If you’re considering investing in Airbnb or short-term rental (STR) properties, you’re probably wondering: Where are the best returns and the least regulatory headaches?
Florida, Texas, and Arizona continue to dominate the conversation among savvy real estate investors. Why? Because they strike that perfect balance between tourism demand, investor-friendly laws, and reliable year-round occupancy.
In this guide, we spotlight three cities from each of these powerhouse states, using latest 2025 data to help you identify the most promising and regulation-friendly markets.
Best Short-Term Rental Markets in Florida
Florida’s STR landscape remains one of the most profitable in the country. With no state income tax, a booming travel sector, and localized STR-friendly zoning, Florida cities offer dependable cash flow and rising rental demand.
1. Hollywood, FL
- Annual Revenue: $38,867
- Gross Yield: 13.03%
- Median Home Value: $451,859
- Occupancy Rate: 55%
- Property Tax Rate: 1.00%
Hollywood ranks among the best short term rental markets in Florida thanks to its impressive yield and manageable licensing requirements. Its proximity to both Fort Lauderdale and Miami makes it an ideal mid-point for tourists.
2. Fort Walton Beach, FL
- Annual Revenue: $55,812
- Gross Yield: 9.99%
- Median Home Value: $327,383
- Home Value Change: -1.79%
- Active STRs: 203
- ADR: $206
While prices have cooled slightly, Fort Walton Beach remains a favorite for investors due to its strong seasonal bookings and coastal appeal. Its small size also limits saturation, keeping nightly rates healthy.
3. Cape Coral, FL
- Annual Revenue: $46,103
- Gross Yield: 10.60%
- Median Home Value: $375,641
- Home Value Change: -5.89%
- Active STRs: 3,558
- ADR: $267
Cape Coral boasts a laid-back lifestyle and regulatory environment, perfect for snowbirds and year-round vacationers. Even with a home value dip, yields are healthy for both new and experienced hosts.
Want to compare yields and property values in every U.S. STR market? Try Chalet’s nationwide analytics dashboard.
