Guides
15 short-term rental locations worth comparing in 2027: a practical read
Fifteen real short-term rental markets worth comparing in 2027, with what each destination is, who it suits, and the booking screens that decide it.
What to take away
- The 15 short-term rental locations worth comparing in 2027 include five US city markets: Nashville, Austin, Phoenix, Orlando and New York.
- Five drive-market or resort marketsGatlinburg, Myrtle Beach, Destin, Breckenridge and Joshua Tree.
- Five moreSan Diego, Honolulu, Lisbon, Queenstown and Cape Town.
- Four screens decide a market before any spreadsheet openspermitted use, lodging tax registration, hireable turnover labor, and Saturday route time.
- Nashville and Austin both cap permits. Phoenix and Orlando run on season length. Breckenridge and Queenstown turn on HOA and council rules.
- New York is the clearest case of a market where the local position changed and operators were asked to leave.
- Score two markets side by side. A single market scored alone always looks acceptable.
The fifteen short-term rental markets for 2027
These 15 short-term rental locations worth comparing in 2027 have enough demand, labor and rule history to justify the work. Each entry gives what the market is, who it suits, and the first rule or cost to check. Rules as of 2026; confirm current limits before you buy.
Nashville, Tennessee. A bachelorette and live-music market built on short, high-rate stays downtown and in East Nashville. It suits an operator who can absorb heavy turnover and weekend pricing. Metro Nashville caps non-owner-occupied permits by district, so permitted use is the first call, not the last. Typical peak rates for a two-bedroom run about $250 to $450 in 2026.
Austin, Texas. Event, tech and festival demand, with Formula 1 and South by Southwest filling the calendar. It suits an operator with several units close together. Austin restricts short-term rentals by property type and has tightened rules repeatedly, so rule stability matters as much as rate. Typical peak rates for a two-bedroom run about $200 to $400 in 2026.
Phoenix and Scottsdale, Arizona. A snowbird market with a strong winter and spring season and a punishing summer trough. It suits an operator who can carry fixed cost through four quiet months. Scottsdale licenses and inspects; Phoenix regulates by zoning. Typical winter rates for a two-bedroom run about $180 to $350 in 2026.
Orlando and Kissimmee, Florida. Theme-park demand, family stays of five to seven nights, and a large supply of purpose-built rental homes. It suits an operator running a cluster of near-identical units. Florida licenses short-term rentals at state level and taxes them, so registration is straightforward and competition is not. Typical family-home rates run about $150 to $300 in 2026.
Gatlinburg and Pigeon Forge, Tennessee. Cabin demand from drive-market guests, with a strong autumn and a December peak. It suits an operator who can manage remote properties and septic, well and road-access quirks. Typical cabin rates run about $180 to $350 in 2026.
Myrtle Beach, South Carolina. A high-volume, lower-rate coastal market with a long summer and a real winter slump. It suits an operator who can clean fast and cheap. Condo towers mean HOA rules decide viability before anything else. Typical summer rates for a two-bedroom condo run about $120 to $250 in 2026.
Destin and the 30A corridor, Florida. A drive-market beach destination with premium summer rates and heavy repeat guests. It suits an operator with strong photography and a local cleaning bench. Okaloosa and Walton County rules plus local HOA rules control many addresses, so check the specific subdivision. Typical summer rates run about $300 to $600 in 2026.
Breckenridge, Colorado. Ski demand with a winter peak and a genuine summer second season. It suits an operator who can handle a short, intense season and HOA rules on nightly minimums. Summit County licenses and caps occupancy. Typical winter rates for a two-bedroom run about $300 to $700 in 2026.
Joshua Tree, California. A small market with high nightly rates, a short booking window and fragile desert infrastructure. It suits an operator who can manage water, septic and heat without a nearby supplier. San Bernardino County requires a short-term rental permit. Typical rates run about $200 to $400 in 2026.
