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If you live on the Mississippi Coast, you already know how special it is. Some of those things you love about Biloxi and Gulfport have made the Coast one of the best places to invest in rental property.
AirDNA scoured the U.S. vacation rental market and found 25 of the best short term rental markets for 2021-2022 – and the Gulfport/Biloxi region made the Top 5 with a solid AirDNA investor score of 88.
The study is more than a popularity contest, AirDNA says. Rather than base the rankings on home values and popularity of the destinations, AirDNA analyzed how profitable the short-term rentals were.
The study evaluates each vacation rental market according to three data points: rental demand, revenue growth and “investability,” which is the expected income of a property relative to the cost of buying it. AirDNA then determines an investor score based on that criteria.
So, why did the Coast score so high?
AirDNA evaluated this area’s housing market and noted the average home value is around $155,000 and has an occupancy rate of 70%. This means that at a rate of $196/day, profit could reach around $44,000.
Tourists flock to the area because it is on the Gulf of Mexico, has casinos galore, great restaurants and more.
AirDNA’s study found that Gulfport rentals were in high demand with rental home revenue averaging $3,106 a month. Biloxi rental occupancy averaged 69% annually and had a revenue average of $2,425. The study also noted that Ocean Springs and Long Beach are in high demand, with the highest short-term rental occupancy over the past year at 68%.
Where are the others in the top 5?
Close by is Slidell, Louisiana, which came in at No. 5 on AirDNA’s list.
At No. 3 is Chattanooga, Tennessee.
AirDNA noted that Chattanooga has a very high rental demand and occupancy rate, mostly a result of the area’s rising popularity as a vacation destination.
From Lookout Mountain Railway and other historic sights, trails and views, Chattanooga could give investors an average of $47,000 a year.
No. 2 on AirDNA’s list is Kenai Peninsula, Alaska.
And finally, No. 1 is Maui, Hawaii.
Maui is Hawaii’s second-largest island and is globally known for its beauty; from its beaches to its mountain views, Maui is always high on AirDNA’s list of best vacation rental markets to invest in, year after year.
The occupancy rate is typically around 73% and with average home values around $802,000, investors could set a daily rate at $375 and get a profit of $102,000 at the end of the year.
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