Branson, Missouri: A Booming STR Market

Branson, Missouri: A Booming STR Market

Realtor · BRANSON, MO · Member since 2023 · 29 posts · 8 votes

Since moving to Branson, Missouri from the UK 5 years ago, I wanted to share some reason why I personally invest in the area and as a local Realtor, serve many clients from all over the world, educating them on the reasons why. 


Branson is known as the "Live Music Show Capital of the World" and has long been a popular vacation destination. Nestled in the heart of the Ozarks, this charming town offers a wide range of attractions, from world-class entertainment and outdoor adventures to picturesque lakes and family-friendly fun. Over the past few years, Branson has also become a hotspot for short-term rental (STR) investors, and here's why:

1. 10 months+ per year Tourism: One of the key factors contributing to Branson's robust STR market is its year-round appeal. While the city experiences its peak tourist season during the summer months, it remains active throughout the year. Fall foliage, Christmas lights, and springtime festivals attract visitors even in the off-season, making Branson an excellent place for investors seeking consistent rental income.

2. Diverse Property Options: Branson offers a diverse range of rental properties to cater to various traveler preferences. From cozy cabins nestled in the woods to spacious lakefront homes, investors can find properties that appeal to families, couples, and solo travelers alike. The variety of options allows for competitive pricing and the ability to target specific niches within the travel market.

3. Strong Rental Demand: Branson's popularity has resulted in a strong demand for short-term rentals. 11 million tourists who flock to the city per year, often prefer the convenience and comfort of vacation rentals over traditional hotels. This sustained demand provides investors with the potential for high occupancy rates and attractive rental income.

4. Proximity to Attractions: Many of Branson's attractions are within close proximity to its rental properties. Whether it's a short drive to Silver Dollar City, a lakeside retreat, or a cabin tucked away in the scenic hills, guests can enjoy easy access to the area's most popular destinations.

5. Investor-Friendly Regulations: Branson has generally maintained a positive environment for STR investors, with regulations that allow for the operation of vacation rentals in zoned areas. However, it's crucial for investors to stay informed about any changes in local ordinances and compliance requirements.

6. Opportunity for Appreciation: In addition to rental income potential, Branson's real estate market offers the opportunity for property appreciation. As the city continues to attract tourists and new residents, property values have shown a tendency to rise over time.

Conclusion:

Branson, Missouri, is not just a vacation destination; it's also a lucrative short-term rental market for savvy investors. With its year-round appeal, diverse property options, strong rental demand, and investor-friendly regulations, it's no surprise that Branson has become a hotspot for STR investment. If you're considering entering the vacation rental market or expanding your portfolio, Branson should be on your radar as a destination with a promising future in the world of short-term rentals. I'd be happy to have a conversation with you!

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Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
3y

There are quite a few of those $1.2M - $1.5M 9br lakeview properties for sale in STR for sale groups with empty calendars and investors trying to get out because they're not hitting anywhere near the 150k-200k they were promised.

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  • Atlanta · Member since 2022 · 712 posts · 642 votes
    3y

    help me understand better. for "year round appeal", what drives people to visit there during the cold months? I understand the lakes, boats, amusement park, but not the attractiveness when its cold. also, what is the price point coming into that market?

  • Realtor · BRANSON, MO · Member since 2023 · 29 posts · 8 votes
    3y

    Thanks for reaching out Trent. Honestly the winter months are all down to the appeal of Silver Dollar City. They put on the Fall Festival from mid-Sept and then from Nov 1 the city lights up. Many visitors come to Branson just for the events Silver Dollar City put on. The shows in town are truly very popular too and many museums on the strip are open year round. January and February are super quiet, but the rest of the year makes up for that. Entry price point is anywhere from $100,000-$150,000 for a 1 bed or studio condo and the sky is the limit for larger 10 bedroom lake view lodges (currently on the market for around $1.6+ million). Any more questions about the area, please reach out.

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y

    I've known it was a great place for pretty much year-round revenue and that purchasing a property in Branson has many appealing "features"! Thanks for sharing!

  • Realtor · BRANSON, MO · Member since 2023 · 29 posts · 8 votes
    3y

    You’re welcome Sarah. I had not spoken to many on BP for some time about Branson and so wanted to share some info, so people don’t forget about little old us :) There are certainly a wide range of activities that draw visitors here, for all age ranges!

