Quick-term rental investing isn’t about grabbing the most cost effective fixer-upper and hoping visitors 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 all the way down to the extras.
This checklist ranks the highest 10 STR markets underneath $500K primarily based on income potential, visitor demand, investability, and the facility of value-adding options. Each consists of insights on the kind of vacationers it attracts, what makes it particular, and the way a lot you may realistically earn. We pulled median house costs from Zillow as of Might 2025 that can assist you body expectations.
Simply keep in mind: Median means center. In case you intention for top-tier earnings, anticipate to purchase an above-average property. That additional funding is commonly what unlocks the intense money circulation. I checklist the present STR rules out there on-line for every market, and each investor ought to remember to completely perceive these earlier than severely investing in a property anyplace.
1. Lancaster, PA
Median house value: $360,383
High-performing properties: $120,000/12 months (3 BR+, sizzling tub, pet-friendly)
- Occupancy fee: 56%
- ADR: $212.57
- RevPAR: $119.46
Lancaster is without doubt one of the most missed STR alternatives within the Northeast. Whereas the typical itemizing brings in simply over $38K, properties that mix the right format with facilities like a sizzling tub and pet-friendliness can attain $120K yearly. Visitors are sometimes households, {couples}, and weekenders from close by metros like Philly, Baltimore, and D.C., visiting Amish Nation, exploring vintage retailers, and attending seasonal festivals.
Submarkets like Christiana and Conestoga supply rural allure with STR-friendly zoning and comparatively low competitors. Income progress and occupancy are climbing steadily, and with a strong ADR and rising demand, Lancaster gives among the best ROI tales within the area.
Regulation snapshot
- STR registration is required in accredited zoning districts.
- Native 24/7 contact required (use your cleaner or useful individual for those who ask me *shrug*)
- Security inspections obligatory
- Lancaster STR information
2. Panama Metropolis Seashore, FL
Median house value: $416,972
High-performing properties: $110,000/12 months (4 BR w/ sizzling tub + pet-friendly)
- Occupancy fee: 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 house brings in $52.7K, good operators who mix a four-bedroom format with a pool, sizzling tub, and pet-friendly entry can attain six figures. Visitors listed below are largely households and multigenerational vacationers coming for the seashore, state parks, and water actions. Bahama Seashore and El Centro Seashore are prime 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 proper combo of facilities and licensing in place, Panama Metropolis Seashore delivers distinctive money circulation for a sub-$500K funding.
Regulation snapshot
- STR license is required from the town and state.
- Native contact required inside half-hour.
- The license quantity should seem in all listings.
- Panama Metropolis Seashore STR information.
3. Logan, OH
Median house value: $242,034
High-performing properties: $106,000/12 months (4-BR house)
- Occupancy fee: 54%
- ADR: $353.21
- RevPAR: $189.06
Logan is the gateway to Hocking Hills, one 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 typical STR earns $64K/12 months, and a four-bedroom house simply clears $100K. ADRs are sturdy due to the realm’s rural allure and restricted high-quality lodging.
Visitors in Logan are on the lookout for peace, seclusion, and nature-integrated experiences. Assume cabins, sizzling tubs underneath the celebs, and fireplace pits. Listings have surged by 13%, however income progress remains to be climbing, exhibiting that the market is way from saturated.
Regulation snapshot
- Registration varies by county.
- Lodging tax assortment is required.
- Septic and fireplace code necessities for brand spanking new builds.
- Logan STR rules.
4. Columbia, SC
Median house value: $232,153
High-performing properties: $108,000/12 months (5 BR w/ pool)
- Occupancy fee: 55%
- ADR: $565.67
- RevPAR: $314.74
Columbia is quietly among the best worth STR markets within the Southeast. With median property costs simply above $230K and high-yielding five-bedroom houses 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, army 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 house value: $496,229
High-performing properties: $102,000/12 months (3 BR+ w/ sizzling tub + pet-friendly)
- Occupancy fee: 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 without doubt one of the few Texas wine nation locations permitting STRs in the proper zones.
