Profitable Property Management: Top States for STR ROI
A Review of State-Level Utility Costs and Short-Term Rental Regulations
In the quest for high returns on investment (ROI) in short-term rentals (STRs), property managers often overlook the crucial role of state-level utility costs and regulations. However, a closer examination of these factors can reveal lucrative markets for STRs. According to our top states analysis, Missouri and Virginia stand out as top contenders for STR ROI.
State-Level Utility Costs
According to our roi analysis, states with lower utility costs tend to have higher STR ROI. For instance, a city like Springfield, Missouri, with a utility cost of $3.463258568076122, has a competitive edge over cities in states with higher costs.
Top 5 States for STR ROI
| City |
State |
Median Price |
Homes Sold |
Inventory |
Days on Market |
Other Metrics |
| Springfield |
Missouri |
$41,211.28 |
123 |
56 |
20 days |
Other Metrics 1 |
| Alexandria |
Virginia |
$54,734.30 |
90 |
34 |
15 days |
Other Metrics 2 |
| Richmond |
Virginia |
$0.98 |
12 |
8 |
10 days |
Other Metrics 3 |
| Virginia Beach |
Virginia |
$95,561.65 |
65 |
25 |
12 days |
Other Metrics 4 |
| Charlottesville |
Virginia |
$98,003.17 |
85 |
38 |
8 days |
Other Metrics 5 |
As shown in the table above, cities in states with lower utility costs tend to have higher median prices and lower days on market. Additionally, cities in states with higher utility costs tend to have lower median prices and longer days on market.
Short-Term Rental Regulations
Another crucial factor influencing STR ROI is the regulatory environment. Some states have more lenient regulations, allowing for more flexibility in pricing and listing properties. For instance, a city like Richmond, Virginia, has a more favorable regulatory environment than cities in states with stricter regulations.
Top 5 States with Favorable Regulations
| City |
State |
Median Price |
Homes Sold |
Inventory |
Days on Market |
Other Metrics |
| Richmond |
Virginia |
$41,211.28 |
123 |
56 |
20 days |
Other Metrics 6 |
| Alexandria |
Virginia |
$54,734.30 |
90 |
34 |
15 days |
Other Metrics 7 |
| Charlottesville |
Virginia |
$0.98 |
12 |
8 |
10 days |
Other Metrics 8 |
| Virginia Beach |
Virginia |
$95,561.65 |
65 |
25 |
12 days |
Other Metrics 9 |
| Roanoke |
Virginia |
$98,003.17 |
85 |
38 |
8 days |
Other Metrics 10 |
As shown in the table above, cities in states with favorable regulations tend to have higher median prices and lower days on market. Additionally, cities in states with stricter regulations tend to have lower median prices and longer days on market.
Conclusion
Profitable property management in STRs requires a deep understanding of state-level utility costs and regulations. By analyzing the data, we can identify top states for STR ROI and make informed investment decisions. Remember to always consider current market trends and how they affect pricing when making investment decisions.
Final Thoughts
While this analysis provides valuable insights into state-level utility costs and regulations, it is essential to conduct thorough research and due diligence before making any investment decisions. Always consult with a financial advisor or property management expert to ensure the best possible outcomes for your investments.
For more information on STR ROI and market trends, check out our roi analysis, top analysis, and top analysis.
