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.
