Last updated: September 2024
The Sun Belt, spanning the southern portion of the United States, is known for its warm climate, diverse culture, and booming economic growth. This region, which includes 18 states like Alabama, Oklahoma, Florida, Tennessee, California, Louisiana, and Texas, offers a wealth of opportunities for short-term rental investors. With cities that boast unique attractions, historical landmarks, and vibrant communities, the Sun Belt is a hot spot for travelers seeking both leisure and adventure.
As we dive into the best Airbnb rental markets in the Sun Belt, we’ll explore data collected until September 2024 to highlight the top destinations sorted by gross yield. These markets combine strong investment potential with appealing tourist experiences. 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. Birmingham, Alabama
Birmingham, AL, is rich in history and culture, with attractions like the Birmingham Civil Rights Institute and the Alabama Jazz Hall of Fame drawing numerous visitors each year.
Birmingham has experienced a slight decrease in home values by -4.90%, with the average home price now at $126,949. Despite this, the city maintains a competitive edge with an average daily rate (ADR) of $122.00 and an occupancy rate of 57%, leading to an annual revenue of $24,994 from 1,335 active listings. The average gross yield is an impressive 16.41%, complemented by a cap rate of 9.85%.
For further details on this market, explore the free Birmingham Airbnb Investor Guide and Birmingham Rental Regulations.
2. Broken Bow, Oklahoma
Known for its outdoor activities and beautiful landscapes, Broken Bow, OK, is a favorite among nature enthusiasts, offering attractions like Beavers Bend State Park and Broken Bow Lake.
Broken Bow has seen a modest decline in home values by -1.70%, with the average home price at $296,750. This market shows promise with an ADR of $315.00 and an occupancy rate of 42%, generating annual revenues of $55,324 from 3,423 active rentals. The gross yield here stands at 15.54%, with a cap rate of 9.32%.
Discover more about investing in Broken Bow through Chalet Intel. It includes a calculator, regulation overview, and much more.
3. Savannah, Georgia
Savannah, GA, boasts historic districts, beautiful parks, and a vibrant arts scene. Highlights include Forsyth Park, River Street, and numerous historic homes and museums.
Savannah has seen a notable increase in home values by 10.50%, with the average price reaching $307,925. With an ADR of $216.00 and an occupancy rate of 67%, the annual revenue is $57,045 from 3,217 active rentals. The gross yield is 15.44%, and the cap rate is 9.26%.
To delve deeper into Savannah’s investment potential, check out our free Savannah Chalet Intel.
4. Memphis, Tennessee
Memphis, TN, is renowned for its rich musical heritage, including landmarks like Graceland and Beale Street, attracting music lovers from around the world.
Memphis has experienced a slight drop in home values by -4.50%, with the average home price now at $144,347. The city’s ADR is $123.00, with an occupancy rate of 57%, resulting in an annual revenue of $26,176 from 1,755 active listings. The gross yield is 15.11%, and the cap rate is 9.07%.
For more comprehensive insights into Memphis as a rental market, explore our free investment and market analysis tool, Memphis Chalet Intel.
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5. Coachella, California
Famous for its annual music festival, Coachella, CA, attracts a large number of tourists, especially during the festival season, boosting short-term rental demand significantly.
Coachella has seen a 4.10% increase in home values, with the average price now at $412,875. This market thrives with an ADR of $462.00 and an occupancy rate of 51%, translating to an annual revenue of $74,207 from 433 active rentals. The gross yield here is 14.98%, with a cap rate of 8.99%.
Check out our Coachella Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market or visit Coachella Rental Regulations to explore the Airbnb laws and regulations.
6. New Orleans, Louisiana
New Orleans, LA, offers a unique blend of music, cuisine, and vibrant festivals, such as Mardi Gras, making it a perennial favorite among tourists.
New Orleans has experienced a decline in home values by -7.10%, with the average price at $241,369. The city’s ADR is $169.00, with an occupancy rate of 60%, leading to an annual revenue of $36,925 from 7,017 active listings. The gross yield is 12.75%, and the cap rate is 7.65%.
To explore investment opportunities in New Orleans, visit Chalet Intel. Our guides offer the knowledge and tools you need to make informed decisions and maximize your returns.
7. Montgomery, Alabama
Montgomery, AL, boasts a rich history, including landmarks like the Rosa Parks Museum and the Alabama State Capitol, drawing numerous visitors each year.
Montgomery has seen a 2.80% increase in home values, with the average price at $137,870. The city’s ADR is $107.00, with an occupancy rate of 59%, resulting in an annual revenue of $20,704 from 487 active listings. The gross yield is 12.51%, and the cap rate is 7.51%.
For further details on this market, explore the free Montgomery Airbnb Investor Guide and Montgomery Rental Regulations.
8. Corpus Christi, Texas
Known for its beautiful beaches and attractions like the Texas State Aquarium and the USS Lexington, Corpus Christi, TX, is a popular destination for beachgoers and history buffs alike.
Corpus Christi has experienced a slight increase in home values by 0.40%, with the average price at $214,380. The ADR is $169.00, with an occupancy rate of 52%, generating annual revenues of $30,634 from 1,923 active rentals. The gross yield is 11.91%, with a cap rate of 7.15%.
Check out our Corpus Christi Airbnb Investor Guide for a deeper dive into our analysis of this short-term rental market or visit Corpus Christi Rental Regulations to explore the Airbnb laws and regulations.
9. Sevierville, Tennessee
Nestled in the Smoky Mountains, Sevierville, TN, offers attractions like Dollywood and numerous outdoor activities, making it a favored destination for families and adventure seekers.
Sevierville has seen a 2.60% increase in home values, with the average price at $369,668. The market boasts an ADR of $222.00 and an occupancy rate of 66%, leading to an annual revenue of $51,755 from 9,828 active rentals. The gross yield is 11.67%, with a cap rate of 7.00%.
For more details on Sevierville’s market, refer to our free investment and market analysis tool that provides comprehensive insights and strategies tailored to investors at all experience levels – Sevierville Chalet Intel.
10. Crystal Beach, Texas
Crystal Beach, TX, is known for its serene coastal environment, perfect for a relaxing getaway.
Crystal Beach has experienced a decline in home values by -6.60%, with the average price at $431,315. The ADR is $309.00, with an occupancy rate of 46%, resulting in an annual revenue of $57,736 from 35 active rentals. The gross yield is 11.15%, with a cap rate of 6.69%.
For a deeper dive into Crystal Beach’s investment potential, explore Crystal Beach Airbnb Investor Guides and Rental Regulations.
