Regulation ranking

The 30 Most STR-Friendly Cities in 2026

62 tracked markets are rated 1/5 or 2/5 for regulation strictness. These 30 pair light rules with the strongest numbers.

Last updated September 21, 2026 30 markets ranked

This page lists markets we rate 1/5 (Relaxed) or 2/5 (Light-touch) for short-term rental regulation. 62 of the 174 rated markets qualify. They are ordered by gross yield where we hold revenue data (34 of the 62), then by Opportunity Score. A light-touch city can still require registration and lodging-tax collection, and HOA or deed restrictions apply regardless of the city rating.

Last updated September 21, 2026
62
of 174 rated markets are Relaxed or Light-touch
9
are rated 1/5 Relaxed, our lightest rating
10.1%
median gross yield across the 30 ranked markets with revenue data

Top 30: most STR-friendly cities

The 30 Most STR-Friendly Cities in 2026
RankMarketStateRegulationGross yieldOpportunity scoreAnnual revenueTypical 4BR value
1South Padre IslandCameron CountyTX2/5 Light-touch20.7%47$65K$314K
2DestinOkaloosa CountyFL1/5 Relaxed18.2%82$78K$429K
3ScottsdaleMaricopa CountyAZ2/5 Light-touch16.5%77$91K$552K
4Port AransasNueces CountyTX2/5 Light-touch15.9%42$55K$346K
5Orange BeachBaldwin CountyAL2/5 Light-touch14.8%61$66K$445K
6GalvestonGalveston CountyTX2/5 Light-touch14.8%53$58K$392K
7Gulf ShoresBaldwin CountyAL2/5 Light-touch14.4%57$64K$445K
8SavannahChatham CountyGA2/5 Light-touch14.1%59$58K$412K
9Sandbridge BeachVirginia Beach cityVA2/5 Light-touch12.8%66$67K$523K
10Lake Havasu CityMohave CountyAZ2/5 Light-touch12.2%46$56K$459K
11Cave CreekMaricopa CountyAZ2/5 Light-touch11.8%58$65K$552K
12BransonTaney CountyMO2/5 Light-touch11.6%46$43K$372K
13OrlandoOrange CountyFL2/5 Light-touch11.5%69$59K$514K
14Outer BanksDare CountyNC2/5 Light-touch10.4%69$74K$714K
15PhoenixMaricopa CountyAZ2/5 Light-touch10.2%58$56K$552K
16TampaHillsborough CountyFL2/5 Light-touch10.1%50$48K$478K
17GatlinburgSevier CountyTN1/5 Relaxed10.0%71$65K$653K
18Pigeon ForgeSevier CountyTN2/5 Light-touch9.8%64$64K$653K
19SarasotaSarasota CountyFL2/5 Light-touch9.8%58$64K$656K
20HoustonHarris CountyTX2/5 Light-touch9.7%41$33K$339K
21Ocean CityWorcester CountyMD2/5 Light-touch9.6%60$60K$626K
22DallasDallas CountyTX2/5 Light-touch9.6%40$40K$418K
23MesaMaricopa CountyAZ2/5 Light-touch9.1%54$50K$552K
24Queen CreekMaricopa CountyAZ2/5 Light-touch9.1%50$50K$552K
25Big BearSan Bernardino CountyCA2/5 Light-touch9.0%55$60K$669K
26SeviervilleSevier CountyTN2/5 Light-touch8.7%55$57K$653K
27ChandlerMaricopa CountyAZ2/5 Light-touch8.7%51$48K$552K
28GilbertMaricopa CountyAZ2/5 Light-touch8.7%51$48K$552K
29Lake ChatugeUnion CountyGA1/5 Relaxed7.9%39$46K$580K
30Fort WorthTarrant CountyTX2/5 Light-touch7.9%40$32K$405K

Swipe the table sideways for more columns. Ranked by gross yield, then Opportunity Score. 30 of 62 qualifying markets shown.

