Vacation Rental Market Analysis: Napa, CA

The Evolve Team
The Evolve Team
June 15, 2023

Known as California wine country’s crown jewel, the scenic Napa Valley hosts some of the world’s most sought-after vineyards and tons of year-round activities. 

From bike tours and hot air balloon rides to festivals and, of course, wine tastings, there’s plenty to entertain the nearly four million visitors who choose Napa Valley every year. This demand is exactly what makes an investment property in Napa, CA an opportunity worth exploring.

To help you understand the earning potential this vacation rental market presents, we created a free, downloadable vacation rental market analysis

Inside you’ll find: 

  • Rental income potential by property size
  • Average occupancy by property size
  • Average daily rate by property size
  • Average days booked in advance
  • Average length of stay
  • Vacation rental inventory by property size
  • Occupancy rate by month

The findings in this analysis are based on Evolve’s Napa market averages in the last 12 months and provide a general baseline for performance potential. They’re designed to help inform smart buying decisions when exploring a Napa real estate investment.

Download Our Complete Napa Vacation Rental Investment Analysis

Why Napa Is a Great Place to Own Vacation Rental Property

With average temperatures ranging from winter 50s to summer 70s, Napa stays pleasant all year long. Combine that great weather with the area’s variety of attractions, and it’s easy to see why groups of all sizes are drawn to Napa for everything from bachelorette parties to family getaways. Sacramento and San Francisco are also close by, making it ideal for locals booking quick weekend getaways or romantic retreats.

Beyond its numerous wineries and vineyards, Napa is a great place for endless hiking excursions, camping and horseback riding at Skyline Wilderness Park, boating on Lake Berryessa, and golfing. With so many outdoor activities, the area’s peak season tends to run through the spring and summer. There’s a slight drop in demand come fall, and a slower winter season — but savvy Napa investment property owners can still earn bookings at strong rates with the right revenue strategy

This real estate market can be competitive, with median home values in the upper $800,000s. That means owning investment property in Napa can carry high upfront costs, but our real estate experts say visiting comes at a similar premium. So vacation rentals of all sizes still have solid income potential in the long run.

Purple icon of a crystal ball with the words "profit prediction" in the middle with stars

How Much Money Can You Earn with a Napa Vacation Rental?

Before you can reap the rewards of a real estate investment in Napa, it’s important to gain a solid understanding of what makes a vacation rental in California’s wine country successful.

Property Size

Since Napa often serves as a bucket-list destination for lovebirds celebrating honeymoons, anniversaries, and the like, one-bedroom homes tend to see the highest annual occupancy for owners. Two- and four-bedroom homes follow close behind, offering potential buyers plenty of investment options across the size spectrum. 

Five-bedroom homes tend to reel in the most annual revenue, but make up the smallest portion of available inventory (which could hinder your search efforts). Smaller properties account for more available inventory — so they may offer an easier route to Napa vacation rental ownership.

Property Location

There are two key players in Napa’s popularity with travelers: the renowned culinary scene and the diverse array of award-winning wineries. With this in mind, investors should look for properties with proximity to either — or both — of these draws. More specifically, our experts suggest seeking out homes near the Napa Valley Wine Train, the Oxbow Public Market, and the general downtown area to provide guests the most convenience and accessibility. 

That said, two of Napa’s best-loved vineyards — V. Sattui and Domaine Carneros — are located on the outskirts of the city, and an easy commute to either is also likely to attract potential guests. The bulk of available listings further from Napa’s center tend to only be driving distance from major to-dos. But if you can find one in a walkable (or bikeable) location, it can give you a competitive edge.

Property Amenities

The most popular amenities in Napa include a well-stocked kitchen (with high-end appliances for culinary adventures), air conditioning for summer comfort, and WiFi for entertainment.

Outside, an updated living space is also a major selling point. It’s a good idea to keep an eye out for properties with a deck, patio, or backyard. Then you can add amenities like grills and fire pits to amp up the home’s overall marketability — and help provide a truly five-star experience for guests.

Big-ticket outdoor perks, like swimming pools, can also help you go the extra mile with Napa guests. If you’re not interested in having a private one, consider browsing condos for sale with resort-style community amenities. 

Of course, if you want to take earning potential for your Napa investment property even further, scout homes that offer a scenic view, whether it’s a sweeping valley vista, a glimpse of the Mayacamas Mountains, or a nearby golf course.

When you’re ready to explore the market, make your search easier by starting with these homes for sale.

Download Our Full Napa, CA Vacation Rental Market Analysis

Sunny days, top-tier food and drink, and outdoor activities make Napa an incredible place to visit and a desirable destination for investors seeking a real estate investment with strong earning potential.

Whether you’re looking to buy a second home in Napa or are curious about turning an existing home into a profitable side hustle, download our free Napa Area Vacation Rental Market Analysis today.

It’s full of useful insights, including:

  • Average daily rate by property size 
  • Expected seasonality in vacation rental demand
  • Average length of stay in high and low seasons
  • Inventory breakdown based on property size 

Evaluating your Napa investment opportunities should feel as breezy as an afternoon stroll through a vineyard. Make use of our report to guide smart decisions on your vacation rental journey.

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