Top 10 highest profitable short term rental markets
The rise in popularity of short term rental property has opened new opportunities for investors. Demand is growing in many areas as more travelers are using the short term booking platforms like Airbnb, Homeaway, Bookings.com, Vrbo and many others. Supply has been riding in tandem with demand affecting growth in income. There are cities which have registered both growth in occupancy and rental income and here are the top ten in the US.
Nashville is traditionally popular as a country music city but it has emerged as one of the most profitable for short term rentals. It attracts millions of tourists per year, fueling demand for short term rentals. Monthly Airbnb rental income is in the range of $3,531 and enjoys a relatively high occupancy rate at 57%.
Known for its popular night life, the city enjoys a thriving social scene with a mix of cultures. Many tourists flock the city for its attractive setting along Mississippi river, liv and music and sumptuous cuisines. Median Short term rental income is $2,591 and an occupancy rate of 47%.
At Savannah GA is an entertainment hotspot for visitors who love beaches and vintage architecture. It has a thriving short term rental market with handsome returns. Monthly rental Airbnb rates are reaching $3,354 with an average occupancy at a high of 60%.
The city is set at the centre of tourist activity drawn from Walt Disney, Gulf of Mexico and Orlando theme parks. It offers a relaxed atmosphere where visitors can relax away from the noise. Property prices are relatively compared to neighboring areas and this works well for rental business. Monthly Airbnb returns are pegged at $ 2,840 and the occupancy rate is at a high of 75%.
Myrtle Beach SC
The city enjoys a long coastline that attracts millions of summer visitors. The population is estimated at 30,000 but rises to millions at the peak of summer holidays. Many real estate investors are eyeing the city to expand their businesses and cash in on the rising demand. Average short term Incomes per month are at $ 2,371 and the average occupancy rate is 57%.
Virginia Beach VA
A recent study by Homes.com ranked Virginia Beach as the most profitable Airbnb city in the US. This is a great achievement and it only means that more investors will be looking to find space in the city. Profit per night is estimated to go as high as $183 which is high above many markets. The average income per month is $3,095 and occupancy is at 47%.
Joshua Tree CA
Joshua Tree is an international centre which also attracts visitors locally. It's proximity to Los Los Angeles also give it an upper hand when visitors in the big city are looking for a more serene environment. The annual Joshua Tree Music festival has international acclaim and it goes down twice a year. Average short term rental income per month is $3,033 and occupancy is at 59%.
Big Pine Key, FL
This is the second largest island after Key Largo of the 300 that form the Florida Keys. Property prices here are lower than those of other keys and this makes it attractive to holiday makers and short term rental property investors. The Island was also ranked as the most profitable Airbnb city in 2019. Average monthly income is $ 5,372 with an occupancy rate of 52%.
This is a top family vacation destination and also one of the most profitable for short term estate investors. It is the home of Smoky Mountains which draw over 11 million tourists per year. This flow of tourists has created the perfect conditions for profit in the short term rental market and this is the time to jump in. Average monthly returns are at $3,960 and occupancy is at 73%.
Philadelphia is famed as the Independence City where the Declaration of Independence and Constitution were signed. It is host to the Liberty Bell, Independence Hall and other Revolutionary cites. This rich history gives it an edge in attracting tourists both local and international. An average monthly return on a short term rental property is $2,166 and occupancy rate is at 49%.