Are Vacation Rentals Profitable in Hot Springs Village?

Are Vacation Rentals Profitable in Hot Springs Village?

What Property Owners Should Know in 2026

Short answer: Yes, a vacation rental can be profitable in Hot Springs
Village—but the difference between an average rental and a high-performing one
can be enormous.

And profitability does not always mean turning a home into a full-time
investment property.

For some owners, the goal is maximum annual income. For others, Hot
Springs Village is where their family spends holidays, summer weekends and golf
trips. They want to keep their second home available for themselves while
renting it during periods when it would otherwise sit empty.

For those families, vacation-rental income can help offset mortgage
payments, POA dues, utilities, insurance, maintenance and other costs of owning
a second home—without giving up the reason the family bought the property in
the first place.

Hot Springs Village itself is also an important part of the equation.
HSV's extensive amenities, community events and ongoing destination marketing
help introduce visitors to the Village and give travelers reasons to come here.
The work performed by the Hot Springs Village POA and its marketing
department benefits the broader community by promoting the golf courses, lakes,
trails, recreational opportunities and lifestyle that ultimately create demand
for local lodging.

That creates an opportunity for individual homeowners.

When visitors decide they want to experience Hot Springs Village, they
need somewhere to stay.

A professionally presented vacation home gives them that opportunity—and
gives the homeowner the chance to convert otherwise unused nights into revenue.

But simply owning a home in a vacation destination does not automatically
make it a successful vacation rental.

The 2026 numbers make that very clear.

The
2026 Hot Springs Village Vacation-Rental Market

According to AirDNA market data updated August 5, 2026,
Hot Springs Village had approximately 490 active short-term-rental
properties as of July 2026.

Across the broader market, the numbers looked like
this:

Source: AirDNA Hot Springs Village market data. AirDNA
includes Airbnb, Vrbo and Booking.com listings and attempts to de-duplicate
properties listed on multiple platforms.

There is something interesting happening inside those
numbers.

The number of active vacation rentals was down about 4.9%
year over year, while occupancy increased approximately 3.0%.

In other words, fewer active properties were competing
for somewhat stronger guest demand.

But the most important takeaway isn't that the average
HSV vacation rental generates approximately $21,300 per year.

The more important takeaway is this:

Nearly
500 vacation rentals are competing for guests in Hot Springs Village. Simply
listing a home is no longer enough.

The way a property is positioned, priced, presented and
managed matters.

A lot.

Average
Doesn't Tell the Whole Story

AirROI's separate Airbnb-only data provides an even
more interesting picture.

AirROI tracks approximately 247 active Airbnb listings
in Hot Springs Village. Because AirROI's dataset is Airbnb-specific while
AirDNA covers multiple booking platforms, the two datasets shouldn't be treated
as identical.

But AirROI is particularly useful for showing the
difference between lower-performing, average and top-performing properties.

And that difference is dramatic.

A top-10% HSV Airbnb is producing more than five times
the monthly revenue of a bottom-quartile property in AirROI's dataset.

Its RevPAR—the amount of revenue generated for each
available night—is nearly four times higher.

That may be one of the most important statistics a Hot
Springs Village vacation-home owner can understand.

The
opportunity isn't simply owning a vacation rental. The opportunity is turning
the home you already own into a better-performing vacation rental.

Two owners can have homes in the same community.

Both can be listed on Airbnb or Vrbo.

Both can technically be operating vacation rentals.

Yet one may struggle to produce $1,000 per month while
another produces $5,000 or more.

The difference can come down to the property itself—but
also to pricing, photography, reviews, amenities, guest capacity, calendar
management and how effectively the home is marketed.

What
Do the Best HSV Vacation Rentals Look Like?

Some of the individual properties in AirROI's
trailing-12-month data show just how much upside can exist at the upper end of
the Hot Springs Village market.

One 7-bedroom lakefront property with a hot tub, sauna,
private dock and fire pit generated approximately $176,408, in annual revenue, with
approximately 56.1% occupancy and an average nightly rate approaching $896.

