- STRs now earn up to 3x more in monthly income than standard long-term rentals in areas where lots of people want to visit.
- DSCR loans don’t check your personal income. They are good for investors who want to add many Airbnb properties quickly.
- Places like Shenandoah, Poconos, and Destin have shown over $60k average yearly STR income.
- Cities with clear rules for STRs see more DSCR loan approvals and fewer issues for lenders.
- AirDNA data shows that how many nights a place is booked (occupancy) and the average price per night (ADR) can make or break how much money a short-term rental makes.
Putting money into short-term rentals has become a top real estate move for smart investors. For 2025, good performance numbers, better ways to get loans like DSCR loans, and changing things travelers want are helping investors make Airbnb properties into steady ways to earn money. If you invest in a well-known STR market like Las Vegas, using these ideas in new places can bring in good money. So, let’s look at where the next good chances are.
Why Short-Term Rental Investments Are Doing Well in 2025
More people are putting money into short-term rentals because consumer habits are changing and the economy is getting better. Through 2024 and into 2025, several main things are keeping STRs strong:
1. People Are Traveling a Lot Again
Travel is doing great. The U.S. Travel Association says that travel within the U.S. for fun reached 99% of what it was before the pandemic by late 2023. Markets that have big events—like music shows, sports, and national parks—have seen a big jump in travel. This is pushing up the number of nights STRs are booked.
2. Guests Want Stays That Feel Like Home and Are Different
Today’s travelers want more than just a standard hotel room. STRs have things that families and people staying longer like. They offer private kitchens, more than one bedroom, yards, and let pets stay. This is especially good for travelers who add a few fun days to a work trip. This group is getting bigger among people who work online from anywhere.
3. You Can Earn More Money
STRs bring in much more money each month than long-term rentals, especially in areas with lots of tourism or changing seasons. For example, a vacation home in the Poconos making $72,000 a year easily makes more money than a standard 12-month rental in the same spot.
4. Rules Are Getting Clearer
As short-term rentals have grown, some local governments have made rules that help STRs. Investors now have clearer ways to follow the rules. This lets them plan and grow their business more freely, especially in cities that see short-term rental homes as a way to help tourism.
What Makes a Market Good for STRs to Make Money?
Whether a short-term rental investment makes money depends on more than just how popular a place is for tourists. These are the main things investors check to see if an STR market is worth it:
1. Occupancy Rates
It’s very important that places are booked often, especially all year. A home booked 70% of the time will earn much more than one only booked on weekends. For example, Columbia, SC, is a leader with a 68% booking rate. This comes from events and university activity all year long.
2. Average Daily Rate (ADR)
ADR is how much money you make per night. In a market like Destin, FL, where the ADR is $447, even if it’s not booked every night, you make a lot. High ADRs are common in high-end or seasonal vacation areas. But investors need to be ready for slower times between seasons.
3. Revenue Per Available Rental (RevPAR)
RevPAR (Occupancy × ADR) is a good way to see how healthy a short-term rental is. It tells you how much money your property will likely make on average each night it can be rented out.
4. The Rules
Rules that are friendly to STRs can make or break your investment. Cities with clear rules about where you can rent, permits, and checking things make it less risky to make money over time.
5. How Much the Property Costs Compared to How Much It Earns
The price of homes compared to how much money an STR could make is very important. Places like Tulsa, OK, have low purchase prices and pretty good earnings. This makes the cash-on-cash returns look better, even if income doesn’t grow fast.
Top 5 Short-Term Rental Markets for 2025
These cities are good ones to look at for 2025:
1. Shenandoah, Virginia
- Occupancy Rate: 56%
- ADR: $319
- Annual Revenue: $63,844
- Why It Works: This market is near Shenandoah National Park. It gets a lot of visitors from D.C. and Richmond who only have to drive a short way. People looking for outdoor fun and weekend trips create steady demand. This is like how places outside Las Vegas that offer nice views are popular.
2. Columbia, South Carolina
- Occupancy Rate: 68%
- ADR: $170
- Annual Revenue: $42,395
- What Makes It Profitable: With the University of South Carolina and lots of sports events, bookings go up a lot on event weekends. It’s a steady market for making cash flow.
3. The Poconos, Pennsylvania
- Occupancy Rate: 48%
- ADR: $420
- Annual Revenue: $72,287
- Strengths: This area is known for vacation homes, group trips, and seasonal beauty. Fancy cabins and big homes are common. This is like how large STRs with many bedrooms do well in places like the Summerlin area near Vegas.
4. Tulsa, Oklahoma
- Occupancy Rate: 64%
- ADR: $141
- Annual Revenue: $38,841
- Investor Upside: This city is getting more popular. Homes cost less here, meaning better return on investment. And the Tulsa Remote Program keeps bringing in people who work from afar and artists.
5. Destin, Florida
- Occupancy Rate: 51%
- ADR: $447
- Annual Revenue: $85,598
- Why It Soars: This is a top beach market with lots of demand in the summer. High-end homes and steady vacationers create returns that are good for growing your investments or investing with a group.
