Understood -- however in Asheville for example, STRs are prohibited in most commercial and mixed use zoning districts, including the CBD.

Quote from @Erika Albert: I specialize in helping investors purchase STR properties, I've compiled many of the rules and regulations throughout central texas below:Austin: the City of Austin breaks down short term rentals into three types, to learn all about these classifications, check out this previous postno permits are being issued for STRs for single family, investor-owned homes EXCEPT in the following zoning districts: Central Business District (CBD), Downtown Mixed Use (DMU), Planned Unit Development (PUD), General-Retail - Mixed Use (GR-MU), Commercial Services - Mixed Use (CS-MU), Commercial Services - Vertical Mixed Use (CS-V), General Retail - Vertical Mixed Use (GR-V)STR permits are being issued for Type 3, multifamily properties i.e. condos.

Gentrifying neighborhood half-mile beyond CBD, attracting young families and seniors.

The third panelist develops work-force housing outside of the CBD area, but near public transportation centers (which is very lacking in Houston). 

I think I may have found the answer, on https://www.austintexas.gov/page/types-short-term-rentals, Type 2 has an '*' next to it, scrolling down the page, you can find the following:⁠*Only allowed in the following commercial zoning districts:Central Business District (CBD)Downtown Mixed Use (DMU)Planned Unit Development (PUD)General-Retail - Mixed Use (GR-MU)Commercial Services - Mixed Use (CS-MU)Commercial Services - Vertical Mixed Use (CS-V)General Retail - Vertical Mixed Use (GR-V)⁠If I am understanding correctly, a property would need to be in one of the zones listed above to be eligible for Type 2 permits today.

You said its "on a side street of the main road", is the main road a CBD with business etc?

With all of theses, the proximity to CBD, jobs, amenities is tough to match.

But also, there are so many nuances to cap rate.If you are looking at office space, for instance, are in you CBD or suburbs?  

I currently live in Corktown (immediately west of the Detroit CBD), so I'm pretty familiar with the actual city (although not so much the NW neighborhoods that Saul mentioned).  

The current management company had a tenant who was selling CBD or whatever , which was supposed to be on the up and up anyway raided and arrest were made.