Looking to invest in a vacation property in the heart of the country? The Midwest may not be the first region that springs to mind, but it has some hidden gems that could make for lucrative investments. GOBankingRates spoke with industry experts to uncover some of the best vacation home rental markets in the Midwest.
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Here are the eight best vacation home rental markets in the Midwest.
Also read six rental property mistakes that will cost you money.
Wisconsin
Lavender Lloyd – Property Management Training Director at Real Property Management, the largest residential rental property management franchise organization in North America – shared her thoughts on some of the smartest locations in the Midwest rental market to invest your hard-earned money.
Lloyd called Door County a premier destination. “Door County is often referred to as the ‘Cape Cod of the Midwest’ and is a top destination in the United States,” she said.
She also emphasized the city’s diversity. “There are plenty of scenic lake views, charming small towns and numerous opportunities for outdoor activities such as boating, hiking and fishing,” she said.
For investors, this means consistent demand. “The region’s strong tourism industry ensures consistent demand for vacation rentals, especially in the summer and fall months,” Lloyd explained.
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Traverse City, Michigan
Traverse City offers a unique blend of natural beauty and cultural attractions. “Traverse City is known for its beautiful beaches, vineyards and outdoor recreation opportunities,” noted Lloyd.
And the area also receives regular visitors. “The region is famous for its cherries and hosts the National Cherry Festival every year, which attracts visitors from all over the country,” she said.
The nearby national park is another draw. “Its proximity to Sleeping Bear Dunes National Lakeshore adds even more appeal and makes it a desirable location for vacation homes,” Lloyd explained.
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Lake Geneva, Wisconsin
For those looking to tap into a more upscale market, Lake Geneva could be the place to go. Lloyd described its appeal, saying, “Lake Geneva is a popular destination for Chicago and Milwaukee residents, known for its clear lake waters, historic mansions, and recreational activities such as boating, golfing, and hiking.”
This upscale atmosphere translates to high rental potential. “The area’s upscale amenities and year-round attractions make it an attractive vacation rental market, especially for those seeking a luxurious retreat,” Lloyd said.
Branson, Missouri
Branson’s entertainment scene makes it an excellent choice. “Branson is a well-known entertainment center with a wide range of shows, attractions and outdoor activities,” Lloyd said.
She emphasized the great appeal of the place, saying: “It attracts tourists all year round, especially because of its family-friendly entertainment, proximity to Table Rock Lake and access to the Ozark Mountains.”
For investors, this means steady income potential. “Branson vacation homes benefit from a steady influx of visitors, which ensures a high occupancy rate,” Lloyd said.
The Quad Cities, Iowa/Illinois
Thomas J. Brock, a CFA with over 20 years of investment experience and an expert at Annuity.org, drew attention to an often overlooked market. “The Quad Cities, a Midwest metropolitan area that straddles the Mississippi River, is a very hot market for vacation rentals,” he said.
This market is attractive for rentals for numerous reasons. “The vacation home rental market is booming in this area, largely due to affordability and the rich mix of cultural attractions and outdoor activities,” Brock said. “The region is known for its vibrant arts scene, historic museums and great riverfront attractions, including festivals, biking, hiking, fishing and boating.”
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Chicago
While Chicago may not be the first place that comes to mind when looking for a vacation rental, the data suggests it’s worth considering.
Beyond, a leading revenue management company for short-term rentals, reported that Chicago’s occupancy rate this year was 48.5 percent, just slightly below last year’s 49.2 percent.
Minneapolis
Minneapolis also shows potential as a vacation rental market.
According to Beyond data, the city’s occupancy rate this year was 46.6%, down slightly from last year’s 47.7%.
Wisconsin Dells, Wisconsin
Wisconsin Dells stands out as an emerging market, with Beyond data showing that occupancy has increased from 43.6% last year to 46.4% this year.
The Midwest offers excellent vacation rental opportunities, but as always, make sure you do your own research before investing.
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This article originally appeared on GOBankingRates.com: 8 Best Vacation Home Rental Markets in the Midwest
