Top STR Markets in the USA for 2025: Where Beginners and Pros Should Invest

The landscape of short-term rental (STR) investing in the USA is more dynamic than ever heading into 2025. With evolving travel trends, shifting regulations, and pockets of opportunity surfacing across the country, choosing the right market can be the difference between average returns and exceptional, lifestyle-changing results. Whether you’re a first-time buyer or a seasoned STR professional, understanding the top STR markets in the USA for 2025 is your roadmap to successful, sustainable investing.

Before diving into specific markets, it’s crucial to recognize the types of STR destinations that consistently attract travelers. The most profitable STR markets typically fall into these categories:

• Beach Destinations: Seasonal popularity, high rates in peak months, and intense competition from hotels.
• Mountain Destinations: Year-round draws with a focus on outdoor activities and cozy accommodations.
• Lake Destinations: Family-friendly, highly seasonal, with premium rates for waterfront properties.
• Urban/City Destinations: Steady year-round demand but often stricter STR regulations.
• College Towns & Theme Park Areas: Steady demand driven by events, sporting activities, and proximity to major attractions.

Each market type has unique dynamics, so align your property goals with the market category that best fits your investment style and desired guest experience.

Drawing from Vodyssey’s in-depth analysis, here are the top STR markets for 2025, segmented by price range to match every investor profile—from beginners with modest budgets to seasoned pros seeking premium opportunities.

Best Markets Under $350K

• Auburn, AL: A vibrant college town with consistent demand from university events and sporting activities.
• Lexington, KY: Famed for its equestrian culture and college sports, offering strong occupancy and manageable regulations.
• Columbia, SC: Another thriving college town, benefitting from steady flows of visitors.
• Gainesville, FL: High occupancy rates, driven by the University of Florida and cultural attractions. Average 3-bedroom home prices around $350K, with projected annual gross revenue exceeding $50,000 for well-positioned properties.

Strong Opportunities Between $350K–$600K

• Beech Mountain, NC: Known for its ski resorts and year-round adventure tourism.
• Asheville, NC: A magnet for arts, culture, and outdoor enthusiasts. Average home prices near $550K, with upscale properties achieving gross revenues above $58,000 annually.
• Traverse City, MI: Renowned for beaches, wine country, and lakefront charm. Three-bedroom homes here can command over $77,000 in annual gross revenue.

Premium Markets Over $600K

• Fredericksburg, TX: A top-tier wine and culture destination in Texas Hill Country.
• Stowe, VT: A classic New England mountain town with robust year-round demand.
• Flagstaff, AZ: Gateway to the Grand Canyon and outdoor adventure. Four-bedroom homes average $700K and can generate $78,000+ in annual gross revenue.

Bonus Market: Gatlinburg, TN

Gatlinburg continues to shine as a perennial favorite for STRs, thanks to its proximity to the Smoky Mountains and year-round events. Properties here offer exceptional occupancy and resilience, especially for hosts who deliver standout guest experiences.

• Balanced Acquisition Costs: These markets offer a strong ratio between property prices and achievable annual revenue (ANR), which is essential for both cash flow and long-term appreciation.
• Diversified Demand Drivers: From college sports to outdoor recreation and wine tourism, these areas attract multiple types of guests throughout the year—building resilience against market shifts.
• Room to Stand Out: Even in well-known or ‘saturated’ markets, there are pockets of opportunity where intentional hosts can outperform the average. Success is about being in the top tier of your market, not just being present.
• Favorable Regulations: These destinations generally have established, STR-friendly legal frameworks—reducing risk for new and advanced investors alike.

1. Define Your Property Goals: Are you looking for pure investment, lifestyle flexibility, or a blend? Your personal goals should drive your market choice.
2. Analyze Profit Drivers: Understand what brings guests to your target region—be it events, scenery, proximity to colleges or parks, or unique cultural draws.
3. Study Local Data: Use tools like AirDNA or market reports to compare occupancy, average nightly rates, and seasonality. Focus on the top-performing ‘pockets’ within each market.
4. Embrace Rate Optimization: Take advantage of dynamic pricing strategies and technology to maximize your revenue year-round, especially during local events or peak seasons.
5. Network and Learn: Connect with STR professionals and communities to gain insights on what works in your chosen market and avoid pitfalls.
6. Look Beyond the “List”: While rankings are helpful, the key is finding well-aligned pockets within strong markets that match your strategy and guest experience vision.

The STR space is evolving rapidly, with tightening regulations in some urban destinations and unprecedented demand in lifestyle-driven locations. Seasoned hosts are thriving by delivering superior guest experiences, leveraging technology, and focusing on markets with sustainable growth. For new investors, 2025 offers a buyers’ market with less competition and more negotiation power—making it an excellent time to enter the game or expand your portfolio.

Choosing one of the top STR markets in the USA for 2025 is about more than picking a hot spot—it’s about aligning your investment with your personal and financial goals, leveraging data, and staying ahead of trends. Whether you’re aiming for your first property or your fifth, Vodyssey’s proven systems and expert guidance can help you make confident, winning decisions in any market.

Ready to identify your ideal STR market and take action? Schedule a call with our team today and start building your Lifestyle Asset portfolio with clarity and confidence.