Investing in short-term rentals (STRs) can be a lucrative venture if done right. The key is to choose the right market that aligns with your budget and investment goals. Whether you’re looking for a vacation home that generates income, high cash flow, or potential appreciation, there’s a market out there for you.
To help you make an informed decision, we analyzed data from BiggerPockets Market Finder, Zillow, Redfin, Realtor.com, and AirDNA to identify STR markets that still make sense in 2025. Here are some potential markets based on different investment levels:
1. Investment Level: $200,000
– Akron, Ohio: Median home price $212,500, occupancy rate 52%, ADR $188, annual revenue $28,800.
– Stanton, Kentucky: Median home price $165,533, occupancy rate 51%, ADR $227, annual revenue $37,833.
– Pittsburgh, Pennsylvania: Median home price $208,593, occupancy rate 53%, ADR $174.5, annual revenue $28,300.
– Peoria, Illinois: Median home price $144,272, occupancy rate 55%, ADR $153.5, annual revenue $24,200.
These markets offer affordable entry points with strong return potential. Akron, for example, has experienced a 15% increase in annual revenue since 2023, indicating a thriving market despite rising inventory.
2. Investment Level: $500,000
– Logan, Ohio: Median home price $310,924, occupancy rate 54%, ADR $362, annual revenue $65,700.
– Myrtle Beach, South Carolina: Median home price $331,265, occupancy rate 58%, ADR $285.36, annual revenue $47,600.
– Panama City Beach, Florida: Median home price $353,298, occupancy rate 57%, ADR $327, annual revenue $53,800.
– Sneads Ferry, North Carolina: Median home price $425,219, occupancy rate 60%, ADR $421, annual revenue $71,500.
– Seaside, Oregon: Median home price $450,000, occupancy rate 59%, ADR $336, annual revenue $62,700.
– Branson, Missouri: Median home price $255,532, occupancy rate 51%, ADR $249.99, annual revenue $40,500.
These markets offer a range of opportunities for investors with a budget of $500,000 or less. Logan, for instance, has high annual revenue potential, but it’s a unique market that requires creativity to stand out.
3. Investment Level: $800,000-$1 Million
– Sevierville, Tennessee: Median home price $687,000, occupancy rate 60%, ADR $370, annual revenue $74,300.
– Pawleys Island, South Carolina: Median home price $532,057, occupancy rate 56%, ADR $441, annual revenue $70,700.
– Flagstaff, Arizona: Median home price $625,695, occupancy rate 58%, ADR $271.3, annual revenue $50,300.
– Hilton Head, South Carolina: Median home price $761,100, occupancy rate 61%, ADR $439.6, annual revenue $76,900.
– Sedona, Arizona: Median home price $917,779, occupancy rate 61%, ADR $376.8, annual revenue $74,100.
These markets offer substantial investment opportunities for those with a budget of $800,000 to $1 million. Hilton Head, for example, is a well-established coastal market with reliable STR potential, but competition is fierce.
It’s important to consider local regulations, seasonality, and market saturation before investing in any of these markets. Affordable entry points may be attractive, but long-term success depends on understanding demand trends and competition. Additionally, maximizing returns often requires offering premium experiences and amenities that cater to the target audience.
In conclusion, every STR market is unique, and the right market for you depends on your specific goals and investment strategy. Whether you prioritize cash flow, appreciation, or a combination of both, there’s a market out there that can meet your needs.
