The ROI Revolution: Cities Where Short-Term Rentals Generate the Highest Returns

In the ever-evolving world of real estate, short-term rentals have become a lucrative option for investors. But which cities offer the highest returns on investment? To answer this question, we'll dive into the data and explore the top cities for short-term rental returns.

Top Cities for Short-Term Rental Returns

The data shows that the top cities for short-term rental returns are:

• Bay City, TX with an average daily rate (ADR) of $136.83 and occupancy rate of 39.5%

• Mulberry, SC with an ADR of $529 and occupancy rate of 30%

• Solana, FL with an ADR of $290.31 and occupancy rate of 45.92%

• Robinhood, MS with an ADR of $105 and occupancy rate of 53%

• Ocala Estates, FL with an ADR of $182 and occupancy rate of 75%

These cities stand out for their high ADRs and occupancy rates, making them ideal for short-term rental investors. But what about other key metrics like median sales price and days on market?

Median Sales Price and Days on Market

This highlights the importance of considering multiple factors when evaluating short-term rental markets. It's not just about the ADR and occupancy rate, but also the median sales price and days on market.

For example, a city like Solana, FL has an ADR of $290.31 and occupancy rate of 45.92%. This means that Solana, FL is a more attractive option for short-term rental investors due to its higher ADR and occupancy rate.

Looking at the ADR and occupancy rate alone, Bay City, TX and Mulberry, SC might seem like equally viable options. However, when considering the median sales price and days on market, Mulberry, SC emerges as a more attractive option due to its lower median sales price and shorter days on market.

For a more detailed analysis of these cities and their short-term rental markets, check out our short-term rental market outlook for 2025.

Why Choose Short-Term Rentals?

Short-term rentals offer a range of benefits for investors, including higher returns on investment and increased flexibility. By investing in short-term rentals, you can take advantage of seasonal fluctuations in demand and adjust your pricing accordingly.

Additionally, short-term rentals often require less maintenance and upkeep compared to long-term rentals, making them a more attractive option for investors.

However, it's essential to consider the potential drawbacks of short-term rentals, such as the need for frequent cleaning and the potential for seasonal fluctuations in occupancy rates.

To mitigate these risks, it's crucial to research the local market and understand the demand for short-term rentals. This can be achieved by analyzing the data and trends in the local market, as well as consulting with local experts.

For more information on short-term rental trends and insights, check out our post on the rise of boutique short-term rentals.

Conclusion

In conclusion, the data shows that short-term rentals can offer high returns on investment in certain cities. By considering multiple factors like ADR, occupancy rate, median sales price, and days on market, you can make an informed decision about which cities to invest in.

Whether you're an experienced investor or just starting out, short-term rentals can be a lucrative option for those who are willing to put in the research and effort to understand the local market.

To learn more about short-term rental trends and insights, check out our post on short-term rental heatmaps.