In This Article
Quick-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 sturdy 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 checklist ranks the highest 10 STR markets underneath $500K based mostly on income potential, visitor demand, investability, and the ability 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’ll be able to realistically earn. We pulled median residence costs from Zillow as of Might 2025 that can assist you body expectations.
Simply keep in mind: Median means center. When you purpose for top-tier revenue, anticipate to purchase an above-average property. That additional funding is usually what unlocks the intense money move. I checklist the present STR rules out there on-line for every market, and each investor ought to you’ll want to totally perceive these earlier than severely investing in a property anyplace.
1. Lancaster, PA
Median residence value: $360,383
High-performing properties: $120,000/12 months (3 BR+, sizzling tub, pet-friendly)
Occupancy charge: 56%
ADR: $212.57
RevPAR: $119.46
Lancaster is among the most missed STR alternatives within the Northeast. Whereas the typical itemizing brings in simply over $38K, properties that mix the right structure with facilities like a sizzling tub and pet-friendliness can attain $120K yearly. Company 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 allure with STR-friendly zoning and comparatively low competitors. Income progress and occupancy are climbing steadily, and with a strong ADR and growing demand, Lancaster provides among the finest ROI tales within the area.
Regulation snapshot
STR registration is required in accepted zoning districts.
Native 24/7 contact required (use your cleaner or useful individual in case you ask me *shrug*)
Security inspections necessary
Lancaster STR information
2. Panama Metropolis Seashore, FL
Median residence value: $416,972
High-performing properties: $110,000/12 months (4 BR w/ sizzling 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 typical residence brings in $52.7K, sensible operators who mix a four-bedroom structure with a pool, sizzling tub, and pet-friendly entry can attain six figures. Company listed here are largely households and multigenerational vacationers coming for the seashore, state parks, and water actions. Bahama Seashore and El Centro Seashore are high submarkets for his or her walkability and extra relaxed regulatory enforcement.
This market thrives on quantity and facilities. ADRs have risen 14% 12 months over 12 months, signaling pricing power regardless of elevated stock. With the precise combo of facilities and licensing in place, Panama Metropolis Seashore delivers distinctive money move 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.
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3. Logan, OH
Median residence value: $242,034
High-performing properties: $106,000/12 months (4-BR residence)
Occupancy charge: 54%
ADR: $353.21
RevPAR: $189.06
Logan is the gateway to Hocking Hills, some 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 common STR earns $64K/12 months, and a four-bedroom residence simply clears $100K. ADRs are sturdy due to the world’s rural allure and restricted high-quality lodging.
Company in Logan are on the lookout for peace, seclusion, and nature-integrated experiences. Suppose cabins, sizzling tubs underneath the celebs, and hearth pits. Listings have surged by 13%, however income progress remains to be climbing, displaying that the market is much from saturated.
Regulation snapshot
Registration varies by county.
Lodging tax assortment is required.
Septic and hearth code necessities for brand new builds.
Logan STR rules.
4. Columbia, SC
Median residence value: $232,153
High-performing properties: $108,000/12 months (5 BR w/ pool)
Occupancy charge: 55%
ADR: $565.67
RevPAR: $314.74
Columbia is quietly among the finest 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 nicely 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 sturdy 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: $102,000/12 months (3 BR+ w/ sizzling 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 sizzling tub and pet-friendliness pushes that over $100K. This is among the few Texas wine nation locations permitting STRs in the precise zones.
Company are weekend warriors from Austin, San Antonio, and Houston. Suppose women’ journeys, romantic getaways, and luxurious birthday weekends. Properties 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: $98,200/12 months (3 BR w/ sizzling tub)
Occupancy charge: 52%
ADR: $337.76
RevPAR: $176.86
Joshua Tree stays the poster youngster for design-focused desert STRs. The common residence earns $58.5K/12 months, however a three-bedroom with a sizzling tub and group-friendly structure earns near $100K. Company 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 good friend teams seeking to disconnect in model.
Regulation snapshot
STR allow by 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+/12 months (4 BR w/ pool and pet-friendly)
Occupancy charge: 60%
ADR: $328.70
RevPAR: $197.92
Pensacola is among the most substantial worth performs on the Gulf Coast, providing low buy-in costs and top-tier income progress. Whereas the typical STR earns round $58K yearly, bigger properties with a pool and pet-friendly setup can push into six figures. Company embody beach-going households, navy guests, and snowbirds in search of a warm-weather escape.
High submarkets like Pensacola Seashore, Navarre Seashore, and Perdido Key provide excessive demand and relaxed vibes with sturdy 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 information.
8. Seaside, OR
Median residence value: $481,317
High-performing properties: $81,000/12 months (sizzling 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 sizzling tubs increase income by over $20K. Company are a mixture of Portlanders, nature lovers, and households in search of mild-weather getaways.
The panorama favors scenic escapes, walkable downtowns, and seashore proximity. Seasonality is decrease right here, so returns are steady throughout the 12 months.
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 provides sturdy ADR and occupancy, however income progress has plateaued. The common STR earns $63K/12 months. Company go to for weddings, meals and tradition, ghost excursions, and historic allure. Greatest 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 huge 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: $100,800/12 months (5 BR w/ pool)
Occupancy charge: 51%
ADR: $608.57
RevPAR: $312.32
Houston may not be the primary metropolis you consider for STRs, nevertheless it’s one of many highest-yielding city markets within the nation for the proper of property. A five-bedroom residence close to downtown with a pool can high $100K/12 months. Company embody enterprise vacationers, medical sufferers (MD Anderson), sports activities followers, and event-goers.
High submarkets embody Houston Heights, Downtown, and La Porte. Pet-friendly properties 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 payment are required (beginning in 2026).
Native contact and security posting necessities.
Noise/occasion use restrictions.
Houston STR ordinance overview.
Last Ideas
Simply because these markets have sturdy potential doesn’t imply the proper deal will seem the primary day you begin trying. The local weather remains to be aggressive. Rates of interest are excessive, and plenty 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 need to acknowledge a strong alternative when it hits the market since you’ve already spent hours finding out the world. Perceive the rules inside and outside. Know which submarkets to look at. Construct relationships with a trusted agent and lender, so that you’re prepared to maneuver when the precise 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 may be the precise path, relying in your targets. Actual property is versatile like that. Your technique ought to replicate the place you need to be 5, 10, and even 20 years from now.
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