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How We Selected the Top Airbnb Location Types Identifying the most profitable locations for Airbnb investments involves analyzing several key factors that directly impact rental performance and return on investment: Year-round demand: Locations with consistent booking demand across all seasons. Average Daily Rate (ADR) : Areas commanding higher nightly rates relative to property values. Occupancy rates : Markets with consistently high occupancy percentages (65%+). Regulatory environment : Areas with stable and favorable short-term rental regulations Growth potential : Markets showing positive trends in tourism and visitor numbers. Operational costs : Consideration of property management fees, taxes, and maintenance costs. Capitalization rate (Cap rate) potential : Locations offering attractive cap rates for investors. Our analysis draws on comprehensive market data, including AirDNA and Mashvisor analytics, industry reports, investor experiences, and tourism trend forecasts for 2025. Rather than focusing on specific cities—which can quickly change in desirability—we've identified types of locations that consistently demonstrate strong Airbnb performance regardless of geographic region.

If you manage a vacation rental or oversee a portfolio of short-term rental properties, understanding your financial metrics is essential. One of the most valuable tools in hospitality revenue management is RevPAR , which stands for Revenue Per Available Room . While this metric originated in the hotel industry, it has rapidly gained importance for Airbnb hosts, VRBO owners, and property managers who want to refine pricing strategies and improve occupancy rates. RevPAR provides a comprehensive view of how effectively you're monetizing your property’s availability. It combines both your Average Daily Rate (ADR) and occupancy rate into one simple metric. Unlike other metrics that focus solely on revenue or booking rates, RevPAR highlights the dynamic relationship between pricing and demand. Simply put, if you're aiming to increase your earnings, having RevPAR as a key performance indicator should be a priority.

Can Airbnb Hosts Deduct Home Improvements? Short Answer: Yes—but it depends on how the IRS classifies the upgrade. Airbnb hosts can fully deduct repairs (like fixing a leak) in the year they're made, while capital improvements (like a kitchen remodel) must be depreciated over time—typically 27.5 years. Strategic tax planning can accelerate deductions through bonus depreciation, Section 179 expensing, or cost segregation. Even hosts of mixed-use properties can claim partial deductions based on rental usage. To maximize tax savings, document everything, file the right forms (like Schedule E and Form 4562), and align your upgrades with both guest appeal and IRS rules.