Introduction
When it comes to real estate investments, one segment that has gained significant traction in recent years is the short-term rental market.
College towns, in particular, offer a unique opportunity for investors looking to capitalize on a steady stream of visitors, both from the academic world and beyond.
These vibrant communities, often nestled in picturesque settings, are not only home to some of the nation’s top universities but also host a myriad of events, festivals, and attractions that lure travelers year-round.
In this blog post, we embark on a journey to explore the best college towns across the United States that have proven to be goldmines for short-term rental investments. From the bustling streets of Austin, Texas, to the serene landscapes of Bozeman, Montana, we’ll delve into these thriving locales, each with its own charm and allure.
Discover why investors are flocking to these top college towns, the factors that make them prime real estate opportunities, and how you can unlock the full potential of this burgeoning market.
So, fasten your seatbelts and get ready to explore the top college towns that promise impressive returns and a fascinating glimpse into the heart of academia and community life.
1. Oxford, MS
To comprehend the short-term rental market in Oxford, it’s crucial to first understand the local housing market. According to Zillow, homes in Oxford have depreciated by 13.90%, bringing the median home value to $326,224.
The average gross yield in Oxford’s short-term rental market is an impressive 21%, making it an attractive investment option.
Chalet data reveals that there are currently 1,500 active short-term rentals in Oxford, MS. This significant supply can be attributed to the growing demand for accommodations in this charming college town.
Check out our Oxford Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
2. Ithaca, NY
Ithaca, New York, renowned for its stunning natural beauty, vibrant culture, and world-class education institutions, has become a hotbed for short-term rentals, commonly listed on platforms like Airbnb.
As of the latest data available from Chalet, there are a total of 711 active short-term rentals in Ithaca. This substantial number indicates the popularity of short-term rentals in the area.
With an average gross yield of 18.61%, investors may find the Ithaca short-term rental market quite enticing, especially when considering the potential return on investment.
The annual revenue generated by short-term rentals in Ithaca amounts to an impressive $59,100, further underscoring the potential for investment in this market.
Check out our Ithaca Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
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3. Ann Arbor, MI
Ann Arbor, Michigan, often referred to as “Tree Town,” is a vibrant city known for its academic institutions, rich cultural scene, and beautiful natural surroundings. With a strong local economy and a growing tourism industry.
The market has witnessed a significant 30.30% increase in the supply of short-term rentals compared to the fourth quarter of 2022. This growth demonstrates the attractiveness of Ann Arbor as a destination for both hosts and guests alike.
With an average gross yield of 15.03%, short-term rentals in Ann Arbor offer a potentially lucrative investment opportunity. It’s essential to consider the property tax implications, which average around 1.39% of the property’s value, according to SmartAsset.
Besides the University of Michigan, Ann Arbor is also home to other educational institutions, including Eastern Michigan University.
Check out our Ann Arbor Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
4. Asheville, NC
Asheville, North Carolina, is a vibrant city nestled in the Blue Ridge Mountains. Known for its stunning natural beauty, thriving arts scene, and diverse culinary offerings, Asheville has become a popular destination for tourists from around the world.
According to Zillow, homes in Asheville have appreciated by 3.90%. This positive trend indicates a healthy real estate market and a favorable environment for property investment. The median home value in Asheville is reported to be $459,606, showcasing the value and desirability of the housing market in the area.
Chalet data reveals that there are currently 2,900 active short-term rentals in Asheville. This significant number of available rental properties highlights the popularity of the city as a vacation destination.
The average gross yield, a measure of profitability, for short-term rentals in Asheville is 11.09%.
Check out our Asheville Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
5. Santa Cruz, CA
Santa Cruz, California, with its stunning coastline, vibrant culture, and beautiful natural surroundings, is a highly sought-after destination for travelers. The city’s Airbnb and short-term rental market has been growing steadily, making it an attractive option for homeowners looking to capitalize on the demand for vacation accommodations.
The average daily rate for these short-term rentals is $413, with an impressive occupancy rate of 61%. This leads to an annual revenue of approximately $92,700 for hosts in Santa Cruz, CA.
The average gross yield for short-term rentals in Santa Cruz is around 7.14%.
Check out our Santa Cruz Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market.
