When it comes to vacation rentals, location is everything. Whether you’re a seasoned investor or just dipping your toes into the world of real estate, choosing the right place to invest is crucial. Kissimmee, Florida, often overshadowed by its famous neighbor Orlando, is quickly becoming a favorite location for vacation rental investments. But what makes Kissimmee the ideal location for your next investment? Let’s dive into the reasons why this hidden gem might be the perfect place to start or expand your portfolio.
According to C2ER (the Council for Community and Economic Research), the cost of living in Kissimmee is estimated to be 101.7% of the national average, making it an average U.S. city.
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Proximity to World-Renowned Attractions
One of Kissimmee’s biggest selling points is its close proximity to some of the most famous attractions in the world, including Walt Disney World, Universal Studios, and SeaWorld. Located just minutes away from these attractions, Kissimmee offers vacationers a convenient and cost-effective alternative to staying in Orlando. For investors, this translates into a consistent stream of tourists seeking short-term rental options close to the magic, making your property a highly desirable choice.
Affordability and Growth Potential
Kissimmee offers a more affordable entry point into the vacation rental market compared to Orlando. Property prices in Kissimmee tend to be lower, allowing investors to purchase larger or more luxurious homes for less. This affordability doesn’t mean sacrificing quality, though. Many properties in Kissimmee come with high-end amenities like private pools, game rooms, and even home theaters—features that are sure to attract renters.
Moreover, as Orlando’s popularity continues to rise, the surrounding areas, including Kissimmee, are experiencing growth and increased property values. Investing now means getting in before prices potentially skyrocket.
Strong Tourism Market
Florida is one of the most visited states in the U.S., and Orlando alone draws over 70 million visitors annually. With such a strong tourism market, the demand for vacation rentals remains high throughout the year. Whether it’s families visiting the theme parks, snowbirds escaping the cold winters, or international travelers exploring the Sunshine State, Kissimmee sees a steady flow of potential renters year-round.
Year-Round Rental Opportunities
Unlike some vacation destinations that have peak seasons, Kissimmee enjoys year-round rental opportunities thanks to its warm climate and diverse range of attractions. While summer and the winter holiday season may see the highest demand, events, conventions, and festivals held throughout the year ensure that your property won’t stay vacant for long.
The Airbnb Factor
Short-term rental platforms like Airbnb have revolutionized the vacation rental market, making it easier than ever to manage and profit from your investment. Kissimmee properties are particularly well-suited for platforms like Airbnb due to their location, affordability, and appeal to a wide range of tourists. Investors can easily list their properties, manage bookings, and ensure a steady stream of income with minimal hassle.
Future Development and Infrastructure
Kissimmee is not just resting on its laurels. The area is undergoing significant development, with new shopping centers, restaurants, and entertainment venues constantly being added. The city’s infrastructure is also improving, making it even more accessible for tourists. As the area continues to develop, the value of your investment is likely to increase.
Want to live near Walt Disney World?
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Cost of Living in Kissimmee, Florida: What Can You Expect?
Kissimmee, part of the Orlando-Kissimmee-Sanford metropolitan area, offers a reasonable cost of living compared to other U.S. cities. With a cost of living index of 101.7% of the national average, Kissimmee ranks 81st out of 273 cities in the country. This means that, overall, living in Kissimmee is as affordable as in many other U.S. cities, with no major disparities in cost.
A good rule of thumb for housing affordability is the 28% rule: your monthly rent or the sum of your monthly mortgage, property taxes and insurance should not exceed 28% of your gross income (income before taxes).
Kissimmee Living Wage: How Much Do You Need to Live Well?
To maintain a comfortable lifestyle in Kissimmee, it is essential to know what a living wage is in the city. The median household income is $41,746, while the median individual income is $25,580. With the 28% rule for housing affordability, it is recommended that your housing costs (rent, mortgage, taxes and insurance) not exceed 28% of your gross income. In addition, by using the 50-30-20 rule to budget your needs, wants and savings, you can plan for a financially sustainable lifestyle.
Average Rent in Kissimmee: What Can You Expect?
The cost of housing is one of the most important factors to consider when evaluating the cost of living in any city. In Kissimmee, the average rent for a 2-bedroom home is $1,989, which is 35% higher than the national average. This cost can vary depending on the neighborhood, but reflects the popularity and demand of the region, especially due to its proximity to Orlando and the theme parks.
Kissimmee Real Estate Prices: A Smart Investment
The real estate market in Kissimmee is also competitive. With a median home price of $415,145 and a median cost per square foot of $205, the cost of homes is 110.3% of the national average. This makes Kissimmee an attractive option for both first-time homebuyers and investors interested in vacation properties.
Is Kissimmee the Perfect Place?
In short, yes. Kissimmee offers a unique blend of affordability, prime location, and growth potential that makes it an ideal spot for vacation rental investments. Whether you’re looking to capitalize on the steady influx of tourists, take advantage of the lower property prices, or simply enjoy the benefits of a year-round rental market, Kissimmee has something to offer every investor.
If you’re considering investing in vacation rentals, now is the time to explore what Kissimmee has to offer. With the guidance of an experienced Realtor like Gladys Thayer, you can navigate the market with confidence and secure a property that meets your investment goals. Ready to take the next step?
Contact us today to learn more about available properties and how to start your investment journey in Kissimmee.
