Top Locations The Best Place to Buy Vacation Rental Property 2022 by Nasser Mansur January 16, 2022June 7, 2022 by Nasser Mansur January 16, 2022June 7, 2022 Vacation rentals are very popular among investors due to the increase in the number of people who own a secondary residence that serves as a vacation rental. But what are the best places to buy vacation rental property in 2022? What are the best vacation rental markets this year? In this guide, I will talk about vacation rentals, the appeal of investing in them, and the best markets for investing in a vacation rental in the year 2022 based on the latest market trends and Mashvisor’s data. So, without further ado, let’s get into our 2022 guide to the best places for buying a vacation rental property! See where in the US you can find the best vacation rental markets! How to Find the Best Place to Buy Vacation Rental Property 2022? Vacation rentals are short-term rental properties that are considered secondary residences for the owner. What it means is that, unlike an investment short-term rental property, vacation rentals need to qualify as a secondary residence where the owner of the property resides for a number of days yearly. Other than that, vacation rentals are just like any other short-term rental in that the owner can rent it out on a daily or weekly basis using platforms such as Airbnb in order to generate an extra income or cover the running costs of the property for the remainder of the year. Despite the ongoing pandemic, vacation rentals remain very popular among people who were looking for a secondary residence to spend their time at during the lockdown. It played a major role in the COVID-19 real estate market trends seen in the US housing market in the past couple of years. We saw the demand for secondary homes, especially in suburban areas, rose through the roof, leading to supply shortages and inflated prices that continue to this day, and that is expected to continue throughout 2022. So, if you’re looking to join in on the trend of buying a secondary residence in of the best vacation rental markets 2022 in the US, you should consider buying one that can be run as a vacation rental. It will help generate an extra income stream and build up your financial future! Related: How to Start a Vacation Rental Business: A Step-by-Step Guide How to Choose the Best Place to Own a Vacation Rental When you decide to buy a vacation rental property, and you’re looking for the best place to buy vacation rental property in 2022, there are a number of things that you need to take into consideration. Firstly, you need to keep in mind that this is a property that you might want to use as a vacation retreat occasionally, so it’s important that it is a property that you like and enjoy spending time at, and that the location is somewhere that you like going to. Secondly, you also need to remind yourself that this isn’t just a secondary residence, and while it’s important that it’s a location that you enjoy, it’s also important that it’s a profitable location in order to run a vacation rental there. Thirdly, taking both of the above aspects into consideration, you need to find a balance between what you enjoy and what actually makes sense financially. If you think you’re going to be spending a lot of time in this property, then maybe you should prioritize a location that you enjoy over another location that promises a better return on investment but that you enjoy less. Of course, while choosing a location based on its appeal is a matter of personal preference and is a decision that people can make on their own after researching the different locations, assessing a location based on its performance for short-term rentals is a whole different deal. So, how do you find the best place to buy vacation rental property in 2022? And what tools can you use to help you find profitable properties to purchase? Best Vacation Rental Markets in 2022 In real estate investing, there are a couple of ways to analyze locations and properties in order to project their future returns and performance as investment properties. While vacation rentals aren’t strictly investment properties, in order to maximize the income that they generate you need to analyze them like any other rental investment property. It usually means using metrics such as cap rate or CoC (cash on cash return) to see how much income the property will generate in relation to the money you’re investing in it. In this guide to the best place to buy vacation rental property in 2022, I will be using the capitalization rate, which calculated the return on investment based on the net operating income divided by the property’s market value: Cap Rate = Net Operating Income / Property’s Value Using the cap rate metric, we can project each property’s return on investment to see how it will perform in the