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A “best” short-term rental market to you may be another investor’s worst nightmare. So, what is the “best”?
Well, it’s relative, and we decided to put together our favorite markets in each state based on the numbers. We scoured the internet, pulled data from PriceLabs, and probably lost a few hours reading Reddit horror stories: all to bring you a list of two solid vacation rental markets in every single U.S. state.
These cities were determined by a myriad of factors, including average daily rate (ADR), occupancy rates (OR), regulations, tourism numbers, and other relevant considerations. I wanted to use a metric based on whether each city had a Texas Roadhouse, but Pricelabs did not have this data (I will need to send a request to them to add it).
Now, before you go impulse-buying a cabin in a town you’ve never heard of, there are a few things you should know. Every city has its own set of short-term rental rules, and, yes, some are stricter than others. But regulations aren’t always a bad thing. Regulated markets often have more explicit rules, fewer legal surprises, and a more sustainable path forward because someone’s already fought that battle and lived to tell the tale.
Just make sure you’re investing in the right part of the city. Being in a “good market” doesn’t help much if you accidentally buy in the part of town where STRs are banned, or neighbors are one noise complaint away from a lawsuit.
Also, don’t forget: A good market won’t save a bad host. You could have the highest average daily rate and the best occupancy stats in the country, but if your place smells weird, has blurry photos, or guests are unlocking the wrong door at midnight, it’s going to flop. This business combines real estate investing and hospitality. You’ve got to treat it like both.
And if you’re planning to hire a co-host from the start, that’s fine, but I still recommend managing your first property yourself, even if it’s just for a few months. You’ll learn what works, what breaks, and what systems you need before handing over the keys to someone else.
Two STR Markets in Each State You Should Consider
All right, disclaimers out of the way: Here are two vacation rental markets in every state that are worth a closer look.
Final Thoughts
That’s 100 solid markets across all 50 states. From big names like Nashville and Joshua Tree to underrated gems like Tofte in Minnesota and Lake Sakakawea in North Dakota, this list proves that great short-term rental opportunities aren’t just hiding in plain sight—they’re everywhere.
But remember: Buying in the best market doesn’t guarantee success. It’s what you do after the purchase that matters. Cleaning, communication, design, and guest experience are what separate five-star stays from forgettable ones.
Use this list as a launchpad, not a shortcut. Learn the local rules, walk the neighborhoods, test your systems, and treat every guest like it’s opening night.
In this business, your property isn’t just an investment. It’s your reputation.
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