But very strong appreciation, jobs, rental demand, etc.

Should they come back later demanding their deposit, you have proof that you sent them a security deposit letter to last known address.

Granted real estate prices are a slow lagging indicator and there has been so much pent up demand, competition and good jobs and low rates, rents are up and prices up over 6% in my local area. 

I have been considering those markets and other options as well:Clevland, Ohio Cincinnati, OhioRochester, NYI would love to get your advice about those markets and any other markets with high rental demand & high rent to price ratio.Best,Omer 

hosts are trying to stay afloat on mortgages and arbitrage leases after the demand for short-term rentals has suddenly dried up due to the coronavirus pandemic.

Clearly, supply is increasing very fast, but i don't think in-demand up-and-coming neighborhoods will be drastically affected.

Separate two things: possible compensation for her increased costs/damages due to your failure to deliver and he request demand for further compensation.Your lease should say something like “return of deposit is only remedy for failure to deliver”.

In no particular order I have listed some of the most popular markets for out of state investorsCincinnati, OhioDayton, OhioToledo, OhioYoungstown, OhioCincinnati, OhioMemphis, TennesseeSaint Louis, MissouriIndianapolis, IndianaDetroit, MichiganErie, PennsylvaniaLouisville, KentuckyMilwaukee, WisconsinJackson, MississippiEach of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio.

Prices are determined by supply & demand.

Leaving an opportunity to open new BETTER restaurants when demand kicks in.