Laws and legislation are changing rapidly in 2025, affecting Florida short term rental laws.
With its specific rules and ongoing debate about who can mandate and regulate the state’s market, Florida vacation rentals are struggling to keep up with compliance and remain competitive.
Is Florida Trying to Get Rid of Airbnb in 2025?
Florida’s latest legal changes have caused debate over who gets to regulate short‑term rentals.
SB 280 and HB 1537 are meant to centralize vacation rental regulations through the Florida Department of Business and Professional Regulation (DBPR). These bills would preempt cities and countries from setting local zoning rules or caps on rental frequency and duration.
The point is to create a statewide registry and standard license/fee structure.
B 280 also mandates that property rental platforms like Airbnb collect and remit tourism taxes, submit occupancy and registration data to the state, and allow DBPR to manage licenses.
So What’s the Problem?
Local governments, especially in coastal areas like Miami Beach and Fort Lauderdale, are pushing back. They argue that SB 280 disturbs neighborhoods and hinders single‑family zoning.
In June of 2024, Governor Ron DeSantis vetoed SB280, citing protection of property rights and Florida’s tourism economy. This means that there is no active Florida short term rental ban, but a clear tension exists between citizens, law agencies, and officials.
Florida Airbnb laws remain evolving at this point. Some cities are implementing stricter regulations, keeping the public confused about a potential Florida short term rental ban.
What Does This Mean for Airbnb Hosts and Property Managers?
There is currently no statewide ban on short‑term rentals in Florida. The state is pushing for compliance with a unified set of requirements. Cities like Miami Beach continue to enforce strict local rules, including minimum stay lengths, nuisance Ordinances, and heavy local registration fees.Property managers must comply with state-level licensing and tax requirements and also stay updated on city and county-specific regulations, such as Airbnb regulations by city Florida.
What Is Florida’s Law on Short‑Term Rentals in 2025?
Under Chapter 509 of the Florida Statutes, a “transient public lodging establishment”, such as a short‑term rental, is defined as any housing rented for 30 days or less, more than three times in a calendar year, or advertised to the public as rented regularly to guests.
The Florida Department of Revenue also treats rentals of six months (180 days) or less as “transient rentals” for tax purposes.
This means that any property rented for the short-term qualifies as a vacation rental, while leases over 30 days are considered monthly rentals Florida, subject to different rules.
Florida Statutes and Regulations
Chapter 509 regulates vacation rentals under the Florida Department of Business & Professional Regulation (DBPR), which is a Division of Hotels & Restaurants.
License Classifications by Florida DBPR
Condominium Unit
Single-Dwelling
Group or Collective (for multiple units or property portfolios under one operator)
Licensing and Regulatory Requirements
The license application is completed online through DBPR.
Fees: $50 application fee, $10 training fee, plus additional licensing fees (if applicable).
Processing time: Typically 1–2 business days.
DBPR requires balcony safety inspections every three years for buildings three stories or higher.
Preemption Clause (F.S. 509.032(7)(b)) prevents local governments from prohibiting or regulating the duration/frequency of short-term rentals, unless the ordinance was in place before June 1, 2011.
Senate Bill 280 proposed statewide registration, safety enforcement, and local preemption expansion, which was later vetoed in June 2024, so no changes have taken effect.
Florida Short Term Rental Laws 2025
Stays under 30 days = STRs | DBPR license required | Local rules still apply
No major changes yet, but new laws could be on the horizon ⚖️
Do You Need a License for Vacation Rentals in Florida?
The direct answer is Yes.
Every vacation rental in Florida needs to have a license from the DBPR.
State Licensing Requirements Through DBPR
How to Apply for Short Term Rental License in Florida:
6. Submit and monitor application: typically takes 1–2 business days for approval
7. Maintain and renew your license annually
Local Permits by County and City
Once you’ve registered for a Florida state license, local governments might require additional permits or registrations, especially in larger holiday cities.
Miami Beach
Miami [beach] short term rental laws indicate that vacation rentals under six months are prohibited in most single-family homes and many multifamily zones.
