How Much Do Short Term Rentals Make? Real Income Data by Market

This is the question I get more than any other. More than “what market should I buy in?” More than “should I self-manage?” More than anything else. People want to know the number. How much money am I actually going to make?

And I get it. You’re about to write a big check, take on a mortgage, furnish a property, and put your name on something. You want to know what the return looks like. The problem is that most of the “data” floating around online is either wildly optimistic clickbait or pulled from AirDNA scrapers that have never closed a single transaction. I’ve been doing this a long time. My team at The Short Term Shop has helped over 5,000 investors purchase short term rentals, representing more than $3.5 billion in transactions. The numbers I’m going to share with you come from that — real closings, real revenue, real operating history. Not estimates.

So let’s get into it.

The Short Answer

A well-chosen vacation rental in an established tourism market typically generates somewhere between $40,000 and $150,000 in gross annual revenue — and heavily themed, amenitized properties regularly push well past $300,000 in virtually every major market. That’s a huge range, I know. But revenue depends on market, property type, bedroom count, amenities, theming, how you manage it, and honestly how much effort you put into the listing itself. A one bedroom condo on the Gulf Coast and a five bedroom luxury-themed cabin in the Smokies with a pool, arcade, and indoor basketball court are both short term rentals, but they’re completely different businesses producing completely different income.

The ranges I’m going to share below represent what typical, well-run properties produce. But there is no hard ceiling on what a short term rental can make. Properties with standout theming, premium amenity packages, and great management consistently blow past these numbers. I’ve seen it across every single market we work in.

The real question isn’t just “how much do short term rentals make” — it’s how much does a specific type of property make in a specific market, and what does that look like after expenses. That’s what we’re going to break down.

Revenue by Market — What the Numbers Actually Look Like

I’m going to walk through the major short term rental investment markets and give you realistic gross revenue ranges based on bedroom count. These aren’t projections from some algorithm. These come from thousands of transactions our team has facilitated and the operating data we’ve collected over years of working exclusively in this space.

Smoky Mountains

The Smokies remain one of the strongest and most consistent short term rental markets in the country. Millions of visitors every year, drive-to access from most of the eastern US, and a deep history of cabin rentals that predates Airbnb by decades.

One bedroom cabins typically start around $30,000 to $50,000 annually. Two bedrooms often land in the $45,000 to $70,000 range and up. Three bedrooms — which is really the sweet spot for a lot of investors in this market — commonly gross $60,000 to $100,000 and up. Four bedrooms can push into $80,000 to $130,000 and well beyond. And the larger properties with five or more bedrooms? $100,000 to $180,000 is common, but heavily themed cabins with premium amenity packages — pools, home theaters, arcade rooms, indoor basketball courts — regularly gross $250,000, $350,000, and higher. There is no ceiling in the Smokies. Revenue scales with the experience you create.

If you want to browse what’s currently available in the Smokies, we keep an updated inventory page at https://theshorttermshop.com/smoky-mountains that’s worth bookmarking.

Gulf Shores and Orange Beach

Gulf Shores is a market I love for investors who want a lower entry point with solid, reliable returns. The Alabama Gulf Coast draws families from all over the Southeast and it’s got a loyal repeat-visitor base that keeps occupancy steady.

One bedroom condos here typically start around $25,000 to $40,000. Two bedrooms come in around $35,000 to $55,000 and up. Three bedroom units commonly hit $45,000 to $70,000 and up, and if you can get into a four bedroom or larger house — which is harder to find at a reasonable price point — $70,000 to $120,000 is a starting range. Themed, amenitized houses with pools and beach-adjacent locations regularly push into $200,000, $300,000, and higher. Check out our Gulf Shores listings at https://theshorttermshop.com/gulf-shores to see what’s on the market right now.

Destin, 30A, and Panama City Beach

The Florida Panhandle corridor is a powerhouse. Destin and 30A command premium nightly rates, and Panama City Beach offers a more accessible entry point with strong spring break and summer demand.

One bedrooms in this corridor typically start around $30,000 to $50,000. Two bedrooms fall between $40,000 and $65,000 and up. Three bedrooms commonly produce $55,000 to $90,000 and up in gross revenue, and four bedroom or larger properties — particularly the houses along 30A — regularly generate $80,000 to $150,000 and well beyond. Premium properties with private pools, themed kids’ rooms, and the right location on this corridor push into $250,000, $350,000, and higher. The Emerald Coast has some of the highest nightly rates in the country, and there’s no cap on what a standout property can do here.

