AirDNA top STR markets to invest 2025
Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votesAirDNA top STR markets to invest 2025
Most Popular Reply
Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votesFrom a macro standpoint, cash flow is difficult when servicing debt, at least in the early years.
As for published lists of the “newest and hottest” markets, I would take that with a grain of salt. It is purely clickbait.
Find yourself a market that you are interested in, learn as much as you can about that market, and find your deal.
25 Replies
- 1yCollin HaysBusiness MemberProperty Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
From a macro standpoint, cash flow is difficult when servicing debt, at least in the early years.
As for published lists of the “newest and hottest” markets, I would take that with a grain of salt. It is purely clickbait.
Find yourself a market that you are interested in, learn as much as you can about that market, and find your deal.
- Rental Property Investor · Philadelphia, PA · Member since 2016 · 543 posts · 716 votes1y
Quote from @Travis Timmons:
AirDNA published their annual list, and the markets topping it are:
1. Peoria, IL
2. Fairbanks, AK
3 Akron, OH
4. Columbus, GA
You can go look up the remaining 21 markets, but you get the idea. The industry is mature and margins have properly compressed. If you want real yield or cashflow, you have to buy in a non-vacation market that is not top of mind for an STR. It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income.
I've said this before, but I would contend that we are in a "What can you do that is really hard?" market. You have to make a deal rather than buy a deal, be more appreciation focused, and be more patient. STR feels more like a strategy to break even or eek out a meager return on a great asset than a strategy to cashflow. Or you have to take a value add approach to make it worth the hassle. It kind of feels like the rest of the market - you kind of have to pick a lane between cash flow and appreciation.
Does that make sense?
Yeah I just don't see the point of buying STR at this point, the markets are so saturated. Housing prices are high, mortgage rates are high, and competition is fierce so revenue is way down
It’s one thing if you bought a while back like many of us did, so your cost basis is much lower. But for people thinking about diving in now, what’s the point? You’ll get a better return over the long-term by putting your money in the stock market. And you’ll be much more relaxed too bc you won’t have to deal with 1 million house problems and annoying guests 😂😂😂
I think some people are diving into STR because they think it makes them look cool, or they want a cool side project. But really you're just creating a second job for yourself and one that doesn't pay very well if it even is cash flow positive at all 😆
I used to buy houses for STR but now that I've got several STRs up and running that I bought many years ago, I stopped buying STR once mortgage rates went up and housing prices went up. Over the last few years, I take all of my STR profits and dump them into the stock market and I couldn't be happier. Stock market returns have been good and I don't have the headaches of dealing with any additional houses or guests. A true win-win
I realize this is biggerpockets so we’re all supposed to act like real estate is the most amazing investment class on the planet. But it’s OK to be realistic and aware that there are plenty of other asset classes and we don’t need to all obsess over buying real estate, especially in a market where housing prices and mortgage rates are both so high. Real estate is not the end all be all panacea for building wealth, there are a lot of other options many of which will give you way fewer headaches than real estate will!
I know this is an unpopular opinion around here that you won’t see on the front page of the daily BiggerPockets newsletter, but it’s the truth
- 1yCollin HaysBusiness MemberProperty Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
Quote from @Mark Miles:
Quote from @Travis Timmons:
AirDNA published their annual list, and the markets topping it are:
1. Peoria, IL
2. Fairbanks, AK
3 Akron, OH
4. Columbus, GA
You can go look up the remaining 21 markets, but you get the idea. The industry is mature and margins have properly compressed. If you want real yield or cashflow, you have to buy in a non-vacation market that is not top of mind for an STR. It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income.
I've said this before, but I would contend that we are in a "What can you do that is really hard?" market. You have to make a deal rather than buy a deal, be more appreciation focused, and be more patient. STR feels more like a strategy to break even or eek out a meager return on a great asset than a strategy to cashflow. Or you have to take a value add approach to make it worth the hassle. It kind of feels like the rest of the market - you kind of have to pick a lane between cash flow and appreciation.
Does that make sense?