Another 7-bedroom lakefront retreat generated
approximately $108,025, in annual revenue, despite occupancy of only about 33%,
supported by an average nightly rate approaching $877.

A 6-bedroom home with views, a large game room and
capacity for 16 guests generated approximately $104,628, with approximately
57.9% occupancy.

4-bedroom lake house with a game room, fire pit and
chef's kitchen generated approximately $89,166, with occupancy around 50.4%.

Our top performing property has an indoor swimming pool
and a game room, sleeps ten and is located on a golf course.

These are exceptional properties and should not be
treated as typical results.

But they teach us something important.

They aren't simply houses with beds.

They're selling an experience.

Lakefront.

Private dock.

Views.

Hot tub.

Sauna.

Game room.

Fire pit.

Large groups.

A kitchen people actually want to gather in.

The strongest vacation rentals usually give the
traveler an obvious answer to one important question:

Why
should I choose this house?

A
Vacation Rental Doesn't Have to Be an Investment Property

This distinction is especially important in Hot Springs
Village.

Many owners didn't purchase their HSV property because
they wanted to become professional vacation-rental investors.

We didn't.

Our family purchased our first townhome here in the
Village as a place to escape the terrible winters in Minnesota.

Then we found Hot Springs Village.

And we decided it would be part of our lives forever.

Over the years, we've met many homeowners whose stories
aren't very different from ours.

They bought a home because they love the Village.

Maybe their family comes several times each year.

Maybe they golf.

Maybe their children and grandchildren visit.

Maybe they plan to eventually retire here.

The property has value to that family that goes far
beyond rental income.

But second homes aren't free.

There is still:

• A mortgage
• Insurance
• Property taxes
• POA expenses
• Utilities
• Lawn maintenance
• Repairs
• HVAC maintenance
• Furniture
• Appliances
• Internet
• General upkeep

And those expenses continue whether someone is staying
in the house or not.

That is where vacation renting can become extremely
valuable.

Keep
Your Family's Dates First

A second-home owner doesn't necessarily need to ask the
property to generate the absolute maximum possible annual revenue.

The family can establish its personal dates first.

Christmas week?

Block it.

Family reunion?

Block it.

Annual golf trip?

Block it.

Three weeks during the summer?

They're yours.

Then the remaining available nights can be
professionally marketed to guests.

The objective becomes:

Make
the house work harder when your family isn't using it.

If rental income offsets several mortgage payments,
covers POA dues and insurance, pays for improvements or substantially reduces
the family's annual cost of ownership, the vacation rental may be doing exactly
what the owner needs it to do.

That's why the better question isn't always:

“How much does the average Airbnb make?”

It's:

“What
could this particular property produce based on how I want to use it?”

For the investor, success may mean maximizing annual
net operating income.

For the family vacation home, success may mean
generating meaningful income while preserving every date the family wants for
itself.

Both can be successful vacation rentals.

Hot
Springs Village Helps Create the Destination

Vacation-rental owners aren't creating demand entirely
on their own.

That's one of the advantages of Hot Springs Village.

There is already a destination surrounding the home.

HSV offers golf, lakes, trails, recreation, community
activities and a lifestyle that attracts visitors for many different reasons.

The Village's ongoing destination-marketing efforts
help put those experiences in front of prospective visitors.

That's valuable.

A property manager can market a house.

Airbnb and Vrbo can advertise lodging.

But the destination itself gives people a reason to
make the trip.

That is why the success of visitor and destination
marketing throughout Hot Springs Village has a ripple effect.

More awareness of HSV can mean:

More visitors.

More golf trips.

More family visits.

More prospective homeowners.

More overnight stays.

And ultimately, more potential guests for locally owned
vacation homes.

Vacation-rental owners are part of that ecosystem.

Our job isn't to replace the Village's destination
marketing.

It is to capitalize on the demand it helps create by
making individual properties as attractive, visible and bookable as possible
once a traveler decides to visit.

