If you are a real estate investor eyeing the booming short-term rental (STR) market, 2025 has brought a fresh wave of opportunity. According to the latest analysis by BiggerPockets, each U.S. state now has a top-performing STR market that outshines the rest. Whether you are a seasoned investor or just entering the game, identifying the top STR markets by state can make or break your returns.
Here is what you need to know—and why this matters now more than ever.
How BiggerPockets Ranked the Top STR Markets
BiggerPockets analyzed AirDNA data across four performance metrics:
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Annual Revenue Potential
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Occupancy Rate
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Rental Demand Score
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Investability Score (cash-on-cash returns and market volatility)
The result? A state-by-state breakdown of the best short-term rental markets in the U.S., tailored for investors looking to maximize profits while minimizing risk.
Florida’s Winner: Panama City Beach
It comes as no surprise that Florida, a short-term rental powerhouse, claimed a spot on the list—Panama City Beach took the crown as Florida’s top STR market in 2025. Known for its sugar-white beaches, family-friendly appeal, and strong tourism demand, this Gulf Coast gem consistently delivers strong cash flow and high occupancy rates year-round.
Why it stands out:
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High average daily rates (ADR)
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Year-round tourism (not just seasonal)
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Relatively low property acquisition costs compared to other coastal Florida cities
Panama City Beach represents a sweet spot for investors: low barrier to entry with strong appreciation potential and stable cash flow.
Why This List Matters for Real Estate Investors
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Targeted Strategy: Instead of chasing national trends, this ranking empowers you to zoom in on high-performing, data-backed markets within each state.
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Diversification: If you are building a national STR portfolio, this gives you a roadmap for geographic diversity and risk mitigation.
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Market Resilience: Many of the top-ranked locations have year-round appeal—not just seasonal demand—which means more stable returns.
Key Trends from the Report
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Secondary Markets Are Thriving: Many of the winners are not major metro cities, but rather smaller resort towns or hidden gems with high travel appeal and less regulatory pushback.
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Affordability Meets Profitability: Markets like Broken Bow, OK or Deep Creek Lake, MD show that you don’t have to spend millions to generate significant short-term rental income.
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Regulatory Favorability: States with clear or investor-friendly STR regulations saw better rankings. Always check local ordinances before purchasing.
What This Means for Buyers & Sellers
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Buyers: If you’re looking for your next STR investment, this list is your treasure map. Prioritize markets with strong fundamentals, low purchase prices, and high rental demand.
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Sellers: Own a property in one of these top markets? Now may be the perfect time to list while demand from cash-flow-hungry investors is at a peak.
Sarasota, Lakewood Ranch, and Siesta Key: Where Do We Stand?
While the BiggerPockets report highlights Panama City Beach for Florida, we’re seeing exceptional short-term rental performance locally in:
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Siesta Key: One of the highest year-round occupancy rates in the state
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Lakewood Ranch: Gaining momentum as a high-end executive rental hub
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Downtown Sarasota: Booming demand for luxury vacation rentals and walkability
Final Thought
Short-term rentals remain one of the most resilient and profitable real estate strategies in 2025. With the right market, right property, and right partner—you can build passive income, long-term wealth, and financial freedom.
Want to compare cash flow and equity potential in your area with the top STR markets by state? Let’s connect for a personalized consultation and explore Florida’s best short-term rental opportunities.