future. Additionally, after you’ve gathered enough data from a certain market, you can analyze the market to see its average performance and compare properties with the average to see which ones are the best to invest in. However, it seems like a lot of work, especially considering how hard it is to get your hands on reliable and up-to-date real estate data and property listings. You may need to browse through several lists of the best vacation rental markets to invest in before finding one that best suit your preferences and requirements. For this reason, homebuyers and investors usually use online tools and platforms, as well as hire real estate agents, to help them find good investments. Use Mashvisor to Find the Best Vacation Rental Markets Mashvisor is a real estate platform that was designed to help real estate investors and homebuyers find the perfect properties to purchase anywhere in the US. The platform offers a number of excellent tools to help you search through the different markets, find properties with specific traits or based on specific criteria, and analyze each property and market based on massive amounts of up-to-date data. Using Mashvisor, you can easily find vacation rental properties that you can own based on the best long-term or short-term rental strategy to use. Whether you’re looking for a property in a beautiful location and a high Walk Score, or if you’re looking for a property that will generate a lot of rental income – our Property Marketplace lists all kinds of properties for sale, including off-market properties, for-sale-by-owner, and foreclosures. And now, using Mashvisor’s data and our machine-learning AI, these are the best places to buy a vacation rental property in 2022. Best Cities for Investing in Vacation Rentals in 2022 Here are the top cities for investing in a short-term or vacation rental based on cap rates, divided into three categories based on the price range: Best Place to Buy Vacation Rental 2022 (<$500k) Here are the top places to purchase a vacation rental worth less than $500,000: 1. McGahey Ville, Rockingham County, VA Median Property Price: $458,229 Average Property Size: 183.37 Sq. Ft. Occupancy Rate: 58.62% Airbnb Monthly Rental Income: $4,870 Airbnb Daily Rate: $332 Airbnb Cap Rate: 7.64% Traditional Monthly Rental Income: $1,360 Traditional Cap Rate: 1.45% Walk Score: 17 2. Wisconsin Dells, Columbia County, WI Median Property Price: $333,960 Average Property Size: 169.72 Sq. Ft. Occupancy Rate: 48.73% Airbnb Monthly Rental Income: $3,603 Airbnb Daily Rate: $330 Airbnb Cap Rate: 7.22% Traditional Monthly Rental Income: $1,053 Traditional Cap Rate: 1.06% Walk Score: 71 3. Penn Yan, Yates County, NY Median Property Price: $429,920 Average Property Size: 288.65 Sq. Ft. Occupancy Rate: 58.06% Airbnb Monthly Rental Income: $4,519 Airbnb Daily Rate: $332 Airbnb Cap Rate: 7.09% Traditional Monthly Rental Income: $2,019 Traditional Cap Rate: 3.3% Walk Score: 77 4. North Charleston, Charleston County, SC Median Property Price: $346,402 Average Property Size: 197.67 Sq. Ft. Occupancy Rate: 68.24% Airbnb Monthly Rental Income: $3,366 Airbnb Daily Rate: $149 Airbnb Cap Rate: 6.66% Traditional Monthly Rental Income: $1,328 Traditional Cap Rate: 2.48% Walk Score: 77 5. Cape Coral, Lee County, FL Median Property Price: $495,117 Average Property Size: 262.27 Sq. Ft. Occupancy Rate: 66.06% Airbnb Monthly Rental Income: $3,203 Airbnb Daily Rate: $192 Airbnb Cap Rate: 4.27% Traditional Monthly Rental Income: $1,546 Traditional Cap Rate: 1.81% Walk Score: 77 Best Place to Buy Vacation Rental 2022 ($500k – $750k) Here are the top places to buy a vacation rental for $500,000 to $750,000: 1. Galena, Jo Daviess County, IL Median Property Price: $548,60 Average Property Size: 267.58 Sq. Ft. Occupancy Rate: 64.88% Airbnb Monthly Rental Income: $5,188 Airbnb Daily Rate: $258 Airbnb Cap Rate: 7.22% Traditional Monthly Rental Income: $854 Traditional Cap Rate: -0.53% Walk Score: 76 2. Temecula, Riverside County, CA Median Property Price: $777,905 Average Property Size: 351.52 Sq. Ft. Occupancy Rate: 65.01% Airbnb Monthly Rental Income: $7,382 Airbnb Daily Rate: $442 Airbnb Cap Rate: 6.95% Traditional Monthly Rental Income: $2,581 Traditional Cap Rate: 1.96% Walk Score: 28 3. Joshua Tree, San Bernardino County, CA Median Property Price: $513,808 Average Property Size: 407.61 Sq. Ft. Occupancy Rate: 62.31% Airbnb Monthly Rental Income: $3,998 Airbnb Daily Rate: $240 Airbnb Cap Rate: 5.37% Traditional Monthly Rental Income: $898 Traditional Cap Rate: 0.17% Walk Score: 53 Related: Joshua Tree Airbnb: Should You Invest in 2022? 