Short-term rental Investment isn’t about grabbing the cheapest fixer upper and expecting guests to appear magically. It’s about choosing the right market with strong demand, flexible rules and the potential to drive revenue beyond six figures. Where hot tubs and pet-friendly move the needle, the DUD and outstanding differences often come down to extras.
This list ranks among the top 10 STR markets under $500,000 based on revenue potential, guest demand, investment potential and the power of value-added features. Each includes insight into the type of traveller you attract, what makes it special, and how realistic you can earn. As of May 2025, we have managed to maintain our expectations by pulling median home prices from Zillow.
Remember: Median means middle. If you are aiming for top-class income, expect to buy above-average property. That extra investment is often what unlocks the serious Cash flow. I list current STR regulations available online in each market. All investors need to understand these thoroughly before seriously investing in real estate anywhere.
1. Lancaster, Pennsylvania
Median home price: $360,383
Top Performance Properties: $120,000/year (3 br+, hot tub, pet friendly)
- Occupancy rate: 56%
- ADR: $212.57
- revpar: $119.46
Lancaster is one of the most overlooked STR opportunities in the Northeast. The average list is over $38,000, but a property that combines the correct layout with amenities such as hot tubs and pet-friendly can reach $120,000 a year. Guests are usually metro families, couples and weekend people in nearby metros, such as Philadelphia, Baltimore, DC, and others, visiting Amish Country, exploring antique shops and participating in seasonal fairs.
Submarkets like Christiana and Conestoga offer rural appeal with stream-friendly zoning and relatively low competition. Revenue growth and occupancy are steadily rising, with solid ADR and increased demand providing Lancaster offering one of the best ROI stories in the region.
Regulation Snapshot
- STR registration is required in approved zoning districts.
- Local 24/7 contact required (use your cleaner or someone useful if you ask me *shrug*)
- It is mandatory for safety inspections
- Lancaster STR Information
2. Panama City Beach, Florida
Median home price: $416,972
Top Performance Properties: $110,000/year (4 br w/ hot tub + pet-frendly)
- Occupancy rate: 57%
- ADR: $319.21
- revpar: $181.65
Panama City Beach went from the spring break capital to a family-friendly coastal STR powerhouse. It brings $52.7k to the average home, but the smart operator, combining a four-bedroom layout with pool, hot tub and pet-friendly access, can reach six digits. Guests here are primarily families and multi-generational travelers who come to beaches, state parks and water activities. Bahamas Beach and El Centro Beach are top sub-markets for easy walking and more relaxed regulations.
This market thrives with volume and amenities. The ADR rose 14% year-on-year, signaling the strength of pricing despite stock growth. Panama City Beach features a combo of appropriate amenities and licenses, providing exceptional cash flow for a $500,000 investment.
Regulation Snapshot
- STR licenses are required by the city and state.
- You will need a local contact within 30 minutes.
- Your license number must appear in all lists.
- Panama City Beach STR Information.
3. Logan, oh
Median home price: $242,034
Top Performance Properties: $106,000 per year (4-BR home)
- Occupancy rate: 54%
- ADR: $353.21
- revpar: $189.06
Logan is the gateway to Hocking Hills, one of the Midwest’s most visited natural destinations. That alone will flare up a steady st demand from nature lovers, hiking groups and romantic escape couples from couples. An average STR makes $64,000 a year, and a four-bedroom home can easily clear $100,000. The ADR is powerful thanks to the region’s rural charm and limited high quality accommodation.
Logan’s guests are looking for experiences of peace, segregation and nature integration. Think of a cabin, a hot tub under the stars, and a fire hole. Although listings have skyrocketed 13%, revenue growth is still rising, indicating that the market is far from saturation.
Regulation Snapshot
- Registration varies by county.
- Accommodation tax is required.
- New build septic tank and fire code requirements.
- Logan STR Regulations.
4. Colombia, SC
Median home price: $232,153
Top Performance Properties: $108,000/year (pool 5 br)
- Occupancy rate: 55%
- ADR: $565.67
- revpar: $314.74
Colombia is quietly one of the best value STR markets in the southeast. Median property prices are just above $230,000, with high-yielding five-bedroom homes generating between $94,000 and $108,000, with numbers growing fast. Once you add a pool, you’re on track to the 6-digit total revenue area. The guest base is a mixture of university visitors, military families (Fort Jackson) and road trippers between Atlanta and Charleston.
Demand is growing faster than supply (10% vs. 8%), and the market is highly seasonal and revenue growth factors. Top submarkets include West Columbia, Lake Arcadia and downtown corridors.
Regulation Snapshot
- STR permission and business license are required.
- If the owner lives more than 45 miles away, local contact information is required.
- Maximum occupancy and parking rules are in place.
- Columbia STR Information.
5. Fredericksburg, Texas
Median home price: $496,229
Top Performance Properties: $102,000 per year (3 br + w/ hot tub + pet-fensly)
- Occupancy rate: 44%
- ADR: $362.97
- revpar: $158.53
Fredericksburg is a design-driven, experience-driven marketplace for expensive couples and small groups. The average revenue is around $54,000, but add a hot tub and a pet-friendly push to make it more than $100,000. This is one of the few Texas Wine Country destinations that allow STRs to the right zone.
