Top 5 vacation rental property locations in the US

Economy & Finance
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So let’s dive in. Here are the top 5 vacation rental property locations in the US as at 2017.

  1. Destin, Fl
    Demand: Florida is at the top of the US vacation rental markets due to its sunny weather and beaches. So it’s not coincidental that we should start with Florida. Destin, Fla is one of those buzzing places for investors with strong demand for accommodation by travelers.

Earning Potential: The median price of a home in Destin, Fla stands at around $323,000. TripAdvisor estimates show that an average 2- bedroom home in Destin, Fla can bring in:

  • $1,093 per week
  • $28,418 per year at 50% occupancy

  1. Palm Springs, Ca
    Demand: Palm Spring’s closeness to LA makes it a convenient getaway location for transient vacationers. The desert oasis has a high demand since it has all the props for a nice vacation; nice architecture, fine weather, mid-century homes, nightlife. There is also the Coachella Valley Music and Arts Festival, taking place every year in Indio about 25 miles away, attracting a large number of fun-seekers and party-lovers. In fact, the large number of short-term vacation rentals in Palm Springs is causing unfavorable responses from policymakers.
    Earning Potential: The median home price in Palm Springs, according to Zillow is $318,700. Zillow predicts this will rise by 5.4% within the next year. Tripadvisor stats show that an average property in Palmsprings can produce up to $50,000 per year.

  2. Galveston, Tx
    Demand: 30 miles of beaches, amusement parks, Victorian-era homes, and casinos combine to make Galveston a great place for a family vacation. Galveston attracted 6.5 million visitors in 2016. The annual Mardi Gras celebrated in Galveston is the third largest in the US. It’s definitely a great place for property investment.
    Earning Potential: The median price of a home in Galveston is $264,000. From TripAdvisor’s data, a 2 bedroom vacation rental in Galveston can generate

  • $1,408 per week
  • $36,608 per year at 50% occupancy (26 weeks)
  1. Las Vegas, Nv
    Demand: Famous for its mega hotels and resorts, Las Vegas is a well-traversed location. The demand for alternative accommodation, boosted by Airbnb, VRBO etc. has brought a lot of vacation property investors here also. Traveling groups can have the luxury of a private home by going for vacation property rentals.

Earning Potential: At a median price of $247,000, a 2 bedroom vacation rental in Las Vegas can generate

  • $1,170 per week
  • $30,430 per year at 50% occupancy (26 weeks)
  1. Nashville, Tn
    Demand: Tourism in Nashville broke records in 2016 at 13.9 million guests and it’s not relenting soon. Travelers need somewhere to stay and investors see the opportunity.
    Earning Potential: At a median price of $300,000, a 2 bedroom property in Nashville will potentially produce:
  • $1,668 per week
  • $43,368 per year at 50% occupancy (26 weeks)
    However, Nashville takes a strong stance at non-owner occupied single family homes. So if you plan to buy here, you should plan to stay for a bit. Yet, there are some areas zoned for multifamily units or mixed use. You might need to get more information.

Vacation rental properties in the above locations will potentially produce good ROI. Note however that the earning potential values are averages. Homeowners could potentially earn more or less depending on how well they manage their properties.

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