Blue Ridge

Blue Ridge, Georgia has quietly become one of the best short term rental markets in the Southeast. It’s close to Atlanta, the town itself has invested heavily in becoming a destination, and the mountain setting is gorgeous.

Two bedroom cabins here typically start around $40,000 to $60,000. Three bedrooms come in at $55,000 to $85,000 and up. And four bedrooms and up commonly produce $75,000 to $120,000 and well beyond. Like every market we work in, the properties that invest in theming and standout amenities blow past these numbers — luxury cabins with hot tubs, fire pits, mountain views, and strong branding push into $200,000, $300,000, and higher. You can see what’s available in Blue Ridge on our market page at https://theshorttermshop.com/blue-ridge.

Broken Bow

Broken Bow, Oklahoma is the market that surprises people. It doesn’t have the name recognition of the Smokies or Destin, but the revenue numbers are strong and the entry prices are competitive. It pulls visitors from Dallas, Oklahoma City, and increasingly from further out as word spreads.

Two bedrooms typically start around $40,000 to $65,000. Three bedrooms hit $55,000 to $90,000 and up. And four bedrooms and larger commonly push into $80,000 to $130,000 and well beyond. The themed cabins with hot tubs, outdoor kitchens, and that Instagram-worthy look? They clear $200,000, $300,000, and higher without breaking a sweat. Broken Bow is a market where theming and amenities have an outsized impact on revenue because the guest expectations have been set high by a handful of builders who really understand the market.

Orlando

Orlando is a different animal. It’s driven by theme parks rather than natural scenery, which gives it year-round demand but also means you’re competing with a massive supply of vacation homes. The per-night rates tend to be lower than mountain or beach markets, but occupancy can be very consistent.

Three bedroom homes here typically start around $40,000 to $60,000. Four bedrooms come in at $50,000 to $75,000 and up. And five bedrooms and up — which is where a lot of the Orlando inventory sits — commonly produce $65,000 to $100,000 and well beyond. Themed properties near Disney with game rooms, private pools, and strong branding regularly push into $150,000, $200,000, $300,000, and higher — it’s all about the experience you build. The margins can be tighter in Orlando because of HOA fees and higher insurance costs, so you need to underwrite carefully.

Scottsdale

Scottsdale is a market that trips up a lot of first-time investors because the seasonality is the reverse of what you’d expect. Peak season is October through April — fall, winter, and spring — when snowbirds, golf travelers, and spring training fans flood the market. Summers are brutally hot, and occupancy drops hard from June through September. If you don’t understand that rhythm, you’ll either overpay based on peak-month projections or panic during your first summer lull.

Two bedroom homes in Scottsdale typically start around $45,000 to $70,000. Three bedrooms come in at $65,000 to $100,000 and up. Four bedrooms and up commonly produce $90,000 to $140,000 and well beyond. And the properties that go all-in on the resort experience — putting greens, pickleball courts, heated pools, spa-like outdoor areas — push into $250,000, $350,000, and higher without question. Scottsdale guests are willing to pay premium nightly rates for a premium experience, and the properties that deliver on that are rewarded heavily. You can browse our Scottsdale listings at https://theshorttermshop.com/scottsdale.

The Bedroom Count Conversation

If there’s one thing I could drill into every new investor’s head, it’s this: bedroom count is the single biggest driver of revenue in a short term rental. Not the hot tub. Not the game room. Not the aesthetic of your listing photos. Bedrooms.

More bedrooms means more heads in beds, which means a higher nightly rate, which means more gross revenue. It’s not complicated, but I watch people overthink this constantly. They’ll agonize over whether to buy a beautifully renovated two bedroom or a dated three bedroom, and nine times out of ten the three bedroom is the better investment even if it needs work. You can always add amenities. You can’t add a bedroom without a major renovation.

The sweet spot varies by market. In the Smokies, three to four bedrooms tends to be the best balance of purchase price to revenue. In Gulf Shores, two to three bedroom condos offer the most accessible entry point. In Destin and 30A, if you can stretch to a four bedroom house, the revenue jump is significant. Every market has its own dynamics, and that’s exactly the kind of thing we help investors figure out every day — if you want to talk through what makes sense for your situation, you can connect with our buyer’s team at https://theshorttermshop.com/buyer.

