The 12 Best Places to Buy a Vacation Rental Right Now

The travel industry has seen a significant shift in recent years, with travelers seeking accommodations that provide a home away from home experience. This growing demand has led to a surge in popularity for vacation rentals, with a staggering 450 million users worldwide. As a result, investors are now looking to tap into this potential, making the industry highly competitive. However, with careful evaluation of the best vacation rental markets across the country, owners can still enjoy impressive returns.

Our team of real estate experts has conducted thorough research, crunching the numbers to pinpoint the 12 best places to buy a vacation rental right now. From charming East Coast destinations to character-rich towns in the South, these locations offer maximum profit potential for savvy investors.

How We Chose the Best Places to Buy a Vacation Rental Investment Property

Our data analysis is based on a combination of proprietary and public data, focusing on three key metrics:

• Vacation rental performance metrics for popular vacation destinations across the U.S., indicating higher median revenue from bookings.
• A combination of Zillow, Redfin, and internal data to identify the median listing prices in these vacation hotspots.
• Estimated yearly expenses for running a vacation rental, which typically account for around 30% of the total revenue. This helps calculate the cap rate, an essential factor in evaluating the profitability of an investment.

In addition to these metrics, we also considered the potential of a vacation property to outperform market expectations through an Evolve partnership. Below, you'll find The Evolve Difference, highlighting how our top vacation rental owners have maximized their income and consistently surpassed projected revenues.

Please note that all data projections reflect ideal-state scenarios. Variables such as owner-blocked calendars and extenuating circumstances like natural disasters are not factored into these calculations.

1. Finger Lakes, NY

Photo of a sunset over Finger Lakes, NY, with light peeking through the dock piling. Image text reads, "$31,434 median rental revenue. $202,257 median listing price. 10.9% example cap rate."

2. Holland, MI

3. Hocking Hills, OH

Photo of Hocking Hills with a rocky outcrop sticking out through colorful autumn trees. Image text reads, "$42,751 median rental revenue. $349,260 median listing price. 8.6% example cap rate."

4. Palo Pinto, TX

Photo of a riverbank in Palo Pinto with red canoes in the foreground, a grassy shore across the water, and a forested hill in the distance. Image text reads, "$47,855 median rental revenue. $405,909 median listing price. 8.3% example cap rate."

5. Wisconsin Dells, WI

6. Savannah, GA

Photo of a tree-lined road in Savannah, GA, with the branches meeting in the middle to create an arch. Image text reads, "$41,795 median rental revenue. $355,901 median listing price. 8.2% example cap rate."

7. Michigan City, IN

Photo of a rainbow sunset over the water in Michigan City, IN, with a shining lighthouse in the foreground. Image text reads, "$30,181 median rental revenue. $259,986 median listing price. 8.1% example cap rate."

8. Vernon Township, NJ

9. Dover, VT

Wide shot photo of a lake in Dover, VT, with hills covered in red autumn trees jutting into the water. Image text reads, "$34,647 median rental revenue. $361,013 median listing price. 6.7% example cap rate."

10. Sevierville, TN

Wide shot photo of the town of Sevierville, TN, surrounded by green rolling hills. Image text reads, "$42,751 median rental revenue. $483,309 median listing price. 6.2% example cap rate."

11. Waldport, OR

12. Fairbanks, AK

Buy the Perfect Vacation Rental with Evolve

Investing in a short-term rental property is a significant decision, and you don't have to navigate the process alone. Whether you're interested in a waterfront home on the West Coast or a cozy cabin in the South, our seasoned team of experts is here to help you take the next step toward purchasing one of the best places to buy a vacation rental.

We have the data to inform your investment opportunities and define your income goals, preferred local real estate agents with expertise in vacation rental purchases, and helpful management tools to ensure your vacation house becomes a resounding success.

For additional research, we've compiled some resources to further your understanding of the potential of vacation rental investments:

• Important Benefits of Investing in Vacation Rentals that all homebuyers should know about.
• Vacation Rental Market Analyses to access key data on top-performing markets across the U.S.
• Vacation Rental Income Calculator to compare expected earnings and expenses.
• Homes for sale that are already vetted for vacation rental potential.

Now that you're ready to discuss buying the best vacation rental for you, reach out to our team today.