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Expand Your Portfolio in These Hot STR Markets

Investing in short-term rentals is becoming more and more popular for rental investors looking to grow their portfolios. This leads to two natural questions—where are the best short-term rental markets for 2022 and where are the best places to invest in vacation rentals?

We’ve looked through the STR market data to categorize the top short-term rental markets, based on lists from Roofstock, Mashvisor, AirDNA, and Hostaway. We’ve compiled these lists and found themes that will help you identify the best short-term rental markets to consider when you’re investing in rental properties. Whether you choose a property on this list or not, knowing what to look for can help you analyze all hot rental markets to find real estate investment opportunities.

Vacation Destinations

It’s no surprise that many popular vacation areas show up across the lists of best places to buy a vacation home to use as a short-term rental. These popular markets include:

  • Joshua Tree, California
  • Lake Tahoe, California (and the greater Reno, Nevada market)
  • Breckenridge, Colorado
  • Lake Havasu, Arizona
  • Myrtle Beach, South Carolina
  • Kauai and Maui, Hawaii
  • Gatlinburg and Townsend, Tennessee
  • Fort Myers, Florida
  • Key West, Florida

But the lists also show that investors looking at the best rental real estate markets shouldn’t limit themselves to well-known tropical or mountain destinations. Popular tourist destinations where short-term rentals see much success can also include cities with unique draws such as:

Even niche destinations with quaint charm, like Helen, Georgia; Galena, Illinois; or Southwest Harbor, Maine, show up on the list. The takeaway: When you’re thinking about where to invest in short-term rental properties, you may want to consider a variety of destinations that see solid tourist traffic

Popular Attraction and Event Locations

Some people are in search of rest and relaxation on their vacations—others travel for activity and adventure and visit theme parks, attend football games, go to a casino, or attend other events. This explains why the following cities show up on lists of trending hot rental markets in the STR space:

  • Kissimmee, Florida (just outside Orlando)
  • Biloxi and Gulfport, Mississippi
  • Slidell, Louisiana (just outside New Orleans)
  • South Bend, Indiana 
  • Birmingham, Alabama
  • Fresno, California (for seasonal agriculture workers)

Urban Locations

San Antonio Riverwalk in Texas

Vacations aren’t the only reason people opt to stay at a short-term rental rather than a hotel.  Many individuals utilize Airbnb properties while traveling for business or visiting family. This means that STRs in urban markets can also be profitable given the proper location. Cities appearing among the lists of best rental real estate markets for STR investors for 2022 include:

  • Kansas City, Missouri
  • Buffalo, New York
  • Raleigh and Durham, North Carolina
  • Baltimore, Maryland
  • Cincinnati, Ohio
  • Phoenix, Arizona
  • Detroit, Michigan
  • Pittsburgh, Pennsylvania
  • Hartford, Connecticut
  • New York, New York
  • Sacramento, California

Short-Term Rental Investment Opportunities

There are currently boundless opportunities when it comes to investing in short-term rentals. Before embarking on any new real estate investment, it’s key to ensure that you have the right private lending partner that can close the kind of rental loan program you need to successfully invest in this class of real estate. Lima One Capital offers a wide variety of rental property loans, including short-term rental loans specifically geared toward helping investors gain cash flow and building rental property portfolios. Contact Lima One today to learn more about the short-term rental loan programs available and talk about your investment goals.