The best places to invest in vacation properties combine great scenery with profitable capitalization rates, CNBC reports.
Vacation rental management website Vacasa has rolled out its second annual report highlighting the best U.S. destinations to invest in a vacation rental property. It analyzed home sales and rental data in vacation areas around the country. Vacasa also found that 65% of people in the market for a vacation home haven’t decided where to buy.
“Buying a vacation rental property requires more consideration than simply where you’d enjoy owning a vacation home that you could visit a few times a year,” said Shaun Greer, Vacasa’s senior director of real estate.
“If you are seeking to maximize your investment, you’ll need to familiarize yourself with markets that have a strong rate of return, consistently high occupancy rates and local regulations,” Greer added in a statement.
Sevierville, Tenn., topped the list, due to the nearby Dollywood theme park and a capitalization rate of 10.3%. It was followed by Killington, Vt.; Davenport, Fla.; and Whittier, N.C.