New York City. The clearest example of rule risk in the country. Local Law 18 restricts short stays in unoccupied dwellings, and enforcement is active. It suits almost nobody without a lawyer's opinion first. Typical hotel-like or legal short-stay rates run above $250 in 2026.
San Diego, California. Coastal and military demand with year-round occupancy and tight supply. It suits an operator who can work inside a city license lottery and coastal-zone rules. Typical rates for a two-bedroom run about $200 to $400 in 2026.
Honolulu, Hawaii. A high-rate, high-cost market where permitted use is decided by zoning and a limited permit pool. It suits an operator with capital and patience. Typical rates for a two-bedroom run about $250 to $500 in 2026.
Lisbon, Portugal. A European city market with strong leisure demand and a national registration system. It suits an operator comfortable with a foreign tax and licensing regime. Portugal's AL registration is required for short-term rentals. Typical rates for a one-bedroom run about €100 to €250 in 2026.
Queenstown, New Zealand. A four-season resort market with a small population and a severe labor shortage. It suits an operator who can house their own staff. Queenstown Lakes District Council rules and HOA equivalents decide many addresses. Typical rates for a two-bedroom run about NZ$250 to NZ$500 in 2026.
Cape Town, South Africa. A summer-peak market with a weak rand, strong international demand and load-shedding risk. It suits an operator who can price in a currency and manage power backup. Typical summer rates for a two-bedroom run about R1,500 to R3,500 in 2026.
The table compares the same 15 markets on typical 2026 peak rate and the first rule to check.
The fifteen markets for 2027
| Market | Typical 2026 peak rate, two-bedroom | First rule to check |
|---|---|---|
| Nashville, TN | $250 to $450 | Metro permit cap by district |
| Austin, TX | $200 to $400 | Property-type restriction |
| Phoenix and Scottsdale, AZ | $180 to $350 winter | Scottsdale license and inspection; Phoenix zoning |
| Orlando and Kissimmee, FL | $150 to $300 | Florida state license and tax |
| Gatlinburg and Pigeon Forge, TN | $180 to $350 | Sevier County septic and road access |
| Myrtle Beach, SC | $120 to $250 summer | HOA rules in condo towers |
| Destin and 30A, FL | $300 to $600 summer | Okaloosa and Walton County rules; HOA |
| Breckenridge, CO | $300 to $700 winter | Summit County license and occupancy cap |
| Joshua Tree, CA | $200 to $400 | San Bernardino County permit |
| New York, NY | $250+ legal stays | Local Law 18 |
| San Diego, CA | $200 to $400 | City license lottery and coastal zone |
| Honolulu, HI | $250 to $500 | Zoning and limited permit pool |
| Lisbon, Portugal | €100 to €250 | AL national registration |
| Queenstown, New Zealand | NZ$250 to NZ$500 | District council and HOA rules |
| Cape Town, South Africa | R1,500 to R3,500 summer | Municipal rules and power backup |
The four screens that end a market
The four screens
- Permitted use.Ask the city or county short-term rental office whether nightly stays are allowed at the addresses you would actually operate. Get the answer in writing. A no ends the comparison.
- Lodging tax registration.Ask the state or national revenue department what registration and remittance apply. A requirement you cannot complete is a no.
- Hireable turnover labor.Get two real quotes from cleaners who can work in season at a price the market's rates support.
- Saturday route time.Drive it at the busiest hour. If one person cannot finish a Saturday, every property needs its own crew and the model changes.
Do not average these with anything else. A market that fails one is out, however well it reads on the rest.
Four screens that end a market
Is nightly use permitted at the address?
Continue to lodging tax registration
Market is eliminated
The eleven trade-offs
- Reasons to visit. One reason is easier to forecast and fragile. Several are steadier and harder to price.
- Typical length of stay. Short stays multiply turnovers faster than they multiply revenue.
- Length of the quiet season, from someone who lives there rather than from a chart.
- Seasonal shape. Two shoulder peaks behave very differently from a single summer.
