{"id":181631,"date":"2025-03-14T14:23:52","date_gmt":"2025-03-14T20:23:52","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=181631"},"modified":"2025-03-14T14:25:54","modified_gmt":"2025-03-14T20:25:54","slug":"do-zillows-top-10-housing-markets-work-for-airbnbs","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/do-zillows-top-10-housing-markets-work-for-airbnbs","title":{"rendered":"Do Zillow\u2019s Top 10 Housing Markets Work For Airbnbs?"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Every year, Zillow releases its list of the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/learn\/hottest-housing-markets\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">top U.S. housing markets for 2025<\/span><\/a><span data-preserver-spaces=\"true\"> based on projected home value growth, job trends, and buyer competition. For traditional real estate investors, these cities might seem like gold mines. But for <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/short-term-rental-investing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">short-term rental<\/span><\/a><span data-preserver-spaces=\"true\"> (STR) investors, the questions are entirely different:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Are STRs legal and sustainable in these cities?<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Will demand hold strong despite regulation risks?<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Can you <\/span><span data-preserver-spaces=\"true\">actually<\/span><span data-preserver-spaces=\"true\"> generate positive <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\">, or will home prices <\/span><span data-preserver-spaces=\"true\">eat<\/span><span data-preserver-spaces=\"true\"> your profits?<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Many of Zillow\u2019s picks aren\u2019t vacation rental hot spots\u2014they\u2019re growing, high-demand residential markets where regulations, taxes, and competition can complicate STR investing. So, do any of them work for STRs?<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How Zillow Chose These Markets<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Zillow\u2019s 2025 hottest markets were ranked<\/span><span data-preserver-spaces=\"true\"> based on:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Home value growth: <\/span><\/strong><span data-preserver-spaces=\"true\">Projected appreciation for 2025<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Owner-occupied household growth:<\/span><\/strong><span data-preserver-spaces=\"true\"> More permanent residents moving in<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Job growth vs. new construction:<\/span><\/strong><span data-preserver-spaces=\"true\"> Demand for housing outpacing new builds<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Speed of home sales:<\/span><\/strong><span data-preserver-spaces=\"true\"> Markets where homes sell the fastest<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">These factors signal strong home <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-appreciation-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">appreciation<\/span><\/a><span data-preserver-spaces=\"true\"> and buyer demand, which is excellent for <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-flip-houses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">house flippers<\/span><\/a><span data-preserver-spaces=\"true\"> or long-term landlords.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, STRs\u2019 success relies on entirely different factors: occupancy rates, seasonality, legal restrictions, and affordability. We use <\/span><span data-preserver-spaces=\"true\">data from<\/span><span data-preserver-spaces=\"true\"> AirDNA and Zillow (data from March 13, 2025)&nbsp; to develop our ranking system and compare it to other markets.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I refer to a \u201cregulation overview,\u201d which links to each respective city&#8217;s online regulation information and provides my overview of how strict <\/span><span data-preserver-spaces=\"true\">its regulations may be compared<\/span><span data-preserver-spaces=\"true\"> to those of other markets. <\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Light = STR-friendly: <\/span><\/strong><span data-preserver-spaces=\"true\">A simple permit is the highest regulation.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Moderate = Proceed with caution: <\/span><\/strong><span data-preserver-spaces=\"true\">You can do STRs, but it becomes more difficult with cap limits, permits, and restrictions, and it could switch at any moment.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Heavy = Strong opposition to STRs:<\/span><\/strong><span data-preserver-spaces=\"true\"> Higher fees and more requirements to be allowed to operate.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Without <\/span><span data-preserver-spaces=\"true\">any<\/span><span data-preserver-spaces=\"true\"> further ado, here\u2019s a breakdown of Zillow\u2019s top 10 markets and their viability as STRs.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Buffalo, NY<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA score:<\/span><\/strong><span data-preserver-spaces=\"true\"> 41\/100 (Low)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $29,500 (+11% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR): <\/span><\/strong><span data-preserver-spaces=\"true\">$186.5<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate:<\/span><\/strong><span data-preserver-spaces=\"true\"> 51%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $99 (+10% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings:<\/span><\/strong><span data-preserver-spaces=\"true\"> 1,273 (+5% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/17222\/buffalo-ny\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">: <\/span><\/strong><span data-preserver-spaces=\"true\">$224,133 (+5.5% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield:<\/span><\/strong><span data-preserver-spaces=\"true\"> 14.3%<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview: <\/span><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.buffalony.gov\/1696\/Short-Term-Rental-Dwelling-Code-and-Appl\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Moderate<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Potential fallback plan:<\/span><\/strong><span data-preserver-spaces=\"true\"> Could work as a long-term rental if STR fails.