Looking for an investment property in the High Country of North Carolina? Though the competition can be stiff, Boone and the surrounding areas can provide a variety of lucrative rental property investment opportunities. The High Country is home to three colleges with thousands of students in perpetual need of housing, two rivers for summer fun, three ski mountains to attract snow enthusiasts from all over the Southeast, and numerous other attractions that make the region a sought-after place to live.
Why Invest in the High Country?
From Boone to Beech Mountain, North Carolina’s High Country continues to attract investors looking for both financial return and personal use. The area is home to Appalachian State University and two other nearby colleges, ski resorts, rivers, trails, and a year-round tourism scene. Whether you’re considering long-term student housing or short-term vacation rentals, the demand for housing in this region has remained strong—even increasing as more people work remotely and seek out mountain living.
Short-Term vs. Long-Term Rentals
Long-Term Rentals (LTR):
A long-term rental typically involves leasing a property for six months or more. In Boone, this often means student housing or professional housing for university and hospital staff. These properties are in steady demand, especially those located near Appalachian State or AppalCart bus routes. Student renters typically pay around $500 per bedroom, and one-bedroom units can go for $700+ monthly.
Short-Term Rentals (STR):
Vacation rentals are popular in the High Country year-round. With attractions like skiing in the winter, hiking in the summer, and local breweries, concerts, and festivals in between, visitors flock to Boone, Blowing Rock, Banner Elk, Beech Mountain, and West Jefferson. Properties within walking distance of downtown Boone or near tourist hubs rent easily through platforms like Airbnb and Vrbo.
Key Terms Every Investor Should Know
- Equity: The difference between a property’s market value and the amount owed on its mortgage. This builds as the loan is paid down and the property appreciates.
- Cash Flow: Net monthly income after covering operating expenses like mortgage payments, taxes, insurance, and maintenance.
- ROI (Return on Investment): Annual net profit divided by total investment. A key indicator of investment performance.
- NOI (Net Operating Income): Yearly income from the property after deducting operating costs, excluding mortgage payments.
- Cap Rate: The percentage return based on NOI divided by the property’s current value.
- Kiddie Condo: A college-town property purchased for a student to live in, often with the parent as co-borrower. These can offer rental income and tuition advantages.
Some common features we’ve realized people are searching for in vacation rentals in the Appalachian High Country…
- Mountain Style Home: It doesn’t have to be a log cabin, but there needs to be a mountain style element to the property. You can even make that happen in a condo! Most renters are looking to really feel like they are getting that mountain experience.
- Modern and Updated Finishes, Décor, and Furnishings: People look for all prices ranges of places to stay when they visit the the Appalachian Mountains, but your chances of appealing to a wider audience increases greatly if they feel comfortable in the space. When listing your property on Vrbo, AirBnB, and the like, keeping updated professional photos of your property online is key to attracting reservations.
- Hot Tubs: While they are not for everyone, hot tubs are a huge draw for renters in this area. Talk about relaxation and a year round opportunity for renters and owners alike! Local rental agencies have told me that you can increase your bookings significantly if you have a hot tub.
- Game Tables and Onsite Amenities: We mentioned earlier that folks are looking to relax. They may hit up the grocery store on the way in and then plan to not leave the house! Having amenities like a game table, fire pit, or water feature makes your property special and stand out. These things can help you earn five star reviews and repeat renters!
- Larger Homes with 3+ Bedrooms: Renters benefit when there is a 2nd living space. A place to send the kids when the adults want to relax, or play, is an added bonus when selecting a rental.
- Easy Access: Renters driving in on a Friday evening for a few nights in the mountains do not want to get lost on a curvy, steep, mountain road. Out-of-towners probably don’t have 4-wheel drive. When purchasing a vacation rental property, choose a location with easy access situation on well maintained roads.
- Proximity to Tourist Attractions: Renters coming in for a ski weekend will likely want to stay near ski mountains. These locations have much to offer year round. Beech Mountain’s new resort updates include fantastic summer activities such as their summer concert series and mountain biking. Being close to Appalachian State University can be a huge draw too! Those parent weekends and home football games attract student’s families and alum.
Zoning and Restrictions: What You Need to Know
Boone and surrounding towns have zoning laws and neighborhood covenants that impact your rental options:
- R1 Zoning: Allows only single-family residences and no more than two unrelated individuals per property. Avoid for traditional student rentals.
- R1A Zoning: Often allows accessory apartments, which offer more flexibility for dual-unit rentals.
- POA/HOA Restrictions: Many developments in the High Country use POAs instead of HOAs. Always check for rental restrictions before purchasing.
Pro tip: Short-term rentals are prohibited in some areas. Always confirm with the local planning department and review property covenants.
What Makes a Great Rental Property in the High Country?
For Short-Term Vacation Rentals:
- Mountain Style Architecture: A cabin look or rustic touch boosts appeal—even in condos.
- Modern Amenities: Updated interiors, hot tubs, fireplaces, and pet-friendly options enhance guest satisfaction.
- Entertainment Features: Game rooms, fire pits, and outdoor gathering areas help earn 5-star reviews.
- Proximity to Attractions: Easy access to ski slopes, hiking trails, downtown Boone, and App State events is a huge draw.
- Easy Access: Roads should be well-maintained and drivable for those without 4WD vehicles.
- Photos & Listings: High-quality, updated images and detailed property descriptions are essential when listing online.
For Long-Term Rentals:
- Walkability to Campus or Bus Routes: College students prefer rentals near the AppalCart line or within a few miles of campus.
- Multi-Bedroom Homes: These are ideal for student groups, though they must comply with zoning rules.
- Quiet, Accessible Neighborhoods: Attract families and professionals seeking longer stays.
Vacation Renters:
- Scenic Views: Properties with mountain vistas or waterfront access are highly sought after.
- Proximity to Attractions: Locations near popular outdoor activities, cultural sites, or the university attract more guests.
- Modern Amenities: Features like hot tubs, fireplaces, and updated kitchens can enhance guest experience.
- Pet-Friendly Options: Allowing pets can broaden your potential guest base.
Expanding Your Search Outside Boone
Inventory in Boone is often limited, but surrounding towns offer equally promising opportunities:
- West Jefferson: Great for summer rentals with access to the New River.
- Blowing Rock & Banner Elk: Offer charm and year-round tourism appeal with vibrant downtowns.
- Beech Mountain & Sugar Mountain: Known for ski resorts and now drawing crowds for summer activities like mountain biking and festivals.
Properties within 30 minutes of Boone are ideal for those targeting hospital staff, university faculty, or families relocating to the region.
Additional Tips for Investors
- Use Local Management: A local rental agency can help with bookings, cleanings, and maintenance—especially valuable for out-of-town owners.
- Research the Market: Predictive analytics and local trends can help forecast ROI and optimize pricing.
- Think Like a Renter: Would you stay there? Is it comfortable, well-located, and inviting?
- Plan for Maintenance: Reliable handymen and cleaners can be hard to find in mountain towns. Build relationships early.
Final Thoughts
Rental property investments in North Carolina’s High Country offer a mix of reliable income and personal enjoyment. With a steady stream of students, tourists, and remote workers looking for homes, this region is ideal for both long-term and short-term strategies.
If you’re ready to take the next step, partner with a local real estate expert who knows the zoning laws, rental trends, and best neighborhoods to help you succeed.