The short-term rental (STR) market in the U.S. has grown rapidly in recent years, fueled by platforms like Airbnb, Vrbo, Pulse Real and Booking.com. For investors, STRs can generate high returns compared to traditional rentals—if you know how to choose the right property in the right market.
In this guide, we’ll walk through what STRs are, why they’re important, who should consider them, and the tools and websites that can help you succeed. We’ll also highlight five of the best U.S. markets for STR investment today.
1. What is STRs?
A short-term rental (STR) is a property rented out for a few nights to a few months, often catering to vacationers, business travelers, or digital nomads. Unlike traditional long-term rentals, STRs offer flexibility and higher nightly rates, which can translate into stronger cash flow.
2. Why is STRs Important in the United States?
In the U.S., STRs play a big role in tourism and the economy:
Tourism demand: Cities like Orlando, Las Vegas, and New York welcome millions of visitors annually, many of whom prefer Airbnb or Vrbo over hotels.
Flexibility: Owners can use the property for personal stays and rent it out when not in use.
Profitability: When managed well, STRs often outperform long-term rentals in terms of ROI.
3. Why It’s Important to Find a STRs for Investment
Not all STRs are profitable. Some markets are oversaturated, while others face strict regulations. Finding the right STR investment in the U.S. is critical because:
Cash flow varies by market: A beach condo in Miami won’t perform the same as a cabin in the Smoky Mountains.
Regulations matter: Some cities like New York and Los Angeles limit STRs, while others encourage them.
Seasonality impacts returns: Ski towns thrive in winter; beach towns boom in summer.
By researching carefully, investors can avoid costly mistakes and maximize returns.
4. For Whom STRs is Best Choice
STRs aren’t for everyone. They’re a good fit for:
Hands-on investors: If you enjoy hospitality and managing guest experiences, STRs may be a great fit.
Passive investors using managers: Even if you don’t want day-to-day involvement, property managers or co-hosts can handle bookings, cleaning, and guest support.
Vacation-home buyers: If you want a second home that also generates income, STRs make sense.
Experienced investors: Those seeking to diversify beyond long-term rentals or stock market investments often turn to STRs for higher returns.
If you’re risk-averse or want completely passive income, long-term rentals might be better.
5. Tools Used in STRs Investment
The right tools help investors analyze markets, forecast revenue, and manage properties efficiently. Some of the most popular include:
AirDNA: Provides STR market data, occupancy rates, and revenue estimates.
Mashvisor: Helps analyze neighborhoods and compare STR vs. long-term rental potential.
Pulse Real – A powerful analytics platform with data on over 15,000 U.S. cities and 2.5 million properties. Pulse Real offers insights for short-term rentals, traditional rentals, and homeowner investments. Its interactive map, ROI analytics, and AI-driven tools (like PulseReal AI, Compare, Explorer, Evaluator, Flipper AI, and Ranker) help investors quickly identify profitable opportunities with real numbers instead of guesswork.
PriceLabs: A dynamic pricing tool that adjusts nightly rates based on demand.
Beyond Pricing: Another smart pricing solution for maximizing revenue.
Wheelhouse: Offers advanced analytics and pricing automation for STR hosts.
6. Recommended Websites and Apps for STRs Investment
If you’re looking for STR investment opportunities, these platforms are a great starting point:
Zillow & Realtor – Browse available properties nationwide.
Airbnb & Vrbo – Research existing STR listings to understand competition and pricing.
Pulse Real – A data-driven platform designed for serious investors. With state and city-level insights, Pulse Real highlights top-performing STR markets like Florida and Hawaii, while also covering long-term rental and homeowner investment potential. Daily updates, ROI calculators, and AI-powered comparisons make it an essential tool for evaluating and prioritizing STR opportunities across the U.S.
Roofstock – Focuses on rental investment properties, some tailored for STRs.
Evolve – A vacation rental management company that also provides insights into STR-friendly markets.
Redfin – Offers local housing data, pricing trends, and property search tools.
These resources help you understand both the property and the local market before investing.
7. Best Five Places for STRs Investment in the U.S. and Why?
Based on demand, affordability, and growth potential, here are five of the best U.S. markets for STR investment today:
1. Orlando, Florida
Home to Walt Disney World and Universal Studios.
Year-round tourism ensures consistent occupancy.
Wide range of vacation homes available near attractions.
2. Gatlinburg, Tennessee (Smoky Mountains)
Popular for family getaways and outdoor adventures.
Affordable entry prices compared to coastal markets.
Strong demand during all four seasons.
3. Scottsdale, Arizona
A hotspot for golf, luxury vacations, and bachelor/bachelorette parties.
High average daily rates (ADR).
Popular during winter when snowbirds flock to Arizona.
4. Austin, Texas
Tech growth plus major events like SXSW and Formula 1.
Strong demand for both leisure and business travel.
Relatively affordable compared to other major metros.
5. Myrtle Beach, South Carolina
One of the most visited beach towns on the East Coast.
Budget-friendly investment opportunities.
Strong seasonal demand with family-friendly appeal.
8. Conclusion
Finding the best STR investment in the United States requires research, the right tools, and an understanding of both market demand and local regulations. STRs can be highly profitable, but success depends on choosing the right location, analyzing potential returns, and managing the property effectively.
To recap:
STRs are flexible, high-return investments when managed wisely.
Investors should leverage tools like AirDNA and PriceLabs.
Websites like Zillow, Redfin, and Airbnb help evaluate opportunities.
Markets like Orlando, Gatlinburg, Scottsdale, Austin, and Myrtle Beach currently offer strong STR potential.
If you’re ready to dive into STR investing, start with research, plan your strategy, and choose a market that aligns with your goals. Done right, STRs can be one of the most rewarding real estate investments in the U.S. today.
