To the average investor, the idea of investing in a vacation rental investment property sounds enticing. And rightly so as it serves a double purpose: first, it serves as a rental property. Second, it functions as your own vacation spot during your annual vacation.Thirteen of the best vacation rental markets so you can decide whether to get one next time of your travel.Learn all about rental markets.
The best places to buy a vacation property are based on the short-term market rental rates, the local occupancy rates, your expected ROI, their affordability and the desirability of the location.
So what are the best vacation rental markets?
13 Great Vacation Rental Markets?
1. Pigeon Forge, Tennessee
Home of Dollywood, Pigeon Ford is a tourism-driven market. With 2.5 million visitors each year, it’s arguably one of the biggest attractions in the southern Atlantic seaboard.
According to AIRDNA, top-performing properties that people stay in Tennessee could generate about $31,492 a year.
2. Panama City Beach, Florida
Panama City is one of the more popular beach cities in the Florida Panhandle. Thanks to substantial tourist-oriented infrastructure including amusement parks, the area is an excellent spring-break destination.
According to Rented.com, investors can expect to bring in about $25,736 in rental income annually.
3. Palm Springs, California
Palm Springs is a desert town in Southern California that attracts people from all over the globe. Ample housing supply, great architecture, year-round tourism, and nearby attractions make it one of the best vacation rental markets.
It’s also a convenient getaway for West Coasters, as it’s just a two hour drive from Los Angeles.
According to AIRDNA, homeowners here can expect their average property to bring in about $43,000 each year.
4. Myrtle Beach, South Carolina
Myrtle Beach is undoubtedly one of America’s favorite vacation rentals. From top restaurant dining and shopping, to golf courses and arcades, the vacation resort offers a prime vacation rental market.
Additionally, the cost of homes is relatively low.
A two bedroom home, according to TripAdvisor, could generate $19,812 each year.
5. Nashville, Tennessee
Short terms rentals are a hot topic in Nashville. HomeAway, VRBO, AirBnB and others have become popular and desirable for investors and homeowners alike. Nashville continues to earn a top spot because tourist to the city is booming and real estate is still attainable.
A two bedroom property, according to TripAdvisor, could generate $43,368 each year.
6. Galveston, Texas
Galveston is a prime location for investment properties to flourish for several reasons. One, it’s an hour long drive from downtown Houston making it an ideal weekend getaway, also you can pay visit to Bishop’s palace, a must visit!
Two, owning a Galveston beachfront home is quite affordable. And three, the area has so much to offer tourists. Cruises, downtown shopping, and so much more.
Therefore, using a vacation rental home in Galveston as an investment property is something that can become a very valuable asset.
A two bedroom vacation rental in Galveston, according to TripAdvisor’s averages could generate about $36,608 annually.
7. Siesta Key, Florida
This is one of Florida’s hottest markets for investment properties and it’s no wonder why. Between the boutique shops, world-class golf, and beautiful beaches, this quaint coastal town on the Gulf of Mexico is a popular tourism destination.
A two bedroom vacation rental in Siesta Key, according to TripAdvisor’s averages, could bring in about $34,294 annually.
8. Destin, Florida
There are a lot of opportunities to generate a solid rental income in Destin. The area has a strong traveler demand and the median price of homes in about $323,000.
A two-bedroom home in Destin, according to TripAdvisor, can bring in about $28,418 annually.
9. Port Salerno, Florida
Port Salerno, Florida is centrally located and offers easy access to miles of attractive beaches like Jensen Beach and Hutchinson Island Beach.
With rent fetching upwards of $1,400 per month, this vacation town, which caters to both beach lovers and golfers, offers the best value in terms of potential rent and home value.
10. Thousand Palms, California
The city of Thousand Palms is located just minutes outside of Palm Springs. Because of its affordability, it has become one of the hotter markets in Southern California for tourists and vacations alike.
You can expect to earn about $16,700 in rental income annually.
11. Miami Beach, Florida
Because South Florida real estate rentals are popular year-round, you’ll have a major advantage if you decide to buy a Miami vacation rental.
You can expect to bring in about $36,000 each year in rental income.
12. Orlando, Florida
Known for its close proximity to Universal Studios and Disney World, Orlando is a popular year-round destination, particularly for family-friendly rental resorts.
Investors can make a pretty penny here depending on location and amenities. To better illustrate this, expect to make a median annual rent of $1,232.
13. Stroudsburg, Pennsylvania
First incorporated in 1815, this city has become a commercial hub for tourism. It’s a popular destination for skiers, hikers and outdoor enthusiasts alike.
Here, you can expect to make $13,000 annually in rental income.
There is no doubt that the vacation rental markets are booming. However, to get the best return on your investment, you need to take several factors to account. For example, location, price range, and home maintenance.