Brief-term rental investing isn’t about grabbing the most affordable fixer-upper and hoping company 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 scorching tubs and pet-friendliness transfer the needle, the distinction between a dud and a standout typically comes right down to the extras.
This checklist ranks the highest 10 STR markets below $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 possibly can 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. If you happen to goal for top-tier revenue, count on to purchase an above-average property. That additional funding is usually what unlocks the intense money move. I checklist the present STR laws out there on-line for every market, and each investor ought to be sure you completely perceive these earlier than critically investing in a property wherever.
1. Lancaster, PA
Median house value: $360,383
Prime-performing properties: $120,000/yr (3 BR+, scorching 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 structure with facilities like a scorching 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 attraction with STR-friendly zoning and comparatively low competitors. Income development and occupancy are climbing steadily, and with a stable ADR and rising demand, Lancaster gives the most effective ROI tales within the area.
Regulation snapshot
- STR registration is required in accepted zoning districts.
- Native 24/7 contact required (use your cleaner or useful particular person in case you ask me *shrug*)
- Security inspections obligatory
- Lancaster STR information
2. Panama Metropolis Seaside, FL
Median house value: $416,972
Prime-performing properties: $110,000/yr (4 BR w/ scorching tub + pet-friendly)
- Occupancy fee: 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 typical house brings in $52.7K, sensible operators who mix a four-bedroom structure with a pool, scorching tub, and pet-friendly entry can attain six figures. Visitors listed below are principally households and multigenerational vacationers coming for the seaside, 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% yr over yr, signaling pricing energy regardless of elevated stock. With the best combo of facilities and licensing in place, Panama Metropolis Seaside delivers distinctive money move for a sub-$500K funding.
Regulation snapshot
- STR license is required from town and state.
- Native contact required inside half-hour.
- The license quantity should seem in all listings.
- Panama Metropolis Seaside STR information.
3. Logan, OH
Median house value: $242,034
Prime-performing properties: $106,000/yr (4-BR house)
- Occupancy fee: 54%
- ADR: $353.21
- RevPAR: $189.06
Logan is the gateway to Hocking Hills, one of the crucial 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/yr, and a four-bedroom house simply clears $100K. ADRs are sturdy due to the world’s rural attraction and restricted high-quality lodging.
Visitors in Logan are searching for peace, seclusion, and nature-integrated experiences. Assume cabins, scorching tubs below the celebrities, and fireplace pits. Listings have surged by 13%, however income development continues 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 new builds.
- Logan STR laws.
4. Columbia, SC
Median house value: $232,153
Prime-performing properties: $108,000/yr (5 BR w/ pool)
- Occupancy fee: 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 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, navy households (Fort Jackson), and road-trippers between Atlanta and Charleston.
Demand is rising sooner than provide (10% vs. 8%), and the market has sturdy seasonality and income development elements. Prime 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
Prime-performing properties: $102,000/yr (3 BR+ w/ scorching 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 scorching tub and pet-friendliness pushes that over $100K. This is without doubt one of the few Texas wine nation locations permitting STRs in the best zones.
Visitors are weekend warriors from Austin, San Antonio, and Houston. Assume ladies’ journeys, romantic getaways, and luxurious birthday weekends. Houses that lean into aesthetics and curated experiences win huge.
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
Prime-performing properties: $98,200/yr (3 BR w/ scorching tub)
- Occupancy fee: 52%
- ADR: $337.76
- RevPAR: $176.86
Joshua Tree stays the poster youngster for design-focused desert STRs. The typical house earns $58.5K/yr, however a three-bedroom with a scorching 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 consists of LA creatives, {couples}, yoga retreats, and pal teams seeking to disconnect in fashion.
Regulation snapshot
- STR allow by means of 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+/yr (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 development. 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, navy guests, and snowbirds looking for 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 traders centered on long-term appreciation and robust short-term returns.
Regulation snapshot
- Registration is required for all STRs.
- Limits on the variety of company and vehicles.
- Native contact required for emergency response.
- Pensacola STR information.
8. Seaside, OR
Median house value: $481,317
Prime-performing properties: $81,000/yr (scorching tub property)
- Occupancy fee: 58%
- ADR: $328.81
- RevPAR: $191.48
Seaside and neighboring Cannon Seaside stay coastal Oregon’s finest STR areas. The typical property earns $60.8K, however scorching 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 seaside proximity. Seasonality is decrease right here, so returns are secure throughout the yr.
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
Prime-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 development has plateaued. The typical STR earns $63K/yr. Visitors go to for weddings, meals and tradition, ghost excursions, and historic attraction. Finest 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 town.
- Non-owner STRs capped by zone.
- Native contact required.
- Savannah STR information.
10. Houston, TX
Median house value: $267,854
Prime-performing properties: $100,800/yr (5 BR w/ pool)
- Occupancy fee: 51%
- ADR: $608.57
- RevPAR: $312.32
Houston may not 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/yr. Visitors embody enterprise vacationers, medical sufferers (MD Anderson), sports activities followers, and event-goers.
Prime submarkets embody Houston Heights, Downtown, and La Porte. Pet-friendly houses earn 13% to 25% extra. Regulation is gentle however altering; 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 right deal will seem the primary day you begin wanting. The local weather continues to be aggressive. Rates of interest are excessive, and plenty of sellers are pricing prefer it’s 2022.
However that’s no purpose to take a seat on the sidelines. Good offers are on the market. The secret is staying affected person, doing the reps, and understanding your numbers.
You wish to acknowledge a stable alternative when it hits the market since you’ve already spent hours finding out the world. Perceive the laws 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 best one seems.
If you happen to’re chasing a sound worth deal, be ready to place some cash into the property. A turnkey short-term rental often prices extra, however that is perhaps the best path, relying in your targets. 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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