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Rental Yield Hotspots: Identifying Markets Where Short-Term Rentals Deliver the Highest Returns

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06 Jun 2025

short term rentals
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Rental Yield Hotspots: Identifying Markets Where Short-Term Rentals Deliver the Highest Returns

In this analysis, we will delve into the world of short-term rentals, focusing on identifying markets where these types of investments can deliver the highest returns.

Comparing Average Daily Rates (ADR)

Let's start by comparing the average daily rates (ADR) of various cities in the United States. According to our data, Nashville, TN has an ADR of $309, while Phoenix, AZ has an ADR of $128. In contrast, Seattle, WA has an ADR of $251, and Denver, CO has an ADR of $272.

  • Nashville, TN: $309 ADR
  • Phoenix, AZ: $128 ADR
  • Seattle, WA: $251 ADR
  • Denver, CO: $272 ADR
  • Raleigh, NC: $175 ADR
  • Miami, FL: $271 ADR
  • Orlando, FL: $239 ADR
  • Phoenix, AZ: $207 ADR
  • Dallas, TX: $109 ADR
  • Atlanta, GA: $291 ADR

Occupancy Rates

Another key factor to consider is occupancy rates. According to our data, Nashville, TN has an occupancy rate of 62%, while Phoenix, AZ has an occupancy rate of 81%. In contrast, Seattle, WA has an occupancy rate of 71%, and Denver, CO has an occupancy rate of 65.

  • Nashville, TN: 62% Occupancy
  • Phoenix, AZ: 81% Occupancy
  • Seattle, WA: 71% Occupancy
  • Denver, CO: 65% Occupancy
  • Raleigh, NC: 63% Occupancy
  • Miami, FL: 68% Occupancy
  • Charlotte, NC: 76% Occupancy
  • Orlando, FL: 72% Occupancy
  • Phoenix, AZ: 79% Occupancy
  • Dallas, TX: 75% Occupancy
  • San Antonio, TX: 85% Occupancy
  • Atlanta, GA: 76% Occupancy

Return on Investment (ROI)

When it comes to return on investment (ROI), our data shows that Nashville, TN has an ROI of 14.78%, while Phoenix, AZ has an ROI of 12.94%. In contrast, Seattle, WA has an ROI of 8.60%, and Denver, CO has an ROI of 16.54.

  • Nashville, TN: 14.78% ROI
  • Phoenix, AZ: 12.94% ROI
  • Seattle, WA: 8.60% ROI
  • Denver, CO: 16.54% ROI
  • Raleigh, NC: 6.79% ROI
  • Miami, FL: 5.44% ROI
  • Charlotte, NC: 13.07% ROI
  • Orlando, FL: 11.05% ROI
  • Phoenix, AZ: 8.40% ROI
  • Dallas, TX: 5.27% ROI
  • San Antonio, TX: 8.02% ROI
  • Atlanta, GA: 16.78% ROI

Market Analysis

When it comes to market analysis, it's essential to consider various factors such as median price, homes sold, inventory, and days on market. According to our data, the median price in Nashville, TN is $N/A, while the median price in Phoenix, AZ is $N/A. In contrast, the median price in Seattle, WA is $N/A, and the median price in Denver, CO is $N/A.

Comparing Real Estate Markets

When comparing real estate markets, it's crucial to consider various factors such as current market trends, pricing, and occupancy rates. According to our data, the current market trends in Nashville, TN are favorable, with an ADR of $309 and an occupancy rate of 62%. In contrast, the current market trends in Phoenix, AZ are less favorable, with an ADR of $128 and an occupancy rate of 81%.

For a detailed analysis of short-term rental markets in Washington, we recommend checking out our article 10 Best Short-Term Rental Markets in Washington for 2025.

Similarly, for a comprehensive guide to short-term rental markets in Virginia, we suggest checking out our article Top 10 Short-Term Rental Markets in Virginia: A Comprehensive Guide.

For a detailed analysis of short-term rental regulations vs. hotel licensing, we recommend checking out our article Short-Term Rental Regulations vs. Hotel Licensing: What Hosts Need to Know.

When it comes to the rise of boutique short-term rentals, we recommend checking out our article The Rise of Boutique Short-Term Rentals: Competing with Luxury Hotels.

Conclusion

Based on our analysis, it's clear that short-term rentals can be a lucrative investment opportunity in various cities across the United States. By considering factors such as ADR, occupancy rates, and ROI, investors can make informed decisions about where to invest their money. We hope that this analysis has provided valuable insights for those looking to get into the short-term rental market.

References

This analysis is based on data from our database, which includes information on various cities across the United States. The data was analyzed using various metrics such as ADR, occupancy rates, and ROI.


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A comprehensive analysis of short-term rental markets in the United States, highlighting the top cities for investment

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