How Small Towns Are Quietly Becoming the Next Big Opportunity in Short-Term Rentals

When people think about short-term rentals, they usually picture major vacation hubs or big cities packed with tourists. What most investors overlook is the quiet rise of small towns. These communities are starting to attract travelers who want something different, something calmer, something more real. And for homeowners or investors, these places often hold the best opportunities.

Why Small Town STR Markets Are Gaining So Much Attention

1. Travelers Want Real Experiences

More people want to slow down. They want coffee at a local bakery, a walk down Main Street, a day on a small lake, or a stay that actually feels like a getaway. Small towns offer authenticity that big markets can’t match.

2. Lower Purchase Prices Create Better Returns

Buying in a major vacation market usually comes with a high price tag. Smaller towns tend to have lower sale prices, lower taxes, and lower overhead. That combination can produce stronger cash flow and better long-term returns.

3. Far Less Competition

In large markets, short-term rentals are everywhere. In small towns, there may only be a handful of options. Fewer competitors means your listing gets more views, more bookings, and better nightly rates without needing to overspend on upgrades.

4. Local Events Bring Reliable Business

Small towns have their own rhythm. High school tournaments, fishing weekends, holiday celebrations, fairs, snowmobiling events, weddings, and outdoor recreation bring a steady flow of visitors. Hotels in these areas are often limited, which pushes travelers toward homes instead.

5. Remote Work Changed the Way People Travel

People can work from anywhere now. Families take long weekends more often. Couples book last-minute road trips. Workers stay for a week instead of a day. Small towns with good WiFi and comfortable spaces have become ideal for these new travel patterns.

Why Wisconsin Small Towns Are Especially Strong

Across Wisconsin, towns with easy highway access, outdoor recreation, and charming downtowns are taking off. Areas around Portage, Baraboo, Poynette, Lake Wisconsin, Reedsburg, Wisconsin Dells business corridors, and Prairie du Sac are seeing more travelers each year.

The Dells itself creates a spillover effect. Many visitors want the attractions close by but prefer to stay somewhere quieter. This is exactly where small-town homes become high performers.

The Hidden Power of Niche Properties

In these smaller markets, the best-performing rentals are often simple, creative, or unique. A cozy cottage downtown. A farmhouse on a couple acres. A modern remodel in a quiet neighborhood. A cabin with a firepit. A family home near a sports complex. The demand isn’t always for luxury. It’s for character and comfort.

The Takeaway

Big markets will always draw attention. The difference is that smaller towns offer affordability, less competition, and strong returns, especially for investors who get in early. These communities are growing quietly, but they’re growing in the right direction.

If you’ve been considering a short-term rental or want to explore opportunities outside the usual hotspots, small towns might be the smartest place to start looking.

Want help finding a high-performing short-term rental opportunity?

I analyze zoning, STR rules, estimated revenue, seasonal demand, and overall investment potential to help clients make confident decisions.

Mary Ramsey, eXp Realty
📞 608-617-5466
📧 [email protected]
🌐 www.MaryRamseyRealEstate.com