Permitted rentals must have a Business Tax Receipt and Resort Tax account, and display both numbers in all public listings.
Orlando
Requires a Home Sharing permit if renting part of a home (owner present), or a Commercial Dwelling Unit permit to rent the entire property.
Permit applications include proof of residency, zoning compliance, and identification.
Tampa
Requires a city-specific STR permit.
Online submission, inspection, and local occupational licensing are part of the process.
Permit Summary
Short-term rental license Florida: Mandatory state license through DBPR for all vacation rentals.
Airbnb regulations by city, Florida: Further local permits are common in popular areas like Miami Beach, Orlando, and Tampa.
Combining state and city requirements keeps your rental fully compliant.
· What Are the New Rules for Landlords in Florida in 2025?
Whether you are renting for long-term or short-term stays in Florida, you are bound by certain laws.
Eviction and Notice Updates
For non‑payment of rent, landlords must now give 3 days’ written notice, allowing tenants to pay or vacate before legal action is taken.
For lease violations, a 7‑day “Notice to Cure” is required before filing for eviction.
For week-to-week leases, termination can occur with just 7 days’ notice; month-to-month leases require 30 days’ written notice.
Impact on Short‑Term vs. Long‑Term Landlords
Short-term landlords (those with leases of under 6 months) must strictly adhere to sales tax, lodging tax, and DBPR licensing rules.
Long-term landlords are more significantly affected by updated eviction and notice protocols, as well as deposit flexibility.
Differences Between Long-Term and Monthly Rentals in Florida
Stay Up-to-Date on Florida’s Changing Rental Laws
Florida short term rental laws continue to change and evolve, with regulations and compliance shifting at both the state and city levels.
From licensing to local permits, there are many regulations that property managers must be on top of, especially if managing multiple properties over different platforms and in various jurisdictions. These regulations are only the tip of the iceberg. The short-term rental space in Florida (and across the U.S.) is shifting constantly, and staying compliant is critical to protecting your property and revenue.
With BRnX Travel, you don’t have to figure it out alone. Our verification and accreditation programs help property owners and managers stay ahead of the curve, meet compliance requirements, and stand out as part of theGold Standard of vacation rentals.
Costa Rica is set to introduce a significant change for property owners and hosts who rent out their properties on platforms like Airbnb. Starting in 2026, a 12.75% tax on gross rental income will be enforced.
This new tax policy aims to regulate the short-term rental market and generate revenue. Property owners and hosts will need to adapt to this change, understanding its implications on their rental income.
The introduction of this tax reflects a broader trend in regulating the sharing economy. It is crucial for those affected to stay informed about the upcoming changes.
Key Takeaways
Costa Rica will enforce a 12.75% tax on Airbnb rentals starting in 2026.
The tax applies to the gross rental income from short-term rentals.
Property owners and hosts must understand the implications of this tax.
The tax aims to regulate the short-term rental market.
Staying informed about the tax policy is crucial for those affected.
Understanding Costa Rica’s New 12.75% Airbnb Tax Coming in 2026
Starting in 2026, Costa Rica will implement a new 12.75% tax on short-term rentals through platforms like Airbnb. This change is set to impact the vacation rental market significantly. The new tax applies to rentals under 30 days and will be enforced through major booking platforms.
Key Details of the New Vacation Rental Tax
The new 12.75% tax rate will be applied to the gross rental income of short-term vacation rentals. This means that hosts will need to factor this additional cost into their pricing strategies. The tax is designed to generate revenue for the government while regulating the rapidly growing vacation rental market.
Property Types Affected by the Tax
The tax will apply to various types of properties used for short-term rentals, including houses, apartments, and condos. Any property rented for less than 30 days will be subject to the 12.75% tax. This broad application ensures that all short-term rental income is captured under the new tax regulation.
Implementation Timeline and Key Dates
The new tax is set to take effect in 2026, giving hosts and property managers a year to adjust their pricing and compliance strategies. Key dates to note include the registration deadline for hosts and the start of tax collection. Hosts are advised to stay informed about these dates to avoid any penalties.
