The segment we are trying to hit is people who would normally be staying in a hotel, looking for comparable accommodations without having to spend $300+ per night. 

.** Small towns may rely too much on a single business or market segment.

And yes, I am in that industry segment as well.

Let's start with location considerations.LocationSome location characteristics to watch for:Long term major employer outlook, both the market segment(s) and the specific companies.

The health worker segment of MTR has existed for a long time but demand fluctuates and they aren't looking for the same locations in some areas as STR.   

Glamping is not always the best choice for STRs....you are automatically cutting out half (or more) of your audience as many people do not want to rough it in any way shape of form when they go on vacation, or especially for business or non-vacation travel.But it has it's appeal to a small segment of travelers, so if that is your dream, just do the research.....

Some segments of the market are even starting to feel saturated, and this might lead to more challenging conditions, especially with the influx of new buildings.It's worth keeping in mind that the situation could change.

This will push up the prices.Sales - Months of SupplyInventory for our target market continues to fall.Sales - Median $/SF by MonthDespite increasing interest rates, $/SF is climbing up.Las Vegas Rental Market OutlookI believe that rents (for our target segment) will increase by an average of more than 8% over the next 5 years.

Small towns may rely too much on a single business or market segment.

For instance, if your doing a fix and flip in a retirement community, you probably will not go over as well as it would in other segments.