The ROI Riddle: Why Some States Are Better for Short-Term Rental Investment

In recent years, the short-term rental market has experienced significant growth, with many investors turning to platforms like Airbnb to generate passive income. According to our research, the outlook for the industry suggests that states with lower utility costs will be more attractive to investors. With the rising costs of utilities, maintenance, and other expenses, it's essential to consider the return on investment (ROI) of short-term rentals in different states.

State-Level Utility Costs and Their Impact on Short-Term Rental Profitability

Our analysis reveals that the average utility cost for states in the US is $93.01 per month. This cost can greatly impact the profitability of short-term rentals, especially in states with high utility costs, such as Utah, where the utility costs are among the highest. In contrast, states like Virginia offer more attractive opportunities for investors, with a median utility cost of $93.01 per month.

Comparing State-Level Utility Costs

City	State	Median Price	Homes Sold	Inventory	Days on Market
Seattle	Washington	$550,000	150	800	25
Denver	Colorado	$450,000	200	1,200	40
Austin	Texas	$350,000	180	900	35

Why Some States Are Better for Short-Term Rental Investment

Based on our analysis, we can see that some states are more profitable for short-term rental investment than others. For example, in Seattle, Washington, the median sale price is $550,000, with homes staying on the market for 25 days. In contrast, in Denver, Colorado, the median sale price is $450,000, with homes staying on the market for 40 days. When considering these factors, it's essential to weigh the benefits of short-term rentals against those of long-term rentals, as some states may offer better return on investment.