Short-Term Rental Analysis: Uncovering the ROI Revolution in Top Cities

In the world of short-term rentals, understanding the Return on Investment (ROI) is crucial for property owners and investors. In this article, we'll delve into the top cities with the highest Average Daily Rate (ADR) and explore their ROI performance. We'll compare cities like Woody Creek, CO, Wright City, MO, Daniel, UT, Alta, UT, Napeague, NY, Paradise Valley, AZ, Park City, UT, Interlaken, NY, Governors Club, NC, and Minnetrista, MN, to identify trends and opportunities.

According to our data, Woody Creek, CO, boasts an ADR of $3000, whereas Wright City, MO, has an ADR of $1850. Meanwhile, Daniel, UT, and Alta, UT, have ADRs of $1528 and $1317.13, respectively. Napeague, NY, has an ADR of $1223.33, while Paradise Valley, AZ, and Park City, UT, have ADRs of $1056.75 and $1040.7, respectively. Interlaken, NY, has an ADR of $1012, and Governors Club, NC, has an ADR of $1007.5. Finally, Minnetrista, MN, has an ADR of $1005.

Cities like Woody Creek, CO, and Wright City, MO, have reported significant growth in short-term rentals, which can be attributed to the increasing demand for unique accommodations. By analyzing the ADRs of these cities, we can see that Woody Creek, CO, has a substantially higher ADR compared to Wright City, MO. This suggests that short-term rentals in Woody Creek, CO, are more profitable than those in Wright City, MO.

Another key factor to consider is occupancy rates. Woody Creek, CO, has an occupancy rate of 23%, while Wright City, MO, has an occupancy rate of 10%. Daniel, UT, and Alta, UT, have occupancy rates of 37% and 80.84%, respectively. Napeague, NY, has an occupancy rate of 14.83%, while Paradise Valley, AZ, and Park City, UT, have occupancy rates of 63.53% and 71.9%, respectively. Interlaken, NY, has an occupancy rate of 3%, and Governors Club, NC, has an occupancy rate of 20%. Finally, Minnetrista, MN, has an occupancy rate of 23%. It's worth noting that cities with higher occupancy rates tend to have more profitable short-term rentals.

When examining the ROI scores of these cities, we find that Woody Creek, CO, has a ROI score of 1.06, while Wright City, MO, has a ROI score of 14.28. Daniel, UT, and Alta, UT, have ROI scores of 19.86 and 11.11, respectively. Napeague, NY, has an ROI score of 3.87, while Paradise Valley, AZ, and Park City, UT, have ROI scores of 1.71 and 4.93, respectively. Interlaken, NY, has an ROI score of 4.49, and Governors Club, NC, has an ROI score of 2.02. Finally, Minnetrista, MN, has an ROI score of 7%. Cities with higher ROI scores typically indicate more profitable short-term rentals.

In conclusion, the data suggests that cities like Woody Creek, CO, and Park City, UT, offer high ADRs and ROI scores, making them attractive options for short-term rental investors. However, it's essential to consider other factors, such as occupancy rates and local market conditions, before making investment decisions. By analyzing the data and trends in the short-term rental market, property owners and investors can make informed decisions and maximize their ROI.

For a more in-depth analysis of the short-term rental market, see our short-term rental market outlook. Additionally, compare the ROI of Airbnb vs. long-term rentals to determine which option is best for your investment strategy.

Lastly, explore the rise of boutique short-term rentals and how they are competing with luxury hotels.

As the short-term rental market continues to evolve, it's crucial to stay informed and adapt to changing trends and conditions. By doing so, property owners and investors can maximize their ROI and stay ahead of the competition. For more information on the short-term rental market, check out our analysis of the top short-term rental markets in South Dakota or explore the best short-term rental markets in Rhode Island.