Short-term city ratings
About our ratings
To determine the most favorable locations for short-term rental investments, we've comprehensively analyzed various ranking factors of cities across the country.
- Our ranking factors
- The primary criteria include the number of rental properties, local regulations and policies, average rental rates, real estate costs, and tourism seasonality.
- Why provide rankings?
- By evaluating market saturation, compliance challenges, profitability potential, and property availability, investors can gain valuable insight into a city's suitability for short-term rental ventures. Additionally, understanding seasonal demand and popular attractions' impact on occupancy rates will further enhance decision-making.
- One more thing
- By assessing these factors and comparing them across different cities, we hope to provide one of many data points for investors to decide on the most promising locations for their short-term rental investments.
Take a look at our short-term rental guides.
Our guides are a great start to reviewing local regulations, facts, and figures on existing rental properties in each city.
Our criteria
Behind the numbers
Breaking down our short-term rating criteria for local cities: Understanding the factors that impact the score.
- Real Estate Cost
- Rating is based on the median housing price for the city weighted based on the more common locations for short-term rentals. For example, for cities near a lake or beach, if the majority of the rentals were close to a specific location, the rating is further adjusted to property values near rentals than those further away. The final score is then ranked across all cities in our database to determine the final result.
- Short-Term Regulations
- Based on the city's rules and regulations concerning short-term rentals, including registration requirements, licensing, zoning, and restrictions on rental periods. A higher rating reflects fewer restrictions in the city regarding short-term rentals. For cities where we don't have information on local regulations, this factor does not impact the overall rating.
- Seasonality
- Based on the city's tourism patterns, including peak seasons, off-peak periods, and shoulder seasons. The rating is calculated based on the variability between the average rental price in a city. Cities with high rental rates for a very short period would rank lower than cities with more consistent rates throughout the year. The score is then ranked across all cities in our database to determine the final result.
- Competition
- Based on the number of short-term rental listings in the city compared to the total housing units provided by the US Census (updated 2020). The final score is then ranked across all cities in our database to determine more competitive locations based on the available properties.
- Rental Rates
- We analyzed the average rental rates for different property types and locations within the city. The primary ranking factor is the median rental rate in the city throughout the year, adjusted for typical property size and type. The price is then ranked across all cities in our database to determine the final rating result.
- Overall Score
- The overall score is based on the average short-term city rating criteria described on this page. Compare the results to other cities for a comprehensive understanding of the most favorable locations for short-term rental investments
Please note that the information provided herein is for informational purposes only and should not be construed as investment advice, as individual circumstances may vary and require personalized consultation with a financial professional. Some rating information based on limited data so could be inaccurate, especially in smaller cities.