Expert InsightsProperty ManagementReal Estate Investing 6 mins read

Where to Buy Vacation Rental Property

By May 24, 2022 June 19th, 2022 No Comments
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Do you know the best vacation rental locations to invest your money in 2022?

​Investing in a vacation rental property requires planning and lots of it! First, you’ll need to identify where is the best place to invest your money and that is more complicated than you might think. Without proper research, you could be placing your money in the wrong market and you’ll set yourself up for losses year on year.

We’ve partnered up with DPGO, a dynamic pricing and revenue management engine based in Los Angeles, to bring you the top rental markets in both Canada and the United States. First, let’s examine how DPGO has come to their market recommendations and which data units they’ve considered.

What’s the Best Way to Identify a Profitable Market?

Like most things in the vacation rental business, depending on data is the best option. DPGO constantly collects and analyzes data from its entire coverage network which means it can detect trends as they’re forming.

To determine which markets offer the best investment opportunities and potential rewards, the team at DPGO examined three data insights. Namely, these data insights are total active listings, average daily rate, and occupancy rate. These are the insights on which the following investment locations are based. DPGO has also included the statistics on minimum night stay settings. This gives you a better idea of the types of booking durations that the markets in question get.

Please note that the following values are dynamic, and change slightly on a daily basis. These statistics were correct at the time of writing. You can check Markets by DPGO for data on your local market and subscribe to monthly market reports sent straight to your inbox!

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Best Vacation Rental Property Locations in the United States

Albuquerque, New Mexico

Albuquerque, New Mexico boasts, at the time of writing, a total of 1,294 active listings. Of those listings, the calculated average daily rate in the area is $124. The majority of property owners in the area have set either a 1 or 2-night minimum stay for their listings. The current occupancy is 53%.

Dallas, Texas

Dallas has a total of 2,825 active listings. The market also boasts an occupancy rate of 64%. The average daily rate for listings in Dallas is $119 and the majority of property owners have opted for a minimum night stay of 1 or 2 nights, with 36% and 31% respectively.

Cincinnati, Ohio

Cincinnati has 1,039 active listings currently. It’s not the peak season yet, so it’s likely that this number will increase. The average daily rate is currently sitting at $112 and most of the hosts in Cincinnati, 45% in fact, have opted for a 1-night minimum stay requirement. The rest are spread between 2- and 3-night stay minimum requirements.

Charlotte, North Carolina

Charlotte has an average daily rate of $144 and a total of 2,667 active listings. While it’s not a particularly high average daily rate, Charlotte is a great vacation rental investment location because the market is popular and the investment rates are steady. Hosts in Charlotte have opted for mostly 1- and 2-night minimum stays with 30% and 33% respectively.

Atlanta, Georgia

Atlanta has 6,520 active rental listings. With a number that high, it shows that there is a demand in this area for short-term rentals. Our data shows that the average daily rate in Atlanta, Georgia is $133. Of the total 6,520 listings, 5,639 are entire home listings with 3,144 of those being one-bedroom properties. The occupancy rate in Atlanta is 42%.

Orlando, Florida

Orlando has a massive total of 5,789 active listings. The average daily rate is $198 and the market is currently carrying an occupancy rate of 65%, which is impressive for any season other than summer! Most hosts opt to set a 2-night minimum stay requirement to capitalize on weekend booking popularity.

Boise, Idaho

Boise has 1,148 active listings with an average occupancy of 76%. The average daily rate currently is $128 with hosts in the area most commonly selecting 1- or 2-night minimum stays, with 35% and 44% respectively.

Birmingham, Alabama

While you may not have expected to see Alabama’s second most populous city on our ‘Best Places to Buy Rental Property in the United States’ list. Well, Birmingham has 530 active listings, which means the level of competition is low, but the green state attracts plenty of visitors! The average daily rate is $110 with an occupancy average of 64%.

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Note from the Hostfully team

What’s interesting with DPGO’s insights above is that many of these cities are adjacent to extremely cheap and affordable submarkets. These types of submarkets make it much cheaper to start a glamping business or invest into a few tiny homes. Land is more affordable than near major metropolitan areas. Labor and materials are easier to source. And it’s still possible to outsource a cleaning team since you’re not that far from urban centres.

Best Places to Invest in Vacation Rental Property in Canada

Tofino, British Columbia 

Tofino is a beautiful area of British Columbia and the market boasts 226 active listings. The average daily rate is $253 with an occupancy rate of 71%. Tofino hosts have most commonly selected a minimum stay requirement of 2 nights (54%).

Whistler, British Columbia

According to the DPGO data, there are 2,110 active listings in Whistler, with an occupancy rate of 59%. The average daily rate is currently $347. Generally speaking, hosts in Whistler have selected a 2- or 3-night minimum stay requirements with a total of 33% and 34% respectively.

Niagara Falls, Ontario

Niagara Falls boasts 394 active listings with an average daily rate of $175. The occupancy rate for the Niagara Falls market is currently sitting at 29%. While this might seem low, remember that DPGO collects live data, which means these figures will change, especially when the season shifts.

Québec City, Québec

Québec City has 989 active listings with an overall average occupancy rate of 60%. Like most markets, the nightly rates increase on Friday and Saturday. The average daily rate in Québec City is $144. Interestingly, most hosts (46%) in Quebec City have opted not to set a minimum stay requirement.

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More About DPGO

DPGO is a dynamic pricing and revenue management service that allows hosts to optimize their pricing strategies and keep them in line with emerging market trends. By constantly collecting data from your target market, DPGO keeps your pricing competitive and earns you more money from every booking. As we’re partnered with DPGO, they can also push prices directly to your Hostfully calendars. For more information and to register for your free DPGO trial, visit https://www.dpgo.com/app/en/account/register/.