It is very nice with above average amenities and priced just $500 over what it would rent for as a non-furnished 12 month lease rental (I have two of those nearby so am very familiar with comps).

In a university town nearby, student housing is restricted to certain areas of town and prohibited in other areas of town. 

Other areas nearby that are great include, Cardiff, Encinitas and Del Mar. 

@Placeholder PlaceholderOne word of caution I would advise: If a community or local government is enacting restrictions and also regularly enforcing them, then its often a reflection of the local community sentiment which increases the chance of a neighborhood or nearby resident calling you in if they think you may be running an STR.

Are there alternative strategies you’d recommend for this market or nearby markets which are of commuting distance to Danbury?

Recent solds are pushing $328/sf up to $413/sf for houses nearby that are built in the 1980's...

But your point is valid, which is why I was asking @Nilusha Jayasinghe what their ability was to stockpile cash quickly.

Instead, highlight nearby attractions with a few photos.

I'm in Oviedo nearby, love Ormond and it's a great market!

Too many low income apartment buildings near by / vacant buildings.