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Tourist demand:<\/span><\/strong><span data-preserver-spaces=\"true\"> Proximity to Niagara Falls provides some demand.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Affordability: <\/span><\/strong><span data-preserver-spaces=\"true\">Home prices are reasonable, with a solid yield of 14.3%.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Seasonality:<\/span><\/strong><span data-preserver-spaces=\"true\"> Likely impacted by colder months, reducing occupancy.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Regulatory hurdles:<\/span><\/strong><span data-preserver-spaces=\"true\"> Permit requirements and registration add friction for investors.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Booming market: <\/span><\/strong><span data-preserver-spaces=\"true\">As one of Zillow\u2019s top markets, competition is rising.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final verdict: C+<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/buffalo-cheektowaga-ny?city=Buffalo&amp;state=NY\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Buffalo<\/span><\/a><span data-preserver-spaces=\"true\"> presents moderate STR potential due to its reasonable home prices and yield, but regulatory constraints and seasonality risks hold it back. It may work better as a hybrid STR plus mid-term rental (MTR) strategy catering to traveling professionals, nurses, or college renters.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Indianapolis, IN<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA market score:<\/span><\/strong><span data-preserver-spaces=\"true\"> 83\/100 (Good)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR): <\/span><\/strong><span data-preserver-spaces=\"true\">$28.7K (+12% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate: <\/span><\/strong><span data-preserver-spaces=\"true\">48% (+1% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR): <\/span><\/strong><span data-preserver-spaces=\"true\">$200.57 (+11% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $98.58 (+13% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings: <\/span><\/strong><span data-preserver-spaces=\"true\">4,026 (+22% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/32149\/indianapolis-in\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">:<\/span><\/strong><span data-preserver-spaces=\"true\"> $222,887 (+3.6% YOY)<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview:<\/span><\/strong> <a class=\"editor-rtfLink\" href=\"https:\/\/www.indy.gov\/activity\/landlord-registration-program\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">High<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">High investability AirDNA score (77): <\/span><\/strong><span data-preserver-spaces=\"true\">Strong market fundamentals for real estate investment. This metric compares the cost of homes using Zillow home value data to the average income of full-time short-term rentals on Airbnb and Vrbo.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Revenue growth (92):<\/span><\/strong><span data-preserver-spaces=\"true\"> One of the highest-growing revenue markets.<\/span><span data-preserver-spaces=\"true\"> We calculate this by looking at the change in year-over-year RevPAR for properties that received bookings in both periods.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">ADR increase (+11% YOY):<\/span><\/strong><span data-preserver-spaces=\"true\"> Daily rates are rising, suggesting more substantial host pricing power.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Oversaturation risk:<\/span><\/strong><span data-preserver-spaces=\"true\"> Listings grew 22% YOY, meaning competition could outpace demand.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Tourism drawbacks: <\/span><\/strong><span data-preserver-spaces=\"true\">No standout tourist attractions that drive year-round demand unless you are a race car enthusiast.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final verdict: C-<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/indianapolis-carmel-anderson-in?city=Indianapolis&amp;state=IN\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Indianapolis<\/span><\/a><span data-preserver-spaces=\"true\"> has strong investment fundamentals and revenue growth, but strong listing growth and weak tourism appeal make STRs a high-risk play. The market could become oversaturated, making occupancy and pricing volatile. This market is best suited for mid-term rentals (MTRs) targeting traveling professionals, sports events, and conventions.