Yeah I just don't see the point of buying STR at this point, the markets are so saturated. Housing prices are high, mortgage rates are high, and competition is fierce so revenue is way down
It’s one thing if you bought a while back like many of us did, so your cost basis is much lower. But for people thinking about diving in now, what’s the point? You’ll get a better return over the long-term by putting your money in the stock market. And you’ll be much more relaxed too bc you won’t have to deal with 1 million house problems and annoying guests 😂😂😂
I think some people are diving into STR because they think it makes them look cool, or they want a cool side project. But really you're just creating a second job for yourself and one that doesn't pay very well if it even is cash flow positive at all 😆
I used to buy houses for STR but now that I've got several STRs up and running that I bought many years ago, I stopped buying STR once mortgage rates went up and housing prices went up. Over the last few years, I take all of my STR profits and dump them into the stock market and I couldn't be happier. Stock market returns have been good and I don't have the headaches of dealing with any additional houses or guests. A true win-win
I realize this is biggerpockets so we’re all supposed to act like real estate is the most amazing investment class on the planet. But it’s OK to be realistic and aware that there are plenty of other asset classes and we don’t need to all obsess over buying real estate, especially in a market where housing prices and mortgage rates are both so high. Real estate is not the end all be all panacea for building wealth, there are a lot of other options many of which will give you way fewer headaches than real estate will!
I know this is an unpopular opinion around here that you won’t see on the front page of the daily BiggerPockets newsletter, but it’s the truth
For the record, I still believe a quality STR purchase offers a great ROI over the long term. Think crock pot, not microwave.
- Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes1y
@Mark Miles agreed...there has to be a reason other than cashflow to invest. You want a second home, there's value add opportunity, a way to hang on and ride appreciation.
In the good ol' days, analyzing STR deals was an IQ test. You could walk into a property off of the MLS that was $250k and did $70k in gross rents. There's a lot more blocking and tackling that has to be done now. I did just buy one, but it's waterfront and value add. It's a forced equity and appreciation play with the benefit of personal use and the hope that 100% bonus depreciation comes back.
- 1yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
I take these lists with a huge grain of salt. They are clickbait as Colin mentioned but also oversimplified. I am in the Tampa area and a few years back Weeki Wachee made the list. While this is a cool area with natural springs that does draw in people, most people are local to FL and there is a lot of camping. It is cheap real estate but adding maybe 5 properties there would saturate the market, and that is exactly what happened.
Regarding the discussion about cashflow v appreciation I think you can still have both. While there are some markets I feel are so saturated it is near impossible to be successful in todays market (Orlando), in most competitive markets you can be successful if a) have reasonable expectations and b) do everything right (price, location, pro design, pro photos, etc etc). For example you can still get a 15% yield on a $500k purchase in the Tampa area that will likely pencil out to a 8% or so CoC return with property management which is roughly $800 a month annualized cashflow and be in a great area for appreciation.
Vacation Rentals of Florida53 Reviews - Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes1y
@Andrew Steffens I think that most markets have normalized to give an 8-12% cash on cash return. If you are really good, you may be able to find something that gets you to 15% without value add or heavy lifting. Given the amount of work that it takes to get one of these to market and to self manage, there just needs to be another compelling reason to buy.
I don't take these lists as gospel, but I do think AirDNA does a better job than anyone. It's a starting point to find a place to look under the hood...though you are usually a year or two too late if you don't have your own investment thesis and/or do your own research.
- 1yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
Quote from @Travis Timmons:
@Andrew Steffens I think that most markets have normalized to give an 8-12% cash on cash return. If you are really good, you may be able to find something that gets you to 15% without value add or heavy lifting. Given the amount of work that it takes to get one of these to market and to self manage, there just needs to be another compelling reason to buy.
I don't take these lists as gospel, but I do think AirDNA does a better job than anyone. It's a starting point to find a place to look under the hood...though you are usually a year or two too late if you don't have your own investment thesis and/or do your own research.
I agree their insights into often undervalued markets is interesting but I also think that thousands of people look at the same data and these are often small markets and can't sustain hundreds of new STR's
Vacation Rentals of Florida53 Reviews - Property Manager · Nashville, TN · Member since 2018 · 22 posts · 16 votes1y
@Travis Timmons Thanks for sharing this data. It def gets me thinking of Rob Absolo's Airbnb 2.0 idea, and finding places near these cities and making the airbnb itself the destination.
