The top 10 vacation house destinations in the U.S. for optimal rental performance and cost-effectiveness.

Purchasing real estate can yield profitable returns and simultaneously serve as an additional revenue stream.

Now, Evolve, a vacation rental company, has unveiled its list of the top spots to purchase a vacation home at the moment.

To determine the best places to purchase a vacation home, the company utilized a blend of private and publicly available data, along with three crucial indicators.

1. To determine which vacation destinations in the U.S. have the highest median revenue from vacation rental bookings, you can analyze performance metrics.
2. Using a combination of Zillow, Redfin, and internal data, we can determine the median listing prices in vacation destinations.
3. To determine the cap rate for a vacation rental, you need to estimate the yearly expenses, which are approximately 30% of the total revenue.

The top destination for purchasing a vacation home at the moment is the Finger Lakes region in New York.

Median rental revenue: $31,434

Median listing price: $202,257

Example cap rate: 10.9%

Evolve ranks Finger Lakes, situated in upstate New York near Lake Ontario, as the top destination for purchasing a vacation home at present.

Properties with easy water access are more likely to perform well in the region, with some owners earning more than double the median annual revenue by offering additional perks such as kid-friendly amenities and furnished decks or patios.

Napa Valley-like wine country exists in the Finger Lakes region, with over 400 wineries and vineyards, making it the largest wine-producing area in the state, as reported by U.S. News and World Report.

The median nightly cost of renting a larger home in Finger Lakes is $592, while the average cost of renting a cabin is $517 per night, according to HomeToGo's data.

10 best places to buy a vacation house right now

1. Finger Lakes, New York
2. Holland, Michigan
3. Hocking Hills, Ohio
4. Palo Pinto, Texas
5. Wisconsin Dells, Wisconsin
6. Savannah, Georgia
7. Michigan City, Indiana
8. Vernon Township, New Jersey
9. Dover, Vermont
10. Sevierville, Tennessee

Currently, Holland, Michigan ranks as the second-best location for purchasing a vacation home.

The median rental revenue for Holland is $44,577, with an example cap rate of 8.8% and a median listing price of $355,544, according to the Evolve report.

Vacation rentals near Lake Michigan in Holland are highly rated, typically have three bedrooms, and offer stunning waterfront views.

According to the report, some Evolve property owners have earned more than $83,000 annually, which is more than twice the median revenue of the market.

The Tulip Time Festival is a renowned event in the area, showcasing the beauty of Holland's tulip fields and preserving its cultural heritage.

The renowned Holland State Park boasts a sugar-sand beach and stunning vistas of the celebrated Holland Harbor Light, commonly referred to as the Big Red Lighthouse.

Rounding out the top three is Hocking Hills, Ohio.

In Southeast Ohio, Hocking Hills is renowned for its immense caves, breathtaking waterfalls, and colossal cliffs.

According to the Evolve report, the median rental revenue is $42,751, the example cap rate is 8.6%, and the median listing price is $349,260.

In Hocking Hills, cabins are the most popular type of home and can be rented for as low as $104 per night, according to HomeToGo. The average cost for a cabin rental in the area is around $328.

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