4. Nashville, Davidson County, TN Median Property Price: $622,873 Average Property Size: 364.87 Sq. Ft. Occupancy Rate: 59.07% Airbnb Monthly Rental Income: $4,849 Airbnb Daily Rate: $255 Airbnb Cap Rate: 5.26% Traditional Monthly Rental Income: $1,951 Traditional Cap Rate: 1.97% Walk Score: 32 5. Savannah, Chatham County, GA Median Property Price: $643,776 Average Property Size: 279.88 Sq. Ft. Occupancy Rate: 65.1% Airbnb Monthly Rental Income: $4,225 Airbnb Daily Rate: $188 Airbnb Cap Rate: 5.08% Traditional Monthly Rental Income: $1,348 Traditional Cap Rate: 0.74% Walk Score: 75 Best Place to Buy Vacation Rental 2022 (>$750k) Here are the top places to purchase a vacation rental valued at more than $750,000: 1. Charleston City, Charleston County, SC Median Property Price: $1,288,599 Average Property Size: 599.9 Sq. Ft. Occupancy Rate: 69.67% Airbnb Monthly Rental Income: $6,364 Airbnb Daily Rate: $319 Airbnb Cap Rate: 4.33% Traditional Monthly Rental Income: $2,374 Traditional Cap Rate: 1.26% Walk Score: 41 2. South Lake Tahoe, El Dorado County, CA Median Property Price: $998,821 Average Property Size: 658.14 Sq. Ft. Occupancy Rate: 67.35% Airbnb Monthly Rental Income: $4,816 Airbnb Daily Rate: $305 Airbnb Cap Rate: 4.19% Traditional Monthly Rental Income: $1,778 Traditional Cap Rate: 0.7% Walk Score: 57 3. Sonoma, Sonoma County, CA Median Property Price: $1,906,995 Average Property Size: 962.82 Sq. Ft. Occupancy Rate: 65.71% Airbnb Monthly Rental Income: $10,682 Airbnb Daily Rate: $477 Airbnb Cap Rate: 3.54% Traditional Monthly Rental Income: $2,658 Traditional Cap Rate: 0.18% Walk Score: 55 4. Palm Springs, Riversdale County, CA Median Property Price: $958,689 Average Property Size: 467.64 Sq. Ft. Occupancy Rate: 63.47% Airbnb Monthly Rental Income: $5,114 Airbnb Daily Rate: $365 Airbnb Cap Rate: 3.36% Traditional Monthly Rental Income: $3,052 Traditional Cap Rate: 2.71% Walk Score: 59 5. Destin, Okaloosa County, FL Median Property Price: $962,737 Average Property Size: 465.53 Sq. Ft. Occupancy Rate: 49.54% Airbnb Monthly Rental Income: $3,344 Airbnb Daily Rate: $338 Airbnb Cap Rate: 2.62% Traditional Monthly Rental Income: $2,055 Traditional Cap Rate: 1.74% Walk Score: 52 Where Can I Find More Places to Buy a Vacation Rental? If you’re not interested in investing in a vacation rental property in any of these best places in 2022 for any reason, fear not! You can look at our market forecasts and reports to find other suitable places or lists of best places to buy short-term rentals in specific states. Related: 2022 Real Estate Market Forecast: 10 Predictions Additionally, if you subscribe to and start using Mashvisor’s platform, you will also be able to access all of the markets’ data and analytics at your convenience! One of the options that Mashvisor offers is a market report, which is an Excel sheet of a specific market or neighborhood that includes all of that market’s stats and listings for you to analyze and choose from. Bottom Line The best place to buy a vacation rental property in 2022 depends on your personal preferences. Whether you’re looking for a breathtaking place to enjoy your vacation days away from the city, or if you’re looking for a lucrative property that will yield you a profit, in the long run, our lists of best vacation rental property markets include options for both. Don’t forget to check out Mashvisor’s platform if you’re looking for more market forecasts and guides like this one, and subscribe to gain access to a wide range of tools that will make your life as an investor much easier! To access Mashvisor’s real estate investment tools, click here to sign up for a 7-day free trial today, followed by 15% off for life. Start Your Investment Property Search! START FREE TRIAL buying vacation rental propertyhow to invest in vacation rental propertyLocationVacation Rental 0 FacebookTwitterGoogle +PinterestLinkedin Nasser Mansur Nasser is an experienced content writer with a degree in English Language and Literature. He loves writing about all aspects of the real estate investing business with focus on market and property analysis and the best sources which every real estate investor needs in order to succeed. Previous Post What Does Off Market Mean in Real Estate? Next Post Airbnb Stats in 2022: What Real Estate Investors Should Focus On Related Posts 2020 Cash on Cash Return by City: What Real Estate Investors Should Expect Invest in These Anaheim Real Estate Neighborhoods for Traditional Rental Income! Ohio Housing Market 2019: 5 Best Cities for Investment Tucson Housing Market 2020: Should You Invest? What’s Great About Jacksonville Real Estate Top 5 Reasons to Invest in Tampa Real Estate California Real Estate Market: Best Places to Buy a Rental Property in 2018 The 10 Best Places to Invest in Real Estate in Florida in 2020 Investing in Rental Properties: Pinellas County, Florida Philadelphia Real Estate Market 2022: Why and Where to Buy a Rental Property These Buyer’s Markets are the Best Markets to Invest in Right Now Best Places to Invest in Real Estate Based on Cap Rate Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.