In addition to that AirDNA shared this article from Search Logistics titled: Airbnb Statistics [2025]:User and Growth Data
I live in Nashville, TN. I used to work with a property management company that managed 30+ STR's. Now I have just started with my first studio airbnb. The data the pull in the article is a few years old but it says that Nashville is in the top 10 of the highest revenue STR cities. However it is not listed in the top 10 of highest demand cities (most bookings) or most listings. Seems like there is still potential here.
https://www.searchlogistics.com/learn/statistics/airbnb-stat...
- Property Manager · Nashville, TN · Member since 2018 · 22 posts · 16 votes1y
Quote from @Mark Miles:
Quote from @Travis Timmons:
AirDNA published their annual list, and the markets topping it are:
1. Peoria, IL
2. Fairbanks, AK
3 Akron, OH
4. Columbus, GA
You can go look up the remaining 21 markets, but you get the idea. The industry is mature and margins have properly compressed. If you want real yield or cashflow, you have to buy in a non-vacation market that is not top of mind for an STR. It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income.
I've said this before, but I would contend that we are in a "What can you do that is really hard?" market. You have to make a deal rather than buy a deal, be more appreciation focused, and be more patient. STR feels more like a strategy to break even or eek out a meager return on a great asset than a strategy to cashflow. Or you have to take a value add approach to make it worth the hassle. It kind of feels like the rest of the market - you kind of have to pick a lane between cash flow and appreciation.
Does that make sense?
Yeah I just don't see the point of buying STR at this point, the markets are so saturated. Housing prices are high, mortgage rates are high, and competition is fierce so revenue is way down
It’s one thing if you bought a while back like many of us did, so your cost basis is much lower. But for people thinking about diving in now, what’s the point? You’ll get a better return over the long-term by putting your money in the stock market. And you’ll be much more relaxed too bc you won’t have to deal with 1 million house problems and annoying guests 😂😂😂
I think some people are diving into STR because they think it makes them look cool, or they want a cool side project. But really you're just creating a second job for yourself and one that doesn't pay very well if it even is cash flow positive at all 😆
I used to buy houses for STR but now that I've got several STRs up and running that I bought many years ago, I stopped buying STR once mortgage rates went up and housing prices went up. Over the last few years, I take all of my STR profits and dump them into the stock market and I couldn't be happier. Stock market returns have been good and I don't have the headaches of dealing with any additional houses or guests. A true win-win
I realize this is biggerpockets so we’re all supposed to act like real estate is the most amazing investment class on the planet. But it’s OK to be realistic and aware that there are plenty of other asset classes and we don’t need to all obsess over buying real estate, especially in a market where housing prices and mortgage rates are both so high. Real estate is not the end all be all panacea for building wealth, there are a lot of other options many of which will give you way fewer headaches than real estate will!
I know this is an unpopular opinion around here that you won’t see on the front page of the daily BiggerPockets newsletter, but it’s the truth
It seems that you probably connect with David Green's podcast pretty well. I appreciate that view. My question is are you putting all of your money in the stock market, or are you still doing some level of real estate investing?
- 1yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votesI agree 100%!
Quote from @Collin Hays:
From a macro standpoint, cash flow is difficult when servicing debt, at least in the early years.
As for published lists of the “newest and hottest” markets, I would take that with a grain of salt. It is purely clickbait.
Find yourself a market that you are interested in, learn as much as you can about that market, and find your deal.
- 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
I know you posted this in the STR forum, but yes, 100% we seem to be in a time where it's: what can you do that's really hard. There is such tremendous demand for inventory in EVERY niche - primary residences, LTRs, MTRs, STRs, flips, multi, absolutely everything.
- 1yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
your posts are always really good! i think the barrier to entry in what you're talking about is high. that's $100K+ in cash PLUS a solid plan to achieve for that return. people that have both of those = not many.
- 1yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 4k+ posts · 3k+ votesThanks! And yes the higher the barrier to entry, the better the return (reward). The returns are typically best $800k-2M
Quote from @Nicholas L.:
your posts are always really good! i think the barrier to entry in what you're talking about is high. that's $100K+ in cash PLUS a solid plan to achieve for that return. people that have both of those = not many.
