AirDNA's Market Minder provides fantastic information on STR in cities all over the country and gives them a grade from F to A+. BUT, you have to buy them one by one before you find out the grade. I want to buy 3-4 of the reports to decide where to invest in AirBnB properties, but I want to find the A's. Does anyone know how to find the cities rated "A"?
They examine purchase price and compare it with STR rents, to put it simply. To determine that yourself, determine a property you'd buy for STR then research on Airbnb or vrbo what the demand and rates and occupancy are in the same area. You will trust them if you buy the reports but you will end up verifying anyway.
Also consider: is the A area where you would even consider buying into? Would you be comfortable if the house was x miles away from you.
I would (and am) selecting where I would want to be, then finding listings on Airbnb, then finding properties, on market. If it makes sense, it makes sense.
Let us know what you decide.
Airdna has a product called Investment Explorer. Reach out to them and they'll get you the details. @Nancy Bachety has a good methodology as well, but also make sure to check local regulations and laws. Avoid HOA when and wherever possible.
Best of luck,