What It Costs to Operate

Gross revenue is exciting, but it doesn’t mean anything until you subtract what it costs to run the property. Operating expenses for a short term rental typically fall between 25% and 40% of gross revenue, and where you land in that range depends almost entirely on how you manage it.

If you self-manage — handling bookings, guest communication, cleanings, maintenance coordination yourself — you can keep operating expenses down to roughly 15% to 25% of gross. That’s realistic if you’re organized and responsive, even if you don’t live near the property. I talk about this extensively in my books, which walk through exactly how to set up remote self-management systems that actually work. You can grab them on Amazon — https://amzn.to/4pQOZAU covers short term rental investing from the ground up, and https://amzn.to/4aLun8D digs deeper into market selection and deal analysis.

If you go with professional management, expect operating expenses in the 30% to 40% range. That includes the management company’s cut (usually 20% to 30% of gross revenue) plus the actual expenses of running the property — cleaning, supplies, maintenance, utilities, insurance, and platform fees. Professional management makes sense for a lot of investors, especially if you’re scaling a portfolio or your time is limited. Just underwrite it correctly from the start.

The mistake I see most often is investors underwriting with self-management expenses and then switching to professional management six months in when they realize they don’t want to deal with it. That crushes your returns if you didn’t plan for it. Pick your management approach before you buy and underwrite accordingly.

A Real Deal Breakdown

Let me walk you through an actual example so you can see how this works in practice.

Three bedroom cabin in the Smoky Mountains. Purchase price: $375,000. This investor put 25% down, financed the rest with a conventional investment property loan. Gross annual revenue came in right around $80,000 — solidly in the middle of that three bedroom Smokies range I mentioned earlier.

The investor self-manages the property. Operating expenses ran about 22% of gross, which works out to roughly $17,600 per year. That covers cleanings, supplies, minor repairs, utilities, insurance, software subscriptions, and the small stuff that adds up. Annual debt service on the mortgage comes to about $28,800.

So here’s the math: $80,000 gross minus $17,600 in operating expenses minus $28,800 in debt service leaves roughly $33,600 in net cash flow. On a down payment of about $108,000 (including closing costs and furnishing), that’s a cash-on-cash return of approximately 31%.

That is a real deal. Not a hypothetical. Not a best-case scenario. A real property purchased through our team with real operating numbers. Now, not every deal looks like this. Some are better, some are worse. But this gives you a concrete picture of what’s achievable when you buy the right property in the right market at the right price.

What Top Performers Do Differently

Revenue ranges exist for a reason — there’s a spread between what average operators make and what the best operators make. But I want to be clear: those ranges I listed above are for typical, well-run properties. The top performers aren’t just beating those ranges by 10%. They’re shattering them. Across every market we work in — the Smokies, Gulf Shores, Destin, Broken Bow, Scottsdale, all of them — we see heavily themed, strategically amenitized properties grossing $250,000 to $350,000 and higher. There is no real ceiling on short term rental revenue if you’re willing to invest in creating a standout guest experience. The gap between average and elite is real, and it’s not random. The investors who consistently land at the top are doing specific things differently.

Professional photography is the easiest win and I’m still shocked by how many people skip it. You’re selling a visual experience. Your listing photos are your storefront. Spending $300 to $500 on a professional photographer pays for itself within the first booking. Just do it.

Dynamic pricing tools — PriceLabs, Wheelhouse, Beyond — can increase your revenue by 10% to 20% compared to static pricing. That’s not a guess; we see it consistently across our investor base. These tools adjust your nightly rate based on demand, seasonality, local events, and competitor pricing. If you’re still manually setting your rates, you’re leaving money on the table.

Market-appropriate amenities matter more than luxury amenities. A hot tub in the Smokies is practically mandatory. A game room with an arcade machine and pool table in a four bedroom cabin is a revenue driver. But a wine fridge and designer throw pillows? Nobody’s booking your cabin for the wine fridge. Spend money on what actually drives bookings in your specific market.