Vacation Rentals of Florida53 Reviews - Member since 2022 · 1k+ posts · 1k+ votes1y
@Travis Timmons "If you want real yield or cashflow, you have to buy in a non-vacation market that is not top of mind for an STR. It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income."
Agreed 100%. My first 2 purchases were in a market on that list, and while the year round occupancy and revenue has been solid, it is much tougher to buy now than 1-3+ years ago. While I'm grateful for the appreciation, there comes a purchase price for new acquisitions where the returns diminish rapidly and tougher to find properties that fit my buy box.
Pivoted to a new market for my 3rd property where the entry price is low but revenue is moderate, average listing quality is poor, and occupancy seems steady year-round. There is one quality operator who gets ~$50K on a house that would sell for $250K. Most of the other listings are garbage. Bought 2 SFRs on the same lot that are zoned commercial (found on Crexi) for less than the price of a normal SFR because of the value add required (like kitchens and full baths, lol), but should BRRRR nicely based on the LTR and STR projections.
Like you said, you have to make deals and look outside of the typical markets.
- Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes1y
I manage and own some STRs. I doubt I could find anything that would cashflow unless you put over 25% down. I'm building some currently (so obviously I think that works). But if you can finance a home in an appreciating area make it breakeven and at some point (as always) either rents/nightly rates will increase, interest rates will go down, or both. Good stuff, it is a much different market today.
- 1yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Travis Timmons:
AirDNA published their annual list, and the markets topping it are:
1. Peoria, IL
2. Fairbanks, AK
3 Akron, OH
4. Columbus, GA
You can go look up the remaining 21 markets, but you get the idea. The industry is mature and margins have properly compressed. If you want real yield or cashflow, you have to buy in a non-vacation market that is not top of mind for an STR. It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income.
I've said this before, but I would contend that we are in a "What can you do that is really hard?" market. You have to make a deal rather than buy a deal, be more appreciation focused, and be more patient. STR feels more like a strategy to break even or eek out a meager return on a great asset than a strategy to cashflow. Or you have to take a value add approach to make it worth the hassle. It kind of feels like the rest of the market - you kind of have to pick a lane between cash flow and appreciation.
Does that make sense?
use STR reports it's more representative of major hotel markets and hotel inventory. find hte right brand. we just did a 150 page report on one development site. Akron ohio isn't the best city in america for short term rentals that's crazy. it's not in the top 50 and i'ts a very struggling ohio market. it's not even top 5 in ohio.
Section 8 Launch52 Reviews - Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes1y
@Robert Ellis Akron falls into a similar category as Peoria, IL. I grew up in that area, and it's not great - declining population, stagnant economy that relies on 1 major employer (Caterpillar). If CAT ever left, the town would crumble. I think yield is a major metric, and you could probably find a $150k house that would do $30-35k per year in gross rental income, which is why they are showing up on the list. I would not want to own that property, but on paper it looks good.
@Nicholas L. @Andrew Steffens the pool of buyers that have six figures of cash (you really need about $150k in cash to buy a $500k STR), have some subject matter expertise, AND want to self manage is even smaller.
- Real Estate Agent · Akron, OH · Member since 2017 · 73 posts · 48 votes1y
Quote from @Robert Ellis:
Quote from @Travis Timmons:
AirDNA published their annual list, and the markets topping it are:
1. Peoria, IL
2. Fairbanks, AK
3 Akron, OH
4. Columbus, GA
You can go look up the remaining 21 markets, but you get the idea. The industry is mature and margins have properly compressed. If you want real yield or cashflow, you have to buy in a non-vacation market that is not top of mind for an STR. It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income.
I've said this before, but I would contend that we are in a "What can you do that is really hard?" market. You have to make a deal rather than buy a deal, be more appreciation focused, and be more patient. STR feels more like a strategy to break even or eek out a meager return on a great asset than a strategy to cashflow. Or you have to take a value add approach to make it worth the hassle. It kind of feels like the rest of the market - you kind of have to pick a lane between cash flow and appreciation.
Does that make sense?
use STR reports it's more representative of major hotel markets and hotel inventory. find hte right brand. we just did a 150 page report on one development site. Akron ohio isn't the best city in america for short term rentals that's crazy. it's not in the top 50 and i'ts a very struggling ohio market. it's not even top 5 in ohio.
