In the 2026 DepreciMax STR Bonus Depreciation Study, Lake Cumberland, Kentucky leads the Top 50 at 27.1% median bonus-eligible — Aspen, Colorado sits at 14.1% and does not qualify for the Top 50. On a $500,000 investment budget, that gap translates to roughly $65,000 in additional Year 1 federal bonus depreciation deduction — and about $24,000 more in federal tax savings at a 37% bracket. The root cause is land value ratio: Aspen lots command such a high share of purchase price that the depreciable ceiling is capped before finish analysis begins. Kentucky's full conformity to federal IRS §168(k) adds another 400–600 basis points of state-level benefit in Lake Cumberland's favor.
Ask ten short-term rental investors where they'd love to own a property, and Aspen shows up on nine lists. Ask them where they'd love to own for the tax profile, and the data forces a different answer.
This is a head-to-head look at two US STR markets that couldn't be more different — Aspen, the archetypal trophy market, and Lake Cumberland, a Kentucky reservoir town most investors could not find on a map — using the actual scored-listing data from the 2026 STR Bonus Depreciation Study. The gap is not close.
The head-to-head numbers
Aspen / Snowmass, CO
Lake Cumberland, KY
Every column that touches the tax code favors Lake Cumberland. The bonus-eligible share is nearly 2× higher. The land ratio range is roughly half. Both states happen to conform fully to federal §168(k), so the state-return treatment is a wash — but that's the only column where Aspen doesn't lose outright.
Why the gap exists: land value ratio, not finish quality
The instinct is to assume Aspen must have more upside because Aspen has fancier houses. That's not wrong — Aspen homes typically do have higher-end finishes than Lake Cumberland cabins. What that instinct misses is that finish quality operates within the ceiling that land ratio sets. It doesn't move the ceiling.
Bonus depreciation under IRS §168(k) can be claimed on two categories of property: 5-year personal property (finishes, cabinetry, appliances, FF&E, decorative fixtures) and 15-year land improvements (pools, hot tubs, fire pits, outdoor kitchens, driveways, landscaping). Everything else — the shell of the building, the foundation, the framing — depreciates over 27.5 years as residential structure. And nothing is depreciable on the land itself.
So on a $2M Aspen home where the land is $1.3M and the structure is $700k, only that $700k plus 15-year outdoor improvements is in the depreciable pool. Even a fully-loaded Aspen build with the most amenity-heavy finish package cannot escape the geometry — the eligible ceiling is set by the assessor's land/improvement split before the first finish is analyzed. In our land value ratio guide, we walk through the county-assessor lookup step-by-step for any US property.
Lake Cumberland has the opposite structure. A $500k Lake Cumberland cabin might allocate $110k to land and $390k to structure. Even a plainer build inside that $390k depreciable band can push 20%+ of purchase price into bonus-eligible categories. A well-appointed cabin in the same zip — with pool, hot tub, outdoor kitchen, and higher-end interior finishes — can clear 27%.
The two-lever model: Land ratio is the ceiling. Finishes and amenities decide where within that ceiling a specific property lands. Aspen has a low ceiling regardless of the build. Lake Cumberland has a high ceiling, and finishes determine whether a specific listing lands at Diamond (24%+), Gold (22%+), Silver (20%+), or Bronze (18%+).
The dollar impact on a real budget
Numbers make this concrete. Suppose an active STR investor has $500,000 to deploy on a single property and is using the STR loophole (7-day rule + material participation) to offset W-2 income at a 37% federal bracket. Same investor, same budget, two markets.
The Aspen deployment nets roughly $29,200 in Year 1 tax savings. The Lake Cumberland deployment nets roughly $55,600. That's a $26,000+ difference — enough to fund the Lake Cumberland cabin's first year of furniture, insurance, and maintenance while the Aspen buyer is still writing checks.
Scale the same math to a $1M budget and the gap widens to roughly $52,000. To $2M, closer to $105,000. This is the "$50k mistake" — buying trophy real estate for tax reasons when the tax code punishes trophy real estate.
See how your target market actually ranks
Search any US STR market free — DepreciMax scores every active listing on bonus depreciation potential and shows medal-tier density. If you're evaluating Aspen, Lake Cumberland, or any of the 197 markets in the 2026 Study, you can see the tier-by-tier breakdown in 30 seconds.
