Quick-term rental investing isn’t about grabbing the most affordable fixer-upper and hoping visitors magically seem. It’s about selecting the best 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 usually comes right down to the extras.
This record ranks the highest 10 STR markets beneath $500K primarily based on income potential, visitor demand, investability, and the facility of value-adding options. Every one contains insights on the kind of vacationers it attracts, what makes it particular, and the way a lot you possibly can realistically earn. We pulled median house costs from Zillow as of Might 2025 that will help you body expectations.
Simply bear in mind: Median means center. When you goal for top-tier earnings, count on to purchase an above-average property. That additional funding is commonly what unlocks the intense money circulate. I record the present STR rules accessible on-line for every market, and each investor ought to make sure to completely perceive these earlier than significantly investing in a property anyplace.
1. Lancaster, PA
Median house value: $360,383
Prime-performing properties: $120,000/12 months (3 BR+, sizzling tub, pet-friendly)
- Occupancy price: 56%
- ADR: $212.57
- RevPAR: $119.46
Lancaster is likely one of the most neglected STR alternatives within the Northeast. Whereas the common itemizing brings in simply over $38K, properties that mix the proper structure with facilities like a sizzling tub and pet-friendliness can attain $120K yearly. Visitors are usually households, {couples}, and weekenders from close by metros like Philly, Baltimore, and D.C., visiting Amish Nation, exploring vintage outlets, and attending seasonal gala’s.
Submarkets like Christiana and Conestoga supply rural appeal with STR-friendly zoning and comparatively low competitors. Income progress and occupancy are climbing steadily, and with a strong ADR and rising demand, Lancaster presents the most effective ROI tales within the area.
Regulation snapshot
- STR registration is required in authorized zoning districts.
- Native 24/7 contact required (use your cleaner or useful individual when you ask me *shrug*)
- Security inspections necessary
- Lancaster STR data
2. Panama Metropolis Seaside, FL
Median house value: $416,972
Prime-performing properties: $110,000/12 months (4 BR w/ sizzling tub + pet-friendly)
- Occupancy price: 57%
- ADR: $319.21
- RevPAR: $181.65
Panama Metropolis Seaside has gone from spring break capital to a family-friendly coastal STR powerhouse. Whereas the common house brings in $52.7K, good operators who mix a four-bedroom structure with a pool, sizzling tub, and pet-friendly entry can attain six figures. Visitors listed here are principally households and multigenerational vacationers coming for the seashore, state parks, and water actions. Bahama Seaside and El Centro Seaside 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 Seaside delivers distinctive money circulate 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 Seaside STR data.
3. Logan, OH
Median house value: $242,034
Prime-performing properties: $106,000/12 months (4-BR house)
- Occupancy price: 54%
- ADR: $353.21
- RevPAR: $189.06
Logan is the gateway to Hocking Hills, one of the vital visited pure locations within the Midwest. That alone fuels regular STR demand from nature lovers, mountaineering teams, and {couples} on romantic escapes. The typical STR earns $64K/12 months, and a four-bedroom house simply clears $100K. ADRs are sturdy because of the realm’s rural appeal and restricted high-quality lodging.
Visitors in Logan are on the lookout for peace, seclusion, and nature-integrated experiences. Suppose cabins, sizzling tubs beneath the celebrities, and hearth pits. Listings have surged by 13%, however income progress remains to be climbing, displaying that the market is much from saturated.
Regulation snapshot
- Registration varies by county.
- Lodging tax assortment is required.
- Septic and hearth code necessities for brand new builds.
- Logan STR rules.
4. Columbia, SC
Median house value: $232,153
Prime-performing properties: $108,000/12 months (5 BR w/ pool)
- Occupancy price: 55%
- ADR: $565.67
- RevPAR: $314.74
Columbia is quietly the most effective worth STR markets within the Southeast. With median property costs simply above $230K and high-yielding five-bedroom properties 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 elements. Prime submarkets embrace 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 data.
5. Fredericksburg, TX
Median house value: $496,229
Prime-performing properties: $102,000/12 months (3 BR+ w/ sizzling tub + pet-friendly)
- Occupancy price: 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 likely one of the few Texas wine nation locations permitting STRs in the proper zones.