I am guessing they use CoC or some similar metric for this. You can probably make decent returns in Akron based on gross income and purchase price. Plus the average person probably finds Akron more obtainable given funds available. That is who they write that article for so they can sell subscriptions. I have considered trying out STR here in Akron but I live here. And my goal of trying it out would just to get familiar so I could potentially buy in a much better market.
- Member since 2023 · 3 posts · 2 votes1y
Quote from @Mark Miles:
Quote from @Travis Timmons:
AirDNA published their annual list, and the markets topping it are:
1. Peoria, IL
2. Fairbanks, AK
3 Akron, OH
4. Columbus, GA
You can go look up the remaining 21 markets, but you get the idea. The industry is mature and margins have properly compressed. If you want real yield or cashflow, you have to buy in a non-vacation market that is not top of mind for an STR. It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income.
I've said this before, but I would contend that we are in a "What can you do that is really hard?" market. You have to make a deal rather than buy a deal, be more appreciation focused, and be more patient. STR feels more like a strategy to break even or eek out a meager return on a great asset than a strategy to cashflow. Or you have to take a value add approach to make it worth the hassle. It kind of feels like the rest of the market - you kind of have to pick a lane between cash flow and appreciation.
Does that make sense?
Yeah I just don't see the point of buying STR at this point, the markets are so saturated. Housing prices are high, mortgage rates are high, and competition is fierce so revenue is way down
It’s one thing if you bought a while back like many of us did, so your cost basis is much lower. But for people thinking about diving in now, what’s the point? You’ll get a better return over the long-term by putting your money in the stock market. And you’ll be much more relaxed too bc you won’t have to deal with 1 million house problems and annoying guests 😂😂😂
I think some people are diving into STR because they think it makes them look cool, or they want a cool side project. But really you're just creating a second job for yourself and one that doesn't pay very well if it even is cash flow positive at all 😆
I used to buy houses for STR but now that I've got several STRs up and running that I bought many years ago, I stopped buying STR once mortgage rates went up and housing prices went up. Over the last few years, I take all of my STR profits and dump them into the stock market and I couldn't be happier. Stock market returns have been good and I don't have the headaches of dealing with any additional houses or guests. A true win-win
I realize this is biggerpockets so we’re all supposed to act like real estate is the most amazing investment class on the planet. But it’s OK to be realistic and aware that there are plenty of other asset classes and we don’t need to all obsess over buying real estate, especially in a market where housing prices and mortgage rates are both so high. Real estate is not the end all be all panacea for building wealth, there are a lot of other options many of which will give you way fewer headaches than real estate will!
I know this is an unpopular opinion around here that you won’t see on the front page of the daily BiggerPockets newsletter, but it’s the truth
I get where you're coming from, and I think you make some good points about the challenges of the short-term rental (STR) market right now—high housing prices, mortgage rates, and fierce competition. However, I think there are some nuances to consider, especially for those still interested in STRs or real estate in general.
1. Tax Savings:
While it’s true that the stock market has been strong, real estate offers unique tax advantages that aren’t available with other asset classes. Specifically, short-term rentals can help you get REPS status. Helping you to shield W-2 income, making STRs a great option for high-income earners looking for ways to reduce their tax burden.2. Long-Term Investment Perspective:
You’re right in noting that the market can seem saturated now, but it’s important to take a longer-term view. Rents generally rise over time, and while mortgage rates are high now, they won’t necessarily stay there forever. Inflation and the eventual rise in rents could provide significant cash flow advantages down the road. In addition, if housing prices do dip (they inevitably cycle), having real estate in your portfolio could be a big win.3. Real Estate is Still a Tangible Asset:
The stock market is great, but it’s more volatile and sometimes feels less "real" than tangible assets like real estate. With real estate, you’re owning a physical asset that’s less subject to daily fluctuations. If you’re strategic about locations, management, and financing, STRs can still offer decent returns in the right market.I totally agree that it’s not all sunshine and rainbows in real estate right now, but if you’re strategic—especially with tax savings and a long-term focus—real estate can still be a viable option alongside other investments.
