Investing in vacation rental properties can be highly profitable, but the right location is crucial to success. Picking the best market for your goals ensures high occupancy rates, strong ROI, and steady income.
Here’s RedAwning’s guide to the top destinations for vacation rental investment in 2024, tailored to meet various investment strategies.
Why Location Is Key to Vacation Rental Success
Not all vacation rental markets are created equal. The best locations offer year-round demand, strong rental rates, and favorable regulations. Here’s why location matters:
High ROI Potential
Popular vacation destinations attract guests willing to pay premium rates, boosting your revenue and ROI.
Year-Round Guest Demand
Markets with diverse attractions and mild climates ensure steady bookings throughout the year, reducing seasonal fluctuations.
8 Best Places to Buy Vacation Rentals in 2024
1. Fredericksburg, TX: Wineries and Year-Round Tourism
In Central Texas, Fredericksburg is famous for its wineries, drawing 1.5 million annual visitors. The city offers a mix of German heritage, year-round festivals, and relaxed STR regulations, making it an investor favorite.
- Median Home Value: $543,021
- Key Attractions: Pioneer Museum, local vineyards, and year-round festivals
- Why Invest Here? Strong demand from wine tourism and mild weather create steady income opportunities.
2. Chattanooga, TN: Affordable and Scenic Adventures
Nicknamed "The Scenic City," Chattanooga offers outdoor activities like climbing and kayaking alongside cultural attractions. Due to its affordability, it’s a top pick for beginner investors.
- Median Home Value: $300,140
- Key Attractions: Ruby Falls, hiking trails, and museums
- Why Invest Here? Low home prices paired with year-round demand offer excellent ROI.
3. Pinellas County, FL: Prime Waterfront Destinations
Pinellas County, home to Clearwater Beach and St. Pete, boasts some of Florida’s most sought-after waterfront properties.
- Median Home Value: $402,302
- Key Attractions: Caladesi Island State Park and water sports opportunities
- Why Invest Here? Affordable waterfront properties and Florida’s lenient STR laws make this an investor hotspot.
4. Georgia Mountains, GA: Cozy Cabins with Scenic Views
The Georgia Mountains are a haven for nature lovers, offering hiking, waterfalls, and wineries. Cabins in this region attract steady guest interest year-round.
- Median Home Value: $357,965–$493,019 (varies by town)
- Key Attractions: Blue Ridge, Ellijay, and Dahlonega
- Why Invest Here? Luxury cabins are in high demand, ensuring strong occupancy rates and profits.
5. Kissimmee, FL: Theme Park Proximity and Family Fun
Kissimmee’s proximity to Disney World and Universal Studios makes it a family-friendly destination. STR properties here consistently achieve high occupancy rates.
- Median Home Value: $379,356
- Key Attractions: Disney World, Universal Studios, and Legoland
- Why Invest Here? Affordable properties with top-tier rental rates near major attractions.
6. Gatlinburg, TN: Gateway to the Smoky Mountains
Gatlinburg thrives as a vacation rental market thanks to its location near the Smoky Mountains National Park—the most visited park in the U.S.
- Median Home Value: $497,342
- Key Attractions: Great Smoky Mountains National Park and year-round outdoor sports
- Why Invest Here? Steady year-round demand and high daily rates ensure excellent ROI.
7. Orange Beach, AL: Water Sports and Coastal Charm
Orange Beach offers unparalleled water sports activities, attracting adventure-seeking tourists year-round.
- Median Home Value: $701,934
- Key Attractions: Gulf State Park, Orange Beach Waterfront Park
- Why Invest Here? High guest demand and favorable Alabama STR laws make this a lucrative market.
8. Galveston, TX: Island Living and Year-Round Rentals
Galveston’s temperate weather and island attractions drive consistent demand for waterfront vacation rentals.
- Median Home Value: $352,228
- Key Attractions: Schlitterbahn Waterpark, Moody Gardens
- Why Invest Here? Moderate home prices with strong rental rates make Galveston an excellent investment.
How to Choose the Right Vacation Rental Location
Market Affordability
Analyze property prices to find locations that match your budget and investment goals.
Favorable Regulations
Research STR laws to ensure your chosen market supports non-owner-occupied rentals.
Local Demand and Attractions
Look for destinations with year-round attractions and diverse guest demographics to reduce seasonality risks.
Why Partnering with RedAwning Maximizes Your Investment
RedAwning simplifies vacation rental ownership with all-inclusive management solutions. From professional marketing and guest support to $10,000 damage protection coverage, we help you maximize your rental’s potential.
Learn more about how RedAwning can elevate your vacation rental investment.
Conclusion: Invest in the Best with RedAwning
Finding the right location is the cornerstone of successful vacation rental investing. Whether you prefer cabins in Georgia or waterfront homes in Florida, these top markets offer excellent ROI potential.
Partner with RedAwning for hassle-free property management and unlock the full potential of your vacation rental investment. Get started today!
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