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🏔️ Top 5 Markets to Buy Your Short Term Rental in 2025

Ready to get your next short term rental but don't know where to buy? Keep reading for more.

FEBRUARY 10th, 2025

So many markets… how does one decide?

Good morning STR Report Community!

In today’s issue, you will find:

📘 Today’s article: 🏔️ Top 5 Markets to Buy Your Short Term Rental in 2025

🏈 STR News: ‘New Orleans Home Rentals Skyrocket Around Super Bowl’ & more

💸 Mortgage Watch Rate

🏫 Subscriber Perks - Beginner’s Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, & STR Buy Box Template

🏔️ Top 5 Markets to Buy Your Short Term Rental in 2025

If your primary goal is booking revenue from short-term rentals, here are five of the top markets to consider based on high earnings, occupancy rates, and investment potential:

1. Sneads Ferry, North Carolina

  • Annual Revenue: ~$71,000

  • Average Daily Rate (ADR): $461

  • Occupancy Rate: 63%

  • Why Invest? A coastal town near North Topsail Beach with high demand for vacation rentals and premium nightly rates​

    vacationrentallicense

    Nestled near North Topsail Beach, Sneads Ferry is a coastal paradise known for its stunning waterfront views, excellent fishing opportunities, and relaxed beach-town atmosphere. Tourists flock here for the pristine beaches, fresh seafood, and proximity to Camp Lejeune, making it a popular spot for both vacationers and military families. The town’s laid-back vibe and high demand for vacation rentals make it a prime investment location.

2. San Diego, California

  • Annual Revenue: ~$78,084

  • Occupancy Rate: 47.1%

  • Why Invest? Strong year-round tourism due to beaches, conventions, and military presence, though property prices are high​

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    San Diego is one of the most desirable tourist destinations in the U.S., thanks to its year-round sunshine, world-class beaches, and diverse attractions. Visitors can explore Balboa Park, the San Diego Zoo, historic Old Town, and the Gaslamp Quarter, or enjoy water activities at Mission Beach and La Jolla Cove. The city also benefits from convention tourism and a strong military presence, ensuring a steady flow of visitors.

3. Logan, Ohio

  • Annual Revenue: ~$57,000

  • ADR: $343

  • Occupancy Rate: 57%

  • Why Invest? Proximity to Hocking Hills State Park makes it a popular nature destination with a 12.2% cap rate, meaning strong profitability​

    vacationrentallicense

    Logan serves as the gateway to Hocking Hills State Park, a nature lover’s dream with its stunning waterfalls, hiking trails, and caves. This area attracts outdoor adventurers looking for rock climbing, zip-lining, and scenic cabin retreats. The park’s breathtaking landscapes and year-round appeal contribute to Logan’s strong vacation rental market.

4. Columbus, Georgia

  • Annual Revenue: ~$29,000

  • ADR: $178

  • Occupancy Rate: 60%

  • Why Invest? Affordable home prices (~$161,000) and steady tourism, including military and outdoor adventure travelers​

    vacationrentallicense

    Columbus offers a mix of history, outdoor adventure, and military tourism, thanks to its proximity to Fort Moore (formerly Fort Benning). The city is home to the National Infantry Museum, Chattahoochee RiverWalk, and whitewater rafting on the Chattahoochee River—one of the best urban rafting experiences in the U.S. With its affordability and steady tourism, Columbus is a solid investment for vacation rentals.

5. Port Angeles, Washington

  • Annual Revenue: ~$47,000

  • Average Daily Rate (ADR): $289

  • Occupancy Rate: 64%

  • Why Invest?

    • Proximity to Olympic National Park, a top tourist attraction.

    • Strong demand for outdoor adventure stays and scenic getaways.

    • 6% cap rate, making it a solid investment for rental income​

      vacationrentallicense

      Situated on the Olympic Peninsula, Port Angeles is a gateway to Olympic National Park, a UNESCO World Heritage Site known for its diverse ecosystems, from lush rainforests to glacial mountain peaks. Outdoor enthusiasts visit for hiking, wildlife viewing, and scenic coastal drives, while ferry access to Victoria, Canada, adds international appeal. The region’s natural beauty and adventure opportunities make it a highly desirable tourist spot.

Each of these cities offers unique attractions, strong visitor demand, and excellent vacation rental potential, making them appealing for both tourists and investors alike. This list includes a mix of coastal hotspots, nature retreats, and urban hubs, ensuring strong short-term rental revenue potential.

🏈 New Orleans Home Rentals Skyrocket Around Super Bowl
Home rental prices in New Orleans have surged ahead of the Super Bowl, driven by increased demand from fans and visitors flocking to the city for the big event.

🌹 Valentine’s Day trends: Solo travel up by 100%
Valentine’s Day weekend travel searches have significantly increased, with solo trips more than doubling, duo travelers up 50%, and group travel rising 70%, reflecting a growing trend of romantic and self-indulgent getaways.

✈️ Altaport Launches Short-Term Hangar Rental Tech
Pilots can reserve overnight hangars for aircraft up to light jet size through a management platform that helps airports generate revenue from temporarily vacant space.

💶 Naboo Raises $21 Million to Expand Corporate Event Planning Tool
Paris-based startup Naboo raised $21 million in Series A funding to expand its corporate event planning platform across Europe, aiming to digitize and automate the fragmented event industry while benefiting from the rise of team-building activities due to remote work.

🏡 Vacasa Confirms Receipt of Unsolicited Non-Binding Acquisition Proposal from Davidson Kempner Capital Management
Vacasa has received an unsolicited, non-binding acquisition proposal from Davidson Kempner Capital Management at $5.25 per share, which it will review while continuing to support its existing merger agreement with Casago at $5.02 per share.

🏟️ NOLA Short-Term Rental Hosts Are Raking It In Ahead of Super Bowl
Short-term rental hosts in New Orleans are making record profits ahead of Super Bowl LIX, with average nightly rates soaring over $1,450 due to high demand, limited supply, and the city's peak season coinciding with Mardi Gras.

🏇 Austin hears feedback on proposed ‘overhaul’ of short-term rental regulations
Austin officials are gathering public feedback on proposed changes to short-term rental regulations, aiming to strengthen enforcement against unlicensed rentals while balancing the needs of property owners and residents.

💸Mortgage Rate Watch – February 7, 2025

Current Mortgage Rates (as of February 7, 2025):

  • 30-Year Fixed: 7.03% (+0.03%)

  • 15-Year Fixed: 6.42% (+0.05%)

  • 30-Year Jumbo: 7.31% (+0.01%)

  • 7/6 SOFR ARM: 6.81% (+0.06%)

  • 30-Year FHA: 6.39% (+0.01%)

  • 30-Year VA: 6.41% (+0.01%)

Market Overview

Mortgage rates saw minor increases across most loan types today, reflecting recent trends in mortgage-backed securities (MBS) and Treasury yields. The 30-year fixed rate rose to 7.03%, while the 15-year fixed rate climbed to 6.42%. Despite these changes, overall rate volatility remains relatively low, with only modest fluctuations in the past week​.

Rate Trends & Forecast

  • Short-Term: Rates are expected to remain relatively stable, barring any unexpected economic data or Federal Reserve policy shifts.

  • Long-Term: Inflation trends, Federal Reserve decisions, and bond market movements will continue to influence mortgage rates. Borrowers should monitor economic indicators closely.

For daily mortgage rate updates, visit Mortgage News Daily.​

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