Best VRBO Markets for STR Investors in 2026

Park City, Utah averaged $986 per night across all active short-term rental listings in StaySTRA’s most recent database, producing a RevPAR of $372 and average monthly revenue of $10,415 per property. That is not a cherry-picked luxury outlier. That is the market average. Think of it the way I think about test scores in a classroom: when the average is that high, it tells you something important about the entire population, not just the top performers.

Whole-home leisure markets have always been VRBO’s home turf. Beach houses, mountain cabins, lake retreats, wine country getaways. These are the property types families and groups book for a week at a time, on VRBO, without splitting a condo with a stranger in the next room. And in 2026, the data from the best of these markets makes a compelling case for investors evaluating where to put their next purchase dollar.

I have spent the last several months running our StaySTRA market database against the question investors keep asking: where does VRBO-first investing actually make sense? This guide gives you that answer with data attached. We rank the top 15 whole-home leisure markets by ADR, occupancy, and RevPAR, examine the regulatory picture in each, and explain why the best leisure markets can compete with and often beat high-occupancy urban markets on revenue per available night. If you are evaluating a first or next STR purchase and VRBO is part of your platform strategy, start here.

Why VRBO Wins in Specific Market Types

Platform choice is not just a marketing question. It reflects the fundamental nature of the property and the guest it attracts, which in turn shapes the entire revenue calculation.

VRBO holds roughly 25 percent of the U.S. short-term rental market overall, but that share is heavily concentrated in whole-home leisure destinations: beach towns, mountain retreats, lake regions, and wine country. Airbnb, with its roots in urban room-sharing, holds a larger overall share but leads in cities where private rooms and shared accommodations are common. The two platforms serve meaningfully different guest populations in meaningfully different property contexts.

The guest profile differences matter to investors in concrete ways:

• Longer stays, fewer turnovers. VRBO guests average 5.4 nights per booking versus roughly 3 nights for Airbnb guests. Longer stays mean fewer cleanings per occupied night, lower per-booking operational friction, and more stable occupancy blocks. A week-long family booking is operationally simpler than five separate overnight bookings covering the same calendar window.
• Earlier booking windows. VRBO guests book an average of 71 days in advance, compared to 41 days for Airbnb. For a beach house that needs strong summer occupancy, that 30-day difference in booking lead time is meaningful. You can see your July calendar close out before May ends.
• Family and group demand drives ADR. VRBO’s audience skews toward families and multi-generational groups who need the whole house. A four-bedroom beach house or mountain cabin commands nightly rates no urban apartment can match, because the group size and use case justify them. That ADR premium is where whole-home leisure returns are built.
• Whole-home expectation alignment. VRBO guests expect a kitchen, laundry, and outdoor space. These are standard features of the property types VRBO serves, which means your differentiation focus stays on location and quality rather than amenity add-ons.

The result is a market structure where VRBO-first investing can work at 30 to 40 percent occupancy with ADR levels most urban markets never reach. Don’t let a 32% occupancy figure in a beach market scare you until you have looked at what the per-night rate is doing to the revenue line. The table below shows exactly what I mean.

One note on data before we get into the rankings: every figure in this article comes from the StaySTRA database, which reflects market conditions through early 2026. Markets move, and the StaySTRA Analyzer gives you current property-level projections before you finalize any purchase decision.

Top 15 VRBO Markets Ranked by RevPAR

RevPAR (revenue per available room-night) is the cleanest single metric for comparing markets because it captures both rate and occupancy in one number. A market with $900 ADR and 30% occupancy and a market with $300 ADR and 65% occupancy can post very similar RevPAR while representing completely different investment environments. The table below shows where the top whole-home leisure markets land.

All figures are StaySTRA market averages across all active listings, period ending early 2026. Regulatory ratings reflect current conditions as of May 2026.

Source: StaySTRA database, period ending early 2026. Market averages include all listing types and bedroom counts. Individual property performance varies by size, quality, and specific location within the market.

