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Key Takeaways:
1. Markets with strong demand growth, high occupancy, and rising average daily rates are driving the most profitable short-term rental returns in 2025.
2. The Poconos, Destin, and Saratoga stand out as high-yield short-term rental markets, combining strong occupancy with rising average daily rates.
3. Markets like Shenandoah, Columbia, and Wilmington show that smaller or secondary metros can deliver consistent revenue growth and long-term potential.
4. Regulation-friendly areas are increasingly critical, helping investors avoid hurdles and maintain profitable operations.
Table of Contents
The key to a profitable short-term rental (STR) investment isn’t just about finding a beautiful property, it’s about finding the right market. In a world of evolving travel trends and regulations, a data-driven approach is no longer optional; it’s essential.
At Ziffy, we’ve analyzed millions of data points to identify markets with genuine, sustainable growth. We look for the “goldilocks” zones where demand is outpacing supply, and a favorable environment allows investors to maximize their returns.
This guide will walk you through our top 7 STR markets for 2025, detailing exactly why they’re poised for success and how Ziffy’s platform can help you secure your next investment in these high-potential areas.
Ziffy’s Methodology for Identifying Top Markets
Our analysis goes beyond simple headlines. We identify markets with strong momentum by tracking a combination of key metrics:
- Demand Growth: We look for double-digit year-over-year increases in nights booked, which signals a strong and growing traveler interest.
- Revenue Per Available Rental (RevPAR): This key metric combines both occupancy rates and average daily rates (ADR) to give a holistic view of a market’s revenue health.
- Regulation Score: We assess the local laws and regulations to ensure the market has a friendly STR policy that supports long-term growth and stability for investors.
Based on our data-first approach, here are our top markets for 2025.
1. The Poconos, Pennsylvania
The Poconos isn’t just a seasonal market; it’s a powerhouse for investors who understand its unique demand. Our data shows a consistent need for larger homes that can accommodate groups and offer amenities like hot tubs and game rooms. By catering to this specific niche, investors can command high nightly rates, making it a market with an exceptionally high yield.
Investment Properties Listed Today on Sale in Poconos, PA
Key Metrics:
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Average Annual Revenue: $47,000 - Occupancy Rate: 43%
- Average Daily Rate (ADR): $291
2. Shenandoah, Virginia
Often an underrated gem, Shenandoah is a nature-lover’s paradise with a growing tourist base, thanks to its proximity to Shenandoah National Park. This market has a high revenue growth score and affordable property prices, making it a perfect spot for new investors looking for a strong return without the high upfront cost of a traditional tourist destination.
Investment Properties Listed Today on Sale in Shenandoah, VA
Key Metrics:
- Median Annual Revenue: $50,582
- Occupancy Rate: 47.9%
- Average Daily Rate (ADR): $319
3. Columbia, South Carolina
This “double threat” market benefits from a diverse travel base. As a college town, a state capital, and a growing business hub, Columbia attracts students, sports fans, business travelers, and families. Our analysis shows strong ratings for both revenue growth and occupancy, particularly for larger homes that can host families and event guests.
Investment Properties Listed Today on Sale in Columbia, SC
Key Metrics:
- Average Annual Revenue: $30,000
- Occupancy Rate: 64%
- Average Daily Rate (ADR): $131
4. Destin, Florida
This classic beachfront market continues to be a top performer, consistently rewarding investors who target the upper-mid to luxury tiers of the market. Our data shows strong revenue growth and a high average gross revenue, thanks to its status as a premier vacation destination.
While property prices are higher, Ziffy’s DSCR loans can make it possible for investors to break into this lucrative market.
Investment Properties Listed Today on Sale in Destin, FL
Key Metrics:
- Average Annual Revenue: $60,000
- Occupancy Rate: 66%
- Average Daily Rate (ADR): $255
5. Tulsa, Oklahoma
Tulsa’s urban revitalization has transformed it into an urban charm destination with a growing tourism base. This market is a fantastic value-add opportunity, where both occupancy and RevPAR have seen healthy growth. It’s a versatile market where Ziffy’s short-term and long-term financing paths make sense, giving you a profitable exit strategy no matter how you decide to manage your investment.
Investment Properties Listed Today on Sale in Tulsa, OK
Key Metrics (per Ziffy analysis):
- Average Annual Revenue: $29,000
- Occupancy Rate: 61%
- Average Daily Rate (ADR): $134
6. Wilmington, North Carolina
Wilmington is a market with genuine, sustainable momentum. With a strong demand for coastal getaways and a growing population, bookings are rising faster than new listings. Its beautiful beaches and historic downtown make it a consistent draw for tourists, and our data shows a positive Regulation Score, indicating a friendly STR policy that can sustain long-term growth.
Investment Properties Listed Today on Sale in Wilmington, NC
Key Metrics:
- Average Annual Revenue: $31,000
- Occupancy Rate: 58%
- Average Daily Rate (ADR): $150
7. Saratoga, New York
Known for its world-class horse racing and vibrant arts scene, Saratoga Springs has become a goldmine for STR investors. The city’s major events draw visitors year-round, allowing investors to command exceptionally high nightly rates during peak seasons. While seasonal, the income potential during these key periods can easily justify the investment.
Investment Properties Listed Today on Sale in Saratoga, NY
Key Metrics (per Ziffy analysis):
- Average Annual Revenue: $56,000
- Occupancy Rate: 51%
- Average Daily Rate (ADR): $305
The Final Word
Finding a profitable STR is about more than just luck, it’s about data. The markets we’ve highlighted are not just headlines; they’re high-yield opportunities backed by strong metrics.
At Ziffy, our platform gives you the power to find, analyze, and finance properties in these top markets. From DSCR loans for a faster close to our market analysis tools, we’re built to help you build a profitable portfolio with confidence.
FAQs
What makes a short-term rental market profitable in 2025?
Profitability depends on demand growth, occupancy rates, average daily rates, and favorable local regulations that support STR investments.
How does Ziffy identify top STR markets?
Ziffy analyzes millions of data points, focusing on demand growth, revenue per available rental (RevPAR), and regulation scores to pinpoint high-potential markets.
Can I invest in a high-revenue market with limited capital?
Yes, options like Ziffy’s DSCR loans allow investors to access high-demand markets without needing large upfront cash.
At Ziffy, we ensure the reliability of our content by relying on primary sources such as government data, industry reports, firsthand accounts from our network of experts, and interviews with specialists. We also incorporate original research from respected publishers when relevant.
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