Numerous studies have examined the challenges associated with developing second-home (SH) tourism in rural areas. However, little attention has been given to exploring the influence of power dynamics and rent-seeking behavior on the Real Estate Market for second homes (SHs). To address this research gap, our study conducted face-to-face interviews with key stakeholders in five selected villages in Iran. Our objective was to investigate the impact of power and rent-seeking on the SH market. Our findings reveal that rent-seeking activities have significantly increased in the Real Estate Market for SHs in these villages due to legal loopholes, weak rule of law, inadequate supervision, and severe economic crises. Rent-seeking has emerged as the dominant and most profitable activity within this market. By shedding light on the processes of rent-seeking in the Real Estate Market for SHs in developing countries, our study enhances our understanding of this issue. It contributes to the formulation of effective policies and regulations.