In order to ensure our Market Scores truly reflect how an area is performing, we want to include as many short-term rental listings as possible, for this reason our scores represent a market we use both Airbnb and VRBO listings.

The Market Score is determined by benchmarking against every market with at least 15 listings across five metrics shown below. Markets with more listings will have a stronger impact on the Market Score comparisons.

Market Scores are only benchmarked against other markets in the same country in order to ensure consistency across the board. This also means that markets can be ranked within a country, for example, a market in the United States with a score of 90 would be in the top 10% of markets in the country, and a market in Spain with a score of 90 would be in the top 10% of markets there, but they would not be compared against one another.

Are homes in this market a good investment? This score compares the cost of homes in the area to the average short-term rental income of full-time rental properties.

High Score = Good Investment Opportunity

How often are rentals booked throughout the year? By using a combination of annual occupancy and listing growth rates, this score shows the relative travel demand in a market.

High Score = High Travel Demand

Did vacation rental listings in this location earn more this month than they did in the same month last year? This score is calculated by looking at the change in year-over-year RevPAR for properties that received bookings in both time periods.

High Score = Increasing Revenue per Property

How much does travel in this market demand differ between peak season and low season? This score is the percentage difference between the minimum and maximum monthly average revenue in the past year.

High Score = Low Seasonality

Can you run a short-term rental business here without getting into legal trouble? This score looks at host and property behavior to identify signs of regulation and regulation enforcement.

While some cities have levied heavy restrictions or outright banned certain types of short-term rentals, others have introduced permitting processes or have capped the total number of units allowed. Although some might shy away from purchasing in areas with complicated or heavy regulation, savvy investors often know how to navigate the various requirements within markets that represent great investment opportunities.

High Score = Low or Unenforced Regulation