Jacó rewards investors who approach it with clear expectations and professional execution. The entry prices are accessible, the demand is real and diverse, and the location advantage (proximity to SJO and the Central Valley) isn’t going away.

The properties that perform best share a few common traits:

• Modern finishes and professional photography. In a competitive market, presentation matters. A $5,000 refresh and a $500 photo shoot can add $5,000–$10,000 in annual revenue.
• Multi-platform distribution. Listing on Airbnb alone leaves money on the table. The best-performing properties are listed on Airbnb, Vrbo, Booking.com, and a direct booking channel.
• Dynamic pricing. Seasonal rate adjustments, minimum stay requirements, and last-minute discounts all contribute to maximizing revenue without racing to the bottom.
• Responsive guest communication. Response time directly affects platform search ranking. Guests who feel cared for leave better reviews, and reviews are the single biggest driver of long-term booking performance.

At Nest Stays, we manage vacation rental properties in the Jacó area with a focus on owner returns and property care. If you’re considering an investment in Jacó, or you already own a property that isn’t performing the way you expected, talk to our team about management.

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This guide is for informational purposes only and does not constitute legal or tax advice. Consult a qualified Costa Rica attorney or tax professional. Rental income projections are estimates based on current market conditions and are not guaranteed.