Hot
Springs Village Vacation Rentals Are Built Around Families and Groups

The 2026 data reinforces what many of us already see
firsthand.

According to AirROI, approximately 98.4% of HSV Airbnb
inventory consists of entire-home or entire-apartment rentals, while houses
account for roughly 88.3% of listings.

Three-bedroom homes alone represent approximately 45.7%
of the market.

Even more telling:

73.2%
of HSV listings accommodate six or more guests.

And approximately:

35.6% accommodate eight or more
guests.

The average guest capacity is about 6.1 people.

That tells us something about the product Hot Springs
Village is selling.

HSV vacation rentals aren't predominantly one-night
lodging for individual travelers.

This market is particularly well suited to:

Families.

Golf groups.

Couples traveling together.

Lake trips.

Family reunions.

Multi-generational visits.

AirROI data also suggests an average stay of
approximately 4.3 nights, with guests booking around 48 days in advance.

July stays are booked even earlier—approximately 66
days in advance on average.

That means owners aren't simply competing for nights.

They're competing for entire multi-night trips that
families may begin planning months ahead.

Why
Hot Springs Village Works as a Vacation-Rental Market

The community itself can be part of the vacation.

Guests aren't necessarily booking a house simply
because they need somewhere to sleep.

They may be coming specifically for the HSV experience.

That creates several important guest markets.

Golf Trips

Groups can stay together while playing multiple Hot
Springs Village courses during their visit.

A property that comfortably accommodates four couples
or a group of golfers can offer a very different experience from booking
several separate hotel rooms.

Lake Vacations

Lakefront and lake-access properties can appeal to
families looking for boating, fishing, kayaking, swimming and time outdoors.

Family Gatherings

Larger vacation homes allow extended families to spend
time together under one roof.

A kitchen, deck, living room and outdoor space become
part of the experience—not simply the place where everyone sleeps.

Weekend Getaways

Couples, friends and families can use HSV as a relaxing
getaway while still having convenient access to Hot Springs and the surrounding
area.

Home-Shopping Visits

People considering a move to Hot Springs Village often
need accommodations while they explore neighborhoods, homes and amenities.

A vacation rental also allows prospective residents to
experience what living inside the Village actually feels like.

Visiting Friends and Family

HSV residents frequently have children, grandchildren,
extended family and friends coming to visit.

Vacation rentals provide those guests with nearby
accommodations without requiring everyone to fit into the resident's home.

That variety gives Hot Springs Village several
different sources of vacation-rental demand.

Hot
Springs Village Is Seasonal—but Not Quite the Way You Might Think

Seasonality matters.

AirROI identifies March, June and October among Hot
Springs Village's strongest seasonal periods, while January, February and
September tend to be softer.

Its data breaks down roughly like this:

At the monthly extremes, AirROI reports revenue
approaching $3,454 in the strongest month, compared with roughly $1,687 in the
softest.

Here's the interesting part:

The difference between peak and low-season nightly
rates isn't enormous.

Approximately:

$244 versus $222.

The much larger difference is occupancy.

That tells us that maximizing vacation-rental
performance isn't simply about raising the nightly price.

It's about making sure the property captures its share
of available guests—and managing the softer periods intelligently.

That requires strategic pricing, calendar management,
marketing and an understanding of how travelers behave throughout the year.

Revenue
Is Not the Same as Profit

Gross booking revenue is not profit.

Suppose a property averages:

$225 per booked night and achieves: 40% annual
occupancy.

That equals approximately 146 booked nights annually.

146 nights × $225 = $32,850 in accommodation revenue.

That's revenue—not profit.

An owner may still have costs related to:

• Property management
• Booking-platform commissions
• Payment processing
• Utilities
• Insurance
• Property taxes
• POA or association expenses
• Cleaning or laundry expenses not recovered from guests
• Guest supplies
• Lawn and exterior maintenance
• Repairs
• Furniture replacement
• Appliance replacement
• Pest control
• HVAC service
• Photography
• Marketing
• Periodic improvements
• Financing costs

That's why owners should look beyond the attractive
gross-revenue number.