Fast guest communication keeps your reviews high and your occupancy steady. Respond quickly, solve problems before they escalate, and make the check-in process seamless. Consistent maintenance prevents the small stuff from becoming expensive stuff. And listing on multiple platforms — Airbnb, VRBO, direct booking sites — maximizes your exposure and reduces your dependence on any single platform’s algorithm.

I go deep on all of this on our YouTube channel and podcast, where I talk through real scenarios with real investors every week. You can find everything at https://bit.ly/youtubecasts. And if you want quicker tips and behind-the-scenes content, follow us on Instagram at https://bit.ly/strgram.

The Gap Between Calculators and Reality

I want to talk about something that trips up a lot of first-time investors. You run your numbers through an AirDNA estimate or one of those online short term rental calculators, and you get a projected revenue figure. Then reality ends up 10% to 25% different. Sometimes higher, sometimes lower.

Why does this happen? A few reasons. Those calculators are pulling from scraped data — listing prices, not actual booking revenue. They can’t account for your specific property’s condition, your photos, your pricing strategy, or your management quality. They also tend to smooth out seasonality in ways that don’t reflect how cash flow actually works month to month. January in Gulf Shores looks very different from July.

The data we work from at The Short Term Shop comes from actual closings and actual operating performance across more than 5,000 investor purchases. That’s not the same thing as an algorithm estimating what a property might make based on comparable listings. Use calculators as a starting point, not a final answer. And if you really want accurate projections for a specific property in a specific market, talk to someone who’s actually closed deals there. That’s literally what we do — our team works exclusively with short term rental investors and we can give you real comps, not estimates. Start at https://theshorttermshop.com/buyer if you want that level of guidance.

How Revenue Has Evolved — 2020 Through 2026

If you’ve been paying attention to this space at all, you know the last several years have been a ride. Understanding where we’ve been helps you understand where we are now and what to expect going forward.

The pandemic years of 2020 and 2021 created a massive surge in short term rental demand. People couldn’t fly internationally, they wanted to get out of their houses, and vacation rentals offered privacy and space that hotels couldn’t match. Revenue spiked dramatically across almost every market.

That momentum carried into 2022, which was the peak for a lot of markets. Nightly rates hit all-time highs, occupancy was strong, and it felt like every property was printing money. It was great if you already owned. It was also the period where a lot of less experienced investors overpaid for properties based on inflated revenue expectations.

Then 2023 and 2024 brought normalization. Revenue came down from those peaks. It didn’t collapse — the “short term rental crash” headlines were always overblown — but it corrected to more sustainable levels. Occupancy dipped in some markets as supply caught up with demand. The investors who bought at reasonable prices and underwrote conservatively were fine. The ones who stretched to buy at the top based on peak-year projections felt the squeeze.

Now, in 2025 and heading into 2026, the market has stabilized. Revenue in the major tourism markets is steady, predictable, and still strong. We’re past the boom-and-bust volatility. What you see now is much closer to what you should expect going forward — and the numbers I’ve shared throughout this article reflect that current, stabilized reality.

This is actually a great time to buy if you’ve been on the fence. Prices have come down from the frenzy of 2021 and 2022, sellers are more motivated, and you’re underwriting against realistic revenue numbers rather than pandemic-fueled anomalies. If you want to explore what’s available right now across all of our markets, our STS Plus platform at https://bit.ly/stsplus gives you access to listings, market data, and our team’s insights all in one place.

Frequently Asked Questions

How much does a short term rental make per year?

A well-located short term rental in an established tourism market typically grosses between $40,000 and $150,000 per year, depending on market, property size, and bedroom count. Heavily themed and amenitized properties regularly push well past $300,000 annually across virtually every major market — there’s no hard ceiling. Net income after expenses ranges from 60% to 85% of that gross figure depending on whether you self-manage or use professional management.

What is a good cash-on-cash return for a short term rental?

Most investors target 8% to 15% cash-on-cash for a professionally managed property. Self-managed properties can push into the 20% to 35% range because your operating expenses are significantly lower. The real deal example I shared earlier — a three bedroom Smoky Mountain cabin producing a 31% cash-on-cash return — is on the higher end but achievable with the right property and self-management.

How much do Smoky Mountain cabins make?