Visitors are weekend warriors from Austin, San Antonio, and Houston. Suppose women’ journeys, romantic getaways, and luxurious birthday weekends. Properties that lean into aesthetics and curated experiences win large.
Regulation snapshot
- STR allow required with annual inspections.
- Zoning caps in residential areas.
- Native emergency contact inside one hour required.
- Fredericksburg STR data.
6. Joshua Tree, CA
Median house value: $362,049
Prime-performing properties: $98,200/12 months (3 BR w/ sizzling tub)
- Occupancy price: 52%
- ADR: $337.76
- RevPAR: $176.86
Joshua Tree stays the poster little one for design-focused desert STRs. The typical house earns $58.5K/12 months, however a three-bedroom with a sizzling tub and group-friendly structure 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 contains LA creatives, {couples}, yoga retreats, and pal teams trying to disconnect in model.
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
Prime-performing properties: $100,000+/12 months (4 BR w/ pool and pet-friendly)
- Occupancy price: 60%
- ADR: $328.70
- RevPAR: $197.92
Pensacola is likely one of the most substantial worth performs on the Gulf Coast, providing low buy-in costs and top-tier income progress. Whereas the common STR earns round $58K yearly, bigger properties with a pool and pet-friendly setup can push into six figures. Visitors embrace beach-going households, army guests, and snowbirds in search of a warm-weather escape.
Prime submarkets like Pensacola Seaside, Navarre Seaside, and Perdido Key supply excessive demand and relaxed vibes with sturdy occupancy charges. With rising ADRs, Pensacola combines affordability with upside, primarily for buyers centered 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 data.
8. Seaside, OR
Median house value: $481,317
Prime-performing properties: $81,000/12 months (sizzling tub property)
- Occupancy price: 58%
- ADR: $328.81
- RevPAR: $191.48
Seaside and neighboring Cannon Seaside stay coastal Oregon’s greatest STR areas. The typical property earns $60.8K, however sizzling tubs enhance income by over $20K. Visitors are a mixture of Portlanders, nature lovers, and households in search of mild-weather getaways.
The panorama favors scenic escapes, walkable downtowns, and seashore proximity. Seasonality is decrease right here, so returns are steady throughout the 12 months.
Regulation snapshot
- STR allow and inspection required.
- Native contact in Clatsop County required.
- Max occupancy guidelines enforced.
- Seaside STR data.
9. Savannah, GA
Median house value: $322,222
Prime-performing properties: $124,000 (4+ bed room, pool, pet pleasant)
- Occupancy price: 59%
- ADR: $328.57
- RevPAR: $195.27
Savannah presents 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 appeal. Greatest bets are in White Marsh and Isle of Hope, the place properties cater to small teams and marriage ceremony events. As is typical, having a pool and being pet-friendly are huge promoting factors on this space.
Regulation snapshot
- STR certificates required by the town.
- Non-owner STRs capped by zone.
- Native contact required.
- Savannah STR data.
10. Houston, TX
Median house value: $267,854
Prime-performing properties: $100,800/12 months (5 BR w/ pool)
- Occupancy price: 51%
- ADR: $608.57
- RevPAR: $312.32
Houston won’t be the primary metropolis you consider for STRs, but it surely’s one of many highest-yielding city markets within the nation for the correct of property. A five-bedroom house close to downtown with a pool can prime $100K/12 months. Visitors embrace enterprise vacationers, medical sufferers (MD Anderson), sports activities followers, and event-goers.
Prime submarkets embrace Houston Heights, Downtown, and La Porte. Pet-friendly properties earn 13% to 25% extra. Regulation is gentle 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.
Last Ideas
Simply because these markets have sturdy potential doesn’t imply the right deal will seem the primary day you begin trying. The local weather remains to be aggressive. Rates of interest are excessive, and plenty of sellers are pricing prefer it’s 2022.
However that’s no cause to take a seat on the sidelines. Good offers are on the market. The secret’s staying affected person, doing the reps, and realizing your numbers.
You wish to acknowledge a strong alternative when it hits the market since you’ve already spent hours finding out the realm. Perceive the rules inside and outside. 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.
When you’re chasing a legitimate worth deal, be ready to place some cash into the property. A turnkey short-term rental normally prices extra, however that is likely to 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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