Market-by-Market: The Top 10 in Depth

1. Park City, UT: The Mountain Rate Leader

Park City leads the VRBO leisure universe on ADR at $986 and sits second on overall RevPAR at $372. The ski season drives peak demand from December through March, with summer hiking, mountain biking, and arts events softening the shoulder months. At 39% average occupancy across all listings, the number looks conservative on paper, but 39% at $986 per night produces a completely different income picture than 39% at $250 per night.

Park City requires a Nightly Rental License and levies combined local taxes totaling roughly 9% on top of state obligations. The regulatory framework is established and functional. New licenses are available with compliance requirements around noise, occupancy limits, and inspections. Entry prices are among the highest on this list, which makes running the debt service coverage math carefully essential. The StaySTRA DSCR Financing Guide covers how to structure STR acquisition financing for high-ADR, high-entry markets like Park City.

2. Key West, FL: Extraordinary Returns, Constrained Access

Key West’s numbers are genuinely striking. $903 ADR with 49% occupancy produces $427 RevPAR and $11,951 in average monthly revenue per property. No other leisure market in StaySTRA’s data comes close on monthly revenue. The challenge is entry. Monroe County restricts STR permits to specific zoning designations, annual Special Vacation Rental Permits are required, and new supply is tightly constrained by both geography and regulation.

Buying into Key West almost always means acquiring an existing permitted operation at a meaningful premium. If you own permitted property here, the revenue story needs no explanation. If you are trying to enter without an existing permit in hand, expect a process measured in years, not months, with no guaranteed outcome.

3. Mammoth Lakes, CA: Mountain Season With Strong Fundamentals

Mammoth Lakes runs $584 ADR with 49% occupancy, producing $278 RevPAR and $7,785 in average monthly revenue. This is a classic ski-first market with enough summer hiking and outdoor recreation demand to soften the off-season without eliminating it. California’s regulatory environment requires ongoing monitoring at the state level. Mammoth itself has not imposed the aggressive permit caps that affect some other California markets, but statewide legislative trends bear watching year to year. For investors comfortable operating in California, the underlying revenue profile here is strong.

4. South Lake Tahoe, CA: Premium Rates, Active Regulatory Watch

South Lake Tahoe posts $611 ADR with 38% occupancy for $236 RevPAR. That ADR is among the highest on this entire list, reflecting the lake access, mountain views, and strong family appeal that draws affluent groups to the region. The Tahoe Basin regulatory environment has been more active than most other markets on this list: permit requirements, vacation home rental ordinances, and enforcement efforts have all been in motion. Thorough permit research specific to the property’s municipality is mandatory before buying here. The revenue upside is real; the permitting landscape requires expert guidance.

5. Sedona, AZ: Dual-Season Demand, Stable Regulatory Ground

Sedona is a consistently compelling case for the patient, data-driven investor. StaySTRA shows $440 ADR, 49% occupancy, $212 RevPAR, and $5,934 in average monthly revenue. What makes Sedona interesting beyond the headline numbers is the dual-peak seasonality: strong spring demand in March and April, and a robust fall recovery in October and November. Arizona’s state preemption framework means Sedona cannot impose permit caps under current law, which gives investors regulatory stability that coastal California and some mountain markets simply do not offer. If you are looking at leisure markets with both strong revenue fundamentals and predictable regulatory rules, Sedona belongs in the top tier of your list.

6. Big Bear Lake, CA: Drive-to Demand With Premium Weekend Rates

Big Bear Lake sits at $541 ADR and 34% occupancy for $179 RevPAR. As a drive-to mountain destination from Los Angeles and San Diego, it captures intense weekend and holiday demand from one of the largest population catchments in the country. Supply has grown substantially in recent years, which is reflected in that 34% market-average occupancy. The California regulatory caution applies, though Big Bear has historically maintained a more permissive local environment than Tahoe. Properties in the right locations within the market outperform the average by a meaningful margin.

