The short-term rental (STR) market has changed dramatically in recent years. High mortgage rates, shifting regulations, and changing guest preferences have all impacted investment potential. The question is: where should you invest in 2025?
At GetChalet.com, we analyzed hundreds of U.S. markets, using data from Zillow, the Bureau of Labor Statistics, Google Trends, and our proprietary Short-Term Rental analytics to create a data-driven roadmap for investors.
This year’s Top 15 Short-Term Rental (Airbnb) Markets for 2025 report highlights the cities and towns poised for strong cash flow and long-term appreciation. Below, we’ll explore key investment trends and highlight some of the most promising markets from the list.
But to get the full breakdown—including detailed market metrics, revenue projections, and investment strategies—download the complete report.
Why These Markets? Chalet’s Data-Driven Approach
Choosing the right STR market requires more than just following tourism trends. A successful investment balances cash flow, appreciation, and regulatory stability.
Our rankings are based on five key factors:
✔ STR Performance (30%) – Median revenue, occupancy rates, and ADR (average daily rates).
✔ Regulatory Environment (20%) – Licensing requirements, zoning laws, and investor-friendly policies.
✔ Demand Indicators (20%) – Tourism trends, event calendars, and Google search data.
✔ Supply Trends (20%) – Market saturation, new listings, and deactivation rates.
✔ Real Estate Fundamentals (10%) – Home affordability, appreciation potential, and equity growth.
2025 STR Investment Trends: What You Need to Know
Before diving into the Top 15 STR Markets, let’s explore key trends shaping investment decisions in 2025.
1. Affordable Markets Lead the Way
2. Revenue Growth in Stable Markets
📈 The top 15 STR markets are projected to see a 3% average annual revenue increase in 2025
📈 Markets with rising ADRs and stable occupancy rates will outperform the national average
Investors should focus on markets where nightly rates are climbing while occupancy rates remain steady.
Example: Columbus, OH has an ADR of $170.94 and a steady 54.2% occupancy rate, making it a reliable income market.
3. Inventory Trends: Pricing Power vs. Competition
🏠 Some high-performing markets have declining STR supply, giving investors pricing power.
🏠 Others are seeing moderate inventory growth (13% or less), keeping competition manageable.
Markets with low supply growth and high demand offer the best revenue potential.
Example: Sevierville, TN (Smoky Mountains) continues to see rising demand for cabin rentals, driving higher ADRs and occupancy.
4. Amenity Investments Matter More Than Ever
🏡 Properties with premium amenities (hot tubs, pools, EV chargers, pet-friendly features) earn higher ADRs and occupancy rates.
🏡 STR operators who tailor their properties to guest demand will see stronger profitability.
Example: Pigeon Forge, TN cabins with hot tubs and game rooms consistently earn higher nightly rates and occupancy.
