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.
