Beyond the Beach: Unexpected Short-Term Rental Havens With High Occupancy
While coastal destinations often dominate the short-term rental market, numerous inland cities offer compelling opportunities for investors. This analysis delves into several such locations, examining key metrics like Average Daily Rate (ADR), occupancy rates, and estimated Return on Investment (ROI) to uncover hidden gems in the short-term rental landscape.
Occupancy Rates: A Key Indicator of Success
Occupancy rate is a critical factor in determining the profitability of a short-term rental. Higher occupancy translates directly to increased revenue. Let's examine the occupancy rates in several cities:
- San Antonio (AZ): Shows a strong occupancy rate of 82% in one dataset and 81% in another, indicating consistent demand.
- Seattle (WA): Demonstrates a solid occupancy rate of 77% in one dataset, while Seattle (GA) shows a lower occupancy of 69%.
- Denver (OR): Boasts a respectable occupancy rate of 79%.
- Austin (FL): Leads with an impressive occupancy rate of 83%, while Austin (AZ) shows a rate of 81%.
- Portland (NC): Shows an occupancy rate of 70%, while Portland (TX) has a lower rate of 65%.
The data reveals that San Antonio (AZ) and Austin (FL) are leading the pack with occupancy rates of 82% and 83% respectively. This suggests a robust demand for short-term rentals in these areas.
Average Daily Rate (ADR): Maximizing Revenue
ADR represents the average rental income generated per occupied room per day. A higher ADR can significantly boost overall revenue. Let's compare the ADRs across different cities:
- San Antonio (AZ): Exhibits an ADR of $171 in one dataset and $199 in another.
- Seattle (WA): Shows a high ADR of $319 in one dataset, while Seattle (GA) has a much lower ADR of $112.
- Denver (OR): Commands a substantial ADR of $386.
- Austin (FL): Presents a strong ADR of $353, while Austin (AZ) shows an ADR of $363.
- Portland (NC): Has an ADR of $219, while Portland (TX) shows an ADR of $213.
Denver (OR) stands out with the highest ADR at $386, indicating a premium market for short-term rentals. Austin (AZ) and Austin (FL) also demonstrate strong ADRs, exceeding $350.
ROI Analysis: Identifying Profitable Markets
Return on Investment (ROI) is a crucial metric for evaluating the profitability of a short-term rental investment. A higher ROI signifies a more lucrative opportunity. Let's analyze the ROI figures for various cities:
- San Antonio (AZ): Shows an ROI of 12.84% in one dataset and 15.03% in another.
- Seattle (WA): Demonstrates an ROI of 11.35%, while Seattle (GA) has a lower ROI of 5.28%.
- Denver (OR): Leads with an impressive ROI of 19.19%.
- Austin (FL): Presents a solid ROI of 13.36%, while Austin (AZ) shows an ROI of 9.81%.
- Portland (NC): Exhibits a strong ROI of 18.94%, while Portland (TX) shows an ROI of 17.44%.
Denver (OR) emerges as the ROI leader with 19.19%, followed closely by Portland (NC) at 18.94%. These cities offer the most promising returns on short-term rental investments based on the available data.
Comparing Cities: A Data-Driven Perspective
To gain a comprehensive understanding of the short-term rental market, let's compare several cities based on their key metrics:
| City |
State |
ADR |
Occupancy |
ROI |
| San Antonio |
AZ |
$199 |
81% |
15.03% |
| Seattle |
GA |
$112 |
69% |
5.28% |
| Denver |
OR |
$386 |
79% |
19.19% |
| Austin |
FL |
$353 |
83% |
13.36% |
| Portland |
TX |
$213 |
65% |
17.44% |
| Atlanta |
GA |
$306 |
70% |
9.20% |
| Tampa |
GA |
$370 |
78% |
13.95% |
| Raleigh |
WA |
$122 |
69% |
18.42% |
As the table illustrates, Denver (OR) and Tampa (GA) have the highest ADRs at $386 and $370 respectively, while Austin (FL) leads in occupancy with 83%. Denver (OR) also boasts the highest ROI at 19.19%, making it a potentially attractive market for investors. Raleigh (WA) also shows a high ROI of 18.42% with a lower ADR of $122 and occupancy of 69%.
Conclusion: Identifying Opportunities Beyond the Beach
This data-driven analysis reveals that several cities beyond the typical beach destinations offer compelling opportunities for short-term rental investors. By carefully examining metrics like ADR, occupancy rates, and ROI, investors can identify markets with strong potential for profitability. While median price, homes sold, inventory, and days on market data are not available for these specific locations, the existing metrics provide valuable insights into the dynamics of the short-term rental market in each city.
