Last updated: September 2024
Investing in short-term rentals (STRs) in mountainous regions can offer unique opportunities for investors seeking to capitalize on scenic landscapes, outdoor activities, and a steady flow of tourists year-round. These markets provide strong investment potential along with rich natural beauty and vibrant local cultures.
Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a calculator, regulation overview, and much more for each market discussed. Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.
1. Lake Harmony, Pennsylvania
Lake Harmony, PA, is a charming mountain destination known for its picturesque scenery, recreational activities, and close proximity to the Pocono Mountains.
Lake Harmony has experienced a stable home value change, with the average price now at $247,000. This market thrives with an ADR of $284.00 and an occupancy rate of 55%, translating to an annual revenue of $51,228 from 450 active rentals. The gross yield here is 13.88%, with a cap rate of 8.33%.
Discover more about investing in Lake Harmony through the Lake Harmony Airbnb Investor Guide and Lake Harmony Rental Regulations.
2. Duluth, Minnesota
Duluth, MN, located on the shores of Lake Superior, is known for its stunning natural beauty and outdoor recreational activities, making it a popular destination for mountain and lake enthusiasts.
Duluth has seen a notable increase in home values by 5.60%, with the average price reaching $251,827. With an ADR of $180.00 and an occupancy rate of 58%, the annual revenue is $41,834 from 421 active rentals. The gross yield is 13.84%, and the cap rate is 8.30%.
For further details on this market, explore the free Duluth Airbnb Investor Guide and Duluth Rental Regulations.
3. Yucca Valley, California
Yucca Valley, CA, is a gateway to Joshua Tree National Park, offering unique desert landscapes and a variety of outdoor activities that attract visitors year-round.
Yucca Valley has seen a decrease in home values by -10.20%, with the average price at $358,000. The market shows promise with an ADR of $189.00 and an occupancy rate of 55%, generating annual revenues of $43,880 from 1,362 active rentals. The gross yield stands at 10.50%, with a cap rate of 5.68%.
Discover more about investing in Yucca Valley through Chalet Intel. It includes a calculator, regulation overview, and much more.
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4. Gatlinburg, Tennessee
Gatlinburg, TN, is a popular gateway to the Great Smoky Mountains National Park, known for its vibrant tourism industry and beautiful mountain scenery.
Gatlinburg has seen a slight increase in home values by 2.50%, with the average price at $450,000. The market thrives with an ADR of $275.00 and an occupancy rate of 60%, leading to an annual revenue of $58,800 from 800 active rentals. The gross yield here is 9.97%, with a cap rate of 6.50%.
For more insights into Gatlinburg as a rental market, explore Chalet Intel. Our platform provides detailed data and investment guidance.
5. Traverse City, Michigan
Traverse City, MI, offers a mix of stunning lakeside views, vibrant local culture, and access to the nearby Sleeping Bear Dunes National Lakeshore.
Traverse City has seen a stable increase in home values, with the average price reaching $400,000. With an ADR of $200.00 and an occupancy rate of 50%, the annual revenue is $36,500 from 650 active rentals. The gross yield is 9.76%, and the cap rate is 6.00%.
Explore more about investing in Traverse City through the Traverse City Airbnb Investor Guide and Traverse City Rental Regulations.
6. Santa Fe, New Mexico
Santa Fe, NM, offers a rich blend of Native American and Spanish cultures, with numerous attractions including Bandelier National Monument and the Sangre de Cristo Mountains.
Santa Fe has seen a moderate increase in home values by 3.70%, with the average price reaching $566,125. With an ADR of $208.00 and an occupancy rate of 70%, the annual revenue is $53,809 from 1,937 active rentals. The gross yield is 7.92%, and the cap rate is 4.75%.
For further details on this market, explore the free Santa Fe Airbnb Investor Guide and Santa Fe Rental Regulations.
Each of these markets in the mountains offers unique opportunities for short-term rental investors, combining strong financial metrics with appealing tourist attractions. For a comprehensive overview, including detailed analyses, calculators, and regulation insights, make sure to explore our latest tool, Chalet Intel.
