Is Airbnb Branson MO a Good Investment in 2022?
If you’re looking to buy a vacation home in the US, then you should consider Airbnb Branson MO homes.
Branson is one of the most affordable places to buy a vacation home in 2022, based on a Realtor study.
It is a popular, family-friendly vacation destination for those who love the outdoors. Founded in 1903, it was supposed to be an industrial center that would generate logs, lumber, and other manufactured products. But when their plans didn’t pan out as expected, they turned their attention to tourism instead.
Since then, Branson has consistently ranked high on Realtor.com’s annual list of the Most Affordable Lake Towns. The town’s industrial boom is fueled by tourism—and now it’s also fueled by Airbnb! You can find tons of affordable Branson Missouri cabins that are perfect if you want a second home that can also be used as an Airbnb in Branson MO.
Where Is Branson MO Located?
Branson is located in the Ozark Mountains of Missouri, about 40 miles south of Springfield. It was named after Reuben Branson, operator of a general store in the area in the 1880s.
The city has long been a popular destination for vacationers from Missouri and neighboring areas. The city is home to many attractions like Silver Dollar City, one of the top 10 amusement parks in the US.
Most of the city is part of Taney County, but a small area in the west extends into Stone County.
Does Branson Missouri Allow Airbnb?
The short answer is yes, Branson allows Airbnb. But the long answer is not quite as simple.
Short term rentals have been around in Branson for longer than the existence of the major booking channels. The city has a long history with short term rentals and it’s not surprising that they still exist today.
But before you set up shop as an Airbnb host, there are some things you should know:
First and foremost, you must have a business license to operate in Branson. And secondly, the city only allows short term rentals in high density residential areas. In places, like Branson North, off Highway 248, short term renting isn’t allowed.
Related: 20 Cities With No Airbnb Legal Issues
Pros of Investing in Airbnb in Branson MO
Let’s see some of the reasons you might want to invest in Airbnb Branson MO:
1. Relatively Low Property Values
Branson is one of the United States’ most popular vacation hot spots and retirement destinations. Therefore, it’s no surprise that real estate values in the area are on the rise.
“This is a top market and it’s just a matter of inventory at this point,” says William Beck, a Realtor in Branson, MO. “Prices aren’t as insane as they have gotten in other areas, but they have definitely gone up.“
Branson’s cost of living is 19% lower than the U.S. average according to Bestplaces.net. And home appreciation over the last ten years has been 9.3%.
Related: 10 Factors That Affect Property Value
2. Higher Short Term Rents
The town’s proximity to Silver Dollar Theme Park in Stone County lends itself to higher vacation rental demands in peak seasons. Peak season is definitely the summer months, but even September through December do relatively well from a tourist standpoint. However, tourism slows down from January to early March.
The average Airbnb daily rate is $187 with an occupancy rate of 41%, according to Mashvisor’s latest data—making it an attractive investment option for anyone looking for good returns on their investment.
3. Long Summers and Beautiful Fall Season
Branson is a great place to visit from May through December. Long summers and beautiful fall season make it the premier place for outdoor adventures (on land and water), thrilling family attractions and endless live entertainment. May, June, and September are the most pleasant months in Branson, while January and December are the least comfortable months. The large rolling hills can give some panoramic lake views that are breathtaking and make for some amazing sunset views.
4. Strong Tourism Growth
Branson is a town that has undergone many changes over the years, but one thing has remained constant: the steady influx of tourists.
The area has been a popular vacation spot since its first celebration of township status in 1912, and it’s still well-loved today.
In fact, Silver Dollar City has been Missouri’s top attraction since 1963—the 1880s-themed amusement park used to be the state’s number one tourist destination. And while Silver Dollar City is still going strong, Branson’s focus is now on sports and the outdoors. Its award-winning golf courses now host nationally broadcast tournaments; zip lines stretch through the trees; and Ballparks of America welcomes a whole new crop of visitors.
5. Recent Housing Developments
Investing in Airbnb in Branson MO is a smart move for investors. This is because the market is seeing hundreds of brand-new medium to large houses specifically aimed at short term rentals.
These developments include Branson Cove vacation rentals, Chateau Cove, Chateau Mountain, Lodges @ Table Rock Lake, and a few others. Each of these developments has close to or more than 100 units.
The market favors renting over buying as 55% of residents rent while only 45% own their homes.
