Analyze the STR Market
Discover how to analyze the short-term rental market by evaluating local attractions, seasonality, demand trends, and property appreciation potential.
- What do you love about the area?
- Are there tourist attractions or local spots like breweries, wineries, restaurants, bike trails, hiking paths, or water activities?
- Are there natural features or landscapes that attract visitors repeatedly?
- What is the property's seasonality (e.g., lakes, ocean, mountains, skiing, fall foliage)?
- Does the city draw tourists with its unique appeal (e.g., Nashville’s music scene)?
- Are there regular events like conferences, educational institutions, or medical professionals?
- Is demand for the area increasing?
- Consult with the local chamber of commerce, government officials, and research zoning laws to assess future growth and appreciation potential. The national average appreciation rate is about 5%.
-- Look at comparable properties in the area to understand current market value and rental potential. We recommend using AirDNA to look at large areas of data quickly.
