Mattoon, Illinois

Mattoon, Illinois, is located in Coles County and serves as a small yet significant hub between larger cities such as Charleston and Effingham. The short-term rental market in Mattoon has been gradually developing, fueled by its strategic position and local attractions, including the Mattoon History Museum and the area's various parks and outdoor recreation options. This market analysis will delve into the ins and outs of the short-term rental landscape of Mattoon and provide investors with essential insights.

For the short-term rental market in Mattoon, a few key performance indicators (KPIs) are essential for understanding potential profitability:

• Average Daily Rate (ADR): Currently, the ADR is $109.72. This figure is crucial for predicting revenue and assessing market positioning.
• Occupancy Rate: While specific statistics vary across platforms, occupancy rates in Mattoon are projected to be around 60-65% on average over the year. This suggests a solid demand and healthy rental market activity.
• Revenue per Available Rental (RevPAR): Using the current ADR and estimated occupancy rates, RevPAR can be calculated at approximately $66.89 per rental unit, which is a reasonable performance metric for the area.
• Length of Stay: Data indicates that guests tend to stay an average of 3-4 nights in Mattoon, which can vary depending on the season and local events.

These KPIs collectively suggest a moderately active short-term rental market in Mattoon, with opportunities for both occupancy and pricing optimization.

Over the last decade, Mattoon has seen subtle growth in its short-term rental sector. The rise in platforms such as Airbnb has changed the landscape for property owners and investors. Between 2013 and 2023, short-term rental listings have increased in variety and volume in response to growing interest from both leisure travelers and professionals.

• Yearly Increases: Listings have typically grown at a rate of 5-7% per year, suggesting steady interest in short-term rentals.
• Investor Engagement: The last few years have witnessed an increase in property investment, notably among owners looking to capitalize on local events and tourism.

While growth has not skyrocketed, the consistent trend allows for cautious optimism, making Mattoon a potential market for investors interested in long-term retention rather than short-lived spikes in demand.

Investing in short-term rentals in Mattoon requires a clear understanding of both the potential returns and the associated costs:

• Purchase Price: The median home price in Mattoon is approximately $130,000, which is relatively affordable compared to larger urban centers.
• Annual Revenue Projection: With an ADR of $109.72 and an estimated yearly occupancy rate of 65%, investors can expect around $25,000 in gross income per property.
• Expenses: Key costs include property maintenance, property management fees (if applicable), utilities, and local taxes. Assuming total monthly expenses of $500, annual costs can approximate $6,000.
• Net Operating Income (NOI): After deducting expenses, the NOI is roughly $19,000 per property.

Given these projections, investors can estimate an ROI of approximately 14.6%, which can be further enhanced with strategic property enhancements and marketing efforts.

The short-term rental market in Mattoon demonstrates seasonal fluctuations that correlate with local events and weather:

• Spring and Summer: Peak tourist seasons are observed during the warmer months when activities in local parks and annual festivals attract visitors. This is typically the most lucrative period for short-term rentals.
• Fall: Autumn brings a slight dip in rental activity as outdoor activities decline. However, certain events may mitigate this downturn temporarily.
• Winter: With cold temperatures and holiday periods, the market can see fluctuations but often remains steady due to family visits during holidays.

Understanding these seasonal patterns is critical for setting adequate pricing strategies and marketing efforts tailored for each phase of the year.

In Mattoon, various property types cater to different market segments. Each type has demonstrated distinct performance characteristics:

• Single-Family Homes: These remain the most common and lucrative option in Mattoon, providing ample space for families and groups. They typically see longer stays owing to their size.
• Condos/Apartments: While less prevalent, they cater to smaller groups and business travelers. Their occupancy rates often reflect the shorter stays.
• Unique Stays: Options such as cabins or themed rentals have started to attract niche markets, particularly for special occasions or second home travelers.

Performance varies greatly among these categories, with single-family homes generally yielding the highest revenue due to their versatility and appeal.

Research into guest preferences in Mattoon reveals some key trends regarding amenities and features that guests value:

• Key Amenities: Guests prioritize high-speed internet, fully stocked kitchens, laundry facilities, and pet-friendly options. These factors significantly influence booking decisions.
• Local Experience: Attention to local culture and attractions in property presentation (like showcasing nearby events or restaurants) can enhance guest engagement.
• Communication: Quick and effective communication between hosts and guests is increasingly important for building trust and securing positive reviews.

By catering to these preferences, property owners can significantly increase the chances of repeat bookings and strong reviews.

Investors must be aware of the regulatory landscape affecting short-term rentals in Mattoon:

• Licensing: Local government requires property owners to obtain necessary permits to operate short-term rentals, ensuring proper registration within the community.
• Zoning Laws: Some areas may have restrictions on short-term rentals, thus landlords should verify zoning ordinances.
• Tax Obligations: Owners must comply with state and local tax requirements applicable to rental income, which may include hotel/motel taxes.

Staying informed about local regulations is essential for maintaining compliance and minimizing operational disruptions.

Different neighborhoods within Mattoon exhibit varying degrees of desirability and rental performance:

• Downtown: Proximity to restaurants and shops makes this area a high-demand location, particularly for short-term stays.
• Residential Zones: Family-friendly neighborhoods see substantial rental activity, especially during local events.
• Suburban Areas: These locations attract longer-term bookings, particularly from contractors and traveling professionals.

Investors should consider local market dynamics and target individuals' demographics when deciding which neighborhoods to invest in.

As of 2023, the outlook for the short-term rental market in Mattoon appears cautiously optimistic:

• Continued Demand: Incremental growth is expected, driven both by leisure and business travelers seeking convenient accommodation options.
• Diversity in Listings: A mix of property types complements the market, responding effectively to evolving guest preferences.
• Technological Integration: Property owners who leverage advanced booking platforms and smart home technologies will likely remain competitive.

Investors will benefit from a balanced approach that emphasizes responsiveness to market trends and guest expectations.

1. What is the average occupancy rate for short-term rentals in Mattoon?
   The average occupancy rate is approximately 60-65%, which can fluctuate based on seasonal demand and local events.

2. What types of properties perform best in Mattoon?
   Single-family homes typically offer the highest revenue potential due to their appeal for families and groups, while unique properties also see niche market success.

3. What licensing is required for short-term rentals in Mattoon?
   Property owners must obtain local permits to operate short-term rentals in compliance with municipal regulations.

4. How can I improve my rental's performance?
   Focus on enhancing guest experiences through better amenities, local attraction visibility, competitive pricing, and effective communication.

5. Is the Mattoon short-term rental market expected to grow?
   Yes, market trends suggest steady growth potential driven by a variety of traveler demographics.

In summary, understanding the dynamics of the Mattoon short-term rental market will enable potential investors to make informed decisions that align with both market potential and personal investment strategies. As trends continue to evolve, adaptability will be key in capitalizing on opportunities within this market.