The top short-term rental markets are based on AirDNA’s annual report which factors four key criteria: rental demand, revenue growth, investability, and regulation. Rental demand measures the occupancy rate and average daily rate (ADR) of STRs in the market. Revenue growth measures the year-over-year change in revenue per available room (RevPAR), a key metric of STR profitability. Investability measures the affordability and availability of properties for sale in the market. Regulation measures the level of legal restrictions and taxes imposed on STRs in the market. All 4 of these criteria are essential to finding the best markets for short-term rentals.
If you are looking for a profitable and sustainable way to invest in real estate, you might want to consider short-term rental (STR) properties. STRs are properties rented out for short periods, usually through platforms like Airbnb and Vrbo. They offer several advantages over traditional long-term rentals, such as higher occupancy rates, flexible pricing, and lower maintenance costs.
However, not all STR markets are created equal. Some locations have higher demand, revenue, and growth potential than others. That’s why it’s important to do your research and find the best places to invest in vacation rental property.
To help you with that, we put together a 2-part post, compiling a list of the top 10 STR markets in 2024, based on data and analysis from AirDNA, a leading provider of STR data and analytics. AirDNA tracks the performance of over 10 million STR listings across 80,000 markets worldwide, and offers tools and insights to help investors, hosts, and property managers optimize their STR business.
Based on these criteria, AirDNA’s top 10 places to invest in 2024 are:
1. Columbus, Georgia:
This historic city on the Chattahoochee River is home to the National Infantry Museum, the Coca-Cola Space Science Center, and the longest urban whitewater course in the world. It also boasts a strong military presence, a thriving arts and culture scene, and a diverse economy. Columbus has a high rental demand, with an occupancy rate of 75% and an ADR of $140 in 2024. It also has a high revenue growth, with a RevPAR increase of 25% year-over-year. Columbus is a relatively affordable market, with a median home price of $165,000 and a price-to-rent ratio of 11.6. It also has a favorable regulation environment, with no major restrictions or taxes on STRs.
2. Ellsworth, Maine:
This charming town is the gateway to Acadia National Park, one of the most visited national parks in the U.S. It also offers access to the scenic Maine coast, with its rocky shores, lighthouses, and lobster shacks. Ellsworth has a high rental demand, with an occupancy rate of 72% and an ADR of $220 in 2024. It also has a high revenue growth, with a RevPAR increase of 23% year-over-year. Ellsworth is a moderately priced market, with a median home price of $250,000 and a price-to-rent ratio of 15.4. It also has a moderate regulation environment, with some local rules and taxes on STRs, but no state-level restrictions.
3. Logan, Ohio:
This quaint town is located in the heart of the Hocking Hills region, a popular destination for outdoor enthusiasts and nature lovers. It features attractions like the Hocking Hills State Park, the Old Man’s Cave, and the Rock House. Logan has a high rental demand, with an occupancy rate of 71% and an ADR of $200 in 2024. It also has a high revenue growth, with a RevPAR increase of 22% year-over-year. Logan is a low-cost market, with a median home price of $140,000 and a price-to-rent ratio of 9.1. It also has a favorable regulation environment, with no major restrictions or taxes on STRs.
4. Spring Hill, Florida:
This coastal city is part of the Tampa Bay area, and offers easy access to the Gulf of Mexico, the Weeki Wachee Springs, and the Pine Island Beach Park. It also has a variety of shopping, dining, and entertainment options, as well as a growing population and economy. Spring Hill has a high rental demand, with an occupancy rate of 70% and an ADR of $150 in 2024. It also has a high revenue growth, with a RevPAR increase of 21% year-over-year. Spring Hill is a moderately priced market, with a median home price of $220,000 and a price-to-rent ratio of 14.3. It also has a moderate regulation environment, with some local rules and taxes on STRs, but no state-level restrictions.
5. Sneads Ferry, North Carolina:
This fishing village is located on the banks of the New River, and is known for its seafood, especially shrimp. It also offers access to the Topsail Island, a barrier island with pristine beaches, golf courses, and wildlife. Sneads Ferry has a high rental demand, with an occupancy rate of 69% and an ADR of $180 in 2024. It also has a high revenue growth, with a RevPAR increase of 20% year-over-year. Sneads Ferry is a moderately priced market, with a median home price of $240,000 and a price-to-rent ratio of 15.2. It also has a moderate regulation environment, with some local rules and taxes on STRs, but no state-level restrictions.
Check out part 2 for the best markets 6 – 10. You can also use AirDNA’s tools to customize your search for the best markets, based on your own preferences and criteria. You can filter and sort by location, property type, size, price, and more. You can also browse current properties for sale and generate accurate projections for STR revenue, using AirDNA’s data and analytics.
Investing in STR property can be a rewarding and profitable venture, if you know where to look and what to look for. With AirDNA’s help, you can find the best places to invest in vacation rental property in 2024, and beyond.
0 Comments