For US real estate investors thinking about buying a vacation rental in 2018, you must be wondering where the best place for this type of investment is. As you should already know, the location of your investment property (whether a traditional long-term rental or an Airbnb short-term rental) plays a major role in determining its profitability and return on investment. Of course, the best places to invest in real estate are those that give the property investor a high return on investment.
If you’re wondering where in the US real estate market should you buy a vacation rental property, then this guide is just for you! But first, we should mention what exactly makes certain locations better than others to buy a vacation rental property and give you an idea of what date that we, at Mashvisor, used to create this list.
Related: Vacation Rentals for Real Estate Investing: The Pros and Cons
What Makes the Best Places to Invest In Real Estate Vacation Rentals?
There are many reports available that outline the top short-term vacation rental markets based on factors like the consumer demand and anticipated gross rental revenue. Our focus goes beyond that! The main attributes that we focused on when developing this guide to the best places to invest in real estate short-term vacation rentals include:
- Median Property Price
- Rental Income
- Occupancy Rate
- Cap Rate
- Cash on Cash Return
You’ll notice that the cities listed below provide real estate investors with affordable property prices, high rental income, occupancy rates, and return on investments with regards to both cap rate and cash on cash return. We also factor in short-term Airbnb rental regulations which can have a significant impact as some cities across the US real estate market have strict regulations or don’t even allow it.
Related: Buying a Short-Term Rental Property? Invest in the Most Airbnb Friendly Cities
How to Find the Best Places to Invest In Real Estate Vacation Rentals
Real estate investors use Mashvisor’s rental property calculator to find investment properties across the US based on reliable estimates of above attributes for both long-term traditional and short-term Airbnb vacation rental property.
Sign up for Mashvisor now to get access to our rental property calculator as well as other real estate investing tools that help real estate investors buy the best investment properties anywhere in the US real estate market.
Now, without any further ado, here’s a list of the best places to invest in real estate short-term vacation rentals according to Mashvisor’s rental property calculator:
Best Places to Invest In Real Estate Vacation Rentals – Millenia, Orlando, FL
- Median Property Price: $115,000
- Airbnb Rental Income: $2,266
- Occupancy Rate: 55.64%
- Airbnb Cap Rate: 11.72%
- Airbnb Cash on Cash Return: 11.72%
Best Places to Invest In Real Estate Vacation Rentals – East Nashville Block Club, Nashville, TN
- Median Property Price: $286,250
- Airbnb Rental Income: $3,612
- Occupancy Rate: 62.60%
- Airbnb Cap Rate: 10.02%
- Airbnb Cash on Cash Return: 10.02%
Best Places to Invest In Real Estate Vacation Rentals – Volker, Kansas City, MO
- Median Property Price: $330,000
- Airbnb Rental Income: $4,101
- Occupancy Rate: 55.31%
- Airbnb Cap Rate: 9.85%
- Airbnb Cash on Cash Return: 9.85%
Best Places to Invest In Real Estate Vacation Rentals – Chula Vista, Fort Lauderdale, FL
- Median Property Price: $297,500
- Airbnb Rental Income: $3,567
- Occupancy Rate: 46.86%
- Airbnb Cap Rate: 8.48%
- Airbnb Cash on Cash Return: 8.48%
Best Places to Invest In Real Estate Vacation Rentals – Oak River Homeowners, Fort Lauderdale, FL
- Median Property Price: $259,750
- Airbnb Rental Income: $2,974
- Occupancy Rate: 51.55%
- Airbnb Cap Rate: 8.33%
- Airbnb Cash on Cash Return: 8.33%
Best Places to Invest In Real Estate Vacation Rentals – Poinsettia Heights, Fort Lauderdale, FL
- Median Property Price: $435,000
- Airbnb Rental Income: $5,102
- Occupancy Rate: 58.07%
- Airbnb Cap Rate: 8.09%
- Airbnb Cash on Cash Return: 8.09%
Best Places to Invest In Real Estate Vacation Rentals – Metro West, Orlando, FL
- Median Property Price: $319,900
- Airbnb Rental Income: $3,134
- Occupancy Rate: 62.00%
- Airbnb Cap Rate: 7.65%
- Airbnb Cash on Cash Return: 7.65%
Best Places to Invest In Real Estate Vacation Rentals – Michael Way, Las Vegas, NV
- Median Property Price: $199,999
- Airbnb Rental Income: $2,151
- Occupancy Rate: 59.32%
- Airbnb Cap Rate: 7.65%
- Airbnb Cash on Cash Return: 7.65%
Best Places to Invest In Real Estate Vacation Rentals – Winchester, Las Vegas, NV
- Median Property Price: $225,000
- Airbnb Rental Income: $2,334
- Occupancy Rate: 52.82%
- Airbnb Cap Rate: 7.55%
- Airbnb Cash on Cash Return: 7.55%
Best Places to Invest In Real Estate Vacation Rentals – Huntridge, Las Vegas, NV
- Median Property Price: $225,000
- Airbnb Rental Income: $2,151
- Occupancy Rate: 44.10%
- Airbnb Cap Rate: 7.38%
- Airbnb Cash on Cash Return: 7.38%
Best Places to Invest In Real Estate Vacation Rentals – Seminole Heights, Tampa, FL
- Median Property Price: $209,000
- Airbnb Rental Income: $2,187
- Occupancy Rate: 60.13%
- Airbnb Cap Rate: 6.63%
- Airbnb Cash on Cash Return: 6.63%
Best Places to Invest In Real Estate Vacation Rentals – Historic Ybor, Tampa, FL
- Median Property Price: $162,500
- Airbnb Rental Income: $1,910
- Occupancy Rate: 52.30%
- Airbnb Cap Rate: 6.44%
- Airbnb Cash on Cash Return: 6.44%
Best Places to Invest In Real Estate Vacation Rentals – Burchwood Gardens, Nashville, TN
- Median Property Price: $289,900
- Airbnb Rental Income: $2,636
- Occupancy Rate: 41.82%
- Airbnb Cap Rate: 6.44%
- Airbnb Cash on Cash Return: 6.44%
Best Places to Invest In Real Estate Vacation Rentals – Panama City Beach, FL
- Median Property Price: $299,900
- Airbnb Rental Income: $2,709
- Occupancy Rate: 52.09%
- Airbnb Cap Rate: 5.37%
- Airbnb Cash on Cash Return: 5.37%
Click here to start searching and analyzing different vacation rentals in any city or neighborhood of your choice across the US real estate market.
Best Places to Invest In Real Estate Vacation Rentals – Conclusion
To conclude, vacation rentals can be very profitable investment properties as long as you’re investing in the right place! The above-mentioned cities and neighborhoods are those in which real estate investors will find to be the best places to invest in real estate short-term vacation rentals, as computed by Mashvisor’s rental property calculator. Thus, whether you’re a beginner or an experienced property investor looking for a vacation rental property in the US real estate market, make sure to keep these in mind.
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