As the country’s largest manager of vacation rentals, Vacasa has access to actual performance data for thousands of vacation rental properties across the country. We recently packaged some of that data into a buyer’s guide called the Insider’s Guide to the Top 25 Vacation Rental Markets. In this post, I’ll discuss some of the elements we used to create our guide so you can apply the thinking in your own searches.

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First, a note about what makes our Insider’s Guide unique. The guide, which has been featured in dozens of publications from FOX Business to USA Today, offers both a high-level view and local look at the country’s top vacation rental markets. It’s our first investment tool that combines national data with insights from our local agents. We hope you find both the guide and methodology behind it helpful.

The first element we considered (and the first element we recommend you consider when choosing where to buy a vacation home) is cap rate. If you’re not familiar with the term, capitalization rate, or, cap rate, is the ratio of a…