The ten Greatest Brief-Time period Rental Markets Beneath $500K That Money Move

In This Article

Brief-term rental investing isn’t about grabbing the most cost effective 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 checklist ranks the highest 10 STR markets underneath $500K based mostly 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 residence costs from Zillow as of Might 2025 that will help you body expectations.

Simply keep in mind: Median means center. In the event you intention for top-tier earnings, count on to purchase an above-average property. That further funding is usually what unlocks the intense money movement. I checklist the present STR laws obtainable on-line for every market, and each investor ought to you’ll want to totally perceive these earlier than significantly investing in a property wherever.

1. Lancaster, PA

Median residence value: $360,383

Prime-performing properties: $120,000/yr (3 BR+, sizzling tub, pet-friendly)

• Occupancy charge: 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 proper 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 outlets, and attending seasonal gala’s.

Submarkets like Christiana and Conestoga provide rural allure 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 authorized zoning districts.
• Native 24/7 contact required (use your cleaner or helpful individual should you ask me *shrug*)
• Security inspections obligatory
• Lancaster STR data

2. Panama Metropolis Seashore, FL

Median residence value: $416,972

Prime-performing properties: $110,000/yr (4 BR w/ sizzling tub + pet-friendly)

• Occupancy charge: 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 residence 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 here 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% yr over yr, signaling pricing power regardless of elevated stock. With the appropriate combo of facilities and licensing in place, Panama Metropolis Seashore delivers distinctive money movement 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 Seashore STR data.

3. Logan, OH

Median residence value: $242,034

Prime-performing properties: $106,000/yr (4-BR residence)

• Occupancy charge: 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 common STR earns $64K/yr, and a four-bedroom residence simply clears $100K. ADRs are sturdy because of the world’s rural allure and restricted high-quality lodging.

Visitors in Logan are searching for peace, seclusion, and nature-integrated experiences. Suppose cabins, sizzling tubs underneath the celebs, and fireplace pits. Listings have surged by 13%, however income development 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 new builds.
• Logan STR laws.

4. Columbia, SC

Median residence value: $232,153

Prime-performing properties: $108,000/yr (5 BR w/ pool)

• Occupancy charge: 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 effectively 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 development components. 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 data.

5. Fredericksburg, TX

Median residence value: $496,229

Prime-performing properties: $102,000/yr (3 BR+ w/ sizzling tub + pet-friendly)

• Occupancy charge: 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 appropriate zones.

Visitors are weekend warriors from Austin, San Antonio, and Houston. Suppose 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 data.

6. Joshua Tree, CA

Median residence value: $362,049

Prime-performing properties: $98,200/yr (3 BR w/ sizzling tub)

• Occupancy charge: 52%
• ADR: $337.76
• RevPAR: $176.86

Joshua Tree stays the poster youngster for design-focused desert STRs. The common residence earns $58.5K/yr, 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 seeking 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 residence value: $257,567

Prime-performing properties: $100,000+/yr (4 BR w/ pool and pet-friendly)

• Occupancy charge: 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, army guests, and snowbirds in search of a warm-weather escape.

Prime submarkets like Pensacola Seashore, Navarre Seashore, and Perdido Key provide 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 vehicles.
• Native contact required for emergency response.
• Pensacola STR data.

8. Seaside, OR

Median residence value: $481,317

Prime-performing properties: $81,000/yr (sizzling tub property)

• Occupancy charge: 58%
• ADR: $328.81
• RevPAR: $191.48

Seaside and neighboring Cannon Seashore stay coastal Oregon’s finest STR areas. The common property earns $60.8K, however sizzling tubs increase 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 secure throughout the yr.

Regulation snapshot

• STR allow and inspection required.
• Native contact in Clatsop County required.
• Max occupancy guidelines enforced.
• Seaside STR data.

9. Savannah, GA

Median residence value: $322,222

Prime-performing properties: $124,000 (4+ bed room, pool, pet pleasant)

• Occupancy charge: 59%
• ADR: $328.57
• RevPAR: $195.27

Savannah gives sturdy ADR and occupancy, however income development has plateaued. The common STR earns $63K/yr. 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 huge promoting factors on this space.

Regulation snapshot

• STR certificates required by town.
• Non-owner STRs capped by zone.
• Native contact required.
• Savannah STR data.

10. Houston, TX

Median residence value: $267,854

Prime-performing properties: $100,800/yr (5 BR w/ pool)

• Occupancy charge: 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 correct of property. A five-bedroom residence 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 payment are required (beginning in 2026).
• Native contact and security posting necessities.
• Noise/occasion use restrictions.
• Houston STR ordinance overview.

Ultimate 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 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 hot button is staying affected person, doing the reps, and understanding your numbers. 

You need to acknowledge a stable alternative when it hits the market since you’ve already spent hours learning 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 appropriate one seems.

In the event you’re chasing a legitimate worth deal, be ready to place some cash into the property. A turnkey short-term rental often prices extra, however that is perhaps the appropriate path, relying in your targets. Actual property is versatile like that. Your technique ought to mirror the place you need to be 5, 10, and even 20 years from now.