BiggerPockets Daily Do These "Top" Housing Markets Work For Short-Term Rentals?
Apr 7, 2025
The discussion kicks off with an analysis of Zillow's top housing markets for short-term rentals, weighing their appeal against real-world regulations and demand. Buffalo and Indianapolis emerge as contenders, but come with their own sets of challenges. The conversation then shifts to St. Louis, Charlotte, and Kansas City, exploring their occupancy rates and revenue potential. Finally, Richmond shows promise despite high prices, while Salt Lake City warns investors to be cautious due to competition and strict regulations.
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Zillow's Rankings vs. STR Needs
- Zillow's top housing markets prioritize home value growth and buyer demand, suitable for traditional investors.
- Short-term rental success depends on different factors like occupancy rates, legality, and affordability.
Buffalo, NY: A Moderate STR Market
- Buffalo offers moderate STR potential due to reasonable home prices and Niagara Falls' tourism.
- Regulatory constraints and seasonality make it more suitable as a hybrid STR/midterm rental.
Indianapolis: High Risk for STRs
- Indianapolis has strong investment fundamentals and revenue growth for real estate in general.
- Oversaturation, competition, and lack of major attractions make STRs high-risk, favoring midterm rentals.