Top 10 places in the USA for high-yield investments in vacation homes

In an exclusive interview with CNBC Make It, the vacation rental management platform Vacasa revealed the best places in the U.S. to buy a vacation home. Purchasing real estate is a significant investment and, according to some experts, one of the best decisions you could make right now, especially if you plan to use the space for generating additional income.

The vacation rental management platform Vacasa published its new ranking for buying a vacation home based on capitalization, also known as return on investment, specifically for CNBC Make It. To determine the ranking, Vacasa took the following steps: analyzed data on home sales and rental performance over the past 12 months, used actual market performance data where possible to determine the average gross rental yield, and considered the average values of the following indicators in each market: property tax, utilities, HOA fees, insurance, and property management fees to calculate the average capitalization rate.

It is important to note that Vacasa recommends buyers check local laws before purchasing a vacation home that they plan to use as a rental property, as different locations have their own rental regulations.

For the second year in a row, Lake Anna, Virginia, has taken the top spot on the list of the best places to buy a vacation home.

Lake Anna is the second largest lake in Virginia, with about 200 miles of shoreline. It is divided into two parts: a public side with waterfront restaurants and a private side where commercial operations are prohibited.

Okaloosa Island in Florida ranks second on the list of the best places to buy a vacation home.

Just six miles from the popular tourist destination of Destin, Okaloosa Island offers an average annual rental income of $53,832, a capitalization rate of 9.08%, and a median home price of $360,000, according to a report by Vacasa. Okaloosa Island is part of Santa Rosa Island, which also includes communities like Pensacola Beach and Navarre.

Sandbridge, Virginia, rounds out the top three best places.

This coastal community of Virginia Beach, just 25 miles south, is considered part of the Outer Banks of North Carolina, according to Southern Living. The secluded beach retreat offers an average annual rental income of $88,702, a median home price of $928,900, and a capitalization rate of 6.47%, according to a Vacasa report.