Unsold Class B homes: worth running STRs?

Unsold Class B homes: worth running STRs?

Technology · Miami, FL · Member since 2026 · 15 posts · 5 votes

Hi all ,

Currently pursuing some research on Houston and Tampa suburbs. My focus is on owners of Class B homes which seem squeezed on both sides:

  • No real news, but selling is slow. About a third of Hillsborough and Pasco listings had a price cut. Houston and Tampa entered 2026 with more homes for sale than in 2019. (momentum realty; resiclub)

  • LTRs, not so simple. Apartment rents in both metros down about 2% YOY. Data shows 17.8% of active rentals in Fort Bend County are listed for sale at the same time. (realpage ; parcl labs )

  • Short-term numbers seem decent. Brandon has a 63% occupancy and $149 /night, and Katy at 60% and $141. (airDNA)

Furnished short stays would leave the home free to show and sell, with no 12-month lease in the way. If you’re holding a Class B home you’d want to sell, would you run it short-term while it’s listed? Maybe do some house hacking? Or do furnishing costs, cleanings around showings and local rules make it not worth it?

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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
1d

I manage 50-60 houses or so in Tampa and also own. Trying to sell a home while it is listed, even in slow season is very difficult - especially in the pockets like Brandon as you mentioned. The $150/nt ADR and the area itself is ripe for longer stays and many of those people do not want to be bothered with showings, inspections, appraisals etc.

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  • Property Manager · Melbourne, FL · Member since 2019 · 340 posts · 143 votes
    2d

    The “free to show” part needs an actual operating plan. A furnished home can still be occupied when a buyer wants to see it, and turnovers need enough time to get the place ready for the next arrival. I would ask owners and agents how they would coordinate those calendars before assuming short stays solve the showing problem.

    For your research, I would separate homes that are already furnished from empty ones. Then ask who handles furniture delivery, repairs, cleaning and eventually removing everything for the sale. Those are very different projects even if the houses look similar in a market report.

    • St Louis, City of Saint Louis · Member since 2026 · 9 posts · 2 votes
      2d

      Spot on, Matthew. If an owner insists on showings during active bookings, you need strict buffer rules—like requiring 48-hour advance notice, blockout windows, and professional guest communication to prevent overlap.

  • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    2d

    I'm in a Facebook group for STRs, and someone just posted about having their cabin for sale and continuing to STR it. It described that in the sale listing and said to make an appt for showings.. But while guests were inside, some looky-loos came onto the property (without a realtor) and looked in the windows, which freaked out the guests, and they're now expecting a partial refund. Airbnb will automatically refund your guests 30% in cases like this, and you will get a bad review.

    • St Louis, City of Saint Louis · Member since 2026 · 9 posts · 2 votes
      2d

      That's a host's worst nightmare, Lauren! Unannounced showings ruin the guest experience. Unless showings are restricted to turnover windows between check-out and check-in, trying to sell while operating an STR almost always leads to bad reviews.

  • St Louis, City of Saint Louis · Member since 2026 · 9 posts · 2 votes
    2d

    Class B suburban properties can work great, but they often perform even better as Mid-Term Rentals (30+ day stays for relocating families or traveling workers) rather than pure vacation STRs.

    Just make sure to run comps on PriceLabs or AirDNA for 3+ bedroom homes and double-check local suburban regulations before moving forward!

  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 421 posts · 167 votes
    2d

    @Antoine Clerc Short-term rentals can look like a good bridge to a sale, but the headline occupancy and nightly rates only tell part of the story. Furnishing, utilities, platform fees, cleaning, insurance, lodging taxes, management, and wear can quickly reduce the net income. There is also a practical conflict between keeping guests happy and keeping the home available and show-ready for buyers.

    It could still work if the home is already furnished, local and HOA rules allow it, insurance is in place, and demand holds up beyond the headline numbers. A furnished 30- to 90-day rental may be the better middle ground. It offers more flexibility than a traditional lease without the constant turnovers and cleaning that come with nightly stays.

    House hacking could also make sense if the layout supports it and the owner actually wants to live there, but it probably should not be forced just to offset carrying costs. The best approach may be to compare three options—leaving it vacant, using it as a furnished mid-term rental, or running it short-term—based on true net income, setup costs, showing access, and expected time to sell. If the short-term option does not create a meaningful advantage after all of that, keeping the home clean, flexible, and easy to show may be worth more.

  • MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    2d

    I guess it depends on the market, prospective guests and reason for staying but I would not be happy to find the property I rented was in a class B neighborhood. As a host it would not be worth it to me to knowingly enter a STR situation with $150-ish nightly rate especially if the expectation would ever be 2-3 night stays.

  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    2d

    Antoine, I think the STR option can make sense for a property you may want to sell, especially if a 12-month lease would get in the way of showing and selling it. I'd just make sure the extra STR revenue is actually enough to compensate for the furnishing, cleaning, utilities, management, vacancy, and local compliance costs. The $141 to $149 nightly rates look interesting, but I'd want to run the numbers against a realistic LTR scenario rather than just comparing gross rent.

    There's also a tax piece worth considering. The tax treatment of an STR can be very different from a traditional long-term rental depending on the average guest stay and how actively the owner participates, so I'd factor that into the comparison as well.

    For a property you expect to sell, I'd probably model LTR vs. STR vs. STR while actively marketing the property for sale and look at the total after-tax return under each scenario. Sometimes the best strategy isn't the one with the highest gross rental income. It's the one that gives you the best combination of cash flow, flexibility, and after-tax return.

    Feel free to DM me, I’d be happy to send over a few resources that might be helpful.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1d

    I manage 50-60 houses or so in Tampa and also own. Trying to sell a home while it is listed, even in slow season is very difficult - especially in the pockets like Brandon as you mentioned. The $150/nt ADR and the area itself is ripe for longer stays and many of those people do not want to be bothered with showings, inspections, appraisals etc.

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