Search a Market — Free →What Aspen still wins at
This is a tax-lens comparison. It is not a "which market should I invest in?" comparison. On the columns Aspen wins, the win is real and often larger than the tax gap:
- Nightly rate ceiling: Peak-season Aspen properties can charge $2,500–$5,000+ per night for a high-end unit. Lake Cumberland caps somewhere in the $400–$700 range.
- Appreciation history: Aspen luxury real estate has appreciated at multiples of Kentucky lake property over the past decade. Trophy real estate has a track record of long-term price growth that inland-lake markets do not match.
- Brand equity and personal use: An Aspen address commands a premium in your STR listing, in your professional network, and in your own personal use pattern. If the property is partly a family/lifestyle asset, brand matters.
- Buyer pool on exit: Aspen has a global buyer pool. Lake Cumberland has a regional one. If liquidity at exit matters to your thesis, Aspen wins.
The right decision framework is not "Aspen or Lake Cumberland." It's "what am I optimizing for?" If the answer includes bonus depreciation as a primary driver — because you're using the STR loophole to offset a large W-2 or business income — Aspen is the wrong market and Lake Cumberland is on the shortlist. If the answer is dominated by long-term appreciation, brand, and cash flow ceiling, the calculus flips.
What this means for market shopping
Add one number to your market screening spreadsheet: median bonus-eligible % from the 2026 Study. Put it in a column alongside median cap rate, occupancy, and appreciation history. When a market wins on multiple columns, it's a high-conviction pick. When a market wins on only one, treat it as a single-thesis bet and size accordingly.
The Top 50 markets tend to cluster in specific structural categories: inland lakes, secondary mountain destinations, cabin-heavy vacation areas, and states with full IRS §168(k) conformity. The below-Bronze markets tend to cluster in coastal luxury, urban resort, and prestige zip codes. Once you see the pattern, it's hard to unsee — and it changes how you read every future BiggerPockets thread on "best STR markets 2026."
For a broader look at the full Top 50 and the methodology behind the rankings, see our 2026 STR Bonus Depreciation Study findings writeup, which walks through the five headline findings including the trophy-market list, the winners, and the state conformity map.
Frequently asked questions
Is Aspen genuinely a bad STR investment?
Aspen is a bad STR investment for the bonus depreciation profile. It's a strong STR investment for nightly rate, brand equity, and long-term appreciation. Don't confuse "wrong for one thesis" with "wrong overall." If you're not using the STR loophole to offset ordinary income, the tax-profile gap between Aspen and Lake Cumberland is largely academic.
Would a new-construction Aspen home change the math?
Only marginally. New construction can add 3–5 percentage points to a market's typical bonus-eligible share because there's no worn-out finish inventory and amenity stacks are usually fresh. But even a brand-new Aspen build with a full amenity package is still fighting a 60%+ land ratio. The eligible ceiling doesn't move; the property just lands higher within it. You might hit 18–19% instead of 14% — still below the market medians in Lake Cumberland or the Poconos.
What about Aspen's state tax conformity?
Colorado does conform fully to federal IRS §168(k) bonus depreciation — the same Year 1 deduction offsets both federal and Colorado taxable income. So Aspen doesn't lose on the state conformity column. It loses on the bonus-eligible share column. Kentucky also conforms fully, so Lake Cumberland's state benefit is comparable per dollar of federal deduction — but Lake Cumberland has nearly 2× the federal deduction to begin with.
How do I actually find a Diamond property in Lake Cumberland?
Two paths. Free: run a DepreciMax property search on "Lake Cumberland, KY" — every active listing is scored and medal-tagged in real time. Paid: for a specific listing you're seriously evaluating, run a $99 DepreciMax property report — 7–9 listing photos in, IRS §168(k) line-item estimate out, closely calibrated to a formal cost seg study. Most sophisticated investors use both: search to shortlist, report to validate before offer.
Screen your next STR deal before you make an offer
DepreciMax searches any US short-term rental market and ranks every active listing by IRS §168(k) bonus depreciation potential. For a specific listing: upload 7–9 photos → AI reads every finish, land value pulled from county assessor records, full line-item estimate closely calibrated to a formal cost segregation study. $99 per report, or $149/month for unlimited reports.
Search a Market — Free →Numbers cited are medians from the 2026 DepreciMax STR Bonus Depreciation Study. Land value ratios are illustrative ranges based on FHFA WP 19-01 zip-level assessor data. Estimates are prospecting-grade and not a substitute for a formal engineered cost segregation study or tax advice from a qualified CPA. Consult a qualified CPA or tax attorney before implementing any tax strategy.