{"id":180686,"date":"2025-01-27T15:47:37","date_gmt":"2025-01-27T22:47:37","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=180686"},"modified":"2025-01-27T15:47:40","modified_gmt":"2025-01-27T22:47:40","slug":"best-short-term-rental-markets-2025","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/best-short-term-rental-markets-2025","title":{"rendered":"The 5 Best Housing Markets For Short-Term Rentals in 2025"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">AirDNA recently released its annual report on the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.airdna.co\/best-places-to-invest-in-vacation-rentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Best Places to Invest in Vacation Rentals<\/span><\/a><span data-preserver-spaces=\"true\">, providing valuable insights into the markets investors should target. <\/span><span data-preserver-spaces=\"true\">While the list highlights several high-performing areas, diving deeper into the data reveals trends that should give both optimism and caution <\/span><span data-preserver-spaces=\"true\">to real estate investors<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Risk of Oversaturation<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">A key metric in this report is listing growth. Some of these markets have been constantly highlighted and even made the list with mind-boggling growth.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">My concern is whether these markets can sustain the availability of rooms even if their demand is rising. In markets with exceptionally high listing growth, it often signals a flood of new investors chasing potential profits. While this may reflect a thriving market, it can also lead to oversaturation. Too many listings in a single area can drive down occupancy rates and even inflate property prices, leaving investors at risk of overpaying for assets that can\u2019t sustain long-term profitability.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why RevPAR Matters<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">For me, the standout metric is revenue per available rental (RevPAR). <\/span><span data-preserver-spaces=\"true\">RevPAR combines occupancy and average daily rates (ADR)<\/span><span data-preserver-spaces=\"true\">, showing<\/span><span data-preserver-spaces=\"true\"> how much a property could earn.<\/span><span data-preserver-spaces=\"true\"> It reflects actual demand, providing a clearer picture of what investors can expect. Markets with strong RevPAR growth demonstrate that guests are booking at favorable rates.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Yield %: The Investment Litmus Test<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Another critical metric is yield percentage, calculated by dividing annual revenue by the property\u2019s median home price. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> provides a tangible sense of the potential return on investment.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">High-yield markets are particularly appealing for investors looking to maximize returns without overleveraging. These blanket averages can be tricky, as sometimes the average properties in the area do not compete with even the average revenue earners. <\/span><span data-preserver-spaces=\"true\">You may purchase a property that seems like a steal but quickly realize how much money you will need to put into it <\/span><span data-preserver-spaces=\"true\">just<\/span><span data-preserver-spaces=\"true\"> to compete.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">My Top Five Markets<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Based on the data and my calculations, here are my top five markets from AirDNA\u2019s report, ranked in order:<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">5. Kansas City, Missouri<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $151.25<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR % increase (2023 to 2024): <\/span><\/strong><span data-preserver-spaces=\"true\">13.8%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate:<\/span><\/strong><span data-preserver-spaces=\"true\"> 59.7%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">ADR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $253.47<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual potential revenue: <\/span><\/strong><span data-preserver-spaces=\"true\">$44,142<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings (as of 1\/24\/25): <\/span><\/strong><span data-preserver-spaces=\"true\">4,900<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Listing growth (2023 to 2024):<\/span><\/strong><span data-preserver-spaces=\"true\"> -0.4%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield %: <\/span><\/strong><span data-preserver-spaces=\"true\">12.1%<\/span><\/li>\n<\/ul>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Kansas%20City%2C%20MO-KS\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Kansas City<\/span><\/a><span data-preserver-spaces=\"true\"> offers a solid balance between affordability and potential profitability. This city attracts consistent demand, particularly from travelers interested in its growing culinary scene, cultural attractions, and sports events.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The ADR makes KC <\/span><span data-preserver-spaces=\"true\">an<\/span><span data-preserver-spaces=\"true\"> appealing <\/span><span data-preserver-spaces=\"true\">option<\/span><span data-preserver-spaces=\"true\"> for budget-conscious tourists, while the active listing count has declined.<\/span> <span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> could be due to tightening regulations in the area, which <\/span><span data-preserver-spaces=\"true\">should be noted<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">4. Montgomery, Alabama<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $102.99<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR % increase (2023 to 2024): <\/span><\/strong><span data-preserver-spaces=\"true\">14.5%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate: <\/span><\/strong><span data-preserver-spaces=\"true\">54.6%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">ADR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $188.69<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual potential revenue: <\/span><\/strong><span data-preserver-spaces=\"true\">$32,998<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings (as of 1\/24\/25):<\/span><\/strong><span data-preserver-spaces=\"true\"> 867<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Listing growth (2023 to 2024): <\/span><\/strong><span data-preserver-spaces=\"true\">28.9%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield %: <\/span><\/strong><span data-preserver-spaces=\"true\">11.3%<\/span><\/li>\n<\/ul>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Montgomery%2C%20AL\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Montgomery<\/span><\/a><span data-preserver-spaces=\"true\"> stands out for its affordability in terms of real estate and travel. The city\u2019s metrics reflect moderate demand, primarily fueled by its rich history and role as a cultural hub.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With a moderate ADR and less than 1,000 active listings, there\u2019s less competition compared to larger cities, making it an attractive choice for investors looking to break into smaller, underserved markets. The annual revenue suggests a decent yield when paired with Montgomery\u2019s relatively low housing costs. The extremely high listing growth is staggering and could disappoint new investors with their occupancy levels.