The Current Vacation Rental Tax Landscape in Costa Rica
Understanding the current tax landscape is crucial for Airbnb hosts in Costa Rica. The country’s vacation rental market is subject to specific tax regulations that hosts must comply with.
Existing Tax Structure for Tourism Properties
Currently, rental income is taxed under the Real Estate Capital Gains Tax system. This system assumes 15% of expenses and taxes the remaining 85% at 15%. This means that the effective tax rate on rental income is 12.75% (15% of 85%). This tax structure is applicable to various tourism properties, including vacation rentals.
How Airbnb and VRBO Properties Are Currently Taxed
Airbnb and VRBO properties in Costa Rica are subject to the same Real Estate Capital Gains Tax system. Hosts are required to report their rental income and comply with the existing tax regulations. It is essential for hosts to maintain accurate records of their income and expenses to ensure compliance and to take advantage of the allowable deductions.
By understanding the current tax landscape, hosts can better navigate the upcoming changes and plan accordingly. Staying informed about the Airbnb tax regulations and Costa Rica tax update will help hosts adapt to the new tax structure coming in 2026.
Why Costa Rica Is Implementing the New Tax
Costa Rica’s introduction of a new tax in 2026 marks a significant shift in its approach to vacation rentals. The government aims to increase revenue and regulate the growing vacation rental market. This move is part of a broader strategy to manage the impacts of tourism on local infrastructure and communities.
Government Revenue Objectives
The new tax is expected to generate substantial revenue for the government. This additional income will be crucial for funding public services and infrastructure projects that benefit both locals and tourists. By increasing revenue, the government can improve the overall quality of life and enhance the tourist experience.
Infrastructure and Tourism Development Goals
A significant portion of the tax revenue will be allocated towards improving infrastructure in tourist areas. This includes upgrading transportation networks, enhancing public amenities, and promoting sustainable tourism practices. By investing in infrastructure, Costa Rica can support its growing tourism industry while maintaining its natural beauty and appeal.
Addressing the Rapid Growth of Vacation Rentals
The rapid expansion of vacation rentals has brought both opportunities and challenges to Costa Rica. The new tax aims to regulate this market, ensuring that it contributes fairly to the local economy. By addressing the growth of vacation rentals, the government can mitigate potential negative impacts on housing availability and local communities.
Breakdown of the 12.75% Tax Structure
As Costa Rica gears up to implement a 12.75% tax on Airbnb and other vacation rentals, it’s essential to dissect its components and implications. This new tax is set to significantly impact the vacation rental market, affecting both property owners and travelers.
Components and Allocation of the Tax Rate
The 12.75% tax rate is composed of several components, each allocated to different areas of Costa Rica’s tourism infrastructure and public services. The breakdown includes:
Tax Component
Percentage
Allocation
Tourism Development
5%
Funding for tourism development projects
Public Services
4%
Enhancing public services for tourists
Infrastructure
3.75%
Improving infrastructure in tourist areas
Collection Methods and Payment Processes
The new tax will be collected through platforms like Airbnb and Vrbo, making it easier for property owners to comply. The collection process will be integrated into the existing payment systems, ensuring a seamless experience for hosts and guests.
Key aspects of the collection method include:
Automated tax collection through booking platforms
Regular remittance of collected taxes to government coffers
Detailed reporting for transparency and compliance
Enforcement Mechanisms and Penalties
To ensure compliance, Costa Rica has established robust enforcement mechanisms and penalties for non-compliance. Property owners and platforms are required to adhere strictly to the tax regulations to avoid fines and other penalties.
Penalties for non-compliance may include:
Fines ranging from $100 to $500 for initial non-compliance
Repeated offenses may lead to higher fines and potential revocation of rental permits
How the Tax Compares to Other Popular Tourist Destinations
The new Airbnb tax in Costa Rica has sparked interest in how other tourist hotspots are handling vacation rental taxation. As travelers and hosts look to understand the implications of this 12.75% tax, comparing it to similar taxes in other popular destinations can provide valuable insights.
