In This Article
Key Takeaways
Regardless of considerations over a short-term rental bust, occupancy charges for luxurious trip leases elevated from 49.1% to 55.9% between 2019 and 2023.Demand for bookings in smaller Atlantic coastal markets is up practically 8% in comparison with final yr.It is nonetheless potential to search out short-term rental offers for below $500,000 that supply excessive income potential for buyers.
Now is a good time to be within the trip rental enterprise. In response to short-term rental information and analytics web site AirDNA, vacationers are spending large on luxurious trip leases—the extra distinctive, the higher. Latest occupancy charges for well-furnished properties elevated from 49.1% to 55.9% between 2019 and 2023, with the general STR market producing a groundbreaking $64 billion in income in 2023.
Whereas long-term rental landlords would possibly balk at these occupancy charges, it’s price remembering that trip leases typically double as medium-term leases within the low season, which could not register on trip rental websites.
The East Coast Is Crammed With Funding Scorching Spots
Journey trade information website Skift crunched the numbers with AirDNA information to find that the seashores on the East Coast, off the Atlantic Ocean, are poised to make a roaring commerce throughout this summer season season, with 1.63 million nights booked, up 7.7% over final yr.
“New York, which was once a prime 10 marketplace for July 4th, has dropped out and been changed by the Delaware/Maryland Seashores. This shift continues the pattern of rising recognition for Atlantic seashores, led by Myrtle Seashore, South Carolina,” mentioned a spokesperson for the short-term rental information supplier.
With that in thoughts, for buyers seeking to maximize their earnings all through the summer season months with out spending over $500,000 on a trip rental, these are the prime locations all throughout the nation to personal an STR, based mostly on AirDNA, short-term rental and hospitality website Avantstay, and skilled actual property agent opinion, factoring in location desirability, potential rental earnings, property administration prices, and long-term appreciation and short-term rental earnings.
Columbus, Georgia
Typical Residence Worth: $161,000
Occupancy: 60%
Common Every day Charge: $178
Common Income: $29,000
With a worth level of $161,000 and a location alongside the Chattahoochee River, that includes whitewater rafting, Columbus is a good place to take a position, go to, and take into account scaling your portfolio. Columbus earned the highest spot on AirDNA’s Greatest Locations to Make investments 2024.
Oneonta, New York
Typical Residence Worth: $211,000
Occupancy: 60%
Common Every day Charge: $356
Common Income: $27,000
There’s not a lot to argue about with the standard dwelling worth of $211,000 and the bumper each day price of $356. This charming, small metropolis in upstate New York has already landed on AirDNA’s checklist of hidden gems. The Robert V. Riddell State Park presents greater than 2,000 acres of fields and forested woodlands within the Susquehanna River Valley.
A trip dwelling in Oneonta additionally doubles as a winter wonderland retreat, with loads of enjoyable cold-climate actions close by.
Fairbanks, Alaska
Typical Residence Value: $239,000
Occupancy: 65%
Common Every day Charge: $225
Common Income: $32,000
Alaska is a good place to go to in the summertime, which accounts for short-term leases’ wholesome $32,000/yr income, largely crammed into the hotter months. The modest typical dwelling worth of $239,000 has elevated since Fairbanks grew to become a well-liked trip rental city.
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Fennville, Michigan
Typical Residence Worth: $309,000
Occupancy: 56%
Common Every day Charge: $595
Common Income: $63,000
With a sprawling panorama of orchards, vineyards, and lakefront appeal, Fennville’s wholesome $63,000 annual income for an reasonably priced funding of $309,000 is a good deal. If an investor bought a house as a private residence for yr one whereas they mounted the place up after which moved out, they may qualify for an FHA mortgage and be within the property for below $10,000.
Ashford, Washington
Typical Residence Worth: $323,000
Occupancy: $67%
Common Every day Charge: $242
Common Income: $44,000
Affordability and pristine wilderness earmark this widespread STR haven, which generates a median annual income of $44,000 for an funding of $323,000. Mount Rainier Nationwide Park is an enormous draw. Consistent with the scenic surroundings, STRs can solely function if there are 5 or fewer visitor rooms and the whole variety of visitors doesn’t exceed 10.
Beaufort, South Carolina
Typical Residence Worth: $347,000
Occupancy: 61%
Common Every day Charge: $234
Common Income: $40,000
Laid-back Southern coastal appeal, a quaint historic district, Lowcountry delicacies, and a shocking waterfront park make this an important place to take a position at a worth that received’t harm.
Kitty Hawk, North Carolina
Typical Residence Value: $350,000
Occupancy: 64%
Common Every day Charge: $434
Annual Income: $38,800
Though there aren’t many new listings on the market in Kitty Hawk within the Outer Banks, and people who range dramatically in worth, it’s potential to nab deal shy of $500,000. The metrics make sense, as do the lighthouses, wild horses, and miles of seashores that draw vacationers right here every year.
Logan, Ohio
Common Residence Value: $233,000
Occupancy: 57%
Common Every day Charge: $343
Annual Income: $57,000
Get away from all of it to a rural nirvana within the Hocking Hills area of Logan, Ohio. There are quite a few summer season actions, together with mountain climbing, horseback using, and zip-lining, with many state parks, rivers, lakes, and caves that draw vacationers to the world.
Mount Pocono, Pennsylvania
Typical Residence Value: $439,000
Occupancy: 47%
Common Every day Charge: $312
Annual Income: $45,300
With proximity to Philadelphia, New York, and New Jersey, the Poconos’ lakes, rivers, and woodlands have been a perennial favourite for years, seeing elevated demand lately.
Closing Ideas
The benefit of proudly owning a seasonal short-term rental that draws a sturdy summer season clientele is that, for those who purchase proper, one season can assist your entire yr—particularly on peak holidays like Memorial Day, Independence Day, and Labor Day—permitting you to accommodate mid-term leases in the course of the winter months.
Summer time trip leases might be labor-intensive, so make sure you discover a good administration firm and reap the benefits of tax advantages related to proudly owning a rental property—deducting all bills and maintenance, which might be written off as reliable prices.
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Observe By BiggerPockets: These are opinions written by the creator and don’t essentially signify the opinions of BiggerPockets.