08.28.2023 PropStream
Demand for short-term rentals in 2022 is projected to grow by 14.1% over 2021 levels. That's why smart investors are looking for short-term rental opportunities in emerging destinations.
Are you looking for a new market to invest in a short-term rental? Here are five of the best places to invest in a short-term rental in 2022:
1. Galena, IL
Galena is a charming Midwestern town, located in the northwestern corner of Illinois, near Iowa and Wisconsin. Despite being a true small town, with a population of under 4,000 residents, Galena attracts visitors from all over the region year-round.
Affluent visitors drive up the average nightly rate for the chance to enjoy quaint shops, world-class restaurants, luxurious spas, and award-winning wineries. Everyone else comes to play at Lake Galena with its fishing, boating, swimming, and hiking opportunities. And with the local ski resort, Galena is popular in the winter as well.
With high rental revenues and affordable home prices, Galena earns a spot on our list of the best places to invest in a short-term rental in 2022.
- Average Home Price: $215,000
- Average Annual Rental Revenue: $67,000
- Average Nightly Rate: $371
2. Slidell, LA
Ideally positioned a short drive from New Orleans, the Gulf Coast, and Honey Island Swamp, Slidell, Louisiana, has become a regional travel destination for Southern adventurers. In an area where homes are still affordable, short-term rentals command an impressive $339 per night.
The summers may be too hot and humid for many visitors. However, the winter daytime temps get to a comfortable 60-something degrees on average, making this a great destination for “snowbirds” visiting from the north for the winter.
- Average Home Price: $225,000
- Average Annual Rental Revenue: $69,000
- Average Nightly Rate: $339
3. Gulfport/Biloxi, MS
Just 50 miles East of Slidell, you’ll find the Gulfport/Biloxi area of Mississippi. Located directly on the Gulf Coast, Gulfport/Biloxi attracts summer visitors who want to soak up the sun from the sand, as well as winter visitors who simply want warm winter temps and beautiful water views
With such affordable home prices in Gulfport/Biloxi, you don’t need to see particularly high rental revenue to enjoy a substantial return on your short-term rental investment. The average nightly rate and annual rental revenue are both low compared to other locations on our list. However, the low cost of property ownership makes this area a serious contender as one of the best places to invest in a short-term rental.
- Average Home Price: $155,000
- Average Annual Rental Revenue: $44,000
- Average Nightly Rate: $196
4. Joshua Tree, CA
Joshua Tree, California, is located in the Mohave Desert, about 125 miles east of Los Angeles. A popular destination for residents of Southern California and Arizona, Joshua Tree offers natural beauty as well as quirky attractions like The Integratron or the Noah Purifoy Outdoor Desert Art Museum.
Property in Joshua Tree may be more expensive than in other markets on our list. But Angelinos and San Diegans spend good money in the high desert, driving up the nightly rate to an average of $327. Locals see Joshua Tree as a communal vacation experience, so investors should consider purchasing larger properties, which can triple revenue without much additional investment.
- Average Home Price: $342,000
- Average Annual Rental Revenue: $85,000
- Average Nightly Rate: $327
5. Crystal River, FL
The coastal town of Crystal River, Florida, is experiencing growing demand as more eco-travelers take an interest in the local manatee habitats. An easy two-hour drive from Orlando, Crystal River is a gem on Florida’s west coast. Property is affordable in Crystal River. And because Florida doesn’t charge a state income tax, you’ll keep more of your earnings.
Plus, with occupancy rates near 70%, your rental will be in demand year-round, earning a respectable nightly rate during every season.
- Average Home Price: $249,000
- Average Annual Rental Revenue: $51,000
- Average Nightly Rate: $221
Use Big Data To Find Your Next Short-Term Rental
Big data is allowing today's real estate investors to quickly and easily find new deals. In addition to narrowing your search by standard factors like location, size, and build year, real estate data software like PropStream allows you to target distressed properties, such as pre-foreclosures and pre-probate properties before they hit the market. And buying right helps you launch your new short-term rental from the best possible position, wherever your property may be located.
To start browsing for a short-term rental with PropStream, start your 7-day free trial today!
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