Brief-term rental investing isn’t about grabbing the most cost effective fixer-upper and hoping friends magically seem. It’s about selecting the best markets with robust demand, versatile guidelines, and the potential to push income previous six figures. In locations the place scorching tubs and pet-friendliness transfer the needle, the distinction between a dud and a standout typically comes all the way 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 consists of insights on the kind of vacationers it attracts, what makes it particular, and the way a lot you may realistically earn. We pulled median residence costs from Zillow as of Could 2025 that can assist you body expectations.
Simply bear in mind: Median means center. In case you goal for top-tier revenue, count on to purchase an above-average property. That additional funding is commonly what unlocks the intense money movement. I listing the present STR rules obtainable on-line for every market, and each investor ought to make sure you totally perceive these earlier than severely investing in a property anyplace.
1. Lancaster, PA
Median residence value: $360,383
High-performing properties: $120,000/yr (3 BR+, scorching tub, pet-friendly)
- Occupancy charge: 56%
- ADR: $212.57
- RevPAR: $119.46
Lancaster is likely one of the most ignored STR alternatives within the Northeast. Whereas the common itemizing brings in simply over $38K, properties that mix the right format with facilities like a scorching tub and pet-friendliness can attain $120K yearly. Visitors are usually households, {couples}, and weekenders from close by metros like Philly, Baltimore, and D.C., visiting Amish Nation, exploring vintage outlets, and attending seasonal gala’s.
Submarkets like Christiana and Conestoga supply rural allure with STR-friendly zoning and comparatively low competitors. Income progress and occupancy are climbing steadily, and with a stable ADR and growing demand, Lancaster affords the most effective ROI tales within the area.
Regulation snapshot
- STR registration is required in permitted zoning districts.
- Native 24/7 contact required (use your cleaner or helpful individual when you ask me *shrug*)
- Security inspections obligatory
- Lancaster STR information
2. Panama Metropolis Seashore, FL
Median residence value: $416,972
High-performing properties: $110,000/yr (4 BR w/ scorching tub + pet-friendly)
- Occupancy charge: 57%
- ADR: $319.21
- RevPAR: $181.65
Panama Metropolis Seashore has gone from spring break capital to a family-friendly coastal STR powerhouse. Whereas the common residence brings in $52.7K, sensible operators who mix a four-bedroom format with a pool, scorching tub, and pet-friendly entry can attain six figures. Visitors listed here are principally households and multigenerational vacationers coming for the seashore, state parks, and water actions. Bahama Seashore and El Centro Seashore 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 precise combo of facilities and licensing in place, Panama Metropolis Seashore delivers distinctive money movement for a sub-$500K funding.
Regulation snapshot
- STR license is required from town and state.
- Native contact required inside half-hour.
- The license quantity should seem in all listings.
- Panama Metropolis Seashore STR information.
3. Logan, OH
Median residence value: $242,034
High-performing properties: $106,000/yr (4-BR residence)
- Occupancy charge: 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, mountaineering teams, and {couples} on romantic escapes. The common STR earns $64K/yr, and a four-bedroom residence simply clears $100K. ADRs are robust because of the world’s rural allure and restricted high-quality lodging.
Visitors in Logan are in search of peace, seclusion, and nature-integrated experiences. Assume cabins, scorching tubs beneath the celebrities, and fireplace pits. Listings have surged by 13%, however income progress continues to be climbing, displaying that the market is way 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 value: $232,153
High-performing properties: $108,000/yr (5 BR w/ pool)
- Occupancy charge: 55%
- ADR: $565.67
- RevPAR: $314.74
Columbia is quietly the most effective worth STR markets within the Southeast. With median property costs simply above $230K and high-yielding five-bedroom houses producing $94K to $108K, the numbers pencil out quick. Add a pool, and also you’re nicely into six-figure gross income territory. The visitor base is a mixture of college guests, army households (Fort Jackson), and road-trippers between Atlanta and Charleston.
Demand is rising sooner than provide (10% vs. 8%), and the market has robust seasonality and income progress components. High submarkets embody 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 information.
5. Fredericksburg, TX
Median residence value: $496,229
High-performing properties: $102,000/yr (3 BR+ w/ scorching tub + pet-friendly)
- Occupancy charge: 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 scorching tub and pet-friendliness pushes that over $100K. This is likely one of the few Texas wine nation locations permitting STRs in the precise zones.
