Best Places to Own a Short-Term Rental in 2025

If you’re thinking about buying a vacation rental property this year, you’re not alone. The short-term rental (STR) market continues to grow in 2025, with travelers craving unique stays, flexible accommodations, and local experiences. But not all locations are created equal. Some cities and regions offer better returns, more predictable demand, and fewer regulatory headaches than others.

So, where are the best places to own a short-term rental in 2025?

Whether you’re a first-time investor or looking to grow your portfolio, here’s what you need to know.

What Makes a Location “Great” for STR Ownership?

Before we get to the list, it’s important to understand what makes one market stand out over another. The best places to own a short-term rental in 2025 typically have:

• Strong tourism appeal: Year-round or seasonal attractions that bring in consistent traffic

• Favorable local regulations: Cities that are open to STRs and offer clear licensing processes

• High occupancy and average daily rate (ADR): Data-driven indicators of profitability

• Affordable entry points: Competitive real estate prices relative to revenue potential

• Future growth potential: Rising population, infrastructure investments, or expanding tourism

Top Markets to Watch in 2025

Here are some of the best-performing—and most promising—short-term rental markets this year:

1. Phoenix, Arizona

• Year-round sunshine and growing event tourism

• Snowbird traffic in winter + family travel in summer

• More lenient STR laws compared to other large metros

2. Tampa, Florida

• Coastal appeal without Miami prices

• Strong tourism, sports, and cruise industries

• Florida remains relatively STR-friendly at the state level

3. Asheville, North Carolina

• Great for cabins and mountain escapes

• Strong demand from regional road trippers

• Tight inventory keeps prices high for top-performing listings

4. Boise, Idaho

• Up-and-coming city with outdoor appeal

• Lower home prices than most western markets

• Short-term rental demand on the rise as tourism grows

5. Nashville, Tennessee

• Music City remains a top destination for weekend travelers

• Strong urban and suburban STR opportunities

• Hosts should watch for evolving local regulations

6. Charleston, South Carolina

• High-end travel market with repeat guests

• Great for luxury STRs and historic stays

• Mix of vacation and business travel demand

7. The Smoky Mountains (TN/NC)

• Perennially strong market for cabins and family trips

• Solid ADR and occupancy rates

• Year-round nature and hiking appeal

8. Salt Lake City, Utah

• Gateway to ski resorts, national parks, and events

• Affordable compared to Denver or Seattle

• Hosts must stay updated on city regulations

Local Factors That Can Boost (or Hurt) Performance

Even within a top city, not every neighborhood performs the same. Some things to keep in mind:

• Walkability & transit: Urban travelers love locations near downtowns, stadiums, and attractions.

• Proximity to hospitals, colleges, and military bases: These drive steady demand for short-term stays.

• Noise ordinances or HOA restrictions: Even in STR-friendly cities, local rules can limit profitability.

• Local events: Concerts, festivals, or sports tournaments can fill your calendar if you’re well positioned.

• Seasonality: Some markets boom in summer or winter, but may sit vacant in off-seasons. Knowing your peak calendar is key to pricing and planning.

Honorable Mentions

• Columbus, OH – High occupancy and underrated Midwest potential

• Greenville, SC – Underrated Southern gem with growing tourism, walkable downtown, and increasing STR demand

• Gulf Shores, AL – Affordable beachside investment with low taxes

• Coeur d’Alene, ID – Scenic and high-demand lake market

What to Consider When Looking for the Best Places to Own a Short-Term Rental

Even in a top market, success isn’t automatic. Ask yourself:

• Is the city supportive of STRs long-term?

• Are you planning to self-manage or hire a pro?

• Does the neighborhood fit the guest type you're targeting?

• What’s your budget for furnishing, photography, and startup?

How TruStay Helps Owners Succeed

At TruStay, we help STR owners succeed in both top-performing and emerging markets. Our team provides:

• Local expertise and compliance support

• Revenue-optimized pricing strategies

• Hands-free operations and guest communication

• Lower fees than most national managers

We keep you informed, involved, and ahead of the curve.

Still Not Sure Where to Invest?

If you're exploring options or torn between a few markets, here are a few bonus tips:

• Talk to local real estate agents or TruStay pros who understand the market firsthand.

• Start small: A one-bedroom in a solid market is often safer than overextending in a high-risk area.

• Think long-term: The best places to own a short-term rental aren’t just hot right now—they’re positioned for steady demand and supportive regulations 3–5 years out.

A Note on Transparency and Choosing the Right Market

At TruStay, we do things a little differently. If you're thinking about buying a short-term rental, we won't just tell you what you want to hear—we'll tell you what the data actually shows. In fact, we recently had a client send us five different properties they were considering across multiple cities. After running the numbers, we found that none of them made financial sense given the area and the price tag.

What we discovered was that they were really looking for a second vacation home—but hoping it could also function as an investment. That’s a perfectly valid goal, but it comes with trade-offs. Some homes and areas simply aren’t set up for consistent short-term rental success, whether due to guest demand, seasonality, or price-to-revenue ratio.

We shared everything—occupancy projections, pricing potential, and comparable data—and helped them avoid a purchase that may have felt good upfront but wouldn’t have performed. They chose not to buy anything, and while we technically lost a customer, we know we helped them make a smart financial decision.

We’ll let you know if a market is saturated, if a neighborhood has declining demand, or if a property is unlikely to perform. And if you’re set on a certain location, we’ll help you understand what to expect realistically—before you commit.

Short-term rental trends can change quickly, and while this blog provides a great starting point, it’s not a guarantee. The best move is to talk with someone who can run a detailed review based on your budget and goals.

Owning a short-term rental in 2025 is still one of the most exciting real estate investment opportunities out there—but only if you choose the right market and the right management partner.

Contact TruStay today to get your free quote and expert guidance on making the most of your next investment property.