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y
    Quote from @Lisa Lister:

    You’re welcome Sarah. I had not spoken to many on BP for some time about Branson and so wanted to share some info, so people don’t forget about little old us :) There are certainly a wide range of activities that draw visitors here, for all age ranges!

    I have a lot of friends in NW Arkansas that love to spend a Saturday or even weekend up there. There are so many fun things going on year-round that they go up for! 
  • Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    3y

    @Lisa Lister what annual gross revenue to purchase price ratio can be expected there?

  • Realtor · BRANSON, MO · Member since 2023 · 29 posts · 8 votes
    3y
    Quote from @Brian G.:

    @Lisa Lister what annual gross revenue to purchase price ratio can be expected there?

    Your rate of return obviously depends on financing options and whether you are looking to self manage or not. However I can give you a good example of one of my own 3 bedroom short-term rental properties. Today’s market value on that unit is around $240,000, and our gross income is around $30,000 per year. There are great opportunities to own 9 or 10 bedroom lakefront or Lakeview lodges in Branson too, these range between $1.2 million and $1.5 million and gross anywhere from $150,000-$200,000 in gross income per year. If there is a specific price point you would like to be at and want to share specific details with me, I would be more than happy to run a proforma for you what you want to take your research.
  • Atlanta · Member since 2022 · 712 posts · 642 votes
    3y
    Quote from @Lisa Lister:
    Quote from @Brian G.:

    @Lisa Lister what annual gross revenue to purchase price ratio can be expected there?

    Your rate of return obviously depends on financing options and whether you are looking to self manage or not. However I can give you a good example of one of my own 3 bedroom short-term rental properties. Today’s market value on that unit is around $240,000, and our gross income is around $30,000 per year. There are great opportunities to own 9 or 10 bedroom lakefront or Lakeview lodges in Branson too, these range between $1.2 million and $1.5 million and gross anywhere from $150,000-$200,000 in gross income per year. If there is a specific price point you would like to be at and want to share specific details with me, I would be more than happy to run a proforma for you what you want to take your research.

     its a big difference to be looking at a $240k house and a $1.5mil house as an entering price point.

  • Atlanta · Member since 2022 · 712 posts · 642 votes
    3y

    what is the average visitor composition, if you know. is is families where you need at least 3 bedrooms? do 2 bedrooms do well? i only know the beach market in Florida.

  • Realtor · BRANSON, MO · Member since 2023 · 29 posts · 8 votes
    3y
    Quote from @Trent Reeve:
    Quote from @Lisa Lister:
    Quote from @Brian G.:

    @Lisa Lister what annual gross revenue to purchase price ratio can be expected there?

    Your rate of return obviously depends on financing options and whether you are looking to self manage or not. However I can give you a good example of one of my own 3 bedroom short-term rental properties. Today’s market value on that unit is around $240,000, and our gross income is around $30,000 per year. There are great opportunities to own 9 or 10 bedroom lakefront or Lakeview lodges in Branson too, these range between $1.2 million and $1.5 million and gross anywhere from $150,000-$200,000 in gross income per year. If there is a specific price point you would like to be at and want to share specific details with me, I would be more than happy to run a proforma for you what you want to take your research.

     its a big difference to be looking at a $240k house and a $1.5mil house as an entering price point.

    Absolutely, however every investor is different. I have a couple of first time investors who started out with $1+ million properties and others who started out at under $200k.
  • Realtor · BRANSON, MO · Member since 2023 · 29 posts · 8 votes
    3y
    Quote from @Trent Reeve:

    what is the average visitor composition, if you know. is is families where you need at least 3 bedrooms? do 2 bedrooms do well? i only know the beach market in Florida.

    Hey Trent. Heads on beds is the key. Dependent on property size and location, you can expect between $10-18k per bedroom, per year in gross income. I find with my 3 bedrooms that they can accommodate two families easily, but many 2 beds can sleep the same number with full sized bunks or sleeper sofas for example. Branson has a lot of sporting events held in town too, including basketball, ball games and archery. These events often attract groups consisting of two competitors and their parents for example. The market has a lot of 2 bedroom options but fewer 3 bedroom zoned STR properties. 4/5 beds are a few and far between, but I feel these sized units do well in our town…if only there were more of them! Hope this answered your question. Please let me know if not.
  • Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 486 votes
    3y

    Bill Beck is an awesome agent in Branson if anyone is looking to connect with someone who is ALSO an STR investor/operator himself.

  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    3y

    Are you sure the area is not already over saturated?
    there’s some hotels there that shut down during certain times of the year last I remember.