- Rental Property Investor · Philadelphia, PA · Member since 2016 · 543 posts · 716 votes1y
Quote from @Sam Howell:
Quote from @Mark Miles:
Quote from @Travis Timmons:
AirDNA published their annual list, and the markets topping it are:
1. Peoria, IL
2. Fairbanks, AK
3 Akron, OH
4. Columbus, GA
You can go look up the remaining 21 markets, but you get the idea. The industry is mature and margins have properly compressed. If you want real yield or cashflow, you have to buy in a non-vacation market that is not top of mind for an STR. It's the boring places that probably won't appreciate above the rate of inflation that will provide real month to month income.
I've said this before, but I would contend that we are in a "What can you do that is really hard?" market. You have to make a deal rather than buy a deal, be more appreciation focused, and be more patient. STR feels more like a strategy to break even or eek out a meager return on a great asset than a strategy to cashflow. Or you have to take a value add approach to make it worth the hassle. It kind of feels like the rest of the market - you kind of have to pick a lane between cash flow and appreciation.
Does that make sense?
Yeah I just don't see the point of buying STR at this point, the markets are so saturated. Housing prices are high, mortgage rates are high, and competition is fierce so revenue is way down
It’s one thing if you bought a while back like many of us did, so your cost basis is much lower. But for people thinking about diving in now, what’s the point? You’ll get a better return over the long-term by putting your money in the stock market. And you’ll be much more relaxed too bc you won’t have to deal with 1 million house problems and annoying guests 😂😂😂
I think some people are diving into STR because they think it makes them look cool, or they want a cool side project. But really you're just creating a second job for yourself and one that doesn't pay very well if it even is cash flow positive at all 😆
I used to buy houses for STR but now that I've got several STRs up and running that I bought many years ago, I stopped buying STR once mortgage rates went up and housing prices went up. Over the last few years, I take all of my STR profits and dump them into the stock market and I couldn't be happier. Stock market returns have been good and I don't have the headaches of dealing with any additional houses or guests. A true win-win
I realize this is biggerpockets so we’re all supposed to act like real estate is the most amazing investment class on the planet. But it’s OK to be realistic and aware that there are plenty of other asset classes and we don’t need to all obsess over buying real estate, especially in a market where housing prices and mortgage rates are both so high. Real estate is not the end all be all panacea for building wealth, there are a lot of other options many of which will give you way fewer headaches than real estate will!
I know this is an unpopular opinion around here that you won’t see on the front page of the daily BiggerPockets newsletter, but it’s the truth
I get where you're coming from, and I think you make some good points about the challenges of the short-term rental (STR) market right now—high housing prices, mortgage rates, and fierce competition. However, I think there are some nuances to consider, especially for those still interested in STRs or real estate in general.
1. Tax Savings:
While it’s true that the stock market has been strong, real estate offers unique tax advantages that aren’t available with other asset classes. Specifically, short-term rentals can help you get REPS status. Helping you to shield W-2 income, making STRs a great option for high-income earners looking for ways to reduce their tax burden.2. Long-Term Investment Perspective:
You’re right in noting that the market can seem saturated now, but it’s important to take a longer-term view. Rents generally rise over time, and while mortgage rates are high now, they won’t necessarily stay there forever. Inflation and the eventual rise in rents could provide significant cash flow advantages down the road. In addition, if housing prices do dip (they inevitably cycle), having real estate in your portfolio could be a big win.3. Real Estate is Still a Tangible Asset:
The stock market is great, but it’s more volatile and sometimes feels less "real" than tangible assets like real estate. With real estate, you’re owning a physical asset that’s less subject to daily fluctuations. If you’re strategic about locations, management, and financing, STRs can still offer decent returns in the right market.I totally agree that it’s not all sunshine and rainbows in real estate right now, but if you’re strategic—especially with tax savings and a long-term focus—real estate can still be a viable option alongside other investments.
I agree with everything you said but it’s also important to consider the Time component. It takes 30 seconds to dump your money into the stock market. If you buy real estate, you will spend hours and days and weeks and months of your life dealing with it… Home repairs, guests,… An investment really has to be pretty amazing to sacrifice all that time for it
The houses I own I bought many years ago at dirt cheap prices and dirt cheap mortgage rates. So I don’t mind the time that I had to invest in them because my ROI has been pretty spectacular. I just think people need to ask themselves if it’s worth the tremendous time investment at today’s much much much lower ROIs.