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Providence, RI&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA market score:<\/span><\/strong><span data-preserver-spaces=\"true\"> 21\/100 (Weak)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $47.4K (+5% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate: <\/span><\/strong><span data-preserver-spaces=\"true\">59%<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $314.50 (-1% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $189.69 (+3% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings: <\/span><\/strong><span data-preserver-spaces=\"true\">2,016 (+4% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/26637\/providence-ri\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">:<\/span><\/strong><span data-preserver-spaces=\"true\"> $403,947 (+6.3% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Regulation overview:<\/span><\/strong><span data-preserver-spaces=\"true\"> High restrictions and zoning limitations<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview: <\/span><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.providenceri.gov\/planning\/short-term-rentals\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Moderate to high<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">High revenue potential: <\/span><\/strong><span data-preserver-spaces=\"true\">One of the highest ADRs in this ranking ($314.50) and solid annual revenue ($47.4K).<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Growing rental demand: <\/span><\/strong><span data-preserver-spaces=\"true\">Occupancy rates are higher than <\/span><span data-preserver-spaces=\"true\">many other cities on this list<\/span><span data-preserver-spaces=\"true\">.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">High home prices: <\/span><\/strong><span data-preserver-spaces=\"true\">The median home price of $403K makes generating strong STR cash flow difficult.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Regulatory barriers: <\/span><\/strong><span data-preserver-spaces=\"true\">Strict owner-occupancy rules and zoning limits on multifamily STRs.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Seasonality and competition: <\/span><\/strong><span data-preserver-spaces=\"true\">Demand fluctuates outside of summer and academic seasons, making year-round bookings inconsistent.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final verdict: D+<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/providence-warwick-ri-ma?city=Providence&amp;state=RI\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Providence<\/span><\/a><span data-preserver-spaces=\"true\"> offers strong revenue potential for the right property type, but the high cost of entry, regulatory complexity, and seasonal fluctuations make it a risky STR investment. Investors would need a waterfront or luxury listing in a prime location to make STRs viable here. For most, the barriers to entry and inconsistent demand make this a weak STR market. Mid-term rentals (MTRs) targeting college students, professors, or corporate travelers may be a better option in this area.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Hartford, CT<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA market score: <\/span><\/strong><span data-preserver-spaces=\"true\">90\/100 (Strong)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $26.5K (+10% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate:<\/span><\/strong><span data-preserver-spaces=\"true\"> 55% (+6% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $166.64 (+3% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR: <\/span><\/strong><span data-preserver-spaces=\"true\">$93.76 (+9% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings:<\/span><\/strong><span data-preserver-spaces=\"true\"> 939 (+17% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/5071\/hartford-ct\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">:<\/span><\/strong><span data-preserver-spaces=\"true\"> $179,170 (+8.2% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield: <\/span><\/strong><span data-preserver-spaces=\"true\">14.7% (Good)<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview: <\/span><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.steadily.com\/blog\/airbnb-short-term-rental-laws-and-regulations-in-connecticut#:~:text=In%20the%20capital%20city%20of,with%20structured%20local%20zoning%20prescripts.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">High<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">High AirDNA market score (90):<\/span><\/strong><span data-preserver-spaces=\"true\"> Indicates strong demand, revenue growth, and investment potential.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Low home prices:<\/span><\/strong><span data-preserver-spaces=\"true\"> Compared to other STR markets, leading to solid cash flow potential.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue: <\/span><\/strong><span data-preserver-spaces=\"true\">For a low-cost market, it checks out, and the 14.7% yield is a strong return on investment.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Listings increase: <\/span><\/strong><span data-preserver-spaces=\"true\">At 17% year over year, this could signal oversaturation <\/span><span data-preserver-spaces=\"true\">in the near future<\/span><span data-preserver-spaces=\"true\">.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Regulatory tightening:<\/span><\/strong><span data-preserver-spaces=\"true\"> STRs will become more expensive, especially with licensing fees, zoning permits, and insurance requirements.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Verdict: C+<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/hartford-east-hartford-middletown-ct?city=Hartford&amp;state=CT\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Hartford<\/span><\/a><span data-preserver-spaces=\"true\"> offers decent STR cash flow, strong appreciation potential, and a growing rental market, but incoming regulations could make it more costly and challenging to operate legally. Investors must be diligent about zoning, permits, and compliance to avoid fines or operational shutdowns.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Given the rising competition and the potential for more restrictions, investors should carefully weigh long-term STR viability before entering the market. Mid-term rentals (MTRs) catering to professionals, traveling nurses, and students may be a safer, more stable option in this market.