North Carolina Short Term Rental Market – Is it Suitable for Investment?

The 9th most populous state of the USA, North Carolina has a lot to offer, especially to young entrepreneurs and investors.

Along with several other businesses, the short term rental north carolina also provides ample opportunities to those who are looking to earn big profits. Great smoky mountains, chimney rocks, the National Museum of Science, and Cape Hatteras National Seashore are prime attractions in North Carolina.

Apart from that, the Wright Brothers National Memorial is also present there. People from the whole USA and the rest of the world come to see these attractions. So during vacations, when the touring season is at its peak, the North Carolina market becomes super suitable for investments and earning profits.

However, you cannot decide that the short term rental north carolina market is suitable for your investment only based on a single factor. You must get proper information about it. In this post, you are going to figure out those factors which make North Carolina a suitable place for investment in real estate. You will also explore some top places for short term rental investment in this city.

Factors that Make the North Carolina Short Term Rental Market a Suitable Place for Investment

High Renter Population

Over the past few years, the number of people in North Carolina who are living in rental homes has been increasing continuously. People are no longer interested in owning a property in North Carolina. They prefer to live in rental homes as it’s affordable for them. Therefore, the North Carolina is growing and developing rapidly. Investing there could bring huge benefits for you.

High Occupancy Rate

The occupancy rate in the North Carolina rental properties is probably the highest in the whole USA. According to data analysis, the occupancy rate of the whole state is almost 95 to 97 percent. As local people also prefer rental homes, you don’t have to wait for vacations or touring seasons to earn big profits. Your rental property will make consistent income throughout the year.

Growing Economy

The economy of North Carolina has been growing rapidly. It’s among the top richest states in the USA. This factor is directly impacting the North Carolina positively. A good economy means it will be easier for people to pay demanded rents and you can earn big profits. Furthermore, it will also be easier for you to buy a rental property there as the prices will be moderate. 

Affordable Entry Prices

To enter the North Carolina business, you need to buy a rental property. However, the good part is that you can get it at affordable rates. Furthermore, mortgage rates are also low in North Carolina. You don’t have to share a lot of interests in your rental property. You can demand high rents during touring months and earn big profits.

Top Places in North Carolina to Invest in Short Term Rental Market

After going through the factors or reasons that persuade you to invest in the short term rental north carolina market, it’s time to head towards the places that are super suitable for this investment. Let’s explore some top real estate markets in North Carolina along with their rental data analysis.

1. Ashville 

Well known for vibrant art scenes and historical architecture, Ashville could be the best place to invest in the North Carolina market. Following is the data analysis of the Ashville business. 

• The average occupancy rate is 73%.
• The average daily rate is $200.
• The median price for a  property is $474,725
• The average rental income is about $3920.
• Rental demand is 80 and 88% of it is for entire homes only. 

2. Charlotte

Charlotte is one of the main cities in the state and is a Commercial hub as well. The Charlotte rental properties are of prime importance as every year many tourists visit this city. The main reason why tourists visit this city is the museum which contains a lot of history about the civil war.

• The average occupancy rate is 63%.
• The average daily rate is $172.
• The average area of the rental properties is about 1876 square feet.
• The median price for rental properties is $399,990
• The RIO ratio is about 3% which is pretty high.

3. Cleveland

Cleveland is a small town in North Carolina. Regardless of the small area and low population of the town, the Cleveland is very beneficial. 

• The average occupancy rate is about 73%.
• The median price for short term rental properties in Cleveland is $274,000
• The average area of the rental properties is about 1700 square feet.
• The average rental income is about $1000
• Cash-on-cash ratio is about 2.5%

4. Denver

Denver is a small census-designated place in North Carolina. Following is the data analysis of the Denver market.

• The average occupancy rate is 81%
• The average daily rate is $178.
• The median property price in Denver is 469,900
• RIO ratio is at a staggering rate of 6.7%. This high ratio is the biggest reason why the Denver rental market is so important.
• The average rental income is about $4300.

5. Dallas

Dallas is a major town in Gaston county and has a very well-established real estate market. Let’s have a look at the stats that make it a top place to invest in the North Carolina. 

• The average occupancy rate is about 65%.
• The average rental income is more than $1850.
• The return on investment ratio is 4.80-5%. This is the reason why the Dallas rental properties are beneficial for investment. 
• The median property price is almost $299,900.
• The average area of rental properties in Dallas is 1510 square feet.

6. Henderson

Henderson is a continuously developing and changing city in North Carolina. Low costs of living are the primary reason why people prefer to live in this city. This is also the key factor behind the rise of the Henderson rental market. 

• The average occupancy rate is 71%.
• The average daily rate is $211.
• The median property price is $ 279,950.
• RIO ratio is at a staggering percentage of 8. In fact, it’s slightly higher than 8 as well.  
• The average rental income is more than $3330. 

7. Jacksonville

This city in Onslow county is one of the most prosperous regions in North Carolina. Let’s have a look at the Jacksonville rental data analysis. 

• Total occupancy rate is 72%.
• The average daily rate is $125.
• The median property price is 269,900
• The cash-on-cash return ratio is 4.23%. 

Bottom Line

Factors that persuade you to invest in the short term rental north carolina market and rental data analysis of several places present in this state reflect that it is one of the most suitable states for investment in real estate. You can earn some huge profits if you invest at the right place and right time. It’s time to earn big from the North Carolina.

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