- Guest mix. Leisure, work, family and event demand each fail for different reasons.
- Acquisition cost against achievable nightly rate, which is the ratio, not either number alone.
- Fixed cost share. How much of a month's cost continues when nobody has booked.
- Distance to a supplier open on a Sunday.
- Laundryon-site capacity, a commercial service, or neither.
- Competitive density. Many operators means infrastructure and rate pressure. None means neither.
- Rule stability. Has the local position changed recently, and is a change under discussion?
Dimension fifteen is the one experienced operators weigh most and newcomers weigh least. New York is the proof: favorable rules under review became a market operators were asked to leave.
How to run the comparison
| Step | What you do | What it produces |
|---|---|---|
| One | Run screens 1 to 4 on both markets, by phone and on the ground | An elimination, or two survivors |
| Two | Answer 5 to 9 for each, in sentences rather than scores | A description of what each market's demand actually is |
| Three | Answer 10 to 14 with real quotes and real timings | The cost side, which is where most surprises live |
| Four | Answer 15 last, and let it veto | A decision you can defend in a year |
Write the answers as sentences before you convert anything to numbers. A market you cannot describe in sentences is one you have researched with a spreadsheet rather than with your attention.
How to run the comparison
- OneRun screens 1 to 4 by phone and on the ground
- TwoAnswer 5 to 9 in sentences, not scores
- ThreeAnswer 10 to 14 with real quotes and timings
- FourAnswer 15 last, and let it veto
The full argument for running the screens in this order, and why cost of elimination sets the sequence, is in the site selection and location guide. The one-day field protocol that produces most of the answers above is how to choose the right short-term rental location.
Where the worksheet is usually filled in wrong
Three habits spoil it.
Answering screen 4 from a mapping application rather than from driving it at eleven on a Saturday. The difference between those two numbers is the difference between one cleaner and two.
Answering dimension 7 from an occupancy chart. A chart shows what happened; a local tells you which two months nobody comes.
And answering 10 and 11 with the headline rent alone. What matters is the share of cost that continues through the trough, which is the subject of the lease costs and site requirements.
Accessibility should be asked about in each market rather than assumed uniform. Whether obligations attach depends on how the property is operated and on facts specific to the business, and the Department of Justice's ADA guide for small businesses sets out the framework.
Using it on a market you are already in
Run the worksheet on your own market and you get an honest picture of what you are exposed to.
Most operators find they are strong on 5 to 10 and quietly weak on 3, 11 and 15: labor is thin, fixed costs are higher than they think, and the rules are less settled than they assumed.
For labor, the answer is a bench rather than a hire, set out in the hiring and training guide. For fixed cost and rule risk, the answer is not to concentrate every property under one ruling, which is the argument of the expansion and market guide.
Two claims to be careful about
Anything you say publicly about a market, in a listing or a pitch to an owner, is a claim you must support.
The Federal Trade Commission's advertising guidance for small businesses sets the ordinary standard. "One of the best markets in the country" is exactly the kind of statement nobody can back.
If you want the worksheet argued with before you act on it, the Small Business Administration's counseling and guidance pages list advisers who do this at no cost and have no stake in your answer.
Common questions
Can you at least say which countries are easiest?
No, and the reason is the same one that makes city rankings unreliable. The rules that decide it are set below the national level almost everywhere, so a country-level answer would be wrong at the address where you would actually operate.
Fifteen markets seems like a lot. Which three matter most?
Permitted use, hireable labor and rule stability. The first two are pass or fail, and the third decides how long your answer stays true. Nashville's permit caps and New York's Local Law 18 are the two clearest examples.
How long does the worksheet take?
The four screens take a week of phone calls and a day on the ground. The other eleven can be answered as you go, and you will already have most of them from the market you operate in now.
What if both markets survive?
Choose the one where your properties can be closest together, and revisit the other in a year. Density beats a slightly better rate almost every time, and it is the difference between one cleaner and two.