Vacation Rental Taxes in Mexico and the Caribbean
Mexico and various Caribbean islands have implemented their own vacation rental taxes. For instance, Mexico charges a 2% tax on lodging services, while the Bahamas have a 3% tax on accommodations. These rates are significantly lower than Costa Rica’s new tax.
Mexico: 2% lodging tax
Bahamas: 3% accommodations tax
Jamaica: 7.5% tax on accommodations and other tourist services
Comparison with European Vacation Rental Taxes
European countries have a wide range of vacation rental taxes. For example, Spain charges a 4% tourist tax, while Italy has a range of taxes from 4% to 7% depending on the region. These taxes are generally lower than Costa Rica’s 12.75% rate.
Key European vacation rental taxes:
Spain: 4% tourist tax
Italy: 4% to 7% regional tax
France: 0.2% to 0.5% lodging tax
Global Trends in Airbnb Taxation
There’s a growing trend worldwide towards taxing vacation rentals. Countries are recognizing the potential revenue from taxing short-term rentals, and many are implementing or increasing these taxes. Costa Rica’s new tax is part of this global movement.
Notable trends include:
Increasing tax rates on vacation rentals
Implementation of new taxes in previously untaxed regions
Stricter enforcement and collection mechanisms
Impact on Property Owners and Hosts
As Costa Rica gears up for the 2026 introduction of its new Airbnb tax, property owners and hosts must prepare for the financial implications. The new 12.75% tax on vacation rentals will undoubtedly affect their bottom line, but understanding the specifics can help mitigate the impact.
Financial Implications for Rental Businesses
The additional tax burden will require property owners and hosts to reassess their pricing strategies and profit margins. It’s essential to consider how the new tax will affect their overall financial situation.
Profit Margin Considerations
Property owners should analyze their current profit margins and determine how to adjust their pricing to maintain profitability. This might involve absorbing some of the tax costs or passing them on to guests. As Airbnb tax regulations come into effect, hosts must be strategic about their pricing.
Tax Deduction Possibilities
It’s also crucial for property owners to explore potential tax deductions that might offset some of the new tax costs. Consulting with a tax professional can help identify eligible deductions and ensure compliance with the new regulations.
Reporting Requirements and Compliance Steps
To comply with the new 2026 tax changes Costa Rica, property owners and hosts will need to understand the reporting requirements. This includes registering for the appropriate tax identifiers and filing regular tax returns. Failure to comply could result in penalties, so it’s vital to stay informed and seek professional advice if necessary.
Property owners should maintain accurate records of their rental income and expenses to facilitate tax reporting. This will not only ensure compliance but also help in making informed decisions about their rental businesses.
Potential Exemptions and Special Cases
While the new tax will apply to most vacation rentals, there may be exemptions or special cases to consider. For instance, long-term rentals or properties used for specific purposes might be treated differently under the new tax regulations. Property owners should investigate whether they qualify for any exemptions or special treatment.
As the implementation date approaches, staying informed about the Airbnb tax regulations and any updates to the tax law will be crucial for property owners and hosts to navigate the changes successfully.
What American Travelers Should Expect
As the new Airbnb tax in Costa Rica approaches, American travelers need to be prepared for changes in their vacation rental expenses. The introduction of a 12.75% tax on vacation rentals is expected to impact the cost of accommodations for travelers.
Projected Price Increases for Vacation Rentals
The new tax will likely lead to increased prices for vacation rentals in Costa Rica. According to industry estimates, the average price increase could range from 8% to 12%. To give you a better idea, here’s a breakdown of potential price increases for different types of accommodations:
Accommodation Type
Average Price (2025)
Projected Price (2026)
Percentage Increase
Studio Apartment
$80
$90
12.5%
1-Bedroom Villa
$150
$165
10%
3-Bedroom House
$300
$336
12%
Budgeting for Your Post-2026 Costa Rica Trip
To prepare for the potential price increases, American travelers should consider budgeting extra for their accommodations. Here are some tips:
Research and book accommodations early to secure better rates.
Consider alternative accommodation options, such as hotels or vacation rentals outside of popular areas.
