Business

North Kona No. 9 in 25 Top Vacation Rental Ranking

August 8, 2018, 5:00 AM HST
* Updated August 7, 10:02 AM
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North Kona. PC: Vacasa

North Kona is ranked No. 9 in a list of the 25 top vacation rental markets in the U.S., according to a report by rental property management company Vacasa.

Located on the west side of Hawai‘i’s Island, the Kona District consists largely of the Waiaha Springs Forest Reserve and Honua‘ula Forest Reserve.

Home to the annual Ironman World Championship, Kona is becoming an increasingly sought-after destination for vacation rental guests who travel from around the globe to experience the best of the Big Island’s sun, surf and serenity.

  • Market size: 3,500+ rental units
  • Median annual rental revenue: $47,760
  • Median home price: $543,900
  • *Cap rate: 6.1%

*The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value.

Vacasa said the buyers wanting to appeal to families looking for more shopping, beach activities, golf, cycling and restaurants would be wise to consider Waikoloa Beach Resort and Mauna Lani Resort.

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For a lower-priced option in the Waikoloa Beach Resort area, look at Waikoloa Colony Villas, which start around $425,000 for a two-bedroom two-bath condo that rents for approximately 65% occupancy and an Average Daily Rate (ADR) of $175.

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Alternately, the ocean view Kolea condos have significantly higher average rates, from $275 to $450, but prices start upwards of $800,000 and range into the millions.

For luxury properties, consider a unit in Mauna Lani’s Fairmont Orchid Hotel or Mauna Lani Hotel. This spectacular vacation rental region is over 100 miles away from that volcano you’ve read about in the news.

  1. Top 25 Markets for Buying a Vacation Rental

    Market Median Home
    Sales Price
    Cap Rate
           
    1 Forgotten Coast, FL $336,900 9.6%
    2 Smoky Mountains, TN $231,100 8.1%
    3 Kissimmee, FL $253,400 7.1%
    4 Myrtle Beach, SC $251,000 6.9%
    5 Hilton Head Island, SC $423,500 6.8%
    6 Emerald Coast, FL $397,400 6.5%
    7 Ocean City, MD $291,100 6.5%
    8 Okemo/Ludlow, VT $273,600 6.1%
    9 North Kona, HI $543,900 6.1%
    10 Lake Chelan, WA $388,600 6.0%
    11 Gulf Shores, AL $424,600 5.7%
    12 Marco Island, FL $395,300 5.6%
    13 Key West, FL $804,400 5.6%
    14 Coachella Valley, CA $383,100 5.6%
    15 Pensacola Beach, FL $390,900 5.6%
    16 Marathon, FL $600,100 5.6%
    17 Leavenworth, WA $380,400 5.6%
    18 Fort Myers Beach, FL $419,400 5.6%
    19 Park City, UT $557,700 5.5%
    20 Gulf Coast, FL $457,800 5.4%
    21 Sunriver, OR $393,000 5.4%
    22 Central Coast, OR $312,400 5.2%
    23 South Padre Island, TX $264,100 5.1%
    24 North Coast, OR $371,500 4.7%
    25 Big Bear, CA $336,900 4.6%

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