The ADR Advantage: Top Markets for Short-Term Rental Investors

Short-term rental investing can be a lucrative business, but it requires careful consideration of various factors, including average daily rate (ADR), occupancy, and return on investment (ROI). In this analysis, we'll examine the top markets for short-term rental investors, using data from short-term rental data analysis.

Top Markets for Short-Term Rental Investors

According to the data, New York, NY has an ADR of $597.2, while Los Angeles, CA has an ADR of $492.36. Chicago, IL has an ADR of $245.61, Bay City, TX has an ADR of $136.83, Mulberry, SC has an ADR of $529, and Solana, FL has an ADR of $290.31. Additionally, Robinhood, MS has an ADR of $105, Ocala Estates, FL has an ADR of $182, and Ventura, IA has an ADR of $375. Benton Heights, MI has an ADR of $118.75, Riviera Beach, FL has an ADR of $858, and Long Hill, CT has an ADR of $160. Beverly Beach, FL has an ADR of $552.5.

We can see that New York has the highest median sale, followed by Los Angeles. Chicago has a median price of $N/A, Bay City has a median price of $N/A, Mulberry has a median price of $N/A, and Solana has a median price of $N/A. Robinhood has a median price of $N/A, Ocala Estates has a median price of $N/A, and Ventura has a median price of $N/A. Benton Heights has a median price of $N/A, Riviera Beach has a median price of $N/A, and Long Hill has a median price of $N/A. Beverly Beach has a median price of $N/A.

Occupancy Rates

The occupancy rates for these cities are as follows: New York, NY has an occupancy rate of 18.4%, Los Angeles, CA has an occupancy rate of 47%, Chicago, IL has an occupancy rate of 45.98%, Bay City, TX has an occupancy rate of 39.5%, Mulberry, SC has an occupancy rate of 30%, and Solana, FL has an occupancy rate of 45.92%. Robinhood, MS has an occupancy rate of 53%, Ocala Estates, FL has an occupancy rate of 75%, and Ventura, IA has an occupancy rate of 27%. Benton Heights, MI has an occupancy rate of 25%, Riviera Beach, FL has an occupancy rate of 90%, and Long Hill, CT has an occupancy rate of 45%. Beverly Beach, FL has an occupancy rate of 80%.

These occupancy rates are significant, as they directly impact the revenue generated by short-term rentals. For example, Los Angeles, CA has an occupancy rate of 47%, resulting in a significant revenue potential. In contrast, Bay City, TX has an occupancy rate of 39.5%, which may indicate a lower revenue potential.

ROI and ADR

The ROI and ADR for these cities are as follows: New York, NY has an ROI of -1.74% and an ADR of $597.2, while Los Angeles, CA has an ROI of 3.07% and an ADR of $492.36. Chicago, IL has an ROI of 7.58% and an ADR of $245.61, Bay City, TX has an ROI of 1379.81% and an ADR of $136.83, and Mulberry, SC has an ROI of 512.29% and an ADR of $529. Solana, FL has an ROI of 136.83% and an ADR of $290.31, Robinhood, MS has an ROI of 105.73% and an ADR of $105, and Ocala Estates, FL has an ROI of 101.23% and an ADR of $182. Ventura, IA has an ROI of 88.37% and an ADR of $375, Benton Heights, MI has an ROI of 78.3% and an ADR of $118.75, Riviera Beach, FL has an ROI of 72.56% and an ADR of $858, and Long Hill, CT has an ROI of 65.41% and an ADR of $160. Beverly Beach, FL has an ROI of 62.23% and an ADR of $552.5.

These ROI and ADR figures demonstrate the potential for significant revenue growth in certain cities. For instance, Bay City, TX has an ROI of 1379.81% and an ADR of $136.83, making it an attractive investment opportunity. On the other hand, Los Angeles, CA has an ROI of 3.07% and an ADR of $492.36, indicating a lower return on investment.

Conclusion

In conclusion, the top markets for short-term rental investors vary depending on the specific factors considered. While some cities, such as New York, NY, have high median sale prices and occupancy rates, others, like Bay City, TX, have significantly higher ROI and ADR figures. It's essential to consider these factors carefully when evaluating investment opportunities in the short-term rental market.

Looking for more information on short-term rental investing? Check out our short-term rental market outlook for a comprehensive guide to the industry.

References

This analysis is based on data from short-term rental data analysis and top short-term rental markets in Virginia.