Factor in the additional cost of the new tax when planning your trip.
How to Find the Best Value Despite the New Tax
Despite the new tax, American travelers can still find great value in Costa Rica’s vacation rentals. To maximize your budget, consider the following strategies:
Look for longer-term rentals, which may offer better value.
Explore different regions of Costa Rica, as prices can vary significantly.
Negotiate with property owners or managers for better rates.
Preparing Your Costa Rican Rental Property for the Tax Change
Preparing for the upcoming Airbnb tax change in Costa Rica is crucial for property owners. As the 2026 deadline approaches, it’s essential to understand how to adjust your rental property strategies to comply with the new regulations.
Adjusting Your Pricing Strategy
With the introduction of the new 12.75% tax, property owners will need to reassess their pricing to maintain profitability. Consider the following adjustments:
Review your current pricing model and adjust rates accordingly to absorb the tax increase.
Analyze competitor pricing to remain competitive in the market.
Consider offering seasonal promotions or discounts to attract guests.
Documentation and Compliance Preparation
To comply with the new tax regulations, property owners must ensure they have the necessary documentation. This includes:
Maintain detailed financial records of rental income
Ongoing
Guest Information
Keep records of guest stays and payments
Ongoing
Communicating Changes to Your Guests
Transparent communication with your guests is key. Clearly explain the tax changes and how they affect booking costs. Consider:
Updating your booking policies to reflect the new tax.
Notifying guests in advance of the tax change and its impact on their booking.
Providing excellent customer service to maintain a positive reputation.
Alternative Accommodation Options and Their Tax Implications
Costa Rica’s new tax on vacation rentals has sparked interest in other accommodation choices. As travelers and property owners navigate the implications of the 12.75% tax on Airbnb rentals, alternatives such as hotels, resorts, and long-term rentals are becoming more attractive.
Hotels and Resorts vs. Vacation Rentals
Hotels and resorts offer a different experience compared to vacation rentals, with services like daily housekeeping, on-site dining, and recreational facilities. The tax implications for hotels and resorts differ from those for vacation rentals. While hotels are subject to existing tourism taxes, vacation rentals are now facing the additional 12.75% tax.
Accommodation Type
Tax Treatment
Hotels and Resorts
Subject to existing tourism taxes
Vacation Rentals
Subject to 12.75% tax on rentals
Long-term Rentals and Different Tax Treatments
Long-term rentals are treated differently under Costa Rica’s tax regulations. These rentals are not subject to the 12.75% tax, making them an attractive option for those planning extended stays. However, long-term rentals are subject to other regulations and taxes, such as income tax on rental income.
Potential Economic Effects on Costa Rica’s Tourism Industry
As Costa Rica gears up to implement a new tax on vacation rentals, the potential economic impacts on its tourism industry are being closely examined. The introduction of a 12.75% tax on Airbnb rentals is expected to have both immediate and long-term effects on the economy.
Short-term Impact on Visitor Numbers and Spending
In the short term, the new tax may deter some visitors, potentially leading to a slight decrease in tourist numbers. This could impact local businesses that rely heavily on tourism, such as restaurants, tour operators, and souvenir shops. Key concerns include:
Increased costs for travelers
Potential shift to alternative destinations
Impact on last-minute bookings
Long-term Benefits for Infrastructure and Services
On the other hand, the revenue generated from the new tax is expected to be reinvested in tourism infrastructure and services, potentially enhancing the overall tourist experience. This could lead to:
Improved transportation networks
Enhanced tourist facilities
Better maintenance of natural attractions
Effect on Local Real Estate and Rental Markets
The new tax may also influence the local real estate and rental markets. Property owners might need to adjust their pricing strategies or explore alternative rental options. Key considerations include:
Potential decrease in rental income for property owners
Shift towards long-term rentals
Increased competition in the hotel industry
Conclusion: Planning Your Costa Rican Experience in the New Tax Era
As Costa Rica introduces a new 12.75% Airbnb tax in 2026, travelers and property owners must adapt to the changing vacation rental landscape. Understanding the implications of this tax is crucial for planning a seamless Costa Rican experience.
