Who doesn’t love the idea of a vacation home, where you can get away from the hustle of life — and maybe even rent it out, too, when you’re not using it yourself?
If you’ve thought that vacation rentals are only for the wealthy, think again. In fact, it’s really just a matter of being open to new places, often in small towns you’ve never heard of, with the right price points.
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GOBankingRates combed through data from Zillow for average home prices in small cities, as well as average costs of living and mortgage, to give you a sense of how much you’d be paying to make a vacation home a reality. In order of highest to lowest average single-family home price, here are 10 small towns where you should consider buying your vacation property.
Genoa, Ohio
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Average home price: $207,338
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Monthly mortgage average cost: $1,214
This rural, but beautiful, small town in Ohio has a wonderfully affordable home price that translates to a moderately low mortgage. It’s a town that attracts a lot of older adults — about 23% of the population is age 65 and older. You can see why, as total monthly expenditures are less than $3,000.
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Grundy Center, Iowa
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Average home price: $195,937
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Monthly mortgage average cost: $1,147
This midwestern town has a high livability score of 80 and a decent median household income of $80,294. The decent mortgage payment means it’s possible to earn some rental income.
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Mayville, North Dakota
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Average home price: $187,619
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Monthly mortgage average cost: $1,099
In this North Dakota town of Mayville, 16.6% of the population is age 65 and older. With a high liability score of 83, you can see why people are drawn to living here.
Panhandle, Texas
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Average home price: $181,944
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Monthly mortgage average cost: $1,065
The small town of Panhandle, Texas, has only around 2,700 people, and just over 23% of those are age 65 and older. Its livability score is a solid 83, and monthly expenses here come under $3,000.
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Sibley, Iowa
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Average home price: $152,908
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Monthly mortgage average cost: $895
Another Iowa town to make this list, Sibley has a slightly higher percentage of older adults than Grundy Center — 22.2% — and total monthly expenses coming in at $2,738.
Jerome, Illinois
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Average home price: $143,285
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Monthly mortgage average cost: $839
The Illinois town of Jerome has a lot to offer. With a super high livability score of 92, a monthly mortgage at just $839 and total monthly expenses around $2,741, it’s very affordable.
Shinnston, West Virginia
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Average home price: $141,948
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Monthly mortgage average cost: $831
Shinnston’s cost of living is almost on identical to Jerome, Illinois, with a slightly lower, but still great, livability score of 81.
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Stonewood, West Virginia
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Average home price: $137,445
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Monthly mortgage average cost: $805
In Stonewood, West Virginia, your mortgage won’t even cost you $1,000, and your monthly expenses come in at under $2,800.
Homestead, Pennsylvania
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Average home price: $83,946
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Monthly mortgage average cost: $492
Homestead, Pennsylvania is the most affordable town on this list for a vacation home, with a monthly mortgage payment of less than $500. With a high livability score of 84 and low monthly expenses of $2,509, why wait to purchase a vacation home?
Photo Disclaimer: Please note photos are for representational purposes only. As a result, some of the photos might not reflect the locations listed in this article.
Methodology: For this study, GOBankingRates analyzed small towns to find places where you should buy vacation property. First, GOBankingRates found the population total of small towns using the U.S. Census American Community Survey. For this study, a small town refers to a town with a population between 500 and 5,000. This population filter ensures accurate data, as well as small town aesthetics. For each city, a number of factors were found, including: total households, household median income, both sourced from the U.S. Census American Community Survey; the cost of living indexes, as sourced from Sperlings BestPlaces; the average single family home value, as sourced from the Zillow Home Value Index; and the livability index, as sourced from AreaVibes. To qualify for this study, each city had to have a livability of 80 or higher, representing only the highest quality of living locations. Using the cost of living indexes and using the national average expenditure costs for all residents, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost for each city can be calculated. Using the average home value, assuming a 10% down payment and using the national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Research, the average mortgage cost can be calculated. Using the average mortgage and average expenditure costs, the total cost of living can be calculated. The average mortgage cost was scored and weighted at 1.00, the average mortgage cost was scored and weighted at 1.00, the livability index was scored and weighted at 1.50, and the median household income was scored and weighted at 0.5. All the scores were summed and sorted to show the top small towns where you should buy a vacation home. All data was collected on and is up to date as of July 30, 2024.
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This article originally appeared on GOBankingRates.com: 10 Small Towns Where You Should Buy Vacation Property
