If you want to make bank renting out vacation homes, Florida is the place to be.
A new report by Rented.com ranked 150 cities in terms of the returns investors could make with vacation rentals and the Sunshine State nabbed the first 19 spots, according to Forbes. The ranking considered local regulations on short-term rentals, costs associated with buying and owning a home in each city and demand for vacation spots based on Rented.com’s own data, as well as data from Airbnb.
California was the second most profitable state with 13 cities making the list, while Texas came in third with nine cities. Notably, the top five cities were not major hubs: Tennessee’s Pigeon Forge and Gatlinburg ranked first and second, followed by Florida’s Panama City Beach in third. Killington, Vermont and Palm Coast, Florida rounded out the top five.
“Urban destinations fell off as a good investment. A year or two ago some had the highest ROI and that’s fallen dramatically,” Rented.com’s Andrew McConnell told Forbes. “The Southeast did extremely well this year, especially in non-luxury markets like the Smokey Mountains.” [Forbes] – Mike Seemuth