You Probably Haven’t Considered Investing in These 3 Short-Term Rental Markets in 2024 - But You Should
With an explosion in demand for short-term rentals in recent years, many real estate investors are considering taking the leap into this popular - and fairly new - investment option. However, you may get the greatest return on investment (ROI) by choosing a short-term rental in a location where housing costs are fairly low and the number of transient renters are high. Today, we’re highlighting three short-term rental markets that may be easy to ignore at first glance - but that your bank account may thank you for later.
#1 Akron, Ohio
While it isn’t a bachelorette party destination or a romantic getaway with flashy scenes that AirBnB would show in one of their commercials, Akron, Ohio is an excellent choice for your next short-term rental. First of all, it has a major college campus, the University of Akron, with an enrollment of close to 15,000. College towns make great short-term rental locations for visiting parents, scholars and new employees or interns who can fill your short-term rental’s vacancies. Likewise, the Akron Children’s Hospital has over 5,000 employees, and traveling doctors and nurses make for ideal renters. Akron also has invested heavily in reinvigorating its downtown area and neighborhood business districts, and its minor league team the Akron RubberDucks average attendance of almost 4,000 fans per game. Most importantly, the median home cost is low, at only $129,900 - meaning it isn’t hard to turn a profit.
#2 Montgomery, Alabama
Another affordable location to buy is Montgomery, Alabama, where the median home price is only $179,900. Boasting multiple college campuses and healthcare institutions, it offers similar advantages as Akron by having plenty of visitors for education or medical reasons. However, Montgomery is also the home of the Maxwell-Gunter Air Force Base, which employs over 12,000 people, has a $2 billion impact on the area and just got approved for $22 million in improvements. Montgomery is also popular with visitors who want to immerse themselves in the history of the Civil Rights Movement. They have their choice of multiple monuments and museums commemorating the heroism of Rosa Parks, Dr. Martin Luther King and many others.
#3 Charleston, South Carolina
While neither of the above locations are driven primarily by tourism, you can look to Charleston, South Carolina as a vacation destination worthy of your real estate investment. With 230 days of sunshine per year, it brings in over 7 million visitors annually to help fill your short-term rental. This is one city that most definitely is a top destination for bachelorette parties and romantic getaways, where you’ll have the greatest success if you select your short term rental property with these audiences in mind. If you go the bachelorette party route, ensure your short-term rental has as many comfortable beds as possible, ideally with attached baths and clean, updated kitchens that are well-stocked with kitchen necessities. For a smaller unit positioned as a romantic getaway, consider the vicinity to bars, restaurants and nightlife, as well as charming decor. Charleston’s home prices are much higher than the counterparts above with a median home price of $642,000; however, the profit potential is there with an average 74% occupancy rate and over $5,000 in expected monthly revenue according to AirDNA.
Your Short-Term Rental Dreams Start with an Investment
When you’re ready to start searching for your next short-term rental, securing financing is the first step. You may be surprised to find out what you can afford with a private DSCR rental loan. Temple View Capital is a private money lender with experienced professionals who can help guide you on your journey. Let us know you’re ready to get started, and one of our team members will reach out to you with next steps.
We can’t wait to hear about your short-term rental success - wherever you happen to choose to make that investment!