Community Perks with The STR Report

🏠 Top-Tier Property Management – Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. Act Now: Mention The STR Report by 7/30/25 and get a 6-Month Risk-Free Guarantee.

🔎 Personal Airbnb Investment Finder – Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing at least a 15% Cash-on-Cash return.

🤑 STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

July 17th, 2025

Good evening STR Report Community!

In today’s issue, you will find:

📱Today’s Article: 🏡 Buying in the Wrong Market? Here’s the Cost of Getting It Wrong

📈 Trending Market Highlight: Cincinnati, Ohio and Reno, Nevada

✉️ STR News: Hospitable report highlights tech vendor concerns over integration fees & more

💸 Mortgage Rate Watch

🦑 Unique Airbnb of the Week

🏫 Subscriber Perks: Go Live Playbook, including: Beginner’s Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, STR Buy Box Template, & Tax Savings E-Book

✅ Community Perks: Top-Tier Property Management, Personal Airbnb Investment Finder, and STR Loans & More

📬 See our collection of newsletters here: Prior Newsletters

💰🏡 Buying in the Wrong Market? Here’s the Cost of Getting It Wrong❌

When investors talk about short-term rentals, the conversation usually starts with revenue potential—luxury finishes, viral listings, high nightly rates. But behind every high-performing Airbnb is one factor that makes or breaks your entire strategy: location.

And in 2025, picking the wrong market could be more expensive than ever.

The High Cost of a Bad Bet

Let’s look at the numbers. In some popular U.S. markets, gross STR yields hover around 12-15%. In others, the same property type struggles to clear 4-5%. That difference might not seem enormous—until you realize it can mean tens of thousands of dollars a year in lost income.

Imagine you buy a $500,000 property expecting $60,000/year in bookings. But your chosen market’s seasonality, local regulations, and guest demand don’t support that revenue. Instead, you only earn $28,000. Suddenly, your cash flow turns negative, and your property’s value may even decline because STRs aren’t selling well in your neighborhood.

The #1 Reason Airbnbs Will Struggle in 2025

Many STRs are going to underperform next year for one simple reason: oversupply in the wrong locations. Pandemic-era buying frenzies created pockets where hosts piled in without fully understanding demand drivers or regulatory risks. Now, with higher mortgage rates and a softening travel economy in some regions, many of those properties are sitting empty—or heavily discounted to attract bookings.

If your property is in a market with:

• Saturated inventory

• Weak off-season demand

• Looming regulation crackdowns

• Low average daily rates (ADRs) compared to operating costs

…you’re risking negative cash flow, higher vacancy, and eroding property values.

How to Avoid Location Mistakes

Before you buy, dig deeper than tourism stats or influencer travel lists. Smart investors analyze:

✅ Occupancy Trends: Are bookings steady year-round, or only during peak events?
✅ Regulations: Are local laws friendly—or tightening—toward STRs?
✅ Comparable Performance: How are similar properties really performing in revenue and occupancy?
✅ Market Saturation: Are there too many STRs chasing the same guests?
✅ Economic Resilience: Is the area reliant on a single industry or seasonal tourism?

It’s Not Just About “Hot” Markets

Some of the best STR returns in 2025 may come from non-obvious places—secondary cities, smaller suburbs near big metros, or niche vacation destinations with tight supply and healthy demand. The key is buying where guests actually want to stay…and where the numbers prove you can turn a profit.

Don’t let a dreamy listing—or a “hot” market hype cycle—blind you to the realities of ROI. In short-term rentals, where you buy is everything. And in 2025, getting it wrong could cost you more than ever.

Cincinnati, Ohio🏙️

Downloadable Cincinnati, Ohio Short-Term Rental Market Report

• Average Daily Rate (ADR): $216.90 per night

• Occupancy Rate: 52.41%

• Annual Revenue Potential: Around $41,491.68 per year

Read our full Cincinnati, Ohio Short-Term Rental Market Report attached above.

Reno, Nevada 🏞️

Downloadable Reno, Nevada Short-Term Rental Market Report

• Average Daily Rate (ADR): $256.56 per night

• Occupancy Rate: 59.78%

• Annual Revenue Potential: Around $55,930 per year

Read our full Reno, Nevada Short-Term Rental Market Report attached above.

📬 See our collection of 60+ market reports here: Prior Trending Market Reports

💸 Hospitable report highlights tech vendor concerns over integration fees
A new report from property management platform Hospitable has found that 89 per cent of short-term rental software vendors have delayed or cancelled product launches due to integration fees charged by property management systems.

💸 StayTerra announces Bessemer investment
StayTerra, a vacation rental management platform, has announced a strategic investment from global venture capital and private equity firm Bessemer Venture Partners, joining existing investor Garnett Station Partners.

💸Mortgage Rate Watch – July 17th, 2025

Current Mortgage Rates (as of July 17, 2025):

• 30‑Year Fixed: 6.83% (−0.02%)

• 15‑Year Fixed: 6.08% (+0.01%)

• 30‑Year Jumbo: 6.93% (+0.01%)

• 30‑Year FHA: 6.41% (+0.01%)

• 30‑Year VA: 6.42% (+0.01%)

• 7/6 SOFR ARM: 6.32% (+0.07%)

Market Overview: Mortgage rates showed mixed movement today. The 30‑year fixed rate drifted lower by 0.02%, while the 15‑year widened slightly by 1 basis point. Jumbo, FHA, and VA rates edged up similarly. The biggest change came in the 7/6 SOFR ARM, rising notably by 7 bps. These shifts reflect small adjustments in Mortgage‑Backed Securities; bond markets are quiet ahead of key economic releases.

The 30‑year fixed rate has fluctuated between 6.11% and 7.26% over the past year. Despite staying within that territory, today’s slight dip in the benchmark fixed rate may offer some welcome relief.

Rate Trends & Forecast:

• Short-Term: Expect rates to remain range-bound with modest daily movements. Upcoming CPI/PPI inflation data and Federal Reserve commentary will be key catalysts influencing market sentiment.

• Long-Term: With inflation stabilizing, mortgage rates may inch lower over time. However, significant downward movement likely depends on sustained inflation relief or changes in Fed policy. Without a shift in economic dynamics or investor expectations, rates are expected to hover near current levels through late 2025.

For real-time mortgage rate updates, visit Mortgage News Daily.

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Subscriber Perks:

📖🏡💰 Go Live Playbook

The "Go Live Playbook" is your all-in-one guide featuring a beginner’s guide e-book, messaging templates, Airbnb welcome book, STR buy box template, and tax savings tips to kickstart your short-term rental success.

Community Perks with The STR Report

🏠 Top-Tier Property Management – Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. Act Now: Mention The STR Report by 7/30/25 and get a 6-Month Risk-Free Guarantee.

🔎 Personal Airbnb Investment Finder – Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing at least a 15% Cash-on-Cash return.

🤑 STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

Partner with Us!

If you have a project you’d like us to promote, or a product or service you’d like to share, please reach out to us at [email protected].

We appreciate you being a part of our STR community and for sharing our group with your business partners and associates. Thank you!