Owning a Beachfront Home on Hatteras Island
Owning a beachfront home comes with many perks — uninterrupted ocean views, fresh seafood, and the opportunity to make some additional income by renting it out. If rental income is important to you, Hatteras Island, North Carolina, should be on your radar. The barrier island was recently named one of the best oceanfront destinations to own a beach house by Vacasa (Hatteras Island is second on the list, while Lake Anna in Virginia took the No. 1 spot).
Investment Potential
According to Vacasa’s recent data, homeowners on Hatteras Island make an average of $58,556 in rental income each year, with median home sale prices at $412,500. “Hatteras Island is one of the most unique housing markets in the country, allowing for amazing rates of return compared to many other areas. Many vacationers to the area over the years have become homeowners as they realized they could utilize rental income to supplement homeownership costs,” said Brad Beacham, a broker at Landmark Sotheby’s International Realty and an Outer Banks native.
Charming Villages of Hatteras Island
What else makes this thin barrier island, part of the Outer Banks, such a good investment? Its central location along the East Coast, miles of unspoiled picture-perfect beaches, rich history, and endless outdoor activities are significant factors. This heavenly slice of land is part of Cape Hatteras National Seashore, our country’s first national seashore, established in 1953. The national seashore limited large-scale real estate development, giving the sand dunes, marshes, and beaches protected status. This is a major draw for vacationers: in 2021, the entire National Seashore welcomed a record 3,206,056 travelers, the most since its establishment 70 years ago. In 2022, that number was 2,862,844, making it the second highest influx of visitors since 2002.
Hatteras Island comprises seven quaint villages — Rodanthe, Waves, Salvo, Avon, Buxton, Frisco, and Hatteras Village — connected by miles of idyllic stretches of sand overlooking the Atlantic Ocean and Pamlico Sound. “Within each village, you will find neighborhoods and communities that blend modern coastal homes with older cottages, creating a thriving community,” Beacham added. “These once sleepy fishing villages have become tourist destinations, and the eyes of the country have now been opened to how incredible the area is.”
As visitors drive south of Pea Island National Wildlife Reserve, they enter Rodanthe, Waves, and Salvo, collectively known as the Tri Villages. These areas are interwoven with a variety of local shops and restaurants. Moreover, this region is a kite surfer’s paradise and is home to one of the biggest kitesurfing schools on the Outer Banks.
About 14 miles further south is Avon, where you can find the largest grocery store in the area and the first fishing pier on Hatteras Island, dating back to 1962. This historical wooden structure is 600 feet long and attracts anglers looking for red drum. Following Avon is Buxton, a must-visit location for vacationers eager to see the tallest brick lighthouse in the country, standing at 198 feet with its distinctive black-and-white pattern.
Finally, Frisco and Hatteras Village are recognized as the epicenter of recreational fishing on the Outer Banks. “Frisco feels like Hatteras Island before it was ‘discovered’ by generations of vacationers. Quiet and small, it offers a bit of seclusion while keeping the amenities of Buxton and Hatteras Village within easy reach,” Beacham explained.
Local Insights for Home Buyers
So where should you begin your search for the perfect beach vacation home on Hatteras Island? It is essential to partner with a broker who understands the local real estate market, including local regulations. “Purchasing on a barrier island is different than buying a home in other parts of the country. Choose an agent with experience who can advise you on matters such as flood zones, flood risks, insurance, vacation rental laws, property management, and numerous other important topics,” Beacham advised.
He further noted, “Currently, there are only 71 active single-family homes on the market for sale across all of Hatteras Island. This data shows that demand for beach homes in the area is outpacing supply. Well-maintained residences in prime locations sell quickly and are highly sought after. With reasonable housing prices, gorgeous surroundings, and great potential for return on investment, investing in Hatteras Island is certainly a decision worth considering.”
