October 8, 2024
The demand for unique and personalized travel experiences is driving significant growth in the short-term rental industry. By 2028, annual revenue in the U.S. could exceed $21 billion as more travelers prefer vacation homes over traditional hotels.
Investors are increasingly drawn to this market, recognizing its potential for high returns. Success depends on choosing the right location, which affects demand, rental income, and initial investment.
Before we reveal the best markets for 2024, let's look at what makes a successful short-term rental investment and how profitable a market can be.
Based on AirDNA's analysis, these markets are the best places to invest in short-term rentals in 2024. They have high demand for rentals, potential for increased earnings, good investment metrics, and supportive regulations.
Columbus, Georgia tops the list for short-term rentals in 2024. It's affordable and promising for investors, with homes priced around $161,000 and a 9% return rate. Columbus is popular for its history, outdoor activities, and culture. It's by the Chattahoochee River and has the world's longest urban whitewater course, attracting adventurers. In 2023, Columbus had nearly 2 million visitors, showing its appeal as a vacation spot. Short-term rentals here have a 60% occupancy rate and charge about $178 per night, potentially earning about $29,000 annually.
In scenic coastal Maine, Ellsworth stands out as the second-best place for short-term rentals in 2024. This charming town has a high occupancy rate of 73%, mainly because it's close to Acadia National Park.
Homes here typically cost around $325,000 and offer a 6.3% return on investment. With short-term rental rates averaging $335 per day, you could potentially earn about $41,000 per year from renting out a property in Ellsworth.
Logan, Ohio, is a small city in the southeastern part of the state, known for its natural beauty near Hocking Hills State Park and the Hocking River. It also has a lively arts scene that attracts many visitors.
Investors find Logan appealing with a high cap rate of 12.2%, indicating it could be a profitable place to invest. The median home price is $233,000, with short-term rental properties earning around $57,000 annually, thanks to an average daily rate of $343 and an occupancy rate of 57%.
Spring Hill, Florida, is ranked fourth among the best places for short-term rentals in 2024. It's ideal for nature lovers, close to Weeki Wachee Springs State Park and Chassahowitzka Wildlife Management Area. Homes here cost around $389,000 on average, with a 5% return on investment. Occupancy is strong at 62%, and nightly rates average $251, leading to about $39,000 in annual revenue for rental properties.
Sneads Ferry, North Carolina, is a top spot for short-term rentals in 2024. This coastal town near North Topsail Beach has expensive homes, with a median price of $555,000. They earn about $461 per day and $71,000 annually, offering a 6.4% return on investment and a 63% occupancy rate.
Winter Haven, Florida, is an affordable and family-friendly short-term rental market, ranking sixth for 2024. With a median home price of $264,000, a 5.9% cap rate, and 62% occupancy, it offers strong investment potential. Attractions like LEGOLAND, downtown, and nearby lakes boost its appeal, with rentals averaging $206 per day and $31,000 annually.
Stanton, Kentucky, offers high returns and low costs for investors. With a 14.7% cap rate and $146,000 median home price, it’s a great opportunity. Its location near popular parks keeps occupancy at 56%. Investors can expect $236 per day and $43,000 annually in revenue.
Port Angeles, Washington, is the eighth-best short-term rental market for 2024. With a median home price of $390,000, 6% cap rate, and 64% occupancy rate, it's a good investment. Close to Olympic National Park, rentals here can earn about $47,000 per year at $289 per night.
Akron, Ohio ranks ninth for short-term rentals in 2024. With affordable homes priced around $145,000 and a high 9% return rate, it's a great choice for investors. Akron offers attractions like Stan Hywet Hall & Gardens and the Akron Art Museum. Rental properties here have a 57% occupancy rate, average $199 per night, and earn about $26,000 annually.
Fairbanks, Alaska, ranks in the top 10 with its unique Northern Lights, Arctic Circle location, and rich attractions. It's on AirDNA's list for the second year. Investors find it appealing with a 6.7% cap rate, $239,000 median home price, and 65% occupancy rate. Short-term rentals average $225 daily, potentially earning $32,000 annually, offering both high returns and a memorable stay.
If you're considering investing in short-term rentals, obtaining a vacation rental license is essential before renting out your property. Let us simplify this process for you—contact us and we'll handle everything on your behalf.
Here are additional locations where you can invest in short-term rentals:
Use this list as a starting point, but be sure to research thoroughly based on your investment goals and preferences. Each market has its own opportunities and challenges, so personalized analysis is crucial for maximizing returns.
The short-term rental industry offers great opportunities for smart investors looking to diversify and earn good profits. By using insights from experts like AirDNA and doing thorough research, you can find the best markets to invest in wisely.
However, investing in short-term rentals isn't a one-time thing. Success requires ongoing effort, good property management, and adapting to changing market and guest needs.
To succeed, use technology like property management software to streamline operations and improve guest satisfaction. Combine data-driven insights, smart strategies, and modern tools for long-term success.
Profitability in this industry comes from picking the right markets, understanding each location well, and delivering great guest experiences. With dedication and continuous learning, you can make the most of this promising investment opportunity.
