This is the best state to invest in a vacation home

By LuxuryFOXBusiness

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Real estate investors looking at vacation destinations for rental investment properties could be best off focusing their search in Florida.

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Vacasa, which offers professional rental management for vacation homes, ranked the top 25 U.S. vacation rental markets, ranked according to capitalization rate, which is the rate of return on a real estate investment property based on the income that the property is expected to generate.

Florida dominated the top 25, claiming nine spots, or 36% of the list. All of the Florida locations have a cap rate above 5%. While, overall, beach locations dominated the list, mountain towns were also represented with the likes of Park City, Utah, and Big Bear, California.

Here’s the list:

1.            Forgotten Coast, FL

2.            Smoky Mountains, TN

3.            Kissimmee, FL

4.            Myrtle Beach, SC

5.            Hilton Head Island, SC

6.            Emerald Coast, FL

7.            Ocean City, MD

8.            Okemo/Ludlow, VT

9.            North Kona, HI

10.         Lake Chelan, WA

11.         Gulf Shores, AL

12.         Marco Island, FL

13.         Key West, FL

14.         Coachella Valley, CA

15.         Pensacola Beach, FL

16.         Marathon, FL

17.         Leavenworth, WA

18.         Fort Myers Beach, FL

19.         Park City, UT

20.         Gulf Coast, FL

21.         Sunriver, OR

22.         Central Coast, OR

23.         South Padre Island, TX

24.         North Coast, OR

25.         Big Bear, CA