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Philadelphia, PA&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA market score: <\/span><\/strong><span data-preserver-spaces=\"true\">70\/100 (Moderate)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $28.6K (+15% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate:<\/span><\/strong><span data-preserver-spaces=\"true\"> 54% (+6% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $172.70 (+9% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $95.29 (+16% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings:<\/span><\/strong><span data-preserver-spaces=\"true\"> 6,747 (+3% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/13271\/philadelphia-pa\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">:<\/span><\/strong><span data-preserver-spaces=\"true\"> $218,590 (+3.9% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield:<\/span><\/strong><span data-preserver-spaces=\"true\"> 13.2% (Decent)<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview:<\/span><\/strong> <a class=\"editor-rtfLink\" href=\"https:\/\/www.phila.gov\/services\/permits-violations-licenses\/rent-or-sell-property\/rent-your-property-short-term\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Moderate to high<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Above-average tourism demand: <\/span><\/strong><span data-preserver-spaces=\"true\">Consistent year-round bookings driven by history, sports, business travel, and significant events.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Strong revenue growth: <\/span><\/strong><span data-preserver-spaces=\"true\">Annual revenue is up 15% yearly, and RevPAR is increasing by 16%.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">6,747 active listings:<\/span><\/strong><span data-preserver-spaces=\"true\"> Up 3% YOY, making it harder for new hosts to stand out.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Complicated permit process:<\/span><\/strong><span data-preserver-spaces=\"true\"> Multiple licenses and zoning approvals.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Verdict: C+<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/philadelphia-camden-wilmington-pa-nj-de-md?city=Philadelphia&amp;state=PA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Philadelphia<\/span><\/a><span data-preserver-spaces=\"true\">\u2019s short-term rental market offers strong revenue potential but comes with heavy competition, strict regulations, and tax burdens. Unique, high-end, and experience-driven properties have the best chance of success, while average listings struggle to stand out.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Investors looking at Philadelphia must <\/span><span data-preserver-spaces=\"true\">be prepared<\/span><span data-preserver-spaces=\"true\"> to navigate zoning, permits, and compliance hurdles. The hotel tax and city enforcement of regulations add costs and risks, making this a better market for premium STRs or mid-term rentals (MTRs) catering to business travelers, medical professionals, and long-term tourists.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">St. Louis, MO<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA market score: <\/span><\/strong><span data-preserver-spaces=\"true\">71\/100 (Moderate)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $29K (+7% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate:<\/span><\/strong><span data-preserver-spaces=\"true\"> 54% (+5% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $176.81 (+2% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $98.10 (+7% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings: <\/span><\/strong><span data-preserver-spaces=\"true\">3,325 (-9% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/6891\/saint-louis-mo\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">: <\/span><\/strong><span data-preserver-spaces=\"true\">$173,661 (+2.4% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield: <\/span><\/strong><span data-preserver-spaces=\"true\">16.8% (One of the best)<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview: <\/span><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.stlouis-mo.gov\/government\/departments\/public-safety\/building\/permits\/short-term-rental-permits\/index.cfm\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Moderate<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">High STR yields<\/span><span data-preserver-spaces=\"true\">:<\/span><\/strong><span data-preserver-spaces=\"true\"> These<\/span><span data-preserver-spaces=\"true\"> are at 16.8%, thanks to affordable home prices and substantial rental income.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Listings decline:<\/span><\/strong><span data-preserver-spaces=\"true\"> This number went down 9% YoY, indicating a potential reduction in competition as new regulations take effect.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">New <\/span><span data-preserver-spaces=\"true\">regulations:<\/span><\/strong><span data-preserver-spaces=\"true\"> Could slow STR investment, particularly for non-owner-occupied properties.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Two-night minimum stay requirement:<\/span><\/strong><span data-preserver-spaces=\"true\"> This could limit flexibility and reduce bookings from one-night business travelers in some areas.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Verdict: B-<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/st-louis-mo-il\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">St. Louis<\/span><\/a><span data-preserver-spaces=\"true\"> has been a top-tier cash flow market for STR investors, with low home prices, high rental yields, and steady demand. However, new regulations could make it harder for investors to enter and operate profitably in the long run.