Vacation Home Hotspots: Unveiling the Cities with the Best ROI

The vacation rental market is booming, but where can investors find the sweetest returns? This data-driven analysis dives into key metrics like Average Daily Rate (ADR), occupancy rates, and estimated ROI to pinpoint the most profitable locations.

Understanding Key Metrics

Before we jump into the city-specific analysis, let's define the key metrics we'll be using:

• Average Daily Rate (ADR): The average rental income earned for an occupied room in a given day.
• Occupancy Rate: The percentage of available rooms that are rented out over a specific period.
• Estimated ROI: The estimated return on investment, reflecting the profitability of a vacation rental property.

Top Vacation Rental Markets: A Data-Driven Comparison

We've analyzed data from several cities to identify the top vacation rental markets. Let's take a closer look at some of the key findings.

Portland, TN: A High ROI Leader

Portland, TN, stands out with an impressive estimated ROI of 19.73%. This is coupled with a mean ADR of $381 and an occupancy rate of 61%. With 872 total listings, Portland, TN, presents a compelling opportunity for investors seeking high returns.

Raleigh, CO: Promising ADR but Lower ROI

Raleigh, CO, boasts a high mean ADR of $399, surpassing many other cities in our analysis. However, its occupancy rate is 78%, and its estimated ROI is 6.60%. With only 79 total listings, Raleigh, CO, may offer a more niche market for investors.

Tampa, TN: Strong Occupancy and Solid ROI

Tampa, TN, demonstrates a strong occupancy rate of 84%, indicating high demand for vacation rentals. Its mean ADR is $249, and its estimated ROI is 14.55%. With 781 total listings, Tampa, TN, offers a balance of high occupancy and solid returns.

Miami, CA: A Popular Destination with Moderate ROI

Miami, CA, a well-known tourist destination, has a mean ADR of $281 and an occupancy rate of 76%. Its estimated ROI is 12.68%. With 537 total listings, Miami, CA, presents a competitive market with moderate returns.

Portland, GA: High Occupancy and Competitive ROI

Portland, GA, showcases a high occupancy rate of 86%, indicating strong demand. Its mean ADR is $296, and its estimated ROI is 18.78%. With 608 total listings, Portland, GA, offers a competitive market with attractive returns.

Seattle, TN: Balancing ADR and Occupancy

Seattle, TN, has a mean ADR of $339 and an occupancy rate of 83%. Its estimated ROI is 18.72%. With 112 total listings, Seattle, TN, presents a smaller market with potentially high returns.

Comparing Cities: ADR and Occupancy

Let's compare the ADR and occupancy rates across different cities:

• ADR Comparison: Raleigh, CO, leads with an ADR of $399, followed by Portland, TN, at $381. Tampa, TN, has the lowest ADR at $249.
• Occupancy Comparison: Portland, GA, has the highest occupancy rate at 86%, while Portland, TN, has the lowest at 61%.

Additional Insights from Exploratory Data

Further analysis reveals additional insights into other potential vacation rental markets.

Seattle, CO: High Occupancy, Solid ROI

Seattle, CO, boasts an impressive occupancy rate of 88% and a mean ADR of $373. Its estimated ROI is 15.90%, making it an attractive option for investors.

Dallas, FL: Strong ROI Potential

Dallas, FL, shows a strong estimated ROI of 19.00% with an occupancy rate of 75% and a mean ADR of $202. This suggests a potentially lucrative market for vacation rentals.

Orlando, NC: Balancing ADR and ROI

Orlando, NC, has a mean ADR of $348 and an occupancy rate of 74%. Its estimated ROI is 10.41%, indicating a moderate return on investment.

Data Table: Vacation Rental Market Comparison

City	State	ADR	Occupancy	Estimated ROI
Portland	TN	$381	61%	19.73%
Raleigh	CO	$399	78%	6.60%
Tampa	TN	$249	84%	14.55%
Miami	CA	$281	76%	12.68%
Portland	GA	$296	86%	18.78%
Seattle	TN	$339	83%	18.72%
Seattle	CO	$373	88%	15.90%
Dallas	FL	$202	75%	19.00%
Orlando	NC	$348	74%	10.41%

Conclusion

Investing in vacation rentals requires careful consideration of various factors. By analyzing key metrics like ADR, occupancy rates, and estimated ROI, investors can identify the most promising markets. Cities like Portland, TN, and Portland, GA, demonstrate high ROI potential, while others like Raleigh, CO, offer unique opportunities with high ADRs. Ultimately, the best investment depends on individual risk tolerance and investment goals.