I sometimes wonder if people just feel lazy dumping their money into an index fund in the stock market and actually using all that free time to go out and live life. Sometimes I wonder if people just feel better about themselves to spend all those nights and weekends on real estate when, realistically speaking, they would have earned just as good a return (or pretty close to it) by investing in a stock market index fund and had way more free time in life
I realize my premise here is antithetical to the whole notion of BiggerPockets so of course bigger pockets hates me writing this, as do all real estate agents and property managers, but it’s the truth and everyone needs to think about it - Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes1y
@Mark Miles I don't think that BP as a whole would have any issue with that statement. The idea of dropping money in an index fund and forgetting about it can seem like you are not doing anything.
It reminds me of the Charles Schwab study - their best performing retail investment accounts were from dead people that never closed out the account. It's a nice lesson in behavioral finance. I'd contend that this same idea is why most index fund investors don't make the stated returns. Too much buying, selling, and human nature to just forget about it and let the compounding effect of time do its magic.
- 1yStephen KeigheryBusiness MemberRental Property Investor · New Orleans, LA · Member since 2018 · 717 posts · 555 votes
Interesting, I wouldn't have picked those Markets. I have an STR in New Orleans and we were heavily impacted by regulation. Luckily mine was zoned commercial and so the regulation didn't effect me and actually helped as it greatly reduced the supply in the market.
Home Buyer Louisiana4.850 Reviews - 1yJustin BrickmanBusiness MemberRealtor · San Antonio, TX · Member since 2021 · 502 posts · 274 votes
Anywhere without HOAs
Justin Brickman Realty4.9137 Reviews - Real Estate Coach · Rhein-Nahe Region Germany & Worldwide · Member since 2023 · 23 posts · 14 votes1y
Hi Travis & All,
It absolutely makes sense, but I'd like to offer a slightly contrarian perspective. While I agree that the STR market has matured and margins are compressing, I don't think this is a universal truth especially for Americans buying in international markets like Germany. In fact, based on my personal experience I think the high value data provided shows the need to pivot internationally. Here's why:
1. Location-Specific Opportunities
In markets like Germany, STR regulations are stricter, which creates a natural barrier to entry. This means less competition and higher demand for well-managed properties in prime locations. For Americans using their housing allowances, there's a unique opportunity to acquire properties that generate strong yields without relying on appreciation alone.
2. The Hard Stuff Still Pays Off
You're spot on that we're in a What can you do that is really hard market. This is where Americans who understand how to navigate international financing, property laws, and cultural nuances can create deals rather than just buy into the hype. By adding value through renovations, design tailored to German preferences, or flexible leasing strategies, you can turn seemingly average properties into STR gold mines.
3. Boring Can Be Beautiful, But Location Still Wins
While I agree that boring markets offer steady cash flow, I’d argue that markets with a blend of stable tenant demand and tourist appeal like areas near U.S. military installations in Germany strike a better balance between cash flow and appreciation. Properties in these areas can cater to both long-term tenants and short-term renters, creating diversified income streams.
4. STR as a Strategy for Leveraging Housing Allowances
Americans stationed overseas have a unique edge: they can leverage housing allowances to reduce risk while building wealth. STRs in non-traditional vacation markets like Stuttgart or Wiesbaden aren’t t just about breaking even they’re re about creating consistent cash flow that also serves as a long-term hedge against inflation.
5. Patience Pays, But so Does Smart Positioning
It's s true that appreciation-focused strategies require patience, but in international markets with built-in tenant demand (e.g., near military bases or expat hubs), appreciation and cash flow aren't mutually exclusive. It's s about knowing how to position yourself in markets where demand remains resilient, even when global STR margins are tightening.
So yes, I completely agree that the game has changed, but for those willing to tackle the hard stuff in overlooked international markets with large American populations, the opportunity to combine cash flow with long-term appreciation is very much alive. The times we’re re investing in just require a more creative and strategic approach than before.
Disclaimer: My original post was removed by the moderation team. I’ve edited this version to comply with the rules and removed any references that could be perceived as self-promotion. If you responded to my previous post, I didn’t get to see your comment, but I’d love to continue the conversation here!
Does this perspective resonate with others? Would love to see your original response, Travis!
Thanks
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