Last updated: October 2024
Investing in short-term rentals (STRs) near large hospitals can offer lucrative opportunities for investors looking to capitalize on the steady demand for accommodations by patients, visitors, and healthcare professionals. These markets provide strong investment potential along with the convenience of proximity to major medical facilities.
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. Detroit, Michigan
Detroit, MI, is home to the Detroit Medical Center, one of the largest healthcare providers in the region. The city is also known as the Motor City, with a rich history in the automotive industry and a vibrant arts scene, including attractions like the Detroit Institute of Arts and the Motown Museum.
Detroit has experienced a slight decrease in home values by -0.90%, with the average home price now at $68,379. The city maintains a competitive edge with an average daily rate (ADR) of $118.00 and an occupancy rate of 53%, leading to an annual revenue of $21,392 from 1,222 active listings. The average gross yield is an impressive 26.07%, complemented by a cap rate of 15.64%.
Discover more about investing in Detroit through Chalet Intel.
2. Cleveland, Ohio
Cleveland, OH, is renowned for the Cleveland Clinic, a world-class medical facility. The city also boasts attractions like the Rock and Roll Hall of Fame and a thriving theater district.
Cleveland has seen a notable increase in home values by 5.80%, with the average price reaching $100,734. With an ADR of $107.00 and an occupancy rate of 59%, the annual revenue is $21,992 from 2,126 active rentals. The gross yield is 18.19%, and the cap rate is 10.91%.
To delve deeper into Cleveland’s investment potential, check out Chalet Intel.
3. South Bend, Indiana
South Bend, IN, is home to the Beacon Health System, a major healthcare provider. The city is also known for being the home of the University of Notre Dame, offering a mix of collegiate charm and historical landmarks.
South Bend has seen a significant increase in home values by 8.00%, with the average price at $169,081. The market shows promise with an ADR of $214.00 and an occupancy rate of 46%, generating annual revenues of $31,552 from 599 active rentals. The gross yield stands at 15.55%, with a cap rate of 9.33%.
For more insights into South Bend as a rental market, explore the free South Bend Airbnb Investor Guide and South Bend Rental Regulations.
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4. Memphis, Tennessee
Memphis, TN, features the renowned St. Jude Children’s Research Hospital. The city is also renowned for its rich musical heritage, including landmarks like Graceland and Beale Street, attracting music lovers from around the world.
Memphis has experienced a slight drop in home values by -4.50%, with the average home price now at $144,347. The city’s ADR is $123.00, with an occupancy rate of 57%, resulting in an annual revenue of $26,176 from 1,755 active listings. The gross yield is 15.11%, and the cap rate is 9.07%.
For more comprehensive insights into Memphis as a rental market, explore Chalet Intel.
5. Birmingham, Alabama
Birmingham, AL, is home to the University of Alabama at Birmingham (UAB) Hospital, a leading healthcare facility. The city is also rich in history and culture, with attractions like the Birmingham Civil Rights Institute and the Alabama Jazz Hall of Fame drawing numerous visitors each year.
Birmingham has experienced a slight decrease in home values by -4.90%, with the average home price now at $126,949. Despite this, the city maintains a competitive edge with an average daily rate (ADR) of $122.00 and an occupancy rate of 57%, leading to an annual revenue of $24,994 from 1,335 active listings. The average gross yield is an impressive 16.41%, complemented by a cap rate of 9.85%.
For further details on this market, explore the free Birmingham Airbnb Investor Guide and Birmingham Rental Regulations.
6. Savannah, Georgia
Savannah, GA, features the Memorial Health University Medical Center. The city also boasts historic districts, beautiful parks, and a vibrant arts scene, with highlights including 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.
Each of these markets close to large hospitals offers unique opportunities for short-term rental investors, combining strong financial metrics with appealing tourist attractions. For a comprehensive overview, including detailed analyses, calculators, and regulation insights, make sure to explore our latest tool, Chalet Intel.
