25 Best Places to Buy a Vacation Home

The housing market may be cooling down, but consumer demand for vacation rental real estate is still strong. If you're looking for a vacation rental property or a second home, read on to find out the 25 best places to buy a vacation home. We've ranked our top 25 markets based on the capitalization rate or rate of return on your investment, and provided useful data points such as the median home sales price and annual gross rental income. Guest demand for vacation rentals is incredibly high across the country, increasing occupancy and rates year after year.

It's a great time to enter the holiday home market and take advantage of the opportunity, especially if you intend to rent your home. Vacasa can help you get started with full service vacation rental management. Augustine Vacation Homes in Dauphin Island, Alabama is one of those rare places where you feel relaxed immediately after your arrival. It's also known as one of the most family-friendly destinations in the Southeast, with day trips to the estuary at the Dauphin Island Marine Laboratory and the Audubon Bird Sanctuary.

After some educational fun, let your kids let off steam on the stretches of white sand that flank the island and dive into the crystal clear waters. The beaches of Dauphin Island are quiet and uncrowded, making it an ideal destination to build a sand castle or catch up with a good read. This island oasis wins number four with a cap rate of 6.8%. Deep Creek Lake in Maryland is one of those places that offers fun during all four seasons.

In the summer months, guests can head to the state's largest inland lake for boating, tubing, and waterskiing. In the winter months, skiers and snowboarders escape to Wisp Resort in the mountains of western Maryland, where they can glide down 33 tracks totaling 11 miles of terrain. For those who choose not to go to the slopes, there are plenty of other winter activities such as walking to the waterfalls of Swallow Falls State Park, participating in a guided snowshoe tour, and even gliding through the snow on a festive sleigh ride. Ludlow in Vermont is frequently included in our Best Places to Buy a Winter Vacation Home report.

It attracts visitors in search of nature and Okemo Mountain Resort is a true winter wonderland with first-class amenities and diverse terrain for skiers and snowboarders of all levels. Another place that attracts visitors all year round is Buttermilk Falls, a series of three waterfalls and several pools where summer lovers can take a dip. But if you really want to soak up the local culture in Ludlow, look no further than Green Mountain Sugar House. Every weekend, they offer visitors sugar in the snow, maple cream donuts, maple coffee and even maple milk.

This sweet vacation rental market has a maximum rate of 5.2%. With Vacasa's professional full-service vacation rental management, you'll have a trusted local team on your side and much more. Estimated rental income and home sales prices figures are based on averages for a given market over the previous 12 months; for any specific property, actual income, purchase price, and maximum rate may differ materially from the estimated amounts and depend on a wide range of factors beyond Vacasa's knowledge or control such as the condition, design, and furnishing of the property; expenses associated with the acquisition and ownership of the property (such as property taxes, utility rates, HOA rates, insurance fees, and mortgage-related expenses); availability of rental schedule; current and future regulations; future economic, social and political trends and conditions; and climatic and environmental factors. These estimates do not take into account the potential impact of state income taxes. Many locations restrict or impose conditions on the use of properties such as vacation rentals or restrict vacation rentals to certain defined areas.

Before purchasing a particular property as a potential vacation rental, buyers must confirm that it can be legally used for this purpose. Vacasa makes no representations or warranties express or implied as to the accuracy of this document. In addition, Vacasa has no obligation to update modify or amend this document or to notify users in the event that any opinion assumption forecast or estimate set forth herein changes or becomes inaccurate. Therefore you should not unduly rely on these statements. The Poconos is best for investment-focused buyers who have enough cash available to bid on homes within one to three days of listing them. With a potential cap rate of 14.7%, you should be able to recoup your investments quickly and start making profits more quickly. Great Smoky Mountains Considered Part of Sevierville Backyard attract 12 million visitors annually so those who purchase a vacation rental here are well positioned to achieve their occupancy targets thanks to its popularity.

Bryson City in North Carolina has an arts-focused walkable center with local bookstores murals galleries breweries and Tuckasegee River which is great for kayaking paddleboarding or fly fishing. North Conway in New Hampshire is another well-loved New England ski town with nearly 13 ski areas nearby so it's perfect for winter sports enthusiasts who want to hit the slopes.


Vacation rental real estate continues to be an attractive investment opportunity with high guest demand across many markets in America. With Vacasa's full service vacation rental management you can get started quickly with trusted local teams on your side. Before purchasing any property as a potential vacation rental buyers must confirm that it can be legally used for this purpose as many locations restrict or impose conditions on its use. We've outlined 25 best places to buy a vacation home based on capitalization rate or rate of return on your investment along with median home sales price and annual gross rental income.

Cathleen Testa
Cathleen Testa

Typical travel ninja. Hardcore food enthusiast. Evil webaholic. Avid internet expert. Unapologetic social mediaholic.