Two Ohio towns made the top 10 "best cities to own a vacation rental," according to study

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A new study ranked 189 cities across America on the potential profitability of vacation rentals. As you might expect, large tourist meccas like Miami and New York City took the top spots. But what may surprise you is that two Ohio towns made it into the top 10.

The rankings were based on six factors that contribute to making a vacation rental profitable, including:

• Revenue Potential (occupancy rate and rental rate over 12 months)
• Initial investment (listing price and value shift over last 12 months)
• Overhead (property taxes, housekeeping, and other costs)
• Entertainment (number of nearby attractions)
• Safety (potential for crime and natural hazards)
• Climate (potential for extreme hot or cold weather)

And the winners are...

Based on these measures, Cincinnati came in at number 4 out of 189 while Dayton took the number 6 spot. Surrounding them on either side are huge tourist towns like Las Vegas, New Orleans, and Orlando.

The key to the rankings is that these cities combine relatively low expenses with high levels of local tourism. As the study says of Dayton "aviation nerds flock here every summer to talk and see planes. Plus, Dayton “Daycations” grew popular during the pandemic."

Indeed, Dayton has a number of events and festivals that draw crowds every year, including: the Vectren Dayton Air Show, Dayton Celtic Fest, and the Dayton Hamvention. This helped it nab the number 9 spot in the Potential Revenue category.

Even more impressive, Cincinnati boasts the number 2 ranking in terms of Potential Revenue, behind only Miami. This means that in the city's vacation rentals, occupancy rates are high and daily rental rates are healthy. According to MarketWatch, the city's popularity is based on its many attractions:

Cincinnati is making a name for itself with a burgeoning street art scene, dozens of craft breweries and professional and college sports teams. There is also plenty for architecture buffs to admire, as the city was once known as the “Paris of America.”

So there's plenty of revenue opportunity in both cities for investors. Of course, the downside is that high vacation rental investments can raise housing rates. CityBeat reports Cincinnati is feeling that pinch, with rents for single-bedroom apartments up 12.7% from last year.

In 2021, Dayton was also identified as "one of the few smaller markets with the highest rent increases in the country, a trend that’s expected to continue this year."

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