ZIP Code Profitability Index: Identifying Hidden Gems for Short-Term Rental Investors

In the highly competitive short-term rental market, identifying profitable zip codes can make all the difference between success and failure. With this data-driven analysis, we'll explore the most profitable zip codes for short-term rentals, highlighting opportunities and challenges for investors.

Comparing Median Prices

When comparing median prices across various cities, we see significant differences. For instance, West Palm Beach, FL, has a median sale price of $310,000, while North Little Rock, AR, has a median price of $160,500. This difference of $149,500 can be a significant factor in determining profitability.

Furthermore, Longview, TX, has a median price of $260,000, which is lower than West Palm Beach. Conversely, Hawthorne, CA, has a median price of $927,500, which is significantly higher than West Palm Beach.

In fact, the median sale price in Midland, TX, is $335,000, which is higher than West Palm Beach. On the other hand, Indian Creek, FL, has a median sale price of $79,000,000, making it one of the most expensive zip codes in the analysis.

In terms of affordability, Sturgis, SD, has an affordability index of 260.63, indicating that housing prices are relatively affordable. In contrast, Indian Creek, FL, has an affordability index of 13166.67, making it one of the least affordable zip codes.

Homes Sold and Inventory

The number of homes sold can also impact profitability. For instance, Baltimore, MD, has a high number of homes sold (728), indicating a more competitive market. On the other hand, Suffolk, VA, has only 2 homes sold, making it a less competitive market.

Regarding inventory, Midland, TX, has an inventory of 433, which is relatively high compared to other cities. In contrast, Indian Creek, FL, has no inventory, indicating a highly competitive market.

Days on Market

The days on market can also impact profitability. For instance, Suffolk, VA, has a median DOM of 5 days, indicating a very fast-paced market. On the other hand, Sturgis, SD, has a median DOM of 200 days, indicating a slower market.

In terms of market conditions, West Palm Beach, FL, has a demand-supply index of 0.93, indicating a balanced market. In contrast, Indian Creek, FL, has a demand-supply index of null, indicating a highly competitive market.

In conclusion, identifying profitable zip codes for short-term rentals requires a thorough analysis of median prices, homes sold, inventory, and days on market. By considering these factors, investors can make informed decisions and capitalize on opportunities in the short-term rental market.

Short-term rental markets can be complex, but understanding local trends is crucial for success.

For instance, in the highly competitive market of Indian Creek, FL, investors may need to consider alternative strategies, such as short-term rental regulations and short-term rental market outlook.

By analyzing the data and understanding the local market conditions, investors can identify hidden gems and capitalize on opportunities in the short-term rental market.

Conclusion

In conclusion, identifying profitable zip codes for short-term rentals requires a data-driven approach. By considering median prices, homes sold, inventory, and days on market, investors can make informed decisions and capitalize on opportunities in the short-term rental market. Remember to stay up-to-date with short-term rental market trends and local market conditions to ensure success in this competitive market.