The Best Touristy Towns To Own Rental Property

Imagine owning a rental property that generates a constant stream of passive income because it's in so much demand with tourists. This can become your reality if you decide to buy property in a town that offers popular local attractions, such as adventurous theme parks, plentiful wineries or majestic mountains.

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If you want to invest in a rental property, the next step is to find the most worthwhile places to buy. To determine the best touristy towns to own rental property, GOBankingRates used U.S. News & World Report's "Best Places to Visit in the USA" rankings, "Best Family Vacations in the USA" and "Best Romantic Getaways" to create a list of 47 top vacation destinations in the U.S. These touristy towns then were analyzed in terms of median monthly rental revenue and average daily rental rate for properties in each place, sourced from AirDNA. The ranking was developed based on cumulative scores.

With growing platforms such as Airbnb and Vrbo, it's easier than ever to find renters for your properties. Overall, there are plenty of U.S. cities where you can own a lucrative investment property.

Last updated: June 24, 2021

25. Hilton Head, South Carolina

• Attraction(s): Coligny Beach Park, Driessen Beach Park, approximately 25 championship golf courses
• Median monthly rental revenue: $3,282
• Average daily rental rate: $233

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24. Charleston, South Carolina

• Attraction(s): Fort Sumter and Fort Moultrie National Historical Park, Aiken-Rhett House Museum, The Battery
• Median monthly rental revenue: $3,263
• Average daily rental rate: $235

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23. Ocean City, Maryland

• Attraction(s): Ocean City Boardwalk
• Median monthly rental revenue: $3,200
• Average daily rental rate: $249

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22. Sedona, Arizona

• Attraction(s): Uptown Sedona, Red Rock State Park, Chapel of the Holy Cross, Bell Rock
• Median monthly rental revenue: $3,920
• Average daily rental rate: $239

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21. Gatlinburg, Tennessee

• Attraction(s): Great Smoky Mountains National Park, Ober Gatlinburg, Ripley's Aquarium of the Smokies, Dollywood
• Median monthly rental revenue: $4,249
• Average daily rental rate: $232

20. Kihei, Hawaii

• Attraction(s): Maui, Wai'anapanapa State Park
• Median monthly rental revenue: $3,263
• Average daily rental rate: $285

19. Bar Harbor, Maine

• Attraction(s): Acadia National Park
• Median monthly rental revenue: $3,750
• Average daily rental rate: $263

18. Destin, Florida

• Attraction(s): Henderson Beach State Park, Destin Harbor Boardwalk, Crab Island, Big Kahuna's Water and Adventure Park
• Median monthly rental revenue: $3,671
• Average daily rental rate: $271

17. West Yellowstone, Montana

• Attraction(s): Yellowstone National Park
• Median monthly rental revenue: $3,158
• Average daily rental rate: $298

16. Sanibel Island, Florida

• Attraction(s): Bowman's Beach, Captiva Island
• Median monthly rental revenue: $3,504
• Average daily rental rate: $284

15. Napa, California

• Attraction(s): Wineries, Napa Valley Wine Train, Russian River
• Median monthly rental revenue: $3,200
• Average daily rental rate: $303

14. Lanai City, Hawaii

• Attraction(s): Lanai Island, Puu Pehe overlook, beaches
• Median monthly rental revenue: $4,100
• Average daily rental rate: $309

13. Steamboat Springs, Colorado

• Attraction(s): Yampa Valley, Yampa River Core Trail, Strawberry Park Hot Springs, Old Town Hot Springs
• Median monthly rental revenue: $3,636
• Average daily rental rate: $362

12. Key West, Florida

• Attraction(s): Florida Keys, Duval Street, Ernest Hemingway Home and Museum, abundant fishing
• Median monthly rental revenue: $4,855
• Average daily rental rate: $350

11. South Lake Tahoe, California

• Attraction(s): Lake Tahoe, ski resorts
• Median monthly rental revenue: $5,464
• Average daily rental rate: $365

10. West Glacier, Montana

• Attraction(s): Glacier National Park
• Median monthly rental revenue: $5,711
• Average daily rental rate: $355

9. Springdale, Utah

• Attraction(s): Zion National Park, the Narrows
• Median monthly rental revenue: $6,605
• Average daily rental rate: $328

8. Jackson, Wyoming

• Attraction(s): Jackson Hole, Grand Teton National Park, Teton Village
• Median monthly rental revenue: $5,127
• Average daily rental rate: $409

7. Barnstable, Massachusetts

• Attraction(s): Cape Cod, beaches, John F. Kennedy Hyannis Museum
• Median monthly rental revenue: $5,117
• Average daily rental rate: $427

6. Sonoma, California

• Attraction(s): 425-plus wineries, Taylor Mountain Regional Park and Open Space Preserve
• Median monthly rental revenue: $5,473
• Average daily rental rate: $480

5. Edgartown, Massachusetts

• Attraction(s): Martha's Vineyard, Edgartown Lighthouse, Oak Bluffs
• Median monthly rental revenue: $5,283
• Average daily rental rate: $529

4. Telluride, Colorado

• Attraction(s): Rocky Mountains, ski resorts, film festival
• Median monthly rental revenue: $6,100
• Average daily rental rate: $512

3. Aspen, Colorado

• Attraction(s): Ski resorts, Maroon Bells, Independence Pass
• Median monthly rental revenue: $5,200
• Average daily rental rate: $581

2. Kilauea, Hawaii

• Attraction(s): Kauai, Kōke'e State Park, Wailua River State Park
• Median monthly rental revenue: $6,190
• Average daily rental rate: $699

1. Big Sur, California

• Attraction(s): U.S. Highway 1, a designated American National Scenic Byway through the area; Julia Pfeiffer Burns State Park; Pfeiffer and Sand Dollar beaches
• Median monthly rental revenue: $18,000
• Average daily rental rate: $957

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Sophia Zolan contributed to the reporting for this article. 

Methodology: GOBankingRates determined the best touristy towns to own rental property by using U.S. News & World Report's "Best Places to Visit in the USA" rankings, "Best Family Vacations in the USA" and "Best Romantic Getaways" to create a list of 47 top vacation destinations in the U.S. These touristy towns then were analyzed in terms of median annual rental revenue and average daily rental rate for properties in each place, sourced from AirDNA. These two factors were then scored and all 47 places were ranked against each other based on their cumulative score. All data was collected on and up to date as of March 30, 2021.

About the Author

Jami Farkas

Jami Farkas holds a communications degree from California State University, Fullerton, and has worked as a reporter or editor at daily newspapers in all four corners of the United States. She brings to GOBankingRates experience as a sports editor, business editor, religion editor, digital editor — and more. With a passion for real estate, she passed the real estate licensing exam in her state and is still weighing whether to take the plunge into selling homes — or just writing about selling homes.

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