The 5-Star Zip Code Effect: Identifying Neighborhoods With High Rental Demand

When it comes to short-term rentals, location is everything. In this article, we'll explore the correlation between neighborhood amenities and short-term rental demand, and discover the top zip codes for investors.

But before we dive into the data, let's take a look at some of the top cities for short-term rentals in the US. According to our data, Denver, CO has a median sale price of $628,422 with homes sold at an average of 294 units.

When comparing to Nashville, TN, which has a median price of $495,234, we can see a difference of $133,188. Additionally, Nashville has a higher number of homes sold at 298 units compared to Denver's 294 units.

Rental analysis suggests that Nashville's higher demand for short-term rentals is driven by its thriving music scene and affordability.

Another city worth noting is Tampa, FL, with a median sale price of $457,340 and homes sold at an average of 87 units. While the number of homes sold is lower compared to Denver and Nashville, Tampa's median sale price is slightly lower than Nashville's.

Now, let's take a look at some of the key metrics for these cities. According to our data, Denver has a median days on market of 62 days, while Nashville has a median days on market of 44 days. This suggests that Nashville's homes are selling faster than Denver's.

In addition to these metrics, we also looked at the number of homes sold in each city. Denver had 294 homes sold, while Nashville had 298 homes sold. This suggests that Nashville is a more competitive market for short-term rentals.

When comparing the days on market for these cities, we can see that Tampa has a median days on market of 38 days. This is significantly lower than Denver's 62 days and Nashville's 44 days.

For a city like Austin, TX, the median sale price is $558,099 with homes typically staying on the market for 26 days. When comparing to Denver, CO, which has a median price of $628,422, we can see a difference of $70,323. Additionally, Denver has a higher median days on market of 62 days compared to Austin's 26 days.

Rental analysis suggests that Austin's higher demand for short-term rentals is driven by its thriving tech industry and affordability.

Lastly, let's take a look at Portland, OR, with a median sale price of $318,414 and homes sold at an average of 370 units. While the number of homes sold is higher compared to Denver and Nashville, Portland's median sale price is lower than Denver's and Nashville's.

In conclusion, our data suggests that Nashville, TN is a top city for short-term rentals due to its thriving music scene, affordability, and faster days on market. Denver, CO is also a strong contender, with a median sale price of $628,422 and a median days on market of 62 days. Tampa, FL and Austin, TX are also worth considering, with lower median sale prices and faster days on market.

We hope this article has provided valuable insights into the correlation between neighborhood amenities and short-term rental demand. For more information on the short-term rental market, be sure to check out our other articles on short-term rental market outlook and short-term rental markets.