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">St. Louis remains one of the best markets for STR cash flow. Still, investors should closely watch regulatory developments and ensure their STRs comply with new permitting and enforcement measures. Those who navigate the new rules could still see strong returns, but non-owner-occupied STRs will face increasing restrictions.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Charlotte, NC<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA market score:<\/span><\/strong><span data-preserver-spaces=\"true\"> 92\/100 (Strong)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR): <\/span><\/strong><span data-preserver-spaces=\"true\">$32.1K (+14% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate:<\/span><\/strong><span data-preserver-spaces=\"true\"> 55% (+10% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR): <\/span><\/strong><span data-preserver-spaces=\"true\">$195.07 (+5% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $109.82 (+15% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings: <\/span><\/strong><span data-preserver-spaces=\"true\">4,625 (+2% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/24043\/charlotte-nc\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">:<\/span><\/strong><span data-preserver-spaces=\"true\"> $393,531 (+0.9% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield:<\/span><\/strong><span data-preserver-spaces=\"true\"> 8% (Low)<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview: <\/span><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.steadily.com\/blog\/airbnb-short-term-rental-laws-regulations-charlotte\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Moderate to high<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">High revenue growth: <\/span><\/strong><span data-preserver-spaces=\"true\">Annual revenue is up 14% YoY, and RevPAR is growing by 15%.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate: <\/span><\/strong><span data-preserver-spaces=\"true\">Increasing, suggesting strong demand.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Growing tourism and business travel: <\/span><\/strong><span data-preserver-spaces=\"true\">Driven by Charlotte\u2019s financial sector, sports teams, and events.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Home prices:<\/span><\/strong><span data-preserver-spaces=\"true\"> Generating strong STR cash flow is challenging.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Low yield (8%):<\/span><\/strong><span data-preserver-spaces=\"true\"> Investors may struggle to break even, especially with mortgage costs.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Verdict: B-<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/charlotte-concord-gastonia-nc-sc?city=Charlotte&amp;state=NC\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Charlotte<\/span><\/a><span data-preserver-spaces=\"true\"> offers rising STR revenue growth and strong demand, but high home prices and low yield make it difficult for most investors to achieve strong cash flow. The market favors luxury, high-end STRs with unique amenities, while standard listings may struggle with profitability.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For investors considering Charlotte, <\/span><span data-preserver-spaces=\"true\">be sure to factor in<\/span><span data-preserver-spaces=\"true\"> taxes, zoning restrictions, and home prices before entering the market.<\/span><span data-preserver-spaces=\"true\"> Mid-term rentals (MTRs) targeting business professionals, medical travelers, and corporate relocations may provide a more stable alternative in this growing city.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Kansas City, MO&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA market score:<\/span><\/strong><span data-preserver-spaces=\"true\"> 98\/100 (Excellent)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR): <\/span><\/strong><span data-preserver-spaces=\"true\">$35.9K (+20% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate: <\/span><\/strong><span data-preserver-spaces=\"true\">57% (+9% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $206.41 (+11% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $120.25 (+20% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings:<\/span><\/strong><span data-preserver-spaces=\"true\"> 2,668 (-5% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/18795\/kansas-city-mo\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">: <\/span><\/strong><span data-preserver-spaces=\"true\">$236,159 (+3.1% YOY)<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Yield: 15.3% (Strong)<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview:<\/span><\/strong> <a class=\"editor-rtfLink\" href=\"https:\/\/www.kcmo.gov\/programs-initiatives\/str\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Moderate<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">High revenue potential: <\/span><\/strong><span data-preserver-spaces=\"true\">Annual revenue is up 20% year over year, and RevPAR is also increasing 20%\u2014one of the <\/span><span data-preserver-spaces=\"true\">strongest<\/span><span data-preserver-spaces=\"true\"> growth rates on this list.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Demand increasing:<\/span><\/strong><span data-preserver-spaces=\"true\"> Occupancy is up 9% YOY, suggesting a healthy short-term rental market.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Consistent tourism:<\/span><\/strong><span data-preserver-spaces=\"true\"> Strong local sports, music, and food scene.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Kansas City is increasing STR oversight, and regulations may tighten further.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Zoning laws: <\/span><\/strong><span data-preserver-spaces=\"true\">Particularly in residential areas with STR limitations.