Best Places to Invest
in Short-Term Rentals
in 2025

Demand reflects how often rentals are booked and whether travel interest in the market is growing. This measures how often rentals are booked and how travel demand is growing. It includes:

Trailing 12-Month (TTM) Occupancy Rate: This measures the percentage of available nights that rentals were booked over the past year. For instance, a TTM occupancy rate of 70% means that 70% of all available listing nights were rented.

Booked Listing Growth: This tracks how the number of rented properties has increased over time, offering insight into market expansion.

Together, these metrics capture the popularity of a market and whether demand is on the rise.

We take into account revenue growth, which indicates whether properties in a market are becoming more profitable over time. We track year-over-year changes in Revenue Per Available Rental (RevPAR) for properties booked over the past two years to assess revenue growth. RevPAR is your Average Daily Rate (ADR) multiplied by your occupancy rate. It's a crucial indicator of market profitability because it reflects both pricing power and booking frequency, offering a clear picture of how well properties in a market are performing.

Investability evaluates the strength of current opportunities by focusing on properties that are actively for sale. We calculate gross yield—a key metric for investors—by dividing a property’s annual revenue potential by its sale price. We’ve aggregated yields at the market level to identify locations where there are real opportunities to secure high-performing investments right now.