Why Financing for STRs Is Not All the Same
Short-term rentals can make money, but getting loans for them can be hard. Standard mortgage lenders often look at your personal income, not how much the property might earn. This makes it harder to buy more properties.
Things that make getting money for STRs tricky include:
- Income that isn’t steady: Many hosts make money from side jobs or their own business.
- Bookings that aren’t always the same: Lenders worry that income changes with the seasons.
- Fixing up the property: STRs often need furniture, tech, and nice decorations to look good online.
This is where loan options made for Airbnb properties come in.
How DSCR Loans Help Airbnb Investments
A DSCR loan (Debt-Service Coverage Ratio) is made for real estate investors, especially those with short-term rentals.
💡 What is a DSCR Loan?
It checks how much money the property makes, not your personal income. Most lenders want a DSCR of 1.25 or higher. This means the property must make 25% more than what you owe on the loan each year.
⚙️ Why It’s Good for Airbnb Financing
- No Need to Show W-2s: The process that checks your income is skipped.
- Good for Buying More: Great for investors who already own 2 or more properties.
- Faster Loan Closing: Less paperwork means you get approved quicker.
If you are investing from Las Vegas, you can get DSCR loans for STR-friendly markets in other states that show strong earning data, like Shenandoah or Destin.
What Makes a Market Good for Getting a DSCR Loan Approved?
To get approved for DSCR-based financing for an Airbnb, lenders look at things about the market and about the specific property:
- How Much Money It Makes: Dependable ADRs and RevPAR numbers show it can be profitable.
- Clear Rules: Fewer legal questions mean less risk of not being able to pay back the loan.
- Similar Properties Nearby: If other listed places nearby are doing well and are booked often, this helps show the numbers are real.
Picking the Right Way to Finance Your STR
Not all investors are the same. How much money you have, what you want to achieve, and your income help decide the best way to go:
| Financing Option | Best For | Good Points | Bad Points |
|---|---|---|---|
| DSCR Loans | Those who qualify based on the property | Don’t need to show income | Need DSCR > 1.25 |
| Conventional Loans | People with high personal income and W-2 jobs | Low rates | Need income papers |
| Second Home Loans | If you plan to use the home sometimes | Lower down payments | Limits how many days you can rent |
| HELOC or Cash-Out | Homeowners using money from their home’s value | Money is flexible | Interest rates can change |
| Joint Ventures | Investors putting money together | Can buy bigger properties | Agreements can be tricky |
How to Look at STR Markets Like a Pro
Just having numbers that look good is not enough. You need real facts.
- Tools to Guess Income: Use AirDNA, PriceLabs, and STRInsights to guess how much you’ll earn from bookings by looking at properties like yours.
- Local Rules & Zoning: Check the specific STR laws for the city, township, and HOA.
- Figure Out All Costs: Include money for property managers, cleaning, fixing things, taxes, permits, and insurance.
- How Much Demand Changes: Does it depend on events, the time of year, or is it needed all the time?
For landlords in Las Vegas, checking zoning rules is very important. If STRs are not allowed in an area in Clark County, you could get fines or have to stop renting.
Las Vegas Real Estate: Things to Learn for Doing Well with STRs
Even though Las Vegas has put more rules on STRs, it’s still a good place in some areas. Use what you know from Vegas when you look at places elsewhere.
What Works in Vegas Works in Many Places
- High Demand Because of Events: Think about the Super Bowl, big meetings, and shows. This is a good comparison for markets that have big reasons people visit.
- Properties for Big Groups: Think about places in Summerlin that are set up for families and events.
- Knowing the Zoning Rules: Clark County’s approved zones are a clear example. Do that same checking in other cities.
Mistakes to Stay Away From in STR Investing
Don’t make these errors that can stop you from making money:
- Buying in areas where STRs are not allowed
- Thinking you will have more bookings or higher prices than you really will
- Not figuring out all the money you will spend on the property over time
- Counting on loans based on your job when you want to buy more properties
Smart investors use what they know about the area, follow the rules, and use DSCR financing that lets them buy more properties. This helps them build steady ways to earn money.
Last Ideas: Getting Ready for STR Success in 2025
If you want to make money from more people taking vacations, falling interest rates, and better ways to get money for Airbnb, 2025 is a good year. Think about using DSCR loans to get properties in markets that make good money without linking it to your personal money. Whether you buy more in Las Vegas or try Shenandoah, looking at the facts and knowing the rules will help you build lasting wealth.
What People Are Doing Now in STR Investment
- Investing in Two Market Types: Putting money in both city and vacation spots helps keep cash coming in all year.
- Tools That Change Prices: PriceLabs, Beyond, and Wheelhouse use computer programs to change prices. This helps you make more money per night.
- Ready-to-Go Rentals: STRs that are already furnished and managed are good for people who want to earn money without doing much work.
- Groups of Investors: Groups of people put their money together to buy in places where lots of people want to visit, like Destin or Vail.
If you want to have financial freedom by making money from property, short-term rentals—with help from planned Airbnb financing like DSCR loans—are one of the most promising ways in 2025.