  • Realtor · BRANSON, MO · Member since 2023 · 29 posts · 8 votes
    3y
    Quote from @Joe S.:

    Are you sure the area is not already over saturated?
    there’s some hotels there that shut down during certain times of the year last I remember.

    That is true, the majority of Branson does close down in January and February. It is our official downtime and allows business owners, including investors, the opportunity to remodel, deep clean, use the property themselves, as well as offering the unit as a charitable donation for example. Luckily, we are heavily regulated with zoning and STR IS only allowed in certain areas of Branson, this avoids over saturation. 
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    3y

    There are quite a few of those $1.2M - $1.5M 9br lakeview properties for sale in STR for sale groups with empty calendars and investors trying to get out because they're not hitting anywhere near the 150k-200k they were promised.

    Cosmic Vacations4.9172 Reviews
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    3y

    I've had a 2 bedroom STR cabin in Branson (Stonebridge next to Silver Dollar City) since 2015 and it his has done so-so. It grosses about 40k/year, but after 30% PM fees, HOA, POA and utilities, I'm not making that much. Maybe $250/month off a 144k mortgage? Branson seems to be a little over saturated with rentals in Branson since I've been investing there for almost 9 years. I sold my other STR due to low cash flow. Lots of competition from other rentals and nearby hotels on the strip. I love Branson, but definitely my lowest yielding rental I have. And I got in when things were cheap!

  • Realtor · BRANSON, MO · Member since 2023 · 29 posts · 8 votes
    3y
    Quote from @John Morgan:

    I've had a 2 bedroom STR cabin in Branson (Stonebridge next to Silver Dollar City) since 2015 and it his has done so-so. It grosses about 40k/year, but after 30% PM fees, HOA, POA and utilities, I'm not making that much. Maybe $250/month off a 144k mortgage? Branson seems to be a little over saturated with rentals in Branson since I've been investing there for almost 9 years. I sold my other STR due to low cash flow. Lots of competition from other rentals and nearby hotels on the strip. I love Branson, but definitely my lowest yielding rental I have. And I got in when things were cheap!

    Those PM fees can really hurt, but I understand that many prefer to use one, when out of state. Many of my out of state investors do self manage due to this and I help to build them their power team here in town. There are some great PM options in town for 20-25% if you are interested in their details? Stonebridge is a great producer and as it is a mix of Residential and Nightly Rental approved properties, the community is different to some others. Value on those properties hold too. I sold a client of mine a 1 bedroom
    cabin there this summer for almost $250k! So I’m sure your equity is strong! Please reach out if you would like any specific property advice :)
  • Property Manager · Branson Missouri · Member since 2022 · 73 posts · 51 votes
    3y

    @Lisa Lister Thank you for posting this information.  You are with a great brokerage too!   

    @Ryan Moyer we manage many of the lakefront properties you reference and we are hitting the numbers you reference.  

    @John Morgan we manage several cabins in Stonebridge and do not charge the amount you are paying now.  Please feel free to DM direct for details.   

    We are very excited to see the continual growth of FPG (future paying guests) to visit our area as our area's attractions increases.  I have heard Silver Dollar City is going to be expanding.  Also, once the roads are completed the new amphitheater is sure to bring in many big names to our area. 

  • Realtor · BRANSON, MO · Member since 2023 · 29 posts · 8 votes
    3y
    Quote from @Valerie Budd:

    @Lisa Lister Thank you for posting this information.  You are with a great brokerage too!   

    @Ryan Moyer we manage many of the lakefront properties you reference and we are hitting the numbers you reference.  

    @John Morgan we manage several cabins in Stonebridge and do not charge the amount you are paying now.  Please feel free to DM direct for details.   

    We are very excited to see the continual growth of FPG (future paying guests) to visit our area as our area's attractions increases.  I have heard Silver Dollar City is going to be expanding.  Also, once the roads are completed the new amphitheater is sure to bring in many big names to our area. 

    Thank you @Valerie Budd. We enjoy partnering with you with our investors and value your insight.

  • Property Manager · Branson, MO · Member since 2023 · 3 posts · 2 votes
    3y

    @Ryan Moyer and @John Morgan I agree with Valerie here. There are many of the newer lakefront properties that are hitting the projected revenues in the area. Not all property managers are equal! Make sure you are not only asking about commission, but what are their guarantees? Have them explain how they are getting their projections, what are they doing to maximize your revenue, etc. I would love to chat more if you are interested.

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