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Verdict: B<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/kansas-city-mo-ks?city=Kansas+City&amp;state=MO\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Kansas City<\/span><\/a><span data-preserver-spaces=\"true\"> remains one of the strongest STR markets on this list. It is affordable, has high revenue potential, and has a strong yield. The combination of rising occupancy, strong revenue growth, and declining active listings makes it an attractive investment choice.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, potential regulatory shifts and increasing city oversight mean investors must stay informed and ensure compliance to avoid costly fines or shutdowns. Those who secure the right property in a favorable zoning area could see substantial long-term success, but new investors should carefully evaluate neighborhood regulations before buying.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Richmond, VA&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA market score: <\/span><\/strong><span data-preserver-spaces=\"true\">89\/100 (Strong)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $29.3K (+9% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate: <\/span><\/strong><span data-preserver-spaces=\"true\">57% (+5% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR):<\/span><\/strong><span data-preserver-spaces=\"true\"> $173.70 (+3% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $100.32 (+8% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings: <\/span><\/strong><span data-preserver-spaces=\"true\">1,579 (+7% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/6752\/richmond-va\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">:<\/span><\/strong><span data-preserver-spaces=\"true\"> $355,189 (+3.8% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Yield: <\/span><\/strong><span data-preserver-spaces=\"true\">8% (Low)<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview: <\/span><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.rva.gov\/planning-development-review\/short-term-rentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Moderate<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Strong STR demand: <\/span><\/strong><span data-preserver-spaces=\"true\">High occupancy (57%) and rising revenue (+9% YOY).<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">High tourism and rental demand: <\/span><\/strong><span data-preserver-spaces=\"true\">A growing arts, food, and history scene brings visitors year-round.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Home prices:<\/span><\/strong><span data-preserver-spaces=\"true\"> Limiting cash flow potential and making it difficult to achieve strong ROI.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Low yield (8%):<\/span><\/strong><span data-preserver-spaces=\"true\"> Most investors will struggle to achieve strong short-term returns.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Strict owner-occupied rules:<\/span><\/strong> <span data-preserver-spaces=\"true\">In residential zones,<\/span><span data-preserver-spaces=\"true\"> it\u2019s tough for full-time investors to operate STRs.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Verdict: C+<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/richmond-va?city=Richmond&amp;state=VA\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Richmond<\/span><\/a><span data-preserver-spaces=\"true\"> offers strong rental demand, stable occupancy, and rising revenue, but low cash flow, strict zoning laws, and high permit costs make STR investing difficult.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">STRs only make sense for owner-occupied hosts or investors targeting nonresidential zones, where there is more flexibility. Due to zoning restrictions on multifamily buildings, Richmond is a tough market to grow in for those looking to scale STRs.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Overall, Richmond is better suited for mid-term rentals (MTRs) targeting business travelers, students, and remote workers rather than short-term vacation rentals. Investors should carefully evaluate compliance costs before entering this market.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Salt Lake City, UT<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Market performance metrics:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">AirDNA market score:<\/span><\/strong><span data-preserver-spaces=\"true\"> 31\/100 (Weak)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Annual revenue (AR): <\/span><\/strong><span data-preserver-spaces=\"true\">$36K (+3% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Occupancy rate: <\/span><\/strong><span data-preserver-spaces=\"true\">61% (+1% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Average daily rate (ADR): <\/span><\/strong><span data-preserver-spaces=\"true\">$205.03 (+1% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">RevPAR:<\/span><\/strong><span data-preserver-spaces=\"true\"> $119.57 (+2% YOY)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Active listings: <\/span><\/strong><span data-preserver-spaces=\"true\">4,740 (+4% YOY)<\/span><\/li>\n\n\n\n<li><strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/home-values\/6909\/salt-lake-city-ut\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow median home price<\/span><\/a><span data-preserver-spaces=\"true\">:<\/span><\/strong><span data-preserver-spaces=\"true\"> $559,027 (+2.7% YOY)<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Yield: 6% (Low)<\/span><\/li>\n<\/ul>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Regulation overview:<\/span><\/strong> <a class=\"editor-rtfLink\" href=\"https:\/\/www.steadily.com\/blog\/airbnb-short-term-rental-laws-regulations-salt-lake-city#:~:text=Hosts%20interested%20in%20offering%20short,safety%20certification%2C%20are%20usually%20required.