Best U.S. Cities Where Short-Term Rentals Are Outpacing Hotels in 2025

Short-term rentals are gaining a competitive edge over traditional hotels in several U.S. cities, driven by shifting traveler preferences, affordability, and unique lodging experiences. As demand rises, investors and travelers alike are turning to short-term rentals near me and short-term apartment rentals near me for more personalized stays. By leveraging short-term rental market data, we’ve identified the top U.S. cities where short-term rentals are outpacing hotels in 2025 based on occupancy rates, average nightly revenue, and tourism trends. 

Top U.S. Cities Where Short-term Rentals are Outpacing Hotels in 2025

1. Austin, Texas 

Austin's vibrant music scene, tech boom, and major events like SXSW have fueled the growth of short-term rentals. With occupancy rates exceeding 85% and average nightly rental rates of $220, short-term rental properties outperform hotels, especially during peak event seasons. 

2. Nashville, Tennessee 

Nashville’s booming tourism industry, fueled by country music and nightlife, has led to a surge in short-term rental demand. Data shows that short-term rentals achieve higher ROI than hotels, with occupancy rates of 80% and nightly rates averaging $200. 

3. Miami, Florida 

Miami’s year-round warm weather and international appeal make it a hot market for short-term rentals. Investors benefit from average occupancy rates of 82%, with rental rates exceeding $250 per night, significantly outperforming traditional   . 

4. Denver, Colorado 

With a strong mix of business travelers and outdoor enthusiasts, Denver's short-term rental market continues to grow. Short-term rental data analysis indicates occupancy rates of 78% and steady revenue growth, making it a prime market for investors. 

5. Scottsdale, Arizona 

Scottsdale’s high-end tourism, golf courses, and events like the Waste Management Open have pushed short-term rental market growth. Investors see ROI Scores above 80, with nightly rental rates averaging $230, often surpassing hotel earnings. 

6. Charleston, South Carolina 

Charleston’s historic charm and coastal appeal attract millions of visitors annually. With occupancy rates around 85% and average rental income exceeding $220 per night, short-term rentals outperform hotels in both affordability and experience. 

7. San Diego, California 

San Diego’s beaches and year-round tourism make it a lucrative market for short-term rental investments. Free short-term rental data reveals occupancy rates of 80% and rental rates between $200-$300 per night, offering investors high revenue potential. 

Conclusion 

As the short-term rental market data shows, these U.S. cities are leading the shift from traditional hotels to short-term rentals. With increasing traveler demand and higher ROI potential, investing in short-term rentals near me or exploring free short-term rental data can help investors capitalize on this growing trend in 2025.