7. Joshua Tree, CA: Boutique Supply, Premium Desert Experience

Joshua Tree may be the most unusual market on this list. $338 ADR and 50% occupancy produce $169 RevPAR, but the supply picture is the real story: only 1,237 active listings market-wide, the smallest footprint of any high-performing market in the data. The guest profile skews toward design-conscious travelers seeking unique desert experiences, and VRBO is well-represented because whole-home properties are essentially the only option. There are no competing hotels to speak of. That structural absence of hotel competition keeps STR demand captive to rental platforms in a way very few other markets can claim.

8. Destin, FL: Beach Access With Regulatory Predictability

Destin is where investors who want regulatory stability and Gulf Coast beach access tend to land. Florida’s state preemption framework limits what local governments can do to restrict STR operations, and Destin’s local rules are clear and established. StaySTRA shows $426 ADR and 30% average occupancy for $124 RevPAR. That 30% market-average occupancy reflects the heavy concentration of demand in peak summer weeks. Top operators in Destin significantly outperform the market average by capturing the high-rate peak weeks and building a loyal repeat guest base that books early. This is a market where execution quality separates strong performers from mediocre ones.

9. Blue Ridge, GA: Mountain Cabins, Accessible Entry Price

Blue Ridge is a cabin market, and cabin stays are where VRBO built a significant portion of its identity. $361 ADR, 34% occupancy, $121 RevPAR. Fall foliage in October and November drives peak demand; spring and summer provide steady shoulder-season bookings from Atlanta and Charlotte visitors. Georgia imposes no statewide STR restrictions and Fannin County has maintained permissive local policies. Entry prices in Blue Ridge are dramatically lower than coastal or western mountain markets, which is why first-time STR investors often find the DSCR math more manageable here. If you want to understand what reasonable STR return expectations look like at a lower entry point, the STR investing numbers guide for 2026 provides the broader context.

10. Gulf Shores, AL: Beach Access, Pro-Business State

Gulf Shores gives investors Gulf Coast beach exposure with Alabama’s strongly pro-STR regulatory environment. $369 ADR, 32% occupancy, $117 RevPAR. The 5,124 active listings mean supply competition is real, but regional drive-to demand from the Southeast remains structurally strong. Alabama has been one of the most host-friendly states in the country from a regulatory standpoint, with minimal interference from local municipalities. For investors seeking beach exposure without the more complex regulatory environments some Florida markets carry, Gulf Shores deserves serious consideration.

VRBO Markets vs. Urban STR Markets: The RevPAR Comparison

One assumption worth challenging directly: that urban markets automatically outperform leisure markets because occupancy is higher. StaySTRA data shows a more nuanced picture.

Nashville, consistently one of the strongest urban STR markets in the country, posts $125 RevPAR. Sedona, a leisure market at the same occupancy rate as Miami but with $115 more in average daily rate, produces $212 RevPAR. Miami itself, with all of its urban demand density, comes in at $159 RevPAR.

The reason leisure markets can match or beat urban markets on RevPAR despite lower occupancy is the rate premium. Think of it the way a good restaurant operator thinks about table turns: a steakhouse running at 50% capacity can easily outperform a diner running at 80% capacity, because the average check at the steakhouse is so much higher that fewer covers still drive more revenue per seat. The math works the same way for whole-home vacation rentals against urban studios and apartments.

Scottsdale is the notable exception in the data: $304 RevPAR at 52% occupancy, driven by its strong desert resort positioning and concentration of luxury properties. Not every urban market underperforms leisure markets. But Nashville and Miami, two markets investors frequently benchmark against, both fall well below the top leisure markets on RevPAR despite competitive occupancy.

For a broader comparison that includes urban and urban-adjacent markets, the Best Airbnb Markets 2026 guide covers the full spectrum with the same data approach.

Regulatory Stability: Which Markets Support Long-Term Investment

Stay with me here, because this section matters as much as any RevPAR number on this page. A market with exceptional revenue fundamentals and a hostile or unpredictable regulatory environment is not a safe long-term investment. A market with more modest returns but a clear, stable, investor-understood framework can be the better decade-long hold.