The new tax will impact vacation rental prices, but with proper planning, you can still enjoy the beauty and charm of Costa Rica. Property owners should adjust their pricing strategies and ensure compliance with the new regulations to maintain their competitiveness in the market.
For travelers, budgeting for the increased costs and exploring alternative accommodation options can help mitigate the effects of the new tax. By staying informed about the changes and adapting your plans accordingly, you can continue to enjoy all that Costa Rica has to offer.
As the tourism industry in Costa Rica evolves, staying up-to-date on the airbnb tax and vacation rentals tax will be essential for making the most of your Costa Rican experience.
FAQ
What is the new Airbnb tax rate in Costa Rica?
The new Airbnb tax rate in Costa Rica is 12.75%, which will be implemented in 2026.
How will the 12.75% tax be collected?
The 12.75% tax will be collected through Airbnb, and the platform will be responsible for remitting the tax to the Costa Rican government.
What types of properties are affected by the new tax?
The new tax will apply to all vacation rentals, including those listed on Airbnb, VRBO, and other platforms, as well as properties rented directly to tourists.
Are there any exemptions to the new tax?
While the specifics of exemptions are still being finalized, it’s expected that certain types of long-term rentals or properties used for specific purposes may be exempt from the tax.
How will the new tax affect my vacation rental business in Costa Rica?
Property owners and hosts will need to adjust their pricing strategies to account for the new tax, and may need to comply with additional reporting requirements.
Will the new tax apply to bookings made before 2026?
The new tax will likely apply to bookings made after the implementation date in 2026, but the specifics may depend on the exact implementation timeline.
How will the Costa Rican government use the revenue generated from the new tax?
The revenue generated from the new tax is expected to be used for infrastructure development, tourism promotion, and other initiatives to support the tourism industry.
Can I still rent out my property on Airbnb in Costa Rica after the new tax is implemented?
Yes, you can still rent out your property on Airbnb, but you’ll need to comply with the new tax regulations and adjust your pricing accordingly.
Are there alternative accommodation options available in Costa Rica that won’t be subject to the new tax?
Yes, hotels, resorts, and long-term rentals may be alternative options, but their tax implications may vary, and it’s essential to understand these differences.
How will the new tax affect the overall cost of my trip to Costa Rica?
The new tax may result in higher costs for vacation rentals, but travelers can expect to see more infrastructure development and improved services, which may enhance their overall experience.
What can property owners do to prepare for the new tax?
Property owners can start adjusting their pricing strategies, ensure they have the necessary documentation, and communicate changes to their guests to prepare for the new tax. Even as new taxes and regulations reshape global short-term rental markets, one thing remains constant — trust and transparency always pay off.
At BRnX Travel, we don’t just verify listings; we accredit them. We uphold the INACHI and ISO standards of verification and accreditation, setting the benchmark for what it means to operate a truly verified property.
For hosts, that means peace of mind, compliance, and credibility that keeps bookings strong — even under new tax policies. For travelers, it means assurance that every stay is accurately represented, legally compliant, and worthy of your trust.
Verified. Accredited. Trusted. That’s what keeps revenue flowing, even when the rules change.
Sep 1, 2025 With Labor Day just around the corner, many sunseekers are likely to be racing to book short-term rentals. That’s because, judging by a recent spike in demand for vacation rentals in coastal areas of the U.S., anticipation is high that travelers will be seeking one last summer getaway. July demand for short-term rentals climbed to a record 26.4 million nights, up 3.6% compared with a year ago, according to the latest available figures from AirDNA, a firm that compiles and analyzes Vrbo and Airbnb data.
Even economic uncertainty, weak employment numbers, and persistent affordability challenges could not stop Americans from indulging in travel in July-that despite the average daily rate climbing nearly 6.9% year over year, to just over $351.
“Summer vacation is usually like the last thing someone’s willing to give up,” AirDNA Chief Economist Jamie Lane tells Realtor.com®. “It’s going to take a lot to cause people to pull back on those type of vacations.”
