If you’re looking to become a real estate investor through vacation rental investments, looking into the best places to invest in short-term rentals is the first step to take. The location of your investment property is the main factor that determines your optimal rental strategy (long-term vs short-term). Some locations yield high profits for a traditional real estate investor while others for Airbnb property investors. Thus, when buying vacation rental investments, you need to assure high Airbnb rental income to generate a good return on investment.
Keep reading as we provide you with numbers and data (provided by Mashvisor’s investment property calculator) to prove why vacation rentals in these cities make profitable investments. To learn more about how we help property investors make smarter real estate investment decisions, click here.
Top Cities for Vacation Rental Investments
Let’s start with the data. Before buying an investment property, a real estate investor has to analyze properties in terms of the property price, the rental income, the cash on cash return, and the cap (capitalization) rate. In the real estate investing business, these are the most important metrics to evaluate and estimate your potential return on investment.
Let’s face it – finding this data and analyzing properties upon properties in a real estate market to identify the best one will take ages if you don’t use the right tools. Mashvisor’s investment property calculator allows you to easily estimate the above metrics of an investment property to find out its profitability. Moreover, this tool provides readily calculated data for thousands of investment properties across the US housing market to make it easier for property investors to compare between them and make smart decisions. To learn more about our product, click here.
Using this tool, we’ve found the top cities in the US housing market for short-term rentals! Property investors should consider looking for:
Vacation Rental Investments in Boalsburg, PA
- Median Property Price: $283,940
- Airbnb Rental Income: $8,274
- Cash on Cash Return: 12.37%
- Cap Rate: 12.37%
Vacation Rental Investments in Fairfield, CA
- Median Property Price: $446,377
- Airbnb Rental Income: $7,072
- Cash on Cash Return: 10.49%
- Cap Rate: 10.49%
Vacation Rental Investments in Marbletown, NY
- Median Property Price: $482,645
- Airbnb Rental Income: $5,360
- Cash on Cash Return: 11.27%
- Cap Rate: 11.27%
Vacation Rental Investments in Seward, AK
- Median Property Price: $309,500
- Airbnb Rental Income: $5,214
- Cash on Cash Return: 10.76%
- Cap Rate: 10.76%
Vacation Rental Investments in Cayuga, NY
- Median Property Price: $215,920
- Airbnb Rental Income: $4,835
- Cash on Cash Return: 10.74%
- Cap Rate: 10.74%
Vacation Rental Investments in Hatch, UT
- Median Property Price: $374,780
- Airbnb Rental Income: $4,639
- Cash on Cash Return: 10.54%
- Cap Rate: 10.54%
Vacation Rental Investments in Puyallup, WA
- Median Property Price: $300,000
- Airbnb Rental Income: $4,158
- Cash on Cash Return: 10.45%
- Cap Rate: 10.45%
Vacation Rental Investments in Allentown City, PA
- Median Property Price: $168,581
- Airbnb Rental Income: $4,069
- Cash on Cash Return: 10.31%
- Cap Rate: 10.31%
Vacation Rental Investments in Pegram, TN
- Median Property Price: $274,633
- Airbnb Rental Income: $4,056
- Cash on Cash Return: 10.7%
- Cap Rate: 10.7%
Vacation Rental Investments in Tofte, MN
- Median Property Price: $169,999
- Airbnb Rental Income: $3,663
- Cash on Cash Return: 14.53%
- Cap Rate: 14.53%
Vacation Rental Investments in Port Matilda, PA
- Median Property Price: $437,375
- Airbnb Rental Income: $8,378
- Cash on Cash Return: 9.89%
- Cap Rate: 9.89%
Vacation Rental Investments in Mt. Pleasant, IN
- Median Property Price: $168,650
- Airbnb Rental Income: $3,500
- Cash on Cash Return: 13.24%
- Cap Rate: 13.24%
Vacation Rental Investments in South Bass Island, OH
- Median Property Price: $169,000
- Airbnb Rental Income: $3,138
- Cash on Cash Return: 10.19%
- Cap Rate: 10.19%
Vacation Rental Investments in Newburgh, NY
- Median Property Price: $336,343
- Airbnb Rental Income: $3,504
- Cash on Cash Return: 10.18%
- Cap Rate: 10.18%
Vacation Rental Investments in State College, PA
- Median Property Price: $326,133
- Airbnb Rental Income: $5,026
- Cash on Cash Return: 9.7%
- Cap Rate: 9.7%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
What’s Special About Vacation Rental Investments in These Cities?
A number of things set these locations apart from others and make them great for short-term rentals. As you can see, investment properties in these locations are pretty affordable and generate a high Airbnb rental income. As a real estate investor, you should know that high profit comes from low-priced properties especially if you’re investing for cash on cash return since it takes into account the amount of cash you invest. Consequently, you’ll notice that most cities on our list all have a CoC return over 10%!
If you wish to find the best vacation rental investments in any of the above cities on our list, you do so with Mashvisor’s Property Finder! Using this real estate investment tool, all you have to do is choose the city/cities where you want to buy a property, set your budget, and use other filters (like rental strategy and numbers of bedrooms and bathrooms). The Property Finder Tool will then, in turn, provide you with a list of investment properties that meet your criteria AND have a high projected return on investment.
If you have a free Mashvisor account, click here to use our Property Finder and find the best properties in a matter of minutes! If you don’t, then be a smart real estate investor and sign up with Mashvisor!
To start your 7-day free trial with Mashvisor and subscribe to our services with a 15% discount after, click here.
Do you own vacation rental investments? Let us know what the overall experience is like! Also, will you consider buying one in any of these cities?