It’s Not Too Late to Join the Short-Term Rental Investing Game

Dusty Rhodes • November 1, 2021

It’s never been a better time to be a short-term rental investor.


Short-term rental investing, otherwise known as Airbnb or VRBO hosting, has been one of the hottest strategies for real estate investors over the last several years—and with good reason. It has a lot to offer.


What’s more, new data from AirDNA, a company that provides data to the short-term rental industry, suggests that right now—even in this crazy market—could be the best time ever to invest in short-term rentals.


What is STR?

If you’re unfamiliar with short-term rental (STR), it’s an investment strategy where you buy a property, but instead of renting it out to long-term tenants, you offer the property up on Airbnb, VRBO, or any other vacation rental website.


The benefits of STR

This strategy has grown really popular recently, and it’s easy to see why. First, it offers something that is pretty tough to find right now: cash flow.


Cash flow is becoming increasingly hard to get, primarily because home prices are rising so much faster than rents. But STRs still offer great cash flow potential. Of course, you need to have a good property in a good market—just like with any investment—but STRs have proven to offer cash flow even in markets that typically don’t have cash flow, like Denver, Austin, and Seattle.


Second, the markets that tend to do well for STRs are also high-appreciation markets. Think about where people go on vacation, like ski towns, lake houses, or big cities like Miami. There are markets that have grown immensely over the last several years. STRs offer the options to get cash flow and be in great markets that have big potential for property appreciation.


So there’s good reason why a lot of investors are getting into this strategy—and it looks likely that things are going to get even better.


How is the STR market performing?

To be honest, at the outset of COVID I was pretty worried about my STR. I thought that travel would come to a grinding halt and the property would sit vacant for months. Instead, the opposite happened, and COVID actually accelerated the existing trend of people shifting away from hotels and toward STRs.


To back this up, I got some data from AirDNA. Looking at this data, there are two terms you need to know: 1) occupancy, which is how many nights in a month your STR is rented out, and 2) average daily rate (ADR), which is basically the average amount that guests pay to rent your property.


To figure out your cash flow, multiply your occupancy by your average daily rate. As an investor, you want both your occupancy rate and your ADR to be high. The data from AirDNA shows that both are up significantly over the last few years.


Occupancy is up

The chart below shows that 2021 has been the best month for occupancy on record—or at least dating back to 2018. So despite all of the restrictions and limits on travel during the pandemic, the demand for short-term rentals is up significantly over both 2020 and 2019 numbers. Look at the difference between the yellow and green lines throughout this year. Demand and occupancy are up.

What’s even bigger news is that the average daily rate across the U.S. is up 22% when comparing July 2021 to July 2019. That is enormous growth.


If you put these things together—increased occupancy plus huge growth in ADR—that means a lot more cash flow for STR investors.


Small cities and rural areas are popular

Of course, not all STRs are the same. It’s no surprise that some types of properties and some markets are going to fare better than others—and AirDNA has provided some data to help shed light on what’s going on.


The chart below shows that there is a big difference in demand between location types. Make sure to note the y axis on this chart. You’ll see that 0% is right in the middle, so the lines below that all saw declines and the lines above saw growth.

To me, the big takeaway here is that small cities and rural towns are exploding along with destinations and resorts, while large cities have really taken a hit. Those large cities are recovering, but they have yet to return to pre-COVID levels. On the other hand, small city demand remains very high and is way over 2019 levels. As an investor who owns an STR in a mountain town, I can confirm from my own experience that demand is super high.


Larger units are in demand

Guests are also choosing larger units. The following chart shows that big units are way up, while shared and private rooms remain down. This is common sense to me given the world right now—no one wants to share a room during a pandemic, and many families have been renting big houses for longer periods of time as a way to get everyone together. The data suggests that as of now, the bigger the better, and I think this trend will likely continue.

Finally, the data shows us that demand is highest for luxury properties. Maybe people are spending their extra money on vacations more than they did in the past. Maybe more people are finding value in staying in a nice place after a year being at home. Regardless of the reason, the data is clear: The more upscale the property, the higher the demand growth.

A bright future for STRs

All told, this data is super encouraging for STR investors. We’ve seen that occupancy rates are up and ADR is up, meaning there is more cash flow coming into the market. We’ve also learned that large, luxurious properties in small cities or vacation destinations are performing the best right now. So whether you’re a current STR investor or you’re looking to get into the market, these could be sweet spots to look at for your next purchase.


If you’re thinking about making an STR investment, I have two resources for you. First is AirDNA, which honestly has the best STR data on the market; I use it myself and it has been extremely valuable. Second, I put together a guide to analyzing STRs earlier this summer that you can find on BiggerPockets—it’s super useful if you’re getting into the short-term rental game, so make sure to check that out.



Source: Bigger Pockets Blog


Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

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Top Mistakes Homeowners Are Making in 2026 (And How To Avoid Them)

