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.
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Local Insights
To get a better understanding of the short-term rental market in Hot Springs National, let’s explore some additional factors:
Median Household Income
The median household income in Hot Springs National, AR, is an important consideration for both travelers and investors. This figure can provide insights into the economic health of the area and the spending capacity of potential guests.
Climate
Understanding the climate is crucial for travelers planning their visit. Hot Springs National, AR, experiences a mild climate, making it an appealing year-round destination for tourists.
Population Size
Knowing the population size of the area can help investors gauge the potential customer base for their short-term rentals.
Sports Teams and Colleges
Exploring local sports teams and colleges can provide insight into additional opportunities for attracting guests, especially during events and academic activities.
Crime Rate
Safety is a top priority for travelers. Being aware of the local crime rate can help guests make informed decisions about their stay.
Visitor Demographics
Understanding where visitors are coming from and the total number of visitors to Hot Springs National can assist property owners in tailoring their marketing strategies.
Tourist Attractions and Peak Season
Highlighting the biggest tourist attractions and identifying the peak season can guide property owners in optimizing their rental schedules and pricing strategies.
Conclusion
Hot Springs National, AR, offers a promising short-term rental market with a diverse range of opportunities for both travelers and investors. With a robust supply of vacation rentals, stable property values, and impressive revenue potential, this picturesque destination is worth considering for anyone interested in the Airbnb or short-term rental market. Additionally, the local insights provided can help individuals make well-informed decisions and maximize their experience in Hot Springs National, Arkansas.