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">High<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Pros:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Strong occupancy rate (61%):<\/span><\/strong><span data-preserver-spaces=\"true\"> Demand exists, particularly from outdoor tourism and ski season visitors.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">ADR is high:<\/span><\/strong><span data-preserver-spaces=\"true\"> Helping boost overall revenue potential.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cons:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Home prices: <\/span><\/strong><span data-preserver-spaces=\"true\">A median price of $559,027 makes it difficult to achieve positive cash flow.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">STRs are only allowed in commercial and mixed-use zones, significantly limiting available inventory for STR investors.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Verdict: D+<\/span><\/h3>\n\n\n\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\/salt-lake-city-ut?city=Salt+Lake+City&amp;state=UT\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Salt Lake City<\/span><\/a><span data-preserver-spaces=\"true\">\u2019s short-term rental market is one of the riskiest on this list due to zoning restrictions, high home prices, and the looming threat of a statewide ban on STRs. While occupancy rates and daily revenue are decent, barriers to entry are steep, and legal risks could make STR investments unsustainable in the long run.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Ranking of Zillow\u2019s STR Markets for 2025<\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Kansas City, MO:<\/span><\/strong><span data-preserver-spaces=\"true\"> B<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">St. Louis, MO:<\/span><\/strong><span data-preserver-spaces=\"true\"> B-<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Charlotte, NC:<\/span><\/strong><span data-preserver-spaces=\"true\"> B-<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Buffalo, NY:<\/span><\/strong><span data-preserver-spaces=\"true\"> C+<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Philadelphia, PA: <\/span><\/strong><span data-preserver-spaces=\"true\">C+<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Hartford, CT:<\/span><\/strong><span data-preserver-spaces=\"true\"> C+<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Richmond, VA:<\/span><\/strong><span data-preserver-spaces=\"true\"> C+<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Indianapolis, IN: <\/span><\/strong><span data-preserver-spaces=\"true\">C-<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Providence, RI:<\/span><\/strong><span data-preserver-spaces=\"true\"> D+<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Salt Lake City, UT:<\/span><\/strong><span data-preserver-spaces=\"true\"> D+<\/span><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Should You Invest in These STR Markets?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you\u2019re new to STRs, I don\u2019t recommend investing in any of these cities unless:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">You fully understand local STR regulations and can navigate permits.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">You buy an unrestricted property that isn\u2019t at risk of future bans.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">You know the market well and have a backup LTR plan.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">I always prefer proper vacation rental destinations over cities like these. But if you want an exit strategy, high LTR demand and appreciation can be <\/span><span data-preserver-spaces=\"true\">strong<\/span><span data-preserver-spaces=\"true\"> outs.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Regulations matter more than revenue potential. STR-friendly vacation towns tend to beat oversaturated metro markets. Choose wisely.<\/span><\/p>\n\n\n\n<div id=\"hero-block_9e97e43b2c717f9af24c63517f4f506c\" 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\">Find the Hottest Deals of 2025!<\/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:18px\">Uncover prime deals in today&#8217;s market with the brand new Deal Finder created just for investors like you! Snag great deals FAST with custom buy boxes, comprehensive property insights, and property projections.<\/p>\n\n\n\n<div id=button-custom-event-block_b0eb2372c591585aba395dce1e4cae28 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/deals\" x-on:click=\"window.analytics.track(&#039;Blog Block | Deal Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/do-zillows-top-10-housing-markets-work-for-airbnbs&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Snag a Deal<\/a>\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  rounded-md\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/07\/1-6-1.png\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Every year, Zillow releases its list of the top U.S. housing markets for 2025 based on projected home value growth, job trends, and buyer competition. For traditional real estate investors, [&hellip;]<\/p>\n","protected":false},"author":613755,"featured_media":181627,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7364,7271],"tags":[],"class_list":["post-181631","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-markets","category-short-term-rentals"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/181631","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=181631"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/181631\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/181627"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=181631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=181631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=181631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}