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">3. Tampa, Florida<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $176.10<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR % increase (2023 to 2024):<\/span><\/strong><span data-preserver-spaces=\"true\"> 13.7%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate: <\/span><\/strong><span data-preserver-spaces=\"true\">62.1%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">ADR: <\/span><\/strong><span data-preserver-spaces=\"true\">$283.72<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual potential revenue:<\/span><\/strong><span data-preserver-spaces=\"true\"> $51,587<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings (as of 1\/24\/25):<\/span><\/strong><span data-preserver-spaces=\"true\"> 12,200<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Listing growth (2023 to 2024):<\/span><\/strong><span data-preserver-spaces=\"true\"> 3.7%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield %: <\/span><\/strong><span data-preserver-spaces=\"true\">9.3%<\/span><\/li>\n<\/ul>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Tampa-St.%20Petersburg-Clearwater%2C%20FL\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Tampa<\/span><\/a><span data-preserver-spaces=\"true\"> is a vacation hot spot, offering a mix of beaches, cultural attractions, and year-round sunshine. <\/span><span data-preserver-spaces=\"true\">It has a strong demand that<\/span><span data-preserver-spaces=\"true\"> supports its relatively high ADR.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, the 12,000+ active listings signal heavy competition, meaning only well-maintained, strategically priced properties will thrive here. The annual revenue makes Tampa a higher-reward market, but investors should be cautious about oversaturation.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Columbus, Ohio<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $147.34<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR % increase (2023 to 2024):<\/span><\/strong><span data-preserver-spaces=\"true\"> 14%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate:<\/span><\/strong><span data-preserver-spaces=\"true\"> 54.4%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">ADR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $270.88<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual potential revenue:<\/span><\/strong><span data-preserver-spaces=\"true\"> $39,021<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings (as of 1\/24\/25):<\/span><\/strong><span data-preserver-spaces=\"true\"> 5,400<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Listing growth (2023 to 2024):<\/span><\/strong><span data-preserver-spaces=\"true\"> 17.8%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield %:<\/span><\/strong><span data-preserver-spaces=\"true\"> 10.4%<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">As a rising urban center, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets?market=Columbus%2C%20OH\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Columbus<\/span><\/a><span data-preserver-spaces=\"true\"> is gaining the attention of tourists and business travelers. The city boasts balanced demand throughout the year with a solid ADR. It was a white-hot spot last year, and a higher listing growth shows it could be heading toward dreaded oversaturation territory in the home of the Buckeyes. Columbus is <\/span><span data-preserver-spaces=\"true\">particularly attractive<\/span><span data-preserver-spaces=\"true\"> for those looking to diversify their portfolios in a market with low barriers to entry.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Page, Arizona<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">RevPAR: <\/span><\/strong><span data-preserver-spaces=\"true\">$188.72<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR % increase (2023 to 2024): <\/span><\/strong><span data-preserver-spaces=\"true\">11.2%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate:<\/span><\/strong><span data-preserver-spaces=\"true\"> 62.1%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">ADR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $303.96<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual potential revenue:<\/span><\/strong><span data-preserver-spaces=\"true\"> $47,243<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings (as of 1\/24\/25): <\/span><\/strong><span data-preserver-spaces=\"true\">564<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Listing growth (2023 to 2024): <\/span><\/strong><span data-preserver-spaces=\"true\">9.7%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield %:<\/span><\/strong><span data-preserver-spaces=\"true\"> 11%<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Page, located near iconic landmarks like Lake Powell and Antelope Canyon, is a top-tier destination for nature enthusiasts and photographers. The city can attract high-value travelers with a higher RevPAR and ADR than most <\/span><span data-preserver-spaces=\"true\">on the list<\/span><span data-preserver-spaces=\"true\">. Its 564 active listings indicate lower competition than urban markets, while the $47,243 annual potential revenue solidifies its place as one of the most profitable STR markets. Investors targeting unique, adventure-focused experiences will find Page an exceptional choice.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Balancing Opportunity and Risk<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">While AirDNA\u2019s report highlights promising markets, <\/span><span data-preserver-spaces=\"true\">weighing<\/span><span data-preserver-spaces=\"true\"> metrics like RevPAR and yield % against risks like listing growth <\/span><span data-preserver-spaces=\"true\">is essential<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Markets with strong demand and controlled supply offer the best opportunities, but oversaturated areas could leave investors scrambling to compete.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">By focusing on actionable metrics and staying disciplined with <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-analyze-a-market-for-short-term-rentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">market analysis<\/span><\/a><span data-preserver-spaces=\"true\">, investors can position themselves for success, even in rapidly changing markets.<\/span><\/p>\n\n\n\n<div id=\"hero-block_278134f9201d3881c635d8c4493ce296\" class=\"first:mt-0 hero-block py-4  alignfull   has-background has-slate-50-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Momentum 2025: Live Virtual Summit<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">What if you could fast-track your investing journey with battle-tested strategies from investors who&#8217;ve been in the trenches? 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Just actionable blueprints from BiggerPockets experts who&#8217;ve built serious wealth through real estate.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-font-size is-style-theme\" style=\"font-size:16px\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/get.biggerpockets.com\/momentum2025\/?_gl=1*ut5ix5*_gcl_au*MTM2MDI1Njk3MC4xNzM1ODMyODI3*_ga*MTA1MjM5MjMwMS4xNzI1NjMzNDY2*_ga_243XVN497V*MTczNzU1NzYxMi41MjAuMS4xNzM3NTU4NDMzLjE5LjAuMA..\" target=\"_blank\">Register Now<\/a><\/div>\n<\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  shadow-xl rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/01\/Momentum-2025-Summit-Hero-Banner-1142-x-1100-px-1.png\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>AirDNA recently released its annual report on the Best Places to Invest in Vacation Rentals, providing valuable insights into the markets investors should target. While the list highlights several high-performing [&hellip;]<\/p>\n","protected":false},"author":613755,"featured_media":180688,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7271],"tags":[],"class_list":["post-180686","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-short-term-rentals"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/180686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613755"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=180686"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/180686\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/180688"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=180686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=180686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=180686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}