Introduction
Hot Springs National, Arkansas, is not only famous for its natural hot springs but also for its thriving short-term rental market. Whether you’re searching for an Airbnb to stay in while exploring the beautiful national park or considering investing in a vacation rental property, Hot Springs National has a lot to offer. In this blog post, we’ll dive into the short-term rental market, exploring key data points and addressing various aspects of this vibrant vacation destination.
Short-Term Rental Market Overview
Hot Springs National, AR, boasts a robust short-term rental market, making it an attractive destination for both travelers and investors. Let’s start by looking at some essential statistics:
Home Values and Depreciation
According to Zillow, the median home value in Hot Springs National is $236,035, making it an appealing place for real estate investments. Homes have appreciated by 3.50%, which suggests that property values have remained relatively stable.
Short-Term Rental Supply and Demand
Chalet reports that there are currently 1,896 active short-term rentals in the area. This significant number indicates a healthy demand for vacation rentals in Hot Springs National. The average daily rate for these rentals is $264, with an occupancy rate of 47%. This data suggests that short-term rentals are not only abundant but also generate decent income.
Revenue and Yield
The annual revenue for short-term rentals in Hot Springs National averages $41,000, offering substantial income potential for property owners. The average gross yield, a critical metric for investors, stands at an impressive 17.37%. This figure indicates the profitability of short-term rental properties in the area.
Property Tax
For property owners, understanding the tax implications is crucial. SmartAsset reports that the average property tax rate in Hot Springs National is 0.68%, providing insight into the ongoing expenses associated with owning a vacation rental.
Supply Growth
One noteworthy trend is the 11.76% increase in the supply of short-term rentals compared to Q1 of 2023. This growth suggests a thriving market with potential for further expansion.