Cons of Investing in Airbnb in Branson MO
Let’s examine some of the disadvantages of Branson MO vacation rentals:
1. Short Term Rentals Need to Be in the Right Zoning
The Branson Municipal Code Sec. 22-36 stipulates that “a business license may not be granted to a business that provides lodging for legal consideration for a period less than 30 consecutive days in a district zoned Low-Density Residential.” Short term rentals are only allowed in high density residential areas.
Nightly rentals are not allowed within planned developments unless it is specifically listed as an allowed or permitted use. They must also comply with existing residential occupancy requirements. That is, more than three or four unrelated persons may not occupy a dwelling unit depending on how the property is zoned.
Do your due diligence and work with a real estate agent who has experience working with Branson MO vacation rentals before investing in Airbnb in Branson MO!
2. A Business License Is Required
You’ll need to pay $200.00 for a conditional use permit in Taney County. This can be done at the county courthouse. There, you’ll need to fill out some paperwork and pay the fee, which will then be sent to the city clerk for processing.
Second, if your Branson vacation rental is located in the right zoning, you’ll have to install fire sprinklers. This is required by both the city and Taney County.
3. Low Inventory Is Driving Prices Up
As with most real estate across the country, prices are rising quickly in Branson MO.
The problem is that while mortgage rates have been rising, inventory has been low. This means that there are few homes for sale, and those that are on the market are selling quickly. This situation drives prices up.
Airbnb Branson MO Rental Statistics
Here are the latest Airbnb stats for Branson MO according to Mashvisor’s latest data:
- Median Property Price: $289,940
- Average Price per Square Foot: $221
- Days on Market: 56
- Monthly Airbnb Rental Income: $1,806
- Airbnb Cash on Cash Return: 3.31%
- Airbnb Cap Rate: 3.42%
- Airbnb Daily Rate: $187
- Airbnb Occupancy Rate: 41%
- Walk Score: 56
Should You Invest in Branson Missouri Vacation Rentals?
If you’re considering investing in Branson Missouri vacation rentals, then we’re here to tell you that yes, you should.
Despite the zoning restrictions, Branson is still a good place to buy vacation properties. Why? For one thing, it’s one of the most popular tourist destinations right now because of the gorgeous outdoors, sports, and parks. In fact, Branson’s 2021 tourism tax revenue was the highest recorded in the last 10 years, signifying that more people are visiting Branson. Also, there are lots of new property developments being built right now in Branson, Missouri. This is always a good sign.
Tips for Investing in Airbnb Branson Missouri Rental Properties
When hosting an Airbnb near Branson MO or in-town, you need to keep these three things in mind:
1. Hire a Realtor
Work with a realtor who is experienced with Airbnb in Branson MO. There are lots of different realtors out there, and some of them may not know much about vacation rentals. Make sure you’re working with someone who can answer all your questions and help you find the right property for your needs. Figure out your investment goals before you start looking for properties and discuss these goals with your realtor.
2. Work Out the Numbers
A logical place to start is by looking at comparable properties in your desired location. A realtor should be able to help with researching comps.
Conversely, there are a number of tools to help you with your research. One of them is the Mashvisor Property Finder, which helps you find properties based on select criteria and analyzes them for you.
Once you’ve identified some promising properties, it’s time to crunch some numbers! Start by calculating how much money each property would make if it were rented out 100 percent of the time—and then subtract any expenses (like cleaning costs and the cost of vacancies) from this number. The resulting number is called net operating income, which is essentially how much money your property will earn after taking into account all expenses related to running it as a Branson MO Airbnb rental unit.
3. Keep the Property in Pristine Condition
First impressions are everything. When guests walk into your Airbnb in Branson MO, they want to feel like they’re walking into something special. You want them to be able to see themselves relaxing on the couch or cooking in the kitchen, so make sure that everything is kept clean and tidy. If there’s a room that isn’t used often, maybe consider finding a way to make it feel more welcoming (e.g., by putting some nice paintings up on the walls).
You also don’t want your guests having to worry about whether or not everything works properly—that’s something that comes across in their reviews and can affect your ability to attract more guests. So make sure all of your appliances are working properly and replace any broken items before you start renting out your Airbnb.
Related: Airbnb Cleaning Checklist—The Complete Guide
If you’re a new investor interested in Airbnb Branson MO investing, the last thing you want to do is spend hours crunching numbers to figure out cash on cash return, cash flow, cap rate, property expenses, and optimal rental strategy.
And even if you’ve been investing for years, Mashvisor’s investment property calculator is still an amazing tool that makes investment property analysis easier. With this tool, you can get accurate estimates of the above metrics for properties in the US housing market in a matter of minutes.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.