But the second-home owner should consider something
else as well.

Most of the property's fixed carrying costs already
exist whether the home is rented or not.

The family may already be paying the mortgage.

They're already paying insurance.

They're already paying POA dues.

They're already keeping electricity and internet
connected.

Vacation-rental income can help offset expenses the
homeowner was going to incur anyway.

That can dramatically change how a family evaluates
whether renting makes sense.

What
Separates an Average Rental From a High-Performing Rental?

The 2026 performance data makes one thing clear:

Simply
being in Hot Springs Village doesn't guarantee strong results.

Two homes only a few streets apart can perform very
differently.

1. Location Within Hot Springs Village

Hot Springs Village is geographically large, and
different parts of the community appeal to different guests.

A lakefront property with a dock creates one type of
vacation.

A golf-course home creates another.

A home near recreational amenities or conveniently
located near a gate may appeal to another group entirely.

The property's location should influence its pricing,
photography, listing description and target guest.

2. Guest Capacity

Vacation rentals sell experiences and capacity—not
simply square footage.

Bedrooms matter.

Bathrooms matter.

Parking matters.

Beds matter.

Gathering spaces matter.

A well-designed three- or four-bedroom property that
comfortably accommodates a family or golf group may have significant revenue
potential.

And there is an enormous difference between claiming
that a house “sleeps 10” and creating a property where 10 people can actually
stay comfortably.

3. Amenities

Once travelers have hundreds of HSV vacation rentals
from which to choose, every owner needs to answer one question:

Why
this house?

Depending on the property, differentiating amenities
might include:

• Lake frontage
• Private dock
• Golf-course frontage
• Hot tub
• Swimming pool
• Game room
• Fire pit
• Large deck
• Outdoor dining
• Kayaks
• EV charging
• Pet-friendly accommodations
• Multiple king beds
• Updated kitchen
• Workspace
• Exceptional views

The best amenity isn't always the most expensive.

It's the amenity that makes the traveler stop
scrolling.

Occupancy
Isn't Everything

Owners sometimes assume the goal should be booking
every possible night.

Not necessarily.

Consider two simplified properties:

Property
A

200 nights × $150 = $30,000

Property
B

150 nights × $250 = $37,500

Property B was vacant more often but generated 25% more
accommodation revenue.

That's why occupancy by itself doesn't tell us whether
a vacation rental is performing well.

Nightly rate matters.

Revenue per available night matters.

Operating costs matter.

And for a second-home owner, personal use matters too.

If a family wants 30 nights each year for itself, those
nights shouldn't automatically be considered “lost occupancy.”

Those nights are part of the reason the family owns the
house.

Our goal is to maximize the value of the remaining
available calendar.

HSV
Vacation-Rental Competition Is More Sophisticated Than Many Owners Realize

The 2026 AirROI data also tells us something about the
competition.

Approximately: 66% of HSV Airbnb hosts are Superhosts.

Around: 53% of listings carry Airbnb's Guest Favorite
badge.

And approximately: 38.5% of listings are professionally
managed.

The average property rating is about: 4.84 out of 5.

That means Hot Springs Village isn't an amateur
vacation-rental market anymore.

Guests have choices.

And many of those choices are highly rated,
professionally presented and actively managed.

A homeowner can't necessarily take an ordinary house,
snap a dozen cellphone pictures, upload them to Airbnb, set one nightly price
and expect the same results as a professionally positioned property.

Competition for the guest's attention begins before the
traveler ever arrives in Hot Springs Village.

Professional
Presentation Matters

Vacation rentals are purchased with the eyes first.

Before a guest reads every detail, they see
photographs.

That means an exceptional home can underperform if it
is presented poorly.

A strong listing should quickly answer:

Where am I?

What makes this property special?

Who can I bring?

What can we do here?

Why should I choose this house?

Professional photography, listing order, descriptions
and presentation aren't cosmetic details.

They are revenue tools.

Reviews
Become an Asset

A vacation-rental property's reputation develops over
time.