Visitors are weekend warriors from Austin, San Antonio, and Houston. Assume ladies’ 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 house value: $362,049
High-performing properties: $98,200/12 months (3 BR w/ sizzling tub)
- Occupancy fee: 52%
- ADR: $337.76
- RevPAR: $176.86
Joshua Tree stays the poster baby for design-focused desert STRs. The typical house earns $58.5K/12 months, however a three-bedroom with a sizzling tub and group-friendly format earns near $100K. Visitors 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 buddy teams trying to disconnect in fashion.
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 house value: $257,567
High-performing properties: $100,000+/12 months (4 BR w/ pool and pet-friendly)
- Occupancy fee: 60%
- ADR: $328.70
- RevPAR: $197.92
Pensacola is without doubt one of 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. Visitors embody beach-going households, army guests, and snowbirds looking for a warm-weather escape.
High submarkets like Pensacola Seashore, Navarre Seashore, and Perdido Key supply excessive demand and relaxed vibes with sturdy occupancy charges. With rising ADRs, Pensacola combines affordability with upside, primarily for traders targeted on long-term appreciation and powerful short-term returns.
Regulation snapshot
- Registration is required for all STRs.
- Limits on the variety of visitors and automobiles.
- Native contact required for emergency response.
- Pensacola STR information.
8. Seaside, OR
Median house value: $481,317
High-performing properties: $81,000/12 months (sizzling tub property)
- Occupancy fee: 58%
- ADR: $328.81
- RevPAR: $191.48
Seaside and neighboring Cannon Seashore stay coastal Oregon’s greatest STR areas. The typical property earns $60.8K, however sizzling tubs increase income by over $20K. Visitors are a mixture of Portlanders, nature lovers, and households looking for mild-weather getaways.
The panorama favors scenic escapes, walkable downtowns, and seashore proximity. Seasonality is decrease right here, so returns are secure 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 house value: $322,222
High-performing properties: $124,000 (4+ bed room, pool, pet pleasant)
- Occupancy fee: 59%
- ADR: $328.57
- RevPAR: $195.27
Savannah gives sturdy ADR and occupancy, however income progress has plateaued. The typical STR earns $63K/12 months. Visitors 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 wedding ceremony events. As is typical, having a pool and being pet-friendly are large promoting factors on this space.
Regulation snapshot
- STR certificates required by the town.
- Non-owner STRs capped by zone.
- Native contact required.
- Savannah STR information.
10. Houston, TX
Median house value: $267,854
High-performing properties: $100,800/12 months (5 BR w/ pool)
- Occupancy fee: 51%
- ADR: $608.57
- RevPAR: $312.32
Houston won’t 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 house close to downtown with a pool can prime $100K/12 months. Visitors embody enterprise vacationers, medical sufferers (MD Anderson), sports activities followers, and event-goers.
High submarkets embody Houston Heights, Downtown, and La Porte. Pet-friendly houses earn 13% to 25% extra. Regulation is mild however altering; the town handed its first STR ordinance in 2025, requiring registration by 2026.
Regulation snapshot
- STR registration and a $275 charge are required (beginning in 2026).
- Native contact and security posting necessities.
- Noise/occasion use restrictions.
- Houston STR ordinance overview.
Remaining Ideas
Simply because these markets have sturdy potential doesn’t imply the proper deal will seem the primary day you begin wanting. The local weather remains to be aggressive. Rates of interest are excessive, and lots of sellers are pricing prefer it’s 2022.
However that’s no motive to take a seat on the sidelines. Good offers are on the market. The bottom line is staying affected person, doing the reps, and understanding your numbers.
You wish to acknowledge a strong alternative when it hits the market since you’ve already spent hours learning the realm. Perceive the rules in and out. Know which submarkets to look at. Construct relationships with a trusted agent and lender, so that you’re prepared to maneuver when the proper one seems.
In case you’re chasing a sound worth deal, be ready to place some cash into the property. A turnkey short-term rental normally prices extra, however that could be the proper path, relying in your objectives. Actual property is versatile like that. Your technique ought to mirror the place you wish to be 5, 10, and even 20 years from now.
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