Visitors are weekend warriors from Austin, San Antonio, and Houston. Assume ladies’ 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 information.
6. Joshua Tree, CA
Median residence value: $362,049
High-performing properties: $98,200/yr (3 BR w/ scorching tub)
- Occupancy charge: 52%
- ADR: $337.76
- RevPAR: $176.86
Joshua Tree stays the poster little one for design-focused desert STRs. The common residence earns $58.5K/yr, however a three-bedroom with a scorching tub and group-friendly format earns near $100K. Visitors 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 consists of LA creatives, {couples}, yoga retreats, and pal teams trying to disconnect in type.
Regulation snapshot
- STR allow via 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 value: $257,567
High-performing properties: $100,000+/yr (4 BR w/ pool and pet-friendly)
- Occupancy charge: 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 progress. Whereas the common STR earns round $58K yearly, bigger properties with a pool and pet-friendly setup can push into six figures. Visitors embody beach-going households, army guests, and snowbirds looking for a warm-weather escape.
High submarkets like Pensacola Seashore, Navarre Seashore, and Perdido Key supply excessive demand and relaxed vibes with robust occupancy charges. With rising ADRs, Pensacola combines affordability with upside, primarily for traders centered on long-term appreciation and robust short-term returns.
Regulation snapshot
- Registration is required for all STRs.
- Limits on the variety of friends and automobiles.
- Native contact required for emergency response.
- Pensacola STR information.
8. Seaside, OR
Median residence value: $481,317
High-performing properties: $81,000/yr (scorching tub property)
- Occupancy charge: 58%
- ADR: $328.81
- RevPAR: $191.48
Seaside and neighboring Cannon Seashore stay coastal Oregon’s finest STR areas. The common property earns $60.8K, however scorching tubs increase income by over $20K. Visitors are a mixture of Portlanders, nature lovers, and households looking for mild-weather getaways.
The panorama favors scenic escapes, walkable downtowns, and seashore proximity. Seasonality is decrease right here, so returns are steady throughout the yr.
Regulation snapshot
- STR allow and inspection required.
- Native contact in Clatsop County required.
- Max occupancy guidelines enforced.
- Seaside STR information.
9. Savannah, Ga
Median residence value: $322,222
High-performing properties: $124,000 (4+ bed room, pool, pet pleasant)
- Occupancy charge: 59%
- ADR: $328.57
- RevPAR: $195.27
Savannah affords robust ADR and occupancy, however income progress has plateaued. The common STR earns $63K/yr. Visitors go to for weddings, meals and tradition, ghost excursions, and historic allure. Finest bets are in White Marsh and Isle of Hope, the place properties cater to small teams and wedding 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 town.
- Non-owner STRs capped by zone.
- Native contact required.
- Savannah STR information.
10. Houston, TX
Median residence value: $267,854
High-performing properties: $100,800/yr (5 BR w/ pool)
- Occupancy charge: 51%
- ADR: $608.57
- RevPAR: $312.32
Houston won’t be the primary metropolis you consider for STRs, nevertheless it’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. Visitors embody enterprise vacationers, medical sufferers (MD Anderson), sports activities followers, and event-goers.
High submarkets embody Houston Heights, Downtown, and La Porte. Pet-friendly houses earn 13% to 25% extra. Regulation is gentle however altering; town handed its first STR ordinance in 2025, requiring registration by 2026.
Regulation snapshot
- STR registration and a $275 price 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 right deal will seem the primary day you begin trying. The local weather continues to be aggressive. Rates of interest are excessive, and lots of sellers are pricing prefer it’s 2022.
However that’s no purpose to sit down on the sidelines. Good offers are on the market. The secret is staying affected person, doing the reps, and realizing your numbers.
You wish to acknowledge a stable alternative when it hits the market since you’ve already spent hours finding out the world. Perceive the rules in and out. Know which submarkets to observe. Construct relationships with a trusted agent and lender, so that you’re prepared to maneuver when the precise one seems.
In case you’re chasing a legitimate worth deal, be ready to place some cash into the property. A turnkey short-term rental normally prices extra, however that is likely to be the precise 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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