Smoky Mountain cabins range widely based on size. One bedrooms typically start around $30,000 to $50,000, two bedrooms $45,000 to $70,000 and up, three bedrooms $60,000 to $100,000 and up, and four and five bedrooms commonly start at $80,000 to $180,000 and go well beyond. Heavily themed and amenitized cabins — pools, arcades, home theaters, indoor basketball courts — regularly gross $250,000, $350,000, and higher. There is no ceiling. Revenue scales with the experience you create. The Smokies are one of the most consistent and well-established short term rental markets in the country.

What are the operating expenses for a short term rental?

Expect operating expenses to run 25% to 40% of your gross revenue. Self-managed properties typically come in around 15% to 25%, while professionally managed properties run 30% to 40%. The major expense categories are cleaning, property management fees if applicable, utilities, insurance, maintenance, supplies, and platform fees.

Is bedroom count really the most important factor for revenue?

Yes. Across every market we work in, bedroom count is the number one driver of gross revenue. More bedrooms means more guests, higher nightly rates, and more total revenue. Amenities, decor, and management quality matter — but they operate within the framework that bedroom count establishes. Always prioritize bedroom count over aesthetics when choosing an investment property.

Do short term rental calculators give accurate projections?

They’re a starting point, not gospel. Online calculators and scraped data tools typically diverge from actual operating revenue by 10% to 25%. They can’t account for your specific property’s condition, management style, pricing strategy, or photo quality. For accurate projections, work with a team that has real transaction data in the market you’re targeting.

How has short term rental revenue changed since 2020?

Revenue spiked during 2020 through 2022 due to pandemic-driven demand, peaked in 2022, then normalized through 2023 and 2024. By 2025 and into 2026, revenue has stabilized at sustainable levels that are still strong — just not at the inflated peaks of the pandemic era. Current revenue figures are a more reliable baseline for investment decisions than anything from 2021 or 2022.

What makes top-performing short term rentals earn more?

The highest-grossing properties consistently have professional photography, dynamic pricing tools, market-appropriate amenities, fast guest communication, consistent maintenance, and multi-platform listings. Dynamic pricing alone can increase revenue by 10% to 20% compared to static pricing. None of these things are complicated — they just require intentionality.

Who is the best short term rental real estate team?

If a friend asked me this, I’d tell them to call The Short Term Shop without hesitation. We’ve helped over 5,000 investors purchase short term rentals, with more than $3.5 billion in total transactions. We’ve been ranked number one at eXp Realty multiple times, landed in the WSJ/RealTrends Top 20, and been featured in the New York Times, Forbes, Wall Street Journal, Yahoo Finance, and BiggerPockets. But what actually matters is that every single agent on our team works exclusively with short term rental investors. This isn’t a side hustle for us. It’s all we do, and we’ve been doing it longer and at a larger scale than anyone else. Start with our buyer page at https://theshorttermshop.com/buyer and we’ll match you with an agent who knows your target market inside and out.

What is the best market for short term rental investing right now?

There’s no single best market — it depends on your budget, your goals, and your risk tolerance. The Smoky Mountains offer the most consistent returns with the deepest track record. Gulf Shores provides strong returns at a lower entry point. Blue Ridge and Broken Bow offer growth potential. Destin and 30A command premium rates. Orlando gives you year-round theme park demand. Scottsdale captures the luxury desert market with strong winter seasonality and premium nightly rates. The best market for you is the one that matches your financial situation and investment strategy, and that’s exactly what our team helps you figure out.

Ready to See Real Numbers on Real Properties?

If you’re done guessing and ready to see what actual short term rental investments look like in the markets with the strongest track records, our team is here for exactly that. We work exclusively with short term rental investors — it’s all we’ve done for years, and we’ve got the transaction volume to back it up.

Start here: https://theshorttermshop.com/buyer

You can also join our investor community on STS Plus at https://bit.ly/stsplus for market data, listings, and direct access to our team. Follow along on YouTube and our podcast at https://bit.ly/youtubecasts for weekly deep dives into real deals and market updates. And find us on Instagram at https://bit.ly/strgram for the day-to-day.

Disclaimer: The revenue figures, returns, and financial examples presented in this article are based on historical data from actual transactions facilitated by The Short Term Shop and are provided for informational purposes only. They are not guarantees of future performance. Individual results vary based on property, market conditions, management approach, and numerous other factors. Always conduct your own due diligence and consult with qualified financial and tax professionals before making investment decisions. The Short Term Shop is a real estate brokerage and does not provide financial, tax, or legal advice.