Sweet Spots for Short-Term Rental Investors: Where Occupancy Rates Meet High Demand
The short-term rental market has experienced significant growth in recent years, with more investors looking to capitalize on this trend. However, not all cities are created equal when it comes to occupancy rates and demand. In this article, we'll explore the top cities for short-term rental investors, analyzing key metrics such as average daily rate (ADR), occupancy, and return on investment (ROI).
City Comparison: ADR and Occupancy
Let's start by comparing ADR and occupancy rates across various cities. According to our data, Tampa, FL has an ADR of $279 with an occupancy rate of 86%. In contrast, Seattle, WA has an ADR of $191 with an occupancy rate of 69%. Orlando, FL has an ADR of $329 with an occupancy rate of 82%, while Austin, TX has an ADR of $285 with an occupancy rate of 79%.
| City |
State |
ADR |
Occupancy |
| Tampa |
FL |
$279 |
86% |
| Seattle |
WA |
$191 |
69% |
| Orlando |
FL |
$329 |
82% |
| Austin |
TX |
$285 |
79% |
As we can see, Tampa and Orlando have significantly higher occupancy rates compared to Seattle and Austin. However, Austin has a higher ADR, indicating potentially higher revenue potential.
City Comparison: ROI and Cap Rate
Now, let's examine ROI and cap rate data for these cities. According to our data, Tampa has an estimated ROI of 13.52% with an estimated cap rate of 3.43%. In contrast, Seattle has an estimated ROI of 19.27% with an estimated cap rate of 9.66%.
| City |
State |
Estimated ROI |
Estimated Cap Rate |
| Tampa |
FL |
13.52% |
3.43% |
| Seattle |
WA |
19.27% |
9.66% |
As we can see, Seattle has significantly higher ROI and cap rate compared to Tampa. This suggests that Seattle may be a more attractive option for investors looking for higher returns.
Expanding Our Analysis
In addition to the cities mentioned above, we've also analyzed other cities such as Denver, CO; Houston, TX; Dallas, TX; Charlotte, NC; and Atlanta, GA. According to our data, Denver has an ADR of $166 with an occupancy rate of 81%, while Houston has an ADR of $356 with an occupancy rate of 78%. Dallas has an ADR of $398 with an occupancy rate of 64%, while Charlotte has an ADR of $158 with an occupancy rate of 69%. Atlanta has an ADR of $211 with an occupancy rate of 78%.
| City |
State |
ADR |
Occupancy |
| Denver |
CO |
$166 |
81% |
| Houston |
TX |
$356 |
78% |
| Dallas |
TX |
$398 |
64% |
| Charlotte |
NC |
$158 |
69% |
| Atlanta |
GA |
$211 |
78% |
As we can see, these cities have varying occupancy rates and ADRs. Denver and Houston have higher occupancy rates compared to Dallas and Charlotte, while Atlanta has a moderate occupancy rate.
Conclusion
In conclusion, our analysis has revealed that Tampa, Orlando, and Austin are the top cities for short-term rental investors, with high occupancy rates and ADRs. However, Seattle stands out for its significantly higher ROI and cap rate. Denver and Houston also show promise, with high occupancy rates and moderate ADRs. As the short-term rental market continues to evolve, it's essential to stay informed about key metrics and trends to make informed investment decisions.
For more information on short-term rental market trends, we recommend checking out our article on short-term rental market outlook and top short-term rental markets in Washington for 2025.
Additionally, we've included a list of top short-term rental markets in various cities, including Virginia and South Dakota for 2025.