And Americans not only traveled but also chose larger, more expensive rental properties. Short-term rentals in coastal areas saw the biggest revenue growth in July, the height of the beach season.
“Since February, demand for six-plus bedroom properties has grown more than 13 times faster than for single-bedroom listings, and about four times faster than for two-bedroom homes,” says Bram Gallagher, AirDNA’s director of economics and forecasting.
However, occupancy averaged 67.4%, down 1.1% from a year ago, mostly because of an uptick in listings. But total nights booked rose 0.7% year over year. Year-to-date occupancy remains ahead of 2024 levels, and the latest pacing data points to a potentially stronger fourth quarter.
Foreign tourists turn their backs on U.S.
Perhaps unsurprisingly, given the heightened geopolitical tensions fueled by President Donald Trump’s trade war with partner nations, international demand for short-term rentals plunged 16% from a year ago, led by a sharp decline in Canadian stays.
According to AirDNA data, demand for short-term rentals in the U.S. among Canadian travelers dropped more that 48% from the same period in 2024.
This is consistent with a trend of Canadian second-home buyers increasingly retreating from U.S. markets in response to Trump’s tariff policies.
Fortunately for AirBnB and Vrbo hosts, Americans filled the gap, driving the majority of summer bookings.
Coastal revenue powerhouses revealed
Realtor.com senior economist Joel Berner says the historic surge in short-term rental (STR) demand is noteworthy because, generally, when the economy is tight, travel is one of the first industries to take a hit, because it heavily relies on discretionary spending.
“STRs do not seem to be feeling this pinch this summer, with the number of nights stayed exceeding last year,” Berner notes.
What’s more, revenue per available rental (RevPAR)-a measure of how well a property generates revenue for each night of booking-edged up 5.7% annually to $237, driven by steeper rates.
Here are the areas where short-term rental revenue growth has been the strongest:
Maui, HI
Maui, HI, saw the biggest short-term rental revenue growth in July compared with a year ago, even as the island continued recovering from the 2023 wildfires.
Coastal areas stood out for registering the highest RevPAR growth in July, led by Maui, HI, which saw a 17.3% year-over-year surge, even as it continued to recover from the deadly 2023 wildfires that ravaged the town of Lahaina on the island’s northwest coast.
“There’s not been much, or any, supply growth in Maui; there’s actually been slight supply decline,” says Lane. “So if the same or more people are coming to the area and there’s fewer listings available, that increases occupancy, and then allows those hosts to charge higher rates as well.”
According to Lane, Maui’s tourism turned a corner this year following the disruption caused by the fires.
“Last year, people were avoiding Maui,” says the economist. “There was still a lot of, I would say, misunderstanding of whether people were allowed to travel to Maui, whether Maui was welcoming tourists or not welcoming tourists. So now that it’s clear that Maui’s more open, we have seen demand come back much more strongly.”
However, Maui’s short-term rental sector is currently in a state of flux, as the Maui County Council is considering a bill to ban short-term rentals in areas dominated by multifamily housing.
Property owners in condo complexes that will be affected should the legislation pass tell Maui Now they are considering taking legal action to protect their investments.
Proposed by Maui Mayor Richard Bissen last year, Bill 9 is designed to boost the island’s long-term housing supply following the loss of thousands of single-family homes and apartments in the wildfires.
Maui County still boasts the largest number of short-term rentals in the Aloha State both in terms of available nights and inventory, with an estimated 10,666 units, which accounts for nearly 15% of the area’s entire housing stock, according to the 2025 Hawaii Housing Factbook.
Hilton Head Island, SC
Within the contiguous United States, South Carolina stood out with two coastal towns showing some of the nation’s strongest short-term revenue growth.
Despite having a year-round population of just 40,000 inhabitants, Hilton Head Island, SC, attracts over 2.5 million visitors every year.
With more than 100 miles of scenic trails and two dozen golf c
Charleston, SC
Located about 100 miles to the north, Charleston, SC, ranked third in RevPAR growth, posting a 14.5% rise in revenue compared with July 2024, largely driven by higher rates.
