Investing in mid-term rentals can be a lucrative opportunity for investors looking to capitalize on the growing demand for flexible housing options. These markets not only offer strong investment potential but also provide unique experiences for tenants, from vibrant city life to rich cultural heritage. The top markets are determined based on gross yield using Chalet’s exclusive mid-term rental data. Our latest tool, Chalet Intel, is also analyzing mid-term rental data, providing comprehensive insights and strategies tailored to investors at all experience levels.
What are mid-term rentals (MTR)?
A mid-term rental is a property leased for a period ranging from one month to a year. This rental type bridges the gap between short-term rentals, which are typically rented nightly or weekly, and long-term rentals, which are generally leased for a year or more.
1. Detroit, Michigan
Detroit, MI, known as the Motor City, has a rich history in the automotive industry and a vibrant arts scene, with 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 monthly rate of $2,000 and an annual revenue of $22,000 from 652 active listings. The average gross yield is an impressive 32%, complemented by a property tax rate of 1.90%.
Discover more about investing in Detroit through Chalet Intel. It includes a vacation rental calculator, regulation overview, and much more.
2. Cleveland, Ohio
Cleveland, OH, located on the shores of Lake Erie, 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 a monthly rate of $1,800 and an occupancy rate leading to an annual revenue of $19,800 from 800 active rentals, the gross yield is 20%, and the cap rate is 10.91%.
To delve deeper into Cleveland’s investment potential, check out Chalet Intel. It includes tools for in-depth market analysis, a vacation rental calculator, and investment strategies.
3. Birmingham, Alabama
Birmingham, AL, known for its rich history and vibrant cultural scene, is an attractive destination for mid-term rental investors.
Birmingham has experienced a decrease in home values by -4.90%, with the average home price now at $126,949. The city offers a monthly rate of $1,800 and an annual revenue of $19,800 from 347 active listings. The gross yield stands at 16%, complemented by a low property tax rate of 0.65%.
For more detailed Birmingham short term rental investment insights, refer to the Birmingham Rental Regulations to explore Airbnb rental laws, regulation, and zoning information.
4. Memphis, Tennessee
Memphis, TN, renowned for its rich musical heritage, including landmarks like Graceland and Beale Street, is a popular destination for mid-term rental tenants.
Memphis has experienced a slight drop in home values by -4.50%, with the average home price now at $144,347. The city’s monthly rate is $1,900, with an annual revenue of $20,900 from 407 active listings. The gross yield is 14%, and the property tax rate is 1.25%.
For more comprehensive insights into Memphis as a rental market, explore Chalet Intel. Our platform provides detailed data, a vacation rental calculator, an Airbnb fee calculator, and investment guidance.
5. South Bend, Indiana
South Bend, IN, known for its rich cultural heritage and educational institutions, offers strong investment potential for mid-term rentals.
South Bend has seen a notable increase in home values by 8.00%, with the average price at $169,081. The market offers a monthly rate of $1,800 and an annual revenue of $19,800 from 269 active rentals. The gross yield stands at 12%, with a property tax rate of 0.94%.
To delve deeper into South Bend’s investment potential, check out Chalet Intel. It includes a vacation rental calculator, regulation overview, and a Deal Analyzer (Airbnb ROI calculator).
6. Saint Louis, Missouri
Saint Louis, MO, known for its iconic Gateway Arch and vibrant cultural scene, is a top destination for mid-term rental investors.
Saint Louis has seen a stable increase in home values by 6.10%, with the average price now at $169,352. The market offers a monthly rate of $1,800 and an annual revenue of $19,800 from 1,387 active rentals. The gross yield is 12%, with a property tax rate of 1.10%.
For more detailed Saint Louis short term rental investment insights, refer to the Saint Louis Rental Regulations to explore Airbnb rental laws, regulation, and zoning information. Chalet Intel will be available soon for this market as well.