By Dusty Rhodes • March 23, 2026
Let’s be clear: selling your house is absolutely possible right now. According to the National Association of Realtors (NAR), roughly 11k homes sell every day in this country. And the sellers who are making their moves happen all have one thing in common: they’ve adjusted their strategy to match today’s market. They’re realizing inventory has grown. Homebuyers are more selective. And buyer expectations are higher. The sellers who struggle are usually approaching today’s market with yesterday’s expectations. Here are the three biggest mistakes they’re making – and how to avoid them. 1. Pricing Based on What Their Neighbor Got a Few Years Back Setting your price is the most important decision you make when you sell – and the one that’s most often mishandled. Realtor.com data shows almost 1 out of 5 sellers in 2025 had to drop their price. Here’s what those sellers went wrong. Buyers have more choice and more negotiating power now that inventory has grown. And house hunters will actively avoid your house is if feels like it’s priced too high. That’s why overpricing usually leads to: Fewer showings Less competitive (or lowball) offers Longer time on market And all three of those side effects are things you don’t want to deal with. What To Do Instead: The good news is the cure is simple. Just price for today’s buyer, not yesterday’s headlines. Lean on your agent’s knowledge of recent comparable sales, current competition, and local buyer behavior to land in the value “sweet spot” that drives traffic and urgency from day one. 2. Trying To Skip Repairs That Buyers Now Expect A few years ago, you could sell as-is and still get well above asking. Today? Not so much. Right now, NAR says two-thirds of sellers are making at least some repairs. And the reason why is simple. In a market with more inventory, buyers compare homes side by side. Homes that don’t show well (or feel dated) are going to lose attention quickly, even if the issues are minor. What To Do Instead: Ask your agent which high-impact, low-stress updates they’d recommend for your house. The goal isn’t perfection. It’s helping buyers see themselves moving in without a mental to-do list. Small investments in staging, repairs, and curb appeal can make a huge difference in how quickly offers come in – and how strong those offers are. 3. Playing Hardball When Buyers Try To Negotiate Today’s buyers have housing affordability at the top of their minds. And since money is already tight, they’ll be pickier and will probably ask for some compromises from you. Whether that’s making repairs, giving them a credit at closing, or taking just a few thousand dollars off your asking price, negotiating is normal again. So, if something pops up in the inspection, you’re going to need to be open to talking about it. If you’re not, you may very well see your buyer walk away. And some sellers are figuring this out the hard way. Redfin data shows one of the big reasons home sales fell thru in 2025 was inspection or repair issues. Odds are those homeowners weren’t willing to flex a bit to get the deal done. What to Do Instead: Meet with your agent to make sure you understand what buyers in your area care the most about. Align your price with value, present the home clearly and confidently, and stay open to reasonable negotiations that keep deals moving forward.

10 Aging-in-Place Features Pros Swear By

By Dusty Rhodes • March 16, 2026
They’re often called aging-in-place features, but things like curbless showers, nonslip flooring and wide walkways and doorways can benefit everyone, no matter their age or ability. “Regardless of aging in place, there is a place for these in day-to-day life, whether it be a teenager on crutches, a family member having had surgery, active kids,” designer Dana Bass says. “It’s not just about aging in place. We’ve got to account for unplanned life emergencies.” Designer Tammy Battistessa of Ellaire Kitchen & Bath Design agrees. “Whenever possible, I include aging-in-place and universal design features in every project, as I believe many of these features benefit clients of all ages and abilities, in addition to allowing a client to safely remain in their home for a longer period of time,” she says. Creating a home that can adapt also makes it more sustainable. “Aging in place is a key element to making legacy homes that can evolve over time,” architect Tim Barber says. With all that in mind, we asked more than 50 home design and construction professionals to share the aging-in-place features they always recommend. Here are the 10 that came up again and again. 1. Wide Walkways and Doorways Planning ahead is one of the most important steps when incorporating aging-in-place features. Many of these elements require thoughtful design and construction, so it’s wise to start early — and to consider hiring professionals who understand the nuances. “Thinking through how you will really use the space makes all the difference,” designer Haiku Durden of HDS Design says. “Having a designer involved really makes a difference.” A professional can help you create a plan that works for your current needs and anticipates future ones. “We currently default to aging-in-place features when our clients are near retirement or retirement age,” says designer Jenny Guggenheim of Guggenheim Architecture and Design Studio . “Preplanning by adding blocking behind the wall finish, spacious floor planning to allow for wheelchair or walker use.” In fact, spacious layouts are among the most commonly recommended aging-in-place strategies. Wide walkways and doorways — and generous clearances around furniture and fixtures — make it easier for anyone to move through the home comfortably. Installing a continuous flooring material throughout also reduces tripping hazards caused by changes in height or texture between rooms.

The Price You Set Can Make (or Break) Your Sale

By Dusty Rhodes • March 2, 2026
There’s one decision you’re going to make when you sell that determines whether your house sells quickly, or it sits. Whether buyers make an offer, or scroll past it. Whether you walk away with the maximum return, or you end up cutting the price later. And that’s your asking price . The #1 Mistake Sellers Make Today: Trusting the Wrong Number If you’re thinking of moving and trying to figure out what your house may sell for, it’s tempting to start with an online home value tool. They’re fast, free, and easy. And you don’t have to talk to anyone. But here’s the problem: they don’t know your house. And that can be a bigger drawback than you realize. Where Online Estimates Fall Short Online tools often lag behind the market. They look in the rearview mirror, relying on closed sales and delayed information. And in that sense, they’re using incomplete data . That’s not a miss in how these systems are built. Some information just isn’t available online. Bankrate explains: “ While these tools can be a useful starting point, keep in mind that they typically do not provide the most accurate pricing. Algorithms can only rely on the information available; they can’t account for things like a home’s condition or renovations made since the last public information was updated.” They can’t see: The unique features that make your house special All the work you’ve put in to keep it in good condition Or, how in-demand your specific neighborhood is right now So, while they may do a good job in some cases, they can’t be as accurate as a local agent who has boots on the ground day in and day out. In a market where buyers have more options, a seemingly small margin of error can cost you thousands if you price too low, or weeks of lost momentum and time if you price too high. If you want to sell for the most money and in the least amount of time, you don’t want the fast answer on how to price your house. You want the right one. That’s why the savviest homeowners today don’t rely on algorithms when it actually matters. They rely on people, specifically trusted local agents. What an Expert Agent Brings to the Table According to 1000WATT , sellers overwhelmingly believe real estate agents have the best sense of a home’s true value, far more than any automated tools.