Investing in short-term rental properties (STRs) has proven to be a lucrative opportunity, especially with the growing popularity of platforms like Airbnb and VRBO. Despite concerns about a potential downturn, occupancy rates for luxury vacation rentals have shown a significant increase, rising from 49.1% to 55.9% between 2019 and 2023. This growth is a testament to the robust demand for unique and well-furnished homes.
According to AirDNA, travelers are spending more on luxury vacation rentals, with the overall STR market generating an impressive $64 billion in revenue in 2023. For investors seeking high revenue potential without breaking the bank, here are eight markets across the United States where you can still find affordable short-term rental properties.
1. Columbus, Georgia
- Typical Home Value: $161,000
- Occupancy: 60%
- Average Daily Rate: $178
- Average Revenue: $29,000
Located along the Chattahoochee River, Columbus offers excellent investment opportunities with its affordable home prices and attractions like whitewater rafting.
2. Oneonta, New York
- Typical Home Value: $211,000
- Occupancy: 60%
- Average Daily Rate: $356
- Average Revenue: $27,000
This charming city in upstate New York is known for its scenic beauty and recreational activities, making it a great investment spot with high daily rates.
3. Fairbanks, Alaska
- Typical Home Price: $239,000
- Occupancy: 65%
- Average Daily Rate: $225
- Average Revenue: $32,000
Fairbanks is a popular summer destination with a modest typical home price, offering significant annual revenue during the warmer months.
4. Fennville, Michigan
- Typical Home Value: $309,000
- Occupancy: 56%
- Average Daily Rate: $595
- Average Revenue: $63,000
With its picturesque orchards and vineyards, Fennville provides a strong annual revenue for an affordable investment.
5. Ashford, Washington
- Typical Home Value: $323,000
- Occupancy: 67%
- Average Daily Rate: $242
- Average Revenue: $44,000
Nestled near Mount Rainier National Park, Ashford combines affordability with natural beauty, making it a prime spot for STRs.
6. Beaufort, South Carolina
- Typical Home Value: $347,000
- Occupancy: 61%
- Average Daily Rate: $234
- Average Revenue: $40,000
Beaufort's Southern charm, historic district, and waterfront park attract many visitors, ensuring steady rental income.
7. Kitty Hawk, North Carolina
- Typical Home Price: $350,000
- Occupancy: 64%
- Average Daily Rate: $434
- Annual Revenue: $38,800
Known for its beaches and lighthouses, Kitty Hawk in the Outer Banks is a desirable location for short-term rentals.
8. Logan, Ohio
- Average Home Price: $233,000
- Occupancy: 57%
- Average Daily Rate: $343
- Annual Revenue: $57,000
Logan's rural charm and numerous outdoor activities make it a great investment spot, with high annual revenue potential.
Final Thoughts
Owning a short-term rental property in these affordable yet high-demand markets can be a rewarding investment. By strategically selecting a property and effectively managing it, investors can maximize their profits, especially during peak seasons. Partnering with a reliable property management company and leveraging tax benefits can further enhance the profitability of your investment.
At Armenta Realty, we specialize in helping home buyers purchase investment properties across most of the US. With our extensive range of mortgage products, we make it easier for you to invest in these promising short-term rental markets. Contact us today at (520) 833-8056 to learn how we can assist you in making a profitable real estate investment.
