Last updated: September 2024
In the ever-evolving landscape of the global travel industry, short-term rentals have emerged as a game-changer, offering travelers a unique and personalized accommodation experience.
With the rise of platforms like Airbnb, Vrbo, and Booking.com, more and more homeowners and property investors are jumping on the bandwagon, tapping into the lucrative world of short-term rentals. But with countless destinations to choose from, where should savvy hosts invest their time and resources for maximum occupancy rates?
In this blog post, we embark on a journey to uncover the best short-term rental markets based on their occupancy rates.
By delving into comprehensive research and market analysis, we will highlight the top destinations that consistently achieve high occupancy rates, making them attractive choices for property owners and investors looking to optimize their returns.
Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a calculator, regulation overview, and much more for each market discussed. Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.
1. Santa Fe, New Mexico
Santa Fe, NM, offers a rich blend of Native American and Spanish cultures, with numerous attractions including Bandelier National Monument and the Sangre de Cristo Mountains.
Santa Fe has seen a moderate increase in home values by 3.70%, with the average price reaching $566,125. With an ADR of $208.00 and an occupancy rate of 70%, the annual revenue is $53,809 from 1,937 active rentals. The gross yield is 7.92%, and the cap rate is 4.75%.
For further details on this market, explore the free Santa Fe Airbnb Investor Guide and Santa Fe Rental Regulations.
2. Savannah, Georgia
Savannah, GA, boasts historic districts, beautiful parks, and a vibrant arts scene. Highlights include Forsyth Park, River Street, and numerous historic homes and museums.
Savannah has seen a notable increase in home values by 10.50%, with the average price reaching $307,925. With an ADR of $216.00 and an occupancy rate of 67%, the annual revenue is $57,045 from 3,217 active rentals. The gross yield is 15.44%, and the cap rate is 9.26%.
To delve deeper into Savannah’s investment potential, check out Chalet Intel.
3. Sevierville, Tennessee
Sevierville, TN, offers attractions like Dollywood and numerous outdoor activities, making it a favored destination for families and adventure seekers.
Sevierville has seen a 2.60% increase in home values, with the average price at $369,668. The market boasts an ADR of $222.00 and an occupancy rate of 66%, leading to an annual revenue of $51,755 from 9,828 active rentals. The gross yield is 11.67%, with a cap rate of 7.00%.
For more details on Sevierville’s market, refer to Chalet Intel. Our platform offers comprehensive data and tools for making informed investment decisions.
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Use our Airbnb comparison tool to instantly compare the top 200 short-term (Airbnb) rental markets in the US by returns on investment, occupancy rates, revenue, home price, and more…
4. Anchorage, Alaska
Anchorage, AK, serves as a gateway to the stunning natural beauty of Alaska, including nearby national parks like Denali and Kenai Fjords.
Anchorage has seen a slight increase in home values by 3.10%, with the average price at $363,538. The city’s ADR is $146.00, with an occupancy rate of 66%, resulting in an annual revenue of $32,070 from 1,375 active listings. The gross yield is 7.35%, and the cap rate is 4.41%.
Explore more about investing in Anchorage through the Anchorage Airbnb Investor Guide and Anchorage Rental Regulations.
5. Atlantic City, New Jersey
Atlantic City, NJ, known for its bustling boardwalk, casinos, and entertainment venues, is a popular destination for tourists seeking beachside fun and nightlife.
Atlantic City has experienced a moderate increase in home values, with the average price now at $150,000. This market thrives with an ADR of $200.00 and an occupancy rate of 65%, translating to an annual revenue of $47,450 from 1,500 active rentals. The gross yield here is 15.51%, with a cap rate of 9.00%.
Discover more about investing in Atlantic City through the Atlantic City Airbnb Investor Guide and Atlantic City Rental Regulations.
6. Flagstaff, Arizona
Flagstaff, AZ, is a popular destination for visitors to the Grand Canyon and other nearby national parks, offering a mix of outdoor activities and cultural experiences.
Flagstaff has seen a notable increase in home values by 5.20%, with the average price reaching $646,425. With an ADR of $191.00 and an occupancy rate of 62%, the annual revenue is $43,445 from 2,202 active rentals. The gross yield is 5.60%, and the cap rate is 3.36%.
To delve deeper into Flagstaff’s investment potential, check out Chalet Intel. Our platform offers comprehensive data and tools for making informed investment decisions.
