This Is the Best Destination to Buy a Winter Vacation Home in the U.S., According to Vacasa

Investing in a vacation home has several perks such as more frequent vacations but also tax benefits and generating rental income that can help pay off the home's mortgage and maintenance costs. If that's something you've considered, then buying a winter residence certainly makes sense since mountain destinations are excellent for year-round recreation. 

According to property management company Vacasa's latest list of the best places to invest in a vacation home, a residence in Montana's Big Sky can potentially bring in a whopping $108,772 in annual rental revenue. 

"Between Big Sky Ski Resort's world-class appeal and the area's largely untouched natural landscape, Montana is rich in outdoor recreation and makes an easy vacation destination that appeals to buyers, with a strong cap rate of 8 percent," the company noted in its report.

However, houses there are not cheap — the median value is $730,814, according to Vacasa's data.

If you'd like to spend less, the second destination on the list might be a better fit. Killington, in central Vermont, is home to one of the biggest ski resorts in the region and is only a couple of hours away from Boston and about five from New York City. With a cap rate of 7.5 percent and a median home value of $361,007, vacation homeowners can add, on average, $46,000 to their annual income.

And if you're looking to splurge near one of the country's most famous ski towns, then Wyoming's Teton Village is your best bet, where your investment could make you $190,000 from short-term rentals. However, you need to have some serious initial capital as the median home prices in Teton Village run in the millions — or $2,158,856, to be exact.

Vacasa's top five markets for winter vacation homes are rounded out by Vail in Colorado, which, as the company points out, attracts about 1.3 million visitors a year. The median home price in Vail is $1,337,867, but you could make over $110,000 with the current cap rate of 5.10 percent. 

And finally, Stowe in Vermont is fifth, with the same cap rate but a much lower rental income of $58,734. Vacation residences there are also more affordable — the median home value is $700,158.

“Don’t discount cold weather destinations, which attract adventure enthusiasts and those looking to enjoy cozy, private amenities like glowing fireplaces and steamy hot tubs," Daned Kirkham, senior director of real estate for Vacasa, told Travel + Leisure. "Notably for 2024, we’re seeing a spike in upcoming spring break interest for places like Steamboat Springs, Colorado (up 14 percent over last year) and Vail, Colorado (up 11 percent), signaling to potential homeowners that travelers are considering cold weather destinations at unconventional times of the year — making them an investment worth considering.”

You can read Vacasa's full report at vacasa.com.