Brief-term rental investing isn’t about grabbing the most affordable fixer-upper and hoping company magically seem. It’s about choosing the proper markets with robust demand, versatile guidelines, and the potential to push income previous six figures. In locations the place sizzling tubs and pet-friendliness transfer the needle, the distinction between a dud and a standout typically comes right down to the extras.
This listing ranks the highest 10 STR markets beneath $500K based mostly on income potential, visitor demand, investability, and the facility of value-adding options. Every one contains insights on the kind of vacationers it attracts, what makes it particular, and the way a lot you’ll be able to realistically earn. We pulled median residence costs from Zillow as of Could 2025 that can assist you body expectations.
Simply keep in mind: Median means center. When you goal for top-tier revenue, count on to purchase an above-average property. That further funding is commonly what unlocks the intense money circulation. I listing the present STR rules obtainable on-line for every market, and each investor ought to be sure you completely perceive these earlier than critically investing in a property anyplace.
1. Lancaster, PA
Median residence worth: $360,383
High-performing properties: $120,000/yr (3 BR+, sizzling tub, pet-friendly)
- Occupancy fee: 56%
- ADR: $212.57
- RevPAR: $119.46
Lancaster is likely one of the most neglected STR alternatives within the Northeast. Whereas the typical itemizing brings in simply over $38K, properties that mix the proper format with facilities like a sizzling tub and pet-friendliness can attain $120K yearly. Friends are sometimes households, {couples}, and weekenders from close by metros like Philly, Baltimore, and D.C., visiting Amish Nation, exploring vintage outlets, and attending seasonal festivals.
Submarkets like Christiana and Conestoga provide rural appeal with STR-friendly zoning and comparatively low competitors. Income development and occupancy are climbing steadily, and with a strong ADR and growing demand, Lancaster presents top-of-the-line ROI tales within the area.
Regulation snapshot
- STR registration is required in accredited zoning districts.
- Native 24/7 contact required (use your cleaner or useful particular person for those who ask me *shrug*)
- Security inspections necessary
- Lancaster STR data
2. Panama Metropolis Seaside, FL
Median residence worth: $416,972
High-performing properties: $110,000/yr (4 BR w/ sizzling tub + pet-friendly)
- Occupancy fee: 57%
- ADR: $319.21
- RevPAR: $181.65
Panama Metropolis Seaside has gone from spring break capital to a family-friendly coastal STR powerhouse. Whereas the typical residence brings in $52.7K, good operators who mix a four-bedroom format with a pool, sizzling tub, and pet-friendly entry can attain six figures. Friends listed here are largely households and multigenerational vacationers coming for the seaside, state parks, and water actions. Bahama Seaside and El Centro Seaside are prime submarkets for his or her walkability and extra relaxed regulatory enforcement.
This market thrives on quantity and facilities. ADRs have risen 14% yr over yr, signaling pricing power regardless of elevated stock. With the proper combo of facilities and licensing in place, Panama Metropolis Seaside delivers distinctive money circulation for a sub-$500K funding.
Regulation snapshot
- STR license is required from the town and state.
- Native contact required inside half-hour.
- The license quantity should seem in all listings.
- Panama Metropolis Seaside STR data.
3. Logan, OH
Median residence worth: $242,034
High-performing properties: $106,000/yr (4-BR residence)
- Occupancy fee: 54%
- ADR: $353.21
- RevPAR: $189.06
Logan is the gateway to Hocking Hills, one of the visited pure locations within the Midwest. That alone fuels regular STR demand from nature lovers, mountain climbing teams, and {couples} on romantic escapes. The typical STR earns $64K/yr, and a four-bedroom residence simply clears $100K. ADRs are robust because of the realm’s rural appeal and restricted high-quality lodging.
Friends in Logan are on the lookout for peace, seclusion, and nature-integrated experiences. Assume cabins, sizzling tubs beneath the celebs, and fireplace pits. Listings have surged by 13%, however income development continues to be climbing, exhibiting that the market is much from saturated.
Regulation snapshot
- Registration varies by county.
- Lodging tax assortment is required.
- Septic and fireplace code necessities for brand spanking new builds.
- Logan STR rules.
4. Columbia, SC
Median residence worth: $232,153
High-performing properties: $108,000/yr (5 BR w/ pool)
- Occupancy fee: 55%
- ADR: $565.67
- RevPAR: $314.74
Columbia is quietly top-of-the-line worth STR markets within the Southeast. With median property costs simply above $230K and high-yielding five-bedroom properties producing $94K to $108K, the numbers pencil out quick. Add a pool, and also you’re effectively into six-figure gross income territory. The visitor base is a mixture of college guests, navy households (Fort Jackson), and road-trippers between Atlanta and Charleston.
Demand is rising quicker than provide (10% vs. 8%), and the market has robust seasonality and income development elements. High submarkets embrace West Columbia, Arcadia Lakes, and the downtown hall.
Regulation snapshot
- STR allow and enterprise license required.
- Native contact required if the proprietor lives >45 miles away.
- Max occupancy and parking guidelines are enforced.
- Columbia STR data.
5. Fredericksburg, TX
Median residence worth: $496,229
High-performing properties: $102,000/yr (3 BR+ w/ sizzling tub + pet-friendly)
- Occupancy fee: 44%
- ADR: $362.97
- RevPAR: $158.53
Fredericksburg is a design-led, experience-driven market that caters to high-spending {couples} and small teams. Whereas common income sits round $54K, including a sizzling tub and pet-friendliness pushes that over $100K. This is likely one of the few Texas wine nation locations permitting STRs in the proper zones.
