Yahoo Finance 12 Overlooked Cities Prime for Buying a Vacation Home
For folks who have the good fortune to be able to purchase a vacation home, the toughest choice might be figuring out where to do so. If you can parlay your vacation home into a rental property, as well, you can earn income and have a great place to stay when you want to get away.
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While there are a lot of obvious places to do so, GOBankingRates wanted to find some lesser considered places, whether you thought it was unaffordable, hadn't considered it at all, or need some new ideas for a vacation home.
GOBankingRates used TripAdvisor to identify the top vacation destinations in every state, then cross-referenced Zillow data for median home values and median rent. Rental yield was determined by dividing annual rental income by median home value, with higher yield percentages being more desirable.
Click through to discover the best places to own a vacation home.
Philadelphia, Pennsylvania
Median Home Value: $212,703.47
Annual Rent Cost: $21,579.91
Years to Pay Off Home: 9.86
Philadelphia may not be the first place you think of for vacation homes, but it's a city rich in history with a lot of wonderful sites, such as the Liberty Bell and Independence Hall. You've also got access to incredible museums, such as the Rodin Museum and the Franklin Institute of Science.
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Chicago, Illinois
Median Home Value: $287,005.03
Annual Rent Cost: $24,327.36
Years to Pay Off Home: 11.80
With 77 neighborhoods to choose from, Chicago has got something for everyone, and it's a great place for walking and exploring in good weather. Check out such attractions as Millennium Park, Garfield Conservatory, and the Magnificent Mile.
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New Orleans, Louisiana
Median Home Value: $257,921.57
Annual Rent Cost: $20,415.42
Years to Pay Off Home: 12.63
New Orleans is a city teeming with culture, history and atmosphere that's also still affordable for purchasing a vacation home. For food lovers and music lovers, especially, New Orleans is full of venues to catch both. It's also visually lovely, particularly its Garden District, and you can check out the more famous locations like Bourbon Street anytime you want with a vacation home on deck.
Savannah, Georgia
Median Home Value: $279,578.13
Annual Rent Cost: $21,380.59
Years to Pay Off Home: 13.08
Savannah is another Southern city with incredible ambiance in its walkable neighborhoods with big old oak trees laced with delicate Spanish moss. While you probably won't be buying one of its ancient mansions as your vacation home, you'll be close to a great number of shops, restaurants, cafes, museums and more.
Moab, Utah
Median Home Value: $519,352.41
Annual Rent Cost: $34,500
Years to Pay Off Home: 15.05
You can barely go a mile in this high desert part of Utah without running into a national park, such as the renowned Arches National Park, known for its gorgeously carved red rock arches. Outdoors lovers will enjoy all that Moab has to offer in winter and summer, as well as great food, museums and other amenities.
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Branson, Missouri
Median Home Value: $284,047.25
Annual Rent Cost: $17,664.71
Years to Pay Off Home: 16.08
Missouri might be another state you never considered purchasing a vacation home in, but Branson has a lot going for it in the form of theme parks, golf, museums, and resorts. You're also near the gorgeous Ozark Mountains and no fewer than three lakes for water activities. It's also home to the Titanic Museum.
New York City, New York
Median Home Value: $712,288.88
Annual Rent Cost: $41,419.47
Years to Pay Off Home: 17.20
New York doesn't need much of a hard sell-there's possibly no other city in the United States that has as much to offer at any time of day or not. Restaurants, cafes, music venues, world class museums, shopping, Broadway shows, tourist fun (like the Statue of Liberty) and cozy little hole in the wall clubs you can stumble into. Buying a vacation home here is a guarantee that you'll have fun every time you visit.
Page, Arizona
Median Home Value: $356,627.71
Annual Rent Cost: $19,575.00
Years to Pay Off Home: 18.22
Page is another desert city that is full of mystical beauty in its red rocks, naturally carved arches and other formations. It's also conveniently located along Lake Powell, and unlike other parts of Arizona, this city has a year-round mild climate. Visit Native American ruins and appreciate the culture as it is near to the Navajo Nation.
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St. Simons Island, Georgia
Median Home Value: $653,624.08
Annual Rent Cost: $35,017.86
Years to Pay Off Home: 18.67
St. Simons Island, 18 square miles belongs to a small chain of islands near Brunswick. Its seaside location makes it a gorgeous place to own a vacation home for water activities and views, as well as fishing, swimming and boating. It's also a popular place for golfers and outdoors enthusiasts.
Ketchikan, Alaska
Median Home Value: $427,059.40
Annual Rent Cost: $22,800.00
Years to Pay Off Home: 18.73
Alaska is full of gorgeous wild country that you can't find almost anywhere else in the United States. Ketchikan, in Southern Alaska, is so gorgeous that its Misty Fjords National Monument, is considered "The Yosemite of the North" according to Trip Advisor. While it's mighty cold here in the winter, spring and summer offer much for an outdoor lover to enjoy.
St. Augustine, Florida
Median Home Value: $472,060.52
Annual Rent Cost: $25,200.00
Years to Pay Off Home: 18.73
Florida has long been a state that draws tourists and vacationers alike for its incredible climate, beaches and overall ambiance. Saint Augustine is a unique city because it's the oldest European settlement in the entire U.S., according to Trip Advisor, which some very cool places to visit such as the Fountain of Youth Archeological Park, St. Augustine Wild Reserve and don't forget about the Disney Orlando Resort nearby.
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Nashville, Tennessee
Median Home Value: $437,649.85
Annual Rent Cost: $22,851.11
Years to Pay Off Home: 19.15
Nashville is a city pulsing with music. People come to make music, hear music, and play music in Nashville. But it's also a city with great food and other forms of entertainment, as well as art galleries, museums (including the Country Music Hall of Fame) and even beautiful parks. You can't go wrong with a vacation home here in the heart of Tennessee.
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Andrew Lisa contributed to the reporting for this article.
Methodology: In order to find overlooked cities prime for buying a vacation home, GOBankingRates compiled a list of the most popular vacation locations around the US sourced from TripAdvisor. For each location the [1] 2023 median home value and the [2] 2023 median rental price both sourced from Zillow Housing Data. Then GOBankingRates calculated the years to pay the house off by dividing the median home value by the median rental price as well as the rental yield by doing the inverse. All information is up-to-date as-of June 8, 2023.
This article originally appeared on GOBankingRates.com: 12 Overlooked Cities Prime for Buying a Vacation Home