Millersburg, Ohio

Millersburg, Ohio, located in the heart of Holmes County, is known for its scenic landscapes, rich Amish culture, and proximity to outdoor recreation. The town has seen a gradual increase in tourism, particularly from visitors interested in experiencing the Amish lifestyle and nature-based activities. As a result, the short-term rental market in this area has gained traction, presenting various investment opportunities for potential investors.

Given its small population of approximately 3,000 residents, Millersburg serves as a quaint getaway for those seeking a break from urban centers. The presence of local attractions such as historical sites, craft shops, and rich agricultural experiences has contributed to a steady influx of visitors year-round. As more travelers opt for short-term rentals over conventional hotels for a homier atmosphere and unique accommodations, understanding the nuances of this market becomes crucial for any potential investor.

To thoroughly evaluate the short-term rental market in Millersburg, several key performance indicators (KPIs) need to be considered:

• Average Daily Rate (ADR): As of the latest data, the ADR for short-term rentals in Millersburg stands at $215.21. This figure reflects the average price guests are willing to pay for nightly accommodation and indicates market demand.

• Occupancy Rate: The occupancy rate is a critical metric for understanding rental performance. Currently, Millersburg's occupancy hovers around 60-70%, reflecting a healthy demand for short-term rentals.

• Revenue per Available Room (RevPAR): This is derived from multiplying the ADR by the occupancy rate. The current RevPAR averages approximately $129.12, showcasing good revenue potential in the market.

• Length of Stay: Short-term rentals in Millersburg typically see an average stay of about 3-4 nights. This duration indicates the type of experiences guests are seeking, often favoring short getaways or family trips.

By analyzing these KPIs, investors can better understand the health and profitability of the short-term rental market in Millersburg.

Millersburg's short-term rental market has witnessed gradual growth over the last decade, influenced by several factors:

• Economic Factors: The increase in tourism, driven by both local and regional attractions, has positively impacted the accommodation market. Homes and properties have been converted into rentals, increasing the number of available units.

• Demographic Changes: With younger generations increasingly desiring experiential travel, Millersburg has benefited from this trend as more people are drawn to unique rental properties that provide cultural immersion.

• Technological Advancements: As the short-term rental platforms continue to facilitate ease of access to vacation rentals, adoption of these technologies has been favorable in boosting market visibility in Millersburg.

• COVID-19 Recovery: Post-pandemic travel has demonstrated significant engagement in Millersburg, as domestic tourism surged, allowing the area to recover swiftly compared to more urbanized tourist locations.

The combination of these elements has led to an approximate 15-20% growth in the short-term rental sector over the past ten years.

When considering the investment potential of short-term rentals in Millersburg, it is important to highlight several factors:

• Initial Investment: The cost of acquiring properties can vary based on their location, size, and proximity to tourist attractions. However, investors should expect an average property purchase price in Millersburg ranging from $150,000 to $400,000.

• Cash Flow: With an ADR of $215.21 and an average occupancy of 60-70%, investors can expect a stable cash flow, contributing to positive monthly income after accounting for maintenance, utilities, and management fees.

• Return on Investment (ROI): On average, short-term rental properties in Millersburg can yield an ROI of 8-12%. Investors should, however, conduct due diligence to assess specific circumstances, as properties in more desirable locations may yield higher returns.

• Resale Value: The real estate market in Millersburg continues to appreciate, making short-term rentals not only a source of recurring income but also a worthwhile investment for long-term property value appreciation.

Investors need to assess their financial objectives and risk tolerance as they consider entering the Millersburg short-term rental market.

The short-term rental market in Millersburg exhibits distinct seasonal variations, primarily influenced by tourism trends:

• Spring: Spring sees an uptick in visitors, particularly around April and May when the weather begins to warm and local events, like craft fairs, start to occur.

• Summer: Summer is peak season, with families traveling for vacations and weekend getaways. Short-term rentals often experience their highest occupancy rates during June, July, and August.

• Fall: The fall season remains popular as visitors flock to witness the autumn foliage and participate in harvest festivals. September to early November sees a decent number of bookings.

• Winter: Winters can be slow, except for specific holidays and local events. Seasonal rentals may see drops in occupancy unless they provide unique winter experiences.

Understanding these seasonal trends allows investors to strategically adjust pricing and marketing efforts throughout the year.

The performance of short-term rental properties in Millersburg varies according to type. Some observations include:

• Single-family Homes: These properties tend to perform well, offering families ample space and amenities like kitchens and backyards. The ADR for single-family homes is slightly higher than the market average, appealing to larger groups.

• Cabins/Chalets: Nestled in nature, cabins attract a demographic looking for unique outdoor experiences. This property type has been favorable, especially during peak seasons, often fetching higher occupancy rates.

• Apartments/Condos: While slightly less prevalent in a small town setting like Millersburg, apartment rentals can still find success, particularly among couples or solo travelers who prefer urban experiences.

Investors should carefully consider property types based on their target markets and anticipated demand.

Understanding guest preferences and expectations plays a significant role in achieving rental success:

• Experience Over Convenience: Guests are often looking for unique experiences rather than conventional accommodations. Offering local insights, cultural experiences, and even themed decorations can enhance appeal.

• Essential Amenities: Basic amenities such as internet access, full kitchens, and parking are commonly expected. Homes that also feature hot tubs, outdoor spaces, and pet-friendly options can further attract bookings.

• Personal Touches: Many guests value personalized service, responsiveness from hosts, and thoughtful touches like welcome baskets featuring local products, enhancing their overall experience.

Understanding these preferences can help property owners tailor their offerings to attract and retain potential guests.

The regulatory landscape for short-term rentals in Millersburg remains relatively stable, but investors should remain aware of local regulations:

• Short-term rental laws: Millersburg currently does not impose strict regulations on short-term rentals, making it an attractive market for investors. However, standard rules around zoning, safety, and rental permits still apply.

• Tax Implications: Investors should also account for transient occupancy taxes (TOT) which may apply to short-term rentals. Staying updated on any changes is advisable to ensure compliance.

Investors should continually monitor local ordinances and any upcoming changes to regulations to avoid potential issues.

Different neighborhoods within Millersburg cater to various demographics and rental markets:

• Downtown Millersburg: This area appeals to guests interested in easy access to local shops and dining experiences. Its proximity to cultural attractions makes it a potential hotspot for short-term rentals.

• Residential Areas: Surrounding neighborhoods boast family-friendly environments and are generally sought after by guests looking for quiet stays while exploring local features.

• Rustic Locations: Properties in wooded or rural areas tend to attract nature lovers and those seeking a retreat. Access to trails, farms, and significant tourist attractions plays a vital role in their appeal.

Property owners should strategically assess neighborhood strengths and weaknesses to position themselves correctly in the market.

The short-term rental market in Millersburg is expected to grow steadily over the next few years, driven by several factors:

• Increased Tourism: With the rise in domestic travel, Millersburg is likely to sustain growth in tourism, benefiting short-term rental operators.

• Marketing Initiatives: Local chambers of commerce and tourism boards increasingly promote the area's attractions, further driving interest and creating more opportunities for rental investments.

• Evolving Guest Expectations: As travelers seek experiences that reflect local culture and natural beauty, an emphasis on personalized and unique accommodations can provide an edge in a competitive market.

Investors who align their business strategies with these trends have the potential to reap considerable rewards.