Utila

Utila is the smallest and most affordable of the three main Bay Islands, world-famous as a budget scuba-diving and whale-shark destination and a long-standing backpacker hub. It offers the lowest entry point in Honduras's Caribbean island market: the median property price is roughly US$59,800 with a median of about US$24 per sqft, while houses carry a median near US$359,000 (about US$1,924 per m²). Vacant lots start around US$30,000, and Bay Islands properties broadly span US$85,000-US$469,000. The market is thinner and more cash-driven than Roatán, so liquidity is lower and days-on-market longer, but the dive economy underpins consistent seasonal rental demand. Like Roatán, Utila prices and transacts in US dollars even though Honduras is not dollarized. Foreign ownership follows the same national framework: Decree 90-90 permits direct foreign ownership of one urban property up to 3,000 m², and a Honduran corporation is used for larger holdings and coastal parcels. Property tax is low at roughly 0.35% of assessed value. Investors typically target dive-shop-linked guesthouses, beachfront lots on the south shore, and town homes around East Harbour, where most services, dive operators, and rental demand concentrate. Yields on well-run dive-tourism rentals run roughly 6-9% gross.