How to read this

  • Regulation ratings run from 1/5 (Relaxed) to 5/5 (Very strict) and summarise the rules we hold on file. Rules change, and a city rating does not cover HOA or deed restrictions. Confirm current requirements with the local jurisdiction before you buy or list.
  • Gross yield is average annual STR revenue divided by the county's typical 4BR home value. It is before cleaning, management, utilities, taxes, insurance and financing, so it is a screening ratio, not a cash-on-cash return.
  • The Opportunity Score (0-100) is a screening heuristic, not investment advice. It weighs revenue (35%), regulatory climate (25%), tourism employment (15%), nearby amenities (15%) and large-home supply (10%), each measured relative to the other markets we track.
  • Scores marked partial were calculated without revenue data: the cash-flow component is assumed to be below average, so a partial score can understate a market and should not be compared like-for-like with a full score.
  • Home values are county-wide typical values from the Zillow Home Value Index, not list prices. "Typical 4BR value" is the typical value of a 4-bedroom home in the county named under each market; a specific property can sit well above or below it.
  • An empty cell means we do not hold that figure for the market. We never estimate or interpolate a missing number.

Frequently asked questions

Which STR-friendly city has the highest gross yield in 2026?

South Padre Island, TX, rated 2/5 Light-touch, at a gross yield of 20.7%: $65K average annual revenue against a typical 4BR value of $314K in Cameron County. Gross yield is before costs and financing.

How many cities have relaxed Airbnb rules?

62 of the 174 markets we rate: 9 are 1/5 Relaxed and 53 are 2/5 Light-touch. 14 of those ratings are hand-reviewed and 48 are derived from the regulation facts we hold on file.

Which state has the most markets on the STR-friendly list?

Arizona has the most, with 10 of the 62 qualifying markets: Scottsdale, Lake Havasu City, Cave Creek, Phoenix, Mesa, Queen Creek, Chandler, Gilbert and 2 more.

Does an STR-friendly rating mean no permit is needed?

No. The rating summarises how restrictive the rules are, not whether any exist. Of the 62 markets rated Relaxed or Light-touch, 34 have a permit or registration requirement on file with us. Always confirm current rules with the local jurisdiction.

See these on the interactive map

Turn on the Regulation overlay to see every Relaxed and Light-touch market in green, then open a pin for its permit, tax and occupancy rules.

Open the National STR Map → Get matched with an STR agent

More rankings

Best STR markets overall Top markets by Opportunity Score, full-basis scores only. Highest gross yield Revenue relative to the county's typical 4BR home value. Highest Airbnb revenue Top markets by average annual gross STR revenue. STR markets under $400K Markets where the county's typical 4BR home is under $400K, by opportunity score. STR markets under $600K Markets where the county's typical 4BR home is under $600K, by opportunity score. Strictest Airbnb cities Strict and Very strict markets, with the cap or permit rule on file. Rising home values Tracked markets where county home values rose fastest over the past year. Cooling home values Tracked markets where county home values fell most over the past year. Resort economies Counties with the highest vacation-home density, with tourism job share. Best markets for large homes Deepest supply of 4+ bedroom homes among markets scoring 50+.

State pages for the top markets here

Data sources

  • Revenue, nightly rate, occupancy and regulation ratings: STR HUB market analytics and regulation research.
  • Home values: Zillow Home Value Index (ZHVI). Data provided by Zillow Group.
  • Housing and employment shares: U.S. Census Bureau, American Community Survey (ACS) 5-year estimates.
  • Amenity data: © OpenStreetMap contributors.

Figures come from the STR HUB national dataset dated September 21, 2026 and are refreshed whenever that dataset is rebuilt. Screening data only: not investment, legal or tax advice.

Found a market? Get a local STR agent.

We match you with an agent who works short-term rentals in that market every day: permits, zoning, and the streets that actually rent.

Get matched with an STR agent →
Texas Investors

Looking for Texas Real Estate?

Dwellverse Group specializes in matching buyers and sellers with top Texas real estate agents across Austin, Dallas, Houston, San Antonio, and beyond.

Find a Texas Agent