Guests are weekend warriors in Austin, San Antonio and Houston. Think of a girl’s trip, a romantic getaway, a luxurious birthday weekend. A home that leans against aesthetics and curated experiences will win a big win.
Regulation Snapshot
- STR permit required for annual inspections.
- Residential zoning cap.
- Local emergency contact information is required within an hour.
- Fredericksburg str information.
6. Joshua Tree, ca
Median home price: $362,049
Top Performance Properties: $98,200/year (3 br w/ hot tub)
- Occupancy rate: 52%
- ADR: $337.76
- revpar: $176.86
Joshua Tree remains a child in desert str poster with a focus on design. The average home earns $58.5k a year, but a 3-bedroom with a hot tub and group-friendly layout makes nearly $10,000. Guests will come to national parks, starry sky and spiritual escapes. Many also want influencer-inspired architectures such as domes, A-frames, and micro flyers.
This market thrives with aesthetic differentiation. The guest base includes LA Creative, couples, yoga retreats, and groups of friends trying to cut styles.
Regulation Snapshot
- STR permit through San Bernardino County.
- Local contact is required within 30 miles 24/7.
- Strict guest caps and advertising rules.
- Joshua Tree STR Guide.
7. Pensacola, Florida
Median home price: $257,567
Top Performance Properties: $100,000+/year (4 br w/pool and pet friendly)
- Occupancy rate: 60%
- ADR: $328.70
- revpar: $197.92
Pensacola is one of the most important value plays in the Gulf, with low buy-in prices and top-level revenue growth. The average STR makes around $58,000 a year, but larger properties with a pool and pet-friendly setup can be pushed into six-digit numbers. Guests include beach-going families, military visitors, and snowbirds seeking warm weather escapes.
Top submarkets such as Pensacola Beach, Navarre Beach and Perdido Keys offer high demand and a relaxed atmosphere. With the rise in ADR, Pensacola is combining it with affordable prices and rising prices, primarily for investors focusing on long-term valuations and strong short-term returns.
Regulation Snapshot
- All STRs must be registered.
- Limits on the number of guests and cars.
- Local contact required for emergency response.
- Pensacola STR information.
8. Seaside, or
Median home price: $481,317
Top Performance Properties: $81,000 per year (Hot Tub Property)
- Occupancy rate: 58%
- ADR: $328.81
- revpar: $191.48
The seaside and neighboring Cannon Beach remain coastal in Oregon’s finest STR region. The average real estate earns $60.8K, while the hot tub increases revenues of over $20,000. Guests are a mix of Portlanders, nature lovers and families seeking a getaway in mild weather.
The landscape favors scenic escapes, easy to walk downtown and beach proximity. Due to the low season here, revenues remain stable throughout the year.
Regulation Snapshot
- STR permission and testing are required.
- Clatsop County local contact is required.
- A maximum occupancy rule is enforced.
- Seaside str information.
9. Savannah, Georgia
Median home price: $322,222
Top Performance Properties: $124,000 (bedrooms over 4 years old, pool, pet friendly)
- Occupancy rate: 59%
- ADR: $328.57
- revpar: $195.27
Savanna offers strong ADR and occupancy, but revenue growth is poised. The average STR makes $63,000 a year. Guests will visit weddings, food and culture, ghost tours and historic charms. The best bet is on White Marsh and the Island of Hope, where the property is available for small groups and wedding parties. Typically, having a pool and pet-friendly is a massive selling point in the area.
Regulation Snapshot
- City-requested STR certificate.
- Non-owner str capped in the zone.
- You need a local contact.
- Savanna str information.
10. Houston, Texas
Median home price: $267,854
Top Performance Properties: $100,800/year (pool 5 BR w/pool)
- Occupancy rate: 51%
- ADR: $608.57
- revpar: $312.32
Houston may not be the first city you think of about STR, but it is one of the country’s highest urban markets for the right kind of property. A five-bedroom home near downtown, with its pool, can cost over $10,000 a year. Guests include business travelers, medical patients (MD Anderson), sports fans and event participants.
Top submarkets include Houston Heights, Downtown and Laporte. Pet-friendly homes increase by 13% to 25%. Regulations are light but are changing. The city passed its first ordinance in 2025 and requested registration by 2026.
Regulation Snapshot
- You will need an STR registration and a $275 fee (from 2026).
- Local contacts and safety posting requirements.
- Noise/Event Usage Limitations.
- Summary of the Houston STR Ordinance.
Final Thoughts
Just because these markets have strong potential doesn’t mean that a perfect deal will appear on the first day you start watching. The climate remains competitive. Interest rates are high, and many sellers are priced like in 2022.
But that’s not a reason to sit on the sidelines. There’s a good deal. The key is to keep patients, run the staff and know your number.
I have already spent hours studying in the region, so I want to recognize a solid opportunity when I hit the market. Understand internal and external regulations. Know which submarket you will see. It builds a relationship between a trusted agent and a lender, so you are ready to move when the right agent appears.
If you are chasing a valid value transaction, be prepared to put money into your assets. Turnkey short-term rentals usually cost more, but that could be the right path depending on your goal. Real estate is so flexible. Your strategy should reflect where you want to be five, ten, or even twenty years from now.
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