Highlands, North Carolina Short-Term Rental Market
Highlands bans new STRs in residential zones; Western NC averages $240 ADR, 48.3% occupancy, $3,198 revenue in September 2026.
Quick Answer: Highlands, North Carolina is an active short-term rental market. average occupancy in the North Carolina Mtns market area is 48%. average monthly revenue in the North Carolina Mtns market area is $3,198. average daily rate in the North Carolina Mtns market area is $240. the top operator in the North Carolina Mtns market area is Evolve with 725 listings. market score is 70/100 (grade C).
Market data reflects the North Carolina Mtns regional market, which includes Highlands. Regulations, taxes, and permit details below are specific to Highlands.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Highlands sits on the Highlands and Cashiers plateau in western North Carolina at about 4,118 feet, and it is one of the most restrictive short term rental markets in the state. New STRs have been prohibited in the R-1 and R-2 residential districts since September 15, 2022, and existing nonconforming rentals face a phase out deadline of September 19, 2027. Anyone evaluating the market should read the regulatory section first.
Performance figures on this page describe the Western North Carolina STR market, a regional series shared by Highlands and nearby mountain and foothill towns, rather than Highlands alone. Bedroom, channel, listing type and operator data are tracked at a shared regional level rather than uniquely for Highlands, so this profile omits it.
As of September 2026, the Western North Carolina STR market averaged an ADR of $240 and occupancy of 48.3%, producing average monthly revenue of $3,198 per listing. Entire place listings averaged $242 ADR and $3,234 in monthly revenue. Houses averaged $3,372 per month, while apartments averaged $2,341. Compared with September 2025, occupancy rose 11.3%, ADR rose 3.4%, and revenue rose 15.2%.
Summing the monthly seasonal averages gives annualized revenue of $34,069 per listing. Through nine months of 2026, occupancy is 47.6% with an ADR of $226 and average monthly revenue of $2,991, compared with 48.4%, $221 and $3,039 for full year 2025. The strongest recent year for occupancy was 2020 at 60.7%, and annual occupancy has ranged from 47.6% to 53.1% since 2022.
Highlands itself is a small resort town with a year round population of 1,074 that swells to roughly 18,000 in peak summer as second home owners and tourists arrive. Visitors skew affluent and older, drawn by galleries, boutiques, golf, and waterfalls such as Dry Falls and Bridal Veil Falls.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 32% |
| Feb | 41% |
| Mar | 47% |
| Apr | 47% |
| May | 49% |
| Jun | 61% |
| Jul | 68% |
| Aug | 56% |
| Sep | 49% |
| Oct | 61% |
| Nov | 49% |
| Dec | 46% |
Month-by-month nightly rates and revenue figures for Highlands are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in North Carolina Mtns market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the North Carolina Mtns market as a whole, which includes Highlands, so these counts are not Highlands-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 725 | 35,200 | ★ 4.76 |
| 2 | Vacasa | 463 | 17,166 | ★ 4.47 |
| 3 | Yonder | 118 | 3,770 | ★ 4.71 |
| 4 | Rumbling Bald Resort | 112 | 412 | ★ 4.35 |
| 5 | Bryson City Cabin Rentals | 112 | 1,406 | ★ 4.64 |
What Kind of STR Should I Buy in Highlands?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Highlands are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 27.2% |
| vrbo | 11.8% |
| both | 61% |
Home Value Trends (Highlands)
Typical home values, median sale prices, and the 10-year price trend for Highlands are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Highlands — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Highlands has one of the most restrictive STR environments in the country, and enforcement severity is rated strict. STRs are permitted only with a town permit, and the type depends on the property. A standard STR permit confirms zoning compliance. Grandfathered units operating before September 15, 2022 need a Nonconforming Use Permit, and Tourist Homes in R-2 need a Special Use Permit.
New STRs have been prohibited in the R-1 low density and R-2 medium density residential districts since September 15, 2022. R-1 bans STRs outright. R-2 allows only Tourist Homes, defined as a bed and breakfast or inn with no more than four guest rooms, through a Special Use Permit that is generally tied to an owner’s primary residence. STRs remain permitted in B-4 commercial zoning.
On September 19, 2024, the Town Board voted 4 to 1 to amortize existing nonconforming STRs in R-1 and R-2, meaning even grandfathered rentals must cease operating by September 19, 2027. The Institute for Justice has challenged the ordinance as unconstitutional under North Carolina law, citing a similar Wilmington ordinance that was struck down, so litigation risk remains.
Operating rules include a cap of 12 guests for properties on town sewer, a ban on special events, and enforcement of noise, trash and parking rules. The Macon County room occupancy tax is 3%, in addition to state and local sales taxes. Permit fees, renewal periods and annual night caps are not published in the data reviewed here.
Market Comparison
The Western North Carolina STR market is strongly seasonal. September 2026 occupancy was 48.3% at a $240 ADR.
Performance varies sharply by month. July occupancy of 67.6% and the 60.6% readings in June and October sit well above September’s 48.3%, while January at 32.2% falls far below it. The result is a market that depends on a few strong months rather than steady year round demand.
Growth is a point in the region’s favor. Occupancy is up 11.3% and revenue up 15.2% year over year, after several years of occupancy sitting near 48%. The luxury tier at $403 per night suits Highlands, where visitors skew affluent.
Operator rankings are tracked at a shared regional level rather than uniquely for Highlands, so this profile omits them. For Highlands specifically, the key difference from other markets is regulatory. Benchmarks assume a property can legally operate, and in Highlands residential zones that is no longer true for new entrants.
Frequently Asked Questions About Highlands, North Carolina
Can I start a new short term rental in Highlands, NC?
What happens to existing Highlands STRs in 2027?
What are average STR rates and occupancy near Highlands?
When is the best time of year for STR income in this region?
How much does a home in Highlands cost?
How far ahead do guests book and how long do they stay?
What taxes apply to STRs in Highlands?
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