A new property begins with no history.

Then come the first bookings.

Then reviews.

Strong reviews increase confidence.

More bookings create more opportunities for additional
reviews.

Eventually, the property develops its own reputation.

For a second-home owner with limited rental
availability, that can become particularly valuable.

If the family only offers the property for 200 nights
each year, those 200 nights become valuable inventory.

Strong reviews can help the owner generate more revenue
from the nights that are actually available.

Don't
Forget Hot Springs Village Rental Requirements

Before operating a property as a vacation rental,
owners should confirm all current Hot Springs Village POA, governmental,
insurance and tax requirements.

Rules and fees can change.

Compliance should be part of the planning process
before guests begin arriving—not something addressed afterward.

A professionally managed vacation rental should treat
compliance as part of normal operations.

Vacation
Rental or Long-Term Rental?

For some properties, a long-term rental may be the
stronger financial choice.

Long-term rentals generally provide more predictable
monthly income with fewer turnovers.

Vacation rentals can potentially generate more gross
revenue but require significantly more active management.

But there's another major distinction.

A
long-term rental generally means giving up personal use of the property.

For a family second home, that may eliminate long-term
renting immediately.

Vacation rentals provide something different: Flexibility.

The owner decides when the home is available.

The family retains the ability to use it.

The property generates income during selected periods.

That's one of the reasons vacation renting can be such
a natural fit for second homes in Hot Springs Village.

So,
Is a Vacation Rental Profitable in Hot Springs Village?

It absolutely can be.

The 2026 market data makes that clear.

There are roughly 490 active short-term rentals competing
for Hot Springs Village visitors.

The broader market averages approximately 46% occupancy,
a $218 nightly rate and roughly $21,300 in annual revenue.

But averages hide an enormous performance gap.

Airbnb-only data shows bottom-quartile properties
generating around $1,011 per month, while top-10% properties produce $5,422 or
more per month.

And individual standout HSV properties have generated
approximately $90,000, $100,000 and even $176,000+ in trailing annual revenue.

Those results don't mean every home can—or
should—produce six figures.

They mean the market rewards the right property,
presented the right way, to the right guest.

For an investor, success may mean maximizing annual
return.

For another homeowner, success may mean:

“Our vacation home paid half its mortgage this
year.”

Or:

“Rental income covered our POA fees, insurance,
utilities and maintenance.”

Or:

“We still spent six weeks here with our family, and
guests helped pay for the rest of the year.”

Those are meaningful outcomes too.

The goal isn't always to turn every available night
into a booking.

The goal is to make the property work for its owner.

That requires:

The right positioning.

The right presentation.

The right pricing.

The right marketing.

Excellent guest experiences.

And active management of the available calendar.

The question isn't whether people rent vacation homes
in Hot Springs Village.

They
clearly do.

The better question is:

How much of the potential of your
particular home are you capturing?

And for a family vacation home, there may be an even
better question:

“How much of the cost of owning a home
we love can we recover when we're not using it?”

That's a much more meaningful number.

Own
a Second Home in Hot Springs Village?

You don't have to choose between enjoying your home and
earning income from it.

At Discover Property Management, our objective
is to help owners maximize the return from the periods their property is
available while respecting the reason many families bought their Hot Springs
Village home in the first place.

Your
family's dates come first.

Then we focus on getting as much value as reasonably
possible from the remaining calendar through professional presentation,
strategic pricing, marketing, guest communication and property management.

Discover Vacation Rentals provides
an additional direct-booking and marketing channel designed to connect guests
with quality Hot Springs Village properties.

Whether you're considering purchasing a second home,
already own one that sits empty part of the year, or have an existing vacation
rental that isn't producing what you expected, start with the numbers.

Let Discover evaluate your property, your desired
personal-use schedule and its vacation-rental potential.

The goal isn't simply more bookings.

The goal is making your Hot Springs
Village home work harder for your family when your family isn't there and to
offer peace of mind.

Michael Montgomery
Discover Property Management
discoverpropertymanagementhsv.com