Most Stable (Invest with Confidence on Regulatory Grounds):

• Destin, FL: Florida’s state preemption framework limits what local governments can do to restrict established STR operations. Destin’s permit and tax requirements are well-documented, enforcement is predictable, and no significant new restrictions are pending as of mid-2026.
• Gulf Shores, AL: Alabama is among the most host-friendly states in the country. Clear registration requirements, minimal local interference, and no credible supply cap threats. Strong drive-to demand from the Southeast provides structural durability.
• Gatlinburg and Pigeon Forge, TN: Tennessee requires a Tourist Residency Permit (approximately $200 annually) for STR operations in these markets. The framework is clear, well-established, and designed to accommodate the tourism economy these towns depend on. No pending restrictions as of this writing.
• Blue Ridge, GA: Georgia imposes no statewide STR caps, and Fannin County has maintained permissive local policies throughout the recent wave of STR regulation nationally. One of the cleaner regulatory environments in the mountain cabin segment.
• Sedona, AZ: Arizona’s SB 1350 preemption framework prevents Sedona from imposing supply caps under current law. Permit and inspection requirements are clear and manageable. A standout on regulatory stability among top-revenue leisure markets.

Watch (Elevated Monitoring Required):

• Mammoth Lakes, CA: California’s overall legislative environment poses ongoing risk. Mammoth has not imposed the aggressive caps that affect other California markets, but statewide trends require annual monitoring.
• South Lake Tahoe, CA: Active regulatory framework. Tahoe Basin vacation home rental ordinances and enforcement efforts have created uncertainty for some property types. Property-specific permit research is mandatory before purchase.
• Big Bear Lake, CA: More permissive historically than Tahoe, but the California statewide caution applies. Monitor local ordinance activity annually.
• Joshua Tree, CA: San Bernardino County STR regulations are in place with permit requirements. More stable than some other California markets, but the overall California regulatory posture still warrants a watch designation.

Constrained (Proceed Only With Full Permit Clarity in Hand):

• Key West, FL: Despite sitting in a preemption state, Key West’s grandfathered permit system and zoning restrictions make new operator entry genuinely difficult. Buy an existing permitted operation or be prepared for a multi-year permitting process with no guaranteed outcome.

What Matters Beyond RevPAR

Forty years of working with market data, from my early career as a government statistician in Washington to the STR market analysis I run today from my desk in Santa Fe, has taught me one reliable lesson: the numbers you look at second are often the ones that determine whether the deal was actually good or not. RevPAR is the right starting comparison point. It is not the whole story.

Entry price and DSCR viability. A $372 RevPAR market does not help you if you cannot make the debt service work at the acquisition price. Park City’s entry prices are well above $1.5 million for properties that produce top-market revenue, which makes the DSCR math demanding for most investors. Blue Ridge and Gulf Shores have dramatically lower entry prices, which is why many first-time STR investors find the leverage picture there far more favorable. Running your specific financing assumptions through the StaySTRA Analyzer with your target purchase price and bedroom count is the right way to test this before you make an offer.

Supply growth trajectory. Markets where listings have grown aggressively are compressing occupancy. Myrtle Beach has 8,308 active listings at 27% occupancy. Traverse City has 748 listings at 28% occupancy. Both post similar occupancy rates, but the supply pressure driving each is completely different. A market with 748 listings and a market with 8,308 listings face entirely different demand-to-supply dynamics going forward.

Seasonal concentration risk. Some markets earn the majority of annual revenue in an 8 to 10 week window. That is not automatically disqualifying if you manage for it, but it means cash flow planning looks very different from a year-round market. Destin and Gulf Shores have peak-concentrated demand curves. Sedona and Joshua Tree have more balanced, dual-peak patterns that smooth annual cash flow. Know the seasonality profile of what you are buying before you buy it.

Property type fit within the market. Market averages in this table include studios, condos, and large lakefront houses. If you are buying a 4-bedroom mountain cabin, the market average ADR of $338 in Gatlinburg understates what a well-positioned larger property should produce. Always run your analysis at the specific property configuration level, not just the market average. That is exactly what the StaySTRA Analyzer is built to do.

We do our best to keep our data accurate and up to date, but markets move fast and we are only human. Always verify current figures directly with local sources before making investment decisions.