Short Term Rentals Markets: Where Are the Best Vacation Investment Property Locations in 2022

Must read

Radhe Gupta
Radhe Gupta
He has worked with various business magazines like Business Today Outlook as a freelancer before joining the team. She is an addicted reader of self-help books, fiction, and journals.

Vacation rentals are some of the most lucrative investment properties that you can own. But with so many short term rental markets to choose from, it can be difficult to know where to invest your money.

In this article, we’ll show you the best locations where you can buy profitable vacation investment property in 2022. We’ll also give you some tips on how to pick the right properties that can give you a stable stream of passive income and high returns.

7 Best Locations to Invest in Vacation Rentals

The US is one of the largest markets for short-term rentals, and according to a report by AirDNA, it is projected to grow even larger in the next few years. So without further ado, here are the best vacation investment property locations 2022 investors should consider.

1. Orlando, Florida

Orlando is one of the most popular tourist destinations in the US, and with good reason. The city has world-famous theme parks, like Walt Disney World Resort, Universal Studios Orlando, and SeaWorld Orlando. It’s also home to some of the best beaches in the state.

Generally speaking, investors who make a vacation rental investment Florida has to offer can expect strong returns on investment throughout the year. After all, the state is one of those having the highest average occupancy rates for short-term rentals in the country.

2. Las Vegas, Nevada

Las Vegas is another destination where you can find profitable investments in vacation rentals. The city is known for its casinos, nightlife, and luxury hotels. And, it’s also home to some of the most famous attractions in the country, such as the Bellagio Fountains and the Grand Canyon.

Short-term rental properties in the city have some of the highest average daily rates (ADR) in the US, with $250 as the price.

3. Maui, Hawaii

Maui is one of the most beautiful places on earth, and it’s no wonder that it’s such a popular tourist destination. The island has stunning beaches, lush rainforests, and the Haleakala National Park.

Short-term rentals in Maui can be very profitable for investors. While the upfront costs of buying property on the island are high, it has some of the highest nightly rates for vacation rentals in the country.

4. New York City, New York

The city has something for everyone, from world-famous attractions, like Times Square and Central Park, to trendy restaurants and bars.

Short-term rentals in NYC are in high demand all year round, but especially during the summer months when tourists flock to the city. The average daily rate for a short-term rental in the city is $350, making it one of the most expensive markets in the country.

5. San Diego, California

San Diego is a beautiful coastal city that is home to some of the best beaches in America. It’s also home to major attractions, like Balboa Park and SeaWorld San Diego.

The city has an average occupancy rate of 80% and an average rental daily rate of $200.

6. The Great Smoky Mountains, Tenessee

The Great Smoky Mountains is also a popular destination for tourists from all over the world. It is home to stunning natural scenery, charming small towns, and some of the best hiking trails in the country.

Short-term rental properties in the Smoky Mountains can be extremely profitable, with an average occupancy rate of 95% and an average daily rate of $125.

7. Blue Ridge, Georgia

This town in the north Georgia mountains is becoming increasingly popular with tourists for its natural beauty and the activities that come with it. Its average occupancy rate is 95%, with an average daily rate of $125.

These are just a few of the best short-term rental markets in the US. For more locations that you can consider, you can visit this page:

Picking the Perfect Short-Term Vacation Rental Property

While the above-mentioned short term rental markets offer you great investment opportunities, you still need to do some due diligence to ensure the property you choose is right for you. Here are important factors that you should keep in mind during your search.


When investing in short-term rental property, it’s important to pick a location that is desirable to tourists. Look for a market that has high demand and short supply. You’ll want to be sure that the area you invest in is well-known and has a lot of tourist traffic.

Cash Flow

It’s also important to make sure that the property you choose is cash flow positive. This means that the rental income you receive should be higher than the expenses associated with owning and operating the property.

To find such a property, you’ll need to do some research on short-term rental rates in the area. You can use websites, like Airbnb and VRBO, to get an idea of what similar properties are renting for. You’ll also want to factor in the costs, such as mortgage payments, insurance, taxes, and repairs/maintenance.

Today, you can quickly determine the cash flow of a property by using a vacation rental investment calculator.


Ideally, you should not overspend on your vacation rental property. Thus, it’s important to find one that is priced right so you can make a good return on your investment. The average daily rate for short-term rentals varies greatly from market to market, so do your research before making a decision.

Zoning and Local Regulations

Be sure to check the zoning regulations for short-term rentals in the area you’re considering investing in. Some areas have restrictions on the number of days a property can be rented out per year, or they may require that you obtain a special permit.

This is also an important factor to consider when you need to expand the property in the future. For example, when you have bought property by the lake, you might be restricted to build additional structures within a certain proximity to the water.

Condition of the Property

Last but not least, it’s important to choose a property that is in good condition. Vacationers are looking for properties that are clean and well-maintained. If the property you choose needs a lot of work, it will be difficult to attract guests and you may end up losing money.

Also, a property that is in good condition will save you a lot of money from having to make major repairs and updates.


Without a doubt, investing in vacation rentals is a good way to earn income and build wealth. But as with any investment, there are risks involved.

To minimize your risk, be sure to do your research, choose desirable short term rental markets, and pick the perfect property. With the information provided in this article, you should be able to start on the right foot in your investment journey.

For more useful tips on real estate, feel free to check out the rest of our articles!

More articles


Please enter your comment!
Please enter your name here

Latest article