A charming oceanside city of horse-drawn carriages, celebrated Lowcountry cooking, and well-preserved antebellum architecture, Charleston attracts an estimated 7 million tourists annually. In 2024, close to 8 million people visited “The Holy City,” according to data from the College of Charleston’s Office of Tourism Analysis, reported by Charleston City Paper.
Every adult per trip spent an average of $1,105 last year, generating a record-breaking total economic impact of $14 billion for the city.
Lane, with AirDNA, says coastal hot spots like Hilton Head and Charleston have seen their popularity surge among domestic travelers, further bolstered by a slight slowdown in outbound international travel this summer. “People want to go to the beach in the summer, and markets that are sort of attractive have some of the best beaches around the country,” he says.
Berner agrees that U.S. short-term rental markets have benefited from Americans opting to vacation domestically this summer rather than traveling abroad.
“The luxury segment of STRs appears to be driving growth, and one reason for this may be the weakening of the U.S. dollar against the euro,” he says. “Families who otherwise may have gone abroad this summer may be choosing to vacation stateside this year where their money goes further, and these families are choosing high-dollar rental properties in the U.S.”
What’s in store for STR investors?
This potentially spells good news for those looking to purchase an investment property as a short-term rental, following a rough patch for the industry marked by oversupply and a lack of demand, which drove revenues down in many areas.
Supply of short-term rentals stumbled in July after two months of growth, with STR listings rising 4.6%, down from 5.7% in June. Gallagher says that if the Federal Reserve follows through with a widely anticipated interest rate cut in September, STR supply could see stronger growth, as more people would be willing to purchase investment properties to rent out.
“This summer’s data should signal that STRs can still be a good investment, or at least a way to help finance a vacation home purchase,” concurs Berner. “Many would-be vacation-home buyers are staring down still-high mortgage rates as another blocker, but we anticipate a bit more relief on the rate front through the rest of 2025.”
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Question:Twenty years ago, we retired and paid $188,000 for a small home in Sedona within walking distance of Oak Creek. Although Sedona was a busy tourist town during the summer, the rest of the year it was just a wonderful place to live. Everybody knew most everybody else, and the occasional snowstorm was always fun. We are now moving back to Oklahoma to live with our son and his family. We are selling our home to a short-term rental investor for $1.2 million. Although we will always miss the old Sedona, the new Sedona with all the short-term rentals is a tragedy that we will not miss. What happened? ANSWER: The short-term rental industry in Arizona basically started in Sedona. In response, Sedona passed an ordinance in 2008 restricting them. Other towns and cities followed with restrictions on such rentals. After the Arizona Court of Appeals in 2012 ruled that Sedona’s ordinance could be enforceable, lobbyists for Airbnb and similar companies in that industry went to work. With little notice to Arizona towns and cities, the Arizona Legislature passed a law in 2016 that severely limited the regulation of short-term rentals by said towns and cities. Short-term rentals have been a disaster to any sense of community, particularly in Sedona. For example, there were 28 high-end homes in Sedona surrounding a large common area. On weekends, there were barbecues and birthday parties. During the week, there were carpools to school events and Little League games. Within two years after passage of the state law, 17 of the 28 high-end homes were sold to investors for huge profits.The remaining 11 homeowners contacted us about trying to minimize the “destruction of their community.” We suggested forming an HOA of the remaining homes and adopting a Covenants, Conditions, and Restrictions prohibiting short-term rentals in those 11 homes. The damage to the community, however, was too great. No HOA was formed, and the remaining 11 homes were soon sold to short-term rental investors for a huge profit. What was a nice community became a large motel complex. Sedona’s story is not unique — communities across the country have felt the strain of unchecked short-term rentals. When entire neighborhoods flip to investor-owned STRs, the sense of community erodes, and towns lose the balance that made them special in the first place.
That’s where BRnX Travel steps in. Our platform only works with verified properties and trusted travelers, creating a layer of accountability missing from the big players. By requiring verification and offering accreditation, we make sure that rentals don’t just generate profit — they contribute to the community in a sustainable way.
