Last updated: October 2024
Investing in short-term rentals (STRs) in areas with high annual revenue can provide excellent opportunities for investors looking to maximize their returns. The following markets offer strong investment potential along with significant rental income (over $50,000 annually).
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. Coachella, California
Coachella, CA, known for its annual music festival, is also a gateway to Joshua Tree National Park, attracting a large number of tourists throughout the year.
Coachella has seen a 4.10% increase in home values, with the average price now at $412,875. This market thrives with an ADR of $462.00 and an occupancy rate of 51%, translating to an annual revenue of $74,207 from 433 active rentals. The gross yield here is 14.98%, with a cap rate of 8.99%.
Check out our Coachella Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market or visit Coachella Rental Regulations to explore the Airbnb laws and 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. South Haven, Michigan
South Haven, MI, a popular lakeside destination, is known for its beautiful beaches, charming downtown, and vibrant festivals.
South Haven has seen a modest increase in home values by 2.00%, with the average price at $320,023. The city thrives with an ADR of $331.00 and an occupancy rate of 49%, translating to an annual revenue of $55,244 from 589 active rentals. The gross yield here is 14.39%, with a cap rate of 8.63%.
Discover more about investing in South Haven through the free South Haven Airbnb Investor Guide and South Haven Rental Regulations.
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4. Broken Bow, Oklahoma
Broken Bow, OK, has seen a modest decline in home values by -1.70%, with the average home price at $296,750. This market shows promise with an ADR of $315.00 and an occupancy rate of 42%, generating annual revenues of $55,324 from 3,423 active rentals. The gross yield here is 15.54%, with a cap rate of 9.32%.
Discover more about investing in Broken Bow through Chalet Intel. It includes a calculator, regulation overview, and much more.
5. Charleston, South Carolina
Charleston, SC, known for its rich history, well-preserved architecture, and vibrant culinary scene, is a top coastal destination in the southern United States.
Charleston has seen a notable increase in home values by 5.00%, with the average price reaching $350,000. With an ADR of $250.00 and an occupancy rate of 60%, the annual revenue is $54,750 from 2,000 active rentals. The gross yield is 10.86%, and the cap rate is 6.00%.
To delve deeper into Charleston’s investment potential, check out Chalet Intel. Our platform offers comprehensive data and tools for making informed investment decisions.
6. 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.
