Top 5 Profitable Short-Term Rental Markets In 2025 (And How to Finance Them)

In This Article

Short-term rental investing isn’t what it was five years ago—and that’s a good thing.

The market has finally matured. What used to feel like a Wild West of trial and error now comes with real data, proven guest behavior, and smarter underwriting. 

For investors, that means we’re seeing something powerful: steadiness. And when revenue becomes more predictable, financing your next deal becomes much easier.

Looking at the Data

That’s precisely why I teamed up with Host Financial (using AirDNA and Zillow data) to highlight five STR markets that show strong demand and growth and consistently outperform in gross rental yield (the higher the %, the better).

Gross Rental Yield = (Annual Revenue / Median Home Price) × 100

It tells you how much income you’re generating relative to the purchase price. The higher the percentage, the more income you’re getting for every dollar you invest in buying the property.

Let’s say:

• The median home price in a market is $300,000.
• Annual STR revenue is $45,000.

Then:

Gross Rental Yield = ($45,000 ÷ $300,000) × 100 = 15%

That means you’re earning 15% of the property’s value in rental income each year—before expenses. That’s a strong number, especially for STRs.

These aren’t just great places to invest; they’re great places to get financed. With a DSCR (debt service coverage ratio) loan, Host Financial can help you qualify based on what the property will earn as a short-term rental, not what it might bring as a long-term lease.

Whether you’re trying to add a cash-flowing vacation rental or scale into a new state, here are five markets to watch in 2025, and exactly how Host can help you make it happen.

1. Shenandoah, Virginia

• Market score: 94
• Annual revenue: $42K
• ADR: $266.51
• RevPAR: $128.94
• Average house price: $255,593 
• Yield: 16.4%

Shenandoah is the most underrated short-term rental region in the U.S. With proximity to Shenandoah National Park and one of the highest revenue growth scores in the country, this destination is outperforming even with moderate occupancy. High ADRs, strong seasonality, and affordable property prices make it a win for nature-focused stays.

Financing tip

With steady RevPAR and favorable seasonality, Host can help you qualify using STR-specific income projections, even in markets where traditional rental comps fall short.

2. Columbia, South Carolina

• Market score: 98
• Annual revenue: $33.9K
• ADR: $201.50
• Occupancy: 57%
• Average house price: $232,153
• Yield: 14.6%

Columbia is delivering one of the best overall AirDNA scores in the nation. With strong ratings across revenue growth (+10%), seasonality, and occupancy, it’s a prime example of a midsized city STR market on the rise. Bonus: Columbia is a college town, a capital city, and a business hub all in one.

Financing tip

This is a “go big or go home” market. Large homes are outperforming because they attract families, sports travel groups, college reunion crews, and event guests. If you can offer beds, bathrooms, and bold design, Columbia will reward you.

3. Poconos, Pennsylvania

• Market score: 60 
• Annual revenue: $53.2K
• ADR: $394.14
• RevPAR: $164.27
• Average house price: $246,669
• Yield: 21.5%

The Poconos prove that seasonal demand doesn’t have to mean seasonal income. Offering bigger homes that can sleep large groups and amenities like hot tubs and game rooms, you can command luxury nightly rates, even if occupancy is slightly lower. Add a RevPAR of $164, and it’s still a high-yield machine.

Financing tip

Many properties here fall into the large-home, high-income category. Host offers jumbo DSCR loans that are perfect for second homes that are generating $50K+ in annual revenue.

4. Tulsa, Oklahoma

• Market score: 99
• Annual revenue: $28.3K
• ADR: $173.92
• RevPAR: $95.42
• Average house price: $205,014
• Yield: 13.8%

Tulsa continues to surprise STR investors. It’s got urban charm, growing tourism, and a diverse travel base. Occupancy and RevPAR have both seen healthy growth, and with a 91 Investability Score, it’s primed for value-add STR investors who know how to market well and furnish smart.

Financing tip

Whether you’re planning a short-term rental or holding as a long-term, Host Financial can help you qualify using either model. For STRs, you can get approved based on projected Airbnb revenue. For LTRs, you can use standard rent comps. Tulsa is one of the few markets where both financing paths make sense and offer substantial upside.

5. Destin, Florida

Market score: 91

Annual revenue: $72.2K

ADR: $395.52

RevPAR: $245.60

Average house price:$577,366

Yield: 12.5%

Destin might not be “undiscovered,” but it’s still one of the most profitable beachfront markets in the U.S. With revenue growth of 11% and a $72K average gross, this Emerald Coast hot spot consistently rewards investors who play in the upper-mid or luxury tiers. Jumbo DSCR loans allow investors to break into luxury short-term rental markets without needing traditional income verification.

Instead of using your personal income, lenders qualify the loan based on the property’s projected rental performance. If you have strong liquidity and a solid credit score, you can qualify for properties that exceed conforming loan limits. This opens the door to high-end STR deals that most investors never think are possible.

Financing tip

For a higher-price market like Destin, Host offers jumbo DSCR and second-home products with flexible terms—perfect for premium STRs in hot locations. Prequalifying early is key, especially during competitive seasons.

Why STR Financing Isn’t One-Size-Fits-All

Each market has different rules—some require permit approvals, others require STR income documentation, and many push for LLC vesting, depending on your loan type. That’s why working with a lender specializing in vacation rentals makes all the difference.

Host Financial helps you:

• Structure your loan with the correct entity.
• Use STR projections instead of LTR comps.
• Get prequalified quickly, with minimal red tape.
• Close with confidence, even in permit-restricted areas.

Setting Yourself Up for Success

When buying in emerging short-term rental markets, a few key strategies separate successful investors from the rest. 

First, always get prequalified by talking with Host Financial. Use projected STR income tools to secure better loan terms and make stronger, faster offers. Talk about all the details that go along with their different type of loan products. Finally, understanding local zoning laws is critical, as not every city welcomes STRs equally, and knowing the local laws means you can stay compliant from day one. 

Once you own the property, design with the guest experience in mind since high ADRs often come from unique touches, innovative layouts, and great aesthetics. 

Finally, build a network of local STR professionals, including cleaners, permit offices, and property managers, to keep operations running smoothly and guests returning.

Final Thoughts

The short-term rental industry has grown, and so have the strategies that drive the best returns. We’re no longer in an era of guesswork. Thanks to more consistent guest demand, stronger seasonality data, and smarter financial products, today’s STR investors have the opportunity to build real, scalable portfolios in profitable, sustainable markets.

These five markets stand out because they combine reliable revenue with favorable property pricing, producing gross rental yields that outpace most of the country. More importantly, they offer room to grow.

What makes these opportunities even more accessible is the financing. With a DSCR loan from Host Financial, you can qualify based on what your property will earn as a short-term rental, not just what it would bring in as a long-term lease. That means your revenue potential works in your favor, opening the door to better investments, even in markets with higher price tags.

Whether you’re scaling into your second or 10th property, the formula for success is the same: Understand your market, design for the guest, build a solid local team, and partner with a lender who truly gets the STR game.

If you’re ready to get prequalified and start making competitive offers, Host Financial is built for you. Let this be the year you buy smarter, scale faster, and invest with confidence.