Introduction

All the hype about “best markets” is useless if you don’t know what’s powering them — demand, ADR, zoning, regulation. Here we’ll walk through 7 top U.S. cities, their key stats, and legal context to help you pick where to launch.

Market Overview: US Trends

• National average occupancy is ~50% in spring 2025, a drop from ~57% in 2024. ~ BNB Flow
• ADR gains are uneven: some markets jumped ~25%. BNB Flow
• More cities are imposing caps, registration, or host presence requirements — the regulatory tail risk is officially real.

Top 7 Cities & Their Profiles

1. Charleston, SC

• ADR: ~$382.7
• Occupancy: ~61%
• Market Notes: Strong tourism, historic districts
• Regulation Risk: Permits needed; check historic district rules
• BnB Flow Takeaway: High ADR and steady occupancy make Charleston profitable, but you must navigate historic zoning rules.

2. Austin, TX

• ADR: ~$218
• Occupancy: ~67% in some markets
• Market Notes: Tech, events, and conventions fuel demand
• Regulation Risk: Less aggressive than CA/NY, but neighborhood rules vary
• BnB Flow Takeaway: Austin is great for arbitrage if you find unique units in STR-friendly neighborhoods.

3. Nashville, TN

• ADR: ~$363
• Occupancy: ~53%
• Market Notes: Music, conferences, and event-driven tourism
• Regulation Risk: Some jurisdictions impose stricter licensing or caps
• BnB Flow Takeaway: High potential, but you must do your homework on permitting and district-specific rules.

4. Las Vegas, NV

• ADR: High seasonal demand
• Occupancy: Fluctuates with events and conventions
• Market Notes: Strong tourism draw and party economy
• Regulation Risk: Local restrictions and event amplification risks
• BnB Flow Takeaway: Las Vegas can be lucrative, but event-driven volatility means you need a solid buffer plan.

5. Orlando, FL

• ADR: ~$243
• Occupancy: ~51%
• Market Notes: Theme parks ensure year-round visitors
• Regulation Risk: Some neighborhoods/zones restrict STR activity
• BnB Flow Takeaway: Orlando is stable with family travel, but zoning is neighborhood-specific, so always check property by property.

6. Savannah, GA

• ADR: ~$230
• Occupancy: ~72% in some markets
• Market Notes: Historic charm plus coastal visitor appeal
• Regulation Risk: Registration and heritage district requirements
• BnB Flow Takeaway: Savannah delivers strong occupancy, but the regulatory landscape is very tight around historic cores.

7. Washington, D.C.

• ADR: ~$227
• Occupancy: ~49.4%
• Market Notes: Business and government traffic year-round
• Regulation Risk: Registration and licensing required; host presence rules apply
• BnB Flow Takeaway: Consistent demand from professionals and officials, but licensing hurdles mean you need to be fully compliant.

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Regulatory Deep Dive — What to Watch For

1. Registration / License Requirements
   • NYC’s Local Law 18 (2022) requires hosts to register with the city and prohibits using platforms for unregistered units.
   • Numerous cities require you to display your registration number in listings or undergo inspections.
2. Host Presence / Owner Occupancy Rules
   • Some places only allow short-term rentals when the host is present (or lives part-time).
   • In NYC, short-term renting of an entire unit for <30 days is heavily restricted unless the host is present.
3. Cap on Number of Nights
   • Some municipalities limit how many nights per year a property can be rented short-term (e.g. 90, 120 nights).
4. Zoning & Neighborhood Restrictions
   • Historic districts often have stricter guidelines (noise, signage, exterior changes).
   • Multi-unit buildings may prohibit STRs via HOA or condo rules.
5. Taxes & Fees
   • Transient occupancy taxes (hotel taxes) can take 5–15% depending on the city.
   • Some cities impose registration fees or annual renewal.

How to Use This Data in Your Strategy

• Focus on neighborhood-level micro-markets, not just the city.
• Weigh risk-adjusted returns: a slightly lower ADR but lower regulatory risk can outperform a “hot” but unstable market.
• Always check local statutes before you commit or sign a lease.

Where BnB Flow Fits

• Show ADR + occupancy overlays per address so you see micro-market performance.
• Include regulatory flags (if integrated) to warn when a city has tough rules.
• Let you filter property search by “low-regulation markets” or “STR-friendly zones.”

Conclusion

Markets change. ADR and occupancy numbers move. But the real secret is combining data + regulation knowledge + scenario testing. Use both the numbers and the legal landscape to stack the odds in your favor.