Friends are weekend warriors from Austin, San Antonio, and Houston. Assume women’ journeys, romantic getaways, and luxurious birthday weekends. Houses that lean into aesthetics and curated experiences win massive.
Regulation snapshot
- STR allow required with annual inspections.
- Zoning caps in residential areas.
- Native emergency contact inside one hour required.
- Fredericksburg STR data.
6. Joshua Tree, CA
Median residence worth: $362,049
High-performing properties: $98,200/yr (3 BR w/ sizzling tub)
- Occupancy fee: 52%
- ADR: $337.76
- RevPAR: $176.86
Joshua Tree stays the poster baby for design-focused desert STRs. The typical residence earns $58.5K/yr, however a three-bedroom with a sizzling tub and group-friendly format earns near $100K. Friends come for the nationwide park, stargazing, and non secular escapes. Many additionally search influencer-inspired structure like domes, A-frames, and micro-villas.
This market thrives on aesthetic differentiation. The visitor base contains LA creatives, {couples}, yoga retreats, and buddy teams seeking to disconnect in type.
Regulation snapshot
- STR allow by way of San Bernardino County.
- 24/7 native contact required inside 30 miles.
- Strict visitor caps and promoting guidelines.
- Joshua Tree STR information.
7. Pensacola, FL
Median residence worth: $257,567
High-performing properties: $100,000+/yr (4 BR w/ pool and pet-friendly)
- Occupancy fee: 60%
- ADR: $328.70
- RevPAR: $197.92
Pensacola is likely one of the most substantial worth performs on the Gulf Coast, providing low buy-in costs and top-tier income development. Whereas the typical STR earns round $58K yearly, bigger properties with a pool and pet-friendly setup can push into six figures. Friends embrace beach-going households, navy guests, and snowbirds looking for a warm-weather escape.
High submarkets like Pensacola Seaside, Navarre Seaside, and Perdido Key provide excessive demand and relaxed vibes with robust occupancy charges. With rising ADRs, Pensacola combines affordability with upside, primarily for buyers targeted on long-term appreciation and powerful short-term returns.
Regulation snapshot
- Registration is required for all STRs.
- Limits on the variety of company and vehicles.
- Native contact required for emergency response.
- Pensacola STR data.
8. Seaside, OR
Median residence worth: $481,317
High-performing properties: $81,000/yr (sizzling tub property)
- Occupancy fee: 58%
- ADR: $328.81
- RevPAR: $191.48
Seaside and neighboring Cannon Seaside stay coastal Oregon’s greatest STR areas. The typical property earns $60.8K, however sizzling tubs enhance income by over $20K. Friends are a mixture of Portlanders, nature lovers, and households looking for mild-weather getaways.
The panorama favors scenic escapes, walkable downtowns, and seaside proximity. Seasonality is decrease right here, so returns are secure throughout the yr.
Regulation snapshot
- STR allow and inspection required.
- Native contact in Clatsop County required.
- Max occupancy guidelines enforced.
- Seaside STR data.
9. Savannah, Ga
Median residence worth: $322,222
High-performing properties: $124,000 (4+ bed room, pool, pet pleasant)
- Occupancy fee: 59%
- ADR: $328.57
- RevPAR: $195.27
Savannah presents robust ADR and occupancy, however income development has plateaued. The typical STR earns $63K/yr. Friends go to for weddings, meals and tradition, ghost excursions, and historic appeal. Finest bets are in White Marsh and Isle of Hope, the place properties cater to small teams and marriage ceremony events. As is typical, having a pool and being pet-friendly are large promoting factors on this space.
Regulation snapshot
- STR certificates required by the town.
- Non-owner STRs capped by zone.
- Native contact required.
- Savannah STR data.
10. Houston, TX
Median residence worth: $267,854
High-performing properties: $100,800/yr (5 BR w/ pool)
- Occupancy fee: 51%
- ADR: $608.57
- RevPAR: $312.32
Houston may not be the primary metropolis you consider for STRs, but it surely’s one of many highest-yielding city markets within the nation for the correct of property. A five-bedroom residence close to downtown with a pool can prime $100K/yr. Friends embrace enterprise vacationers, medical sufferers (MD Anderson), sports activities followers, and event-goers.
High submarkets embrace Houston Heights, Downtown, and La Porte. Pet-friendly properties earn 13% to 25% extra. Regulation is mild however altering; the town handed its first STR ordinance in 2025, requiring registration by 2026.
Regulation snapshot
- STR registration and a $275 charge are required (beginning in 2026).
- Native contact and security posting necessities.
- Noise/occasion use restrictions.
- Houston STR ordinance overview.
Remaining Ideas
Simply because these markets have robust potential doesn’t imply the proper deal will seem the primary day you begin wanting. The local weather continues to be aggressive. Rates of interest are excessive, and plenty of sellers are pricing prefer it’s 2022.
However that’s no cause to sit down on the sidelines. Good offers are on the market. The bottom line is staying affected person, doing the reps, and understanding your numbers.
You wish to acknowledge a strong alternative when it hits the market since you’ve already spent hours learning the realm. Perceive the rules in and out. Know which submarkets to look at. Construct relationships with a trusted agent and lender, so that you’re prepared to maneuver when the proper one seems.
When you’re chasing a sound worth deal, be ready to place some cash into the property. A turnkey short-term rental often prices extra, however that could be the proper path, relying in your targets. Actual property is versatile like that. Your technique ought to mirror the place you wish to be 5, 10, and even 20 years from now.
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