Top STR Markets in the USA: Where Beginners and Pros Are Finding Success

Charming vacation home in Traverse City, Michigan with craftsman style and lake view

Unlocking the Best Short-Term Rental (STR) Markets in the USA

Short-term rental investing has quickly become a sought-after strategy for those seeking both financial returns and lifestyle freedom. Whether you’re a beginner eager to make your first investment or a seasoned pro refining your portfolio, understanding the top STR markets in the USA is key. This guide draws on Vodyssey’s proprietary research and proven frameworks to help you identify not just where the opportunities are, but how to choose the right market for your specific goals.

Why Market Selection Matters for STR Investors

The short-term rental landscape is vast, with opportunities spanning from bustling tourist hotspots to serene off-the-beaten-path locations. However, the best STR markets are not simply those with the highest returns—they are those that align with your personal property goals, target guest profile, and risk tolerance. Demand, regulation, seasonality, and guest experience all play significant roles. As you progress from beginner to pro, your ability to analyze and select the right market becomes your greatest asset.

Understanding STR Market Types

Before diving into specific locations, it’s crucial to understand the main types of vacation rental markets:

  • Beach Destinations: Seasonal, competitive, attract both luxury and extended-stay guests.
  • Mountain Destinations: High demand year-round, especially in ski and hiking areas. Rustic cabins and luxury homes can both perform well.
  • Urban/City Locations: High occupancy potential but often face stricter regulations.
  • Lake and Nature Areas: Great for families and groups, typically more seasonal.
  • Theme Park and College Towns: Steady demand driven by events, visitors, and business travel.
  • Off the Beaten Path: Unique, niche experiences with less competition but potentially lower occupancy.

Each market type offers different profit drivers, from proximity to attractions and seasonality to the availability of unique guest experiences. The best STR investors learn to match their interests and expertise to these profit drivers for optimal long-term results.

Vodyssey’s Top STR Markets in the USA

Based on recent Vodyssey research and member success stories, here are standout markets currently showing attractive opportunities for both new and experienced investors:

High-Opportunity Markets by Price Segment

  • Under $350K
    • Auburn, AL
    • Lexington, KY
    • Columbia, SC
    • Gainesville, FL
  • $350K–$600K
    • Beech Mountain, NC
    • Asheville, NC
    • Traverse City, MI
  • $600K+
    • Fredericksburg, TX
    • Stowe, VT
    • Flagstaff, AZ

Bonus: Gatlinburg, TN continues to be a perennial favorite due to its blend of high tourist demand and diverse accommodation options.

Market Spotlights

  • Traverse City, MI: A gem in Michigan’s Lower Peninsula known for its beautiful beaches, wine country, and thriving summer tourism. Average home prices for a 3-bedroom property are around $550K, with projected gross revenue for upscale properties reaching over $77,000 and strong occupancy rates.
  • Fredericksburg, TX: Nestled in Texas Hill Country, this market boasts a rich blend of heritage, wine tourism, and arts culture. 3-bedroom homes average $600K, with similar high projected gross revenue and robust year-round occupancy.
  • Flagstaff, AZ & Stowe, VT: Both are year-round mountain destinations attracting outdoor adventurers and families, with strong revenue potential for well-positioned properties.

What Makes These Markets Stand Out?

These top STR markets in the USA have a proven mix of steady demand, attractive acquisition prices, and growth potential. They also represent a range of market types—college towns, mountain retreats, wine destinations, and nature hubs—allowing investors to align choices with their own lifestyle and risk preferences.

Saturation vs. Demand: The Real Opportunity

One of the biggest misconceptions is that “saturated” markets should be avoided. In reality, high saturation is often a signal of strong demand and revenue potential. The key is to operate at the top of the market by delivering a superior guest experience, exceptional amenities, and targeted marketing. The top 20% of properties in any market typically generate the bulk of the revenue. Focus on these segments and you’ll find opportunity even in the most competitive locations.

Beginner to Pro: How to Choose Your STR Market

  1. Define Your Property Goals: Decide whether your priority is personal use, high cash flow, or a blend of both. This clarity will narrow your search to markets—and property types—that truly fit your needs.
  2. Identify Your Target Guest: Are you catering to families, adventure seekers, business travelers, or romantic getaways? Each market (and submarket) is driven by different guest profiles and trip motivations.
  3. Analyze Profit Drivers: List the main reasons travelers visit your chosen market. Look for proximity to attractions, seasonality, event calendars, and unique local experiences.
  4. Study the Data: Use tools like AirDNA to examine average daily rates, occupancy, and total market revenue by bedroom count and property type. Look for markets where the gap between midscale and top-tier properties is large—this signals opportunity to outperform with the right approach.
  5. Visit and Network: Nothing replaces boots-on-the-ground knowledge. Visit your target market, talk to local managers, and immerse yourself in the guest perspective. This will help you avoid common pitfalls and spot hidden gems.

Action Steps for the Ambitious Investor

1. Start with Your Why: Choose a market you’re passionate about. You’ll be more motivated to learn, connect, and deliver a superior guest experience.

2. Leverage Local Insights: Partner with local experts, property managers, or join STR masterminds to stay current on regulations and trends.

3. Focus on the Top of the Market: Prioritize design, amenities, and marketing that appeal to your target guest. Success consistently follows those who operate with intention and excellence.

4. Stay Flexible: The best STR markets change over time. Stay curious, keep learning, and don’t be afraid to pivot as new opportunities arise.

Conclusion: Your Next Move in STR Investing

The top STR markets in the USA offer incredible potential for both beginners and seasoned pros. The key to success is not chasing the latest “hot list,” but understanding your own goals, researching thoroughly, and delivering value to your guests. With the right approach, you can carve out your slice of an ever-growing industry and achieve true lifestyle and financial freedom.

Ready to take action? Schedule a call with a Vodyssey expert and discover which market, strategy, and property type are right for you. Schedule Your Call Now