Market Comparison
Kissimmee vs Davenport — Which Is Better for Vacation Rental Investment?
These are the two dominant short-term rental markets near Disney — and the most common question investors ask. The honest answer: Davenport (Polk County) wins on net yield and simplicity; Kissimmee (Osceola County) wins on proximity and nightly rate. Here's the full head-to-head.
Choose Kissimmee (Osceola) if...
- → Proximity to Disney is your top priority (2–8 miles)
- → You want maximum nightly rate and occupancy
- → You value established brand-name communities
- → You're targeting Windsor Hills, Storey Lake, or Reunion
Choose Davenport (Polk) if...
- → Maximizing net cash-on-cash yield is the goal
- → You want the lowest taxes (12%) and licensing cost
- → You prefer simpler, more permissive regulations
- → You're value-focused — lower entry prices matter
Head-to-Head Comparison
| Factor | Kissimmee (Osceola) | Davenport (Polk) |
|---|---|---|
| County | Osceola County | Polk County |
| Combined Tax Rate | 13.5% | 12.0% ✓ |
| STR Licensing Cost | $250 + $160 inspection | $30–50 BTR ✓ |
| Zoning Framework | STR Overlay District (verify each parcel) | Resort PUD by right ✓ |
| Distance to Disney | 2–8 miles ✓ | 12–17 miles |
| Avg Nightly Rate | $160–280 ✓ | $140–235 |
| Typical Occupancy | 72–86% ✓ | 68–82% |
| Cap Rate Range | 7–10.5% | 8–11% ✓ |
| Owner-Occupancy Required | No | No |
| Acquisition Prices | Higher (closer to Disney) | Lower (value play) ✓ |
| Brand Recognition | Windsor Hills, Storey Lake, Reunion ✓ | Solterra, Highlands Reserve |
| Regulatory Simplicity | Overlay verification needed | Simpler, more permissive ✓ |
The Tax & Cost Math Over 5 Years
Assuming $70,000 gross annual rental revenue, here's how the jurisdiction differences add up:
Kissimmee (Osceola)
Davenport (Polk)
Davenport saves ~$6,060 over 5 years on taxes and licensing alone
Before accounting for typically lower acquisition prices and HOA costs in many Davenport communities.
But Proximity Drives Rate & Occupancy
Davenport's tax savings are real, but Kissimmee's proximity advantage often produces higher gross revenue that offsets the cost difference. A Windsor Hills property 2 miles from Disney can command $20–40 more per night and 5–8% higher occupancy than a comparable Davenport home 15 miles out.
Over a year at 75% occupancy, a $30/night rate premium = roughly $8,200 in additional gross revenue — which more than cancels Davenport's ~$1,200/year tax-and-license savings.
The real answer: it comes down to the specific property. A well-located, well-amenitized Davenport home with low HOA can out-yield a dated Kissimmee property — and vice versa. The jurisdiction is one input; property quality, HOA costs, and management execution matter more.
The Verdict by Investor Type
Yield-Maximizer
→ Davenport
Lower taxes, cheaper licensing, lower acquisition prices, and simpler regulations. If net cash-on-cash is your single metric, Polk County wins more often than not.
Premium / Occupancy Investor
→ Kissimmee
Closer to Disney = higher nightly rates and occupancy. Established luxury communities (Reunion, Storey Lake) command premiums Davenport can't match.
First-Time STR Buyer
→ Davenport
The simpler regulatory framework (resort PUD by right vs. parcel-level overlay verification) reduces the risk of a compliance mistake on your first purchase.
Still deciding between Kissimmee and Davenport?
We'll run the numbers on specific properties in both markets so you can compare real cap rates side by side — not just averages.