Introduction
When it comes to exploring the short-term rental market in Baxter, Minnesota, you’ll find a city that’s not only known for its natural beauty but also for its growing popularity among tourists and travelers. With its stunning lakes, outdoor recreational opportunities, and a small-town charm, Baxter has become a hotspot for vacationers looking to experience a quintessential Minnesotan getaway. In this blog post, we’ll delve into the world of short-term rentals, commonly found on Airbnb, in Baxter, MN, providing valuable insights for both potential hosts and travelers.
Short-Term Rental Market Overview
Let’s start with a few key statistics that offer a snapshot of the short-term rental market in Baxter, MN:
Home Values and Depreciation
According to Zillow, the median home value in Baxter is $329,708. Interestingly, home values have seen a 1.30% depreciation. This can be a compelling factor for potential hosts, as it indicates that investing in short-term rental properties can be financially advantageous in the current market.
Supply and Demand
Chalet, a leading vacation rental data provider, reports that Baxter boasts 10 active short-term rentals, and the market is showing a remarkable 77.80% increase in supply compared to the first quarter of 2023. This surge in supply suggests a growing interest in the short-term rental market in Baxter.
Revenue and Yield
The average daily rate for these short-term rentals stands at $381, with an occupancy rate of 49%. This translates to an annual revenue of $52,500 for hosts. Moreover, the average gross yield for short-term rental properties is 15.92%, which makes it an enticing investment opportunity.
Property Tax
When considering the financial aspects of hosting short-term rentals, it’s essential to note that the average property tax in Baxter is 0.93% according to SmartAsset. This relatively low property tax rate is an advantage for potential hosts.
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Local Insights
To better understand the short-term rental market in Baxter, MN, it’s important to consider some local context and data:
Median Household Income
The median household income in Baxter, MN, is a crucial factor when determining the potential profitability of short-term rentals. A higher income level often correlates with increased spending on travel and accommodation.
Climate
Baxter, MN, experiences a typical Minnesota climate, with cold winters and mild summers. This climate influences the timing and attractiveness of short-term rentals, which is important for hosts and travelers alike.
Population Size
Understanding the population size of Baxter provides insight into the potential guest base for short-term rentals. More residents may lead to higher demand for local accommodations.
Sports Teams and Colleges
Baxter, MN, might not be known for its professional sports teams or major colleges, but nearby towns and cities offer various sporting events and educational institutions. This could be a factor for travelers exploring the region.
Crime Rate
Safety is a top concern for travelers. Information about the local crime rate can be an essential factor when deciding to visit and host short-term rentals in Baxter.
Tourism in Baxter
Let’s dive into the tourist attractions and visitor demographics that shape the short-term rental market in Baxter:
Visitor Demographics
Understanding where visitors come from and the total number of visitors helps hosts target their marketing efforts. Baxter’s tourist base may consist of both local and out-of-state travelers.
Tourist Attractions
Baxter, MN, is known for its scenic beauty and outdoor activities, making it a popular destination for nature enthusiasts. Highlighting these attractions can draw more visitors to your short-term rental.
Peak Season
The peak season in Baxter, MN, typically aligns with the warm summer months when outdoor activities, lake adventures, and local events are at their height. Hosting short-term rentals during this time can yield higher profits.
Conclusion
The short-term rental market in Baxter, MN, is experiencing notable growth and presents an attractive opportunity for both hosts and travelers. With valuable insights into property values, revenue potential, and local context, you can make informed decisions whether you’re looking to invest in a short-term rental property or planning your next vacation in this charming Minnesota city. Understanding the local nuances, from climate to tourist attractions, can help you tap into the immense potential of this hidden gem in the Land of 10,000 Lakes. Whether you’re here to relax or invest, Baxter, MN, has much to offer in the world of Airbnb and short-term rentals.
