The Top 50 STR Markets for Bonus Depreciation
The reference brokers use to coach STR investor clients on where the Year 1 tax math actually works. We scored 100 active listings across 75 of the most-watched short-term rental markets in the US and re-ranked them by bonus depreciation potential. The Smoky Mountains topped Aspen. Joshua Tree beat Malibu. Use this list to steer your buyer's tour toward markets where the deduction holds up — then run a side-by-side comparison report on the 2–3 specific listings they want to see.
The full Top 50 leaderboard
Click any column header to sort. Click a market type below to filter. Top 10 rows are expanded with photo + market narrative.
| Rank ▲ | Details | State | Market Type | DepreciMax Score ▼ | Median Year 1 Deduction ▼ | Land Ratio ▼ | State Tax |
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Use this list with your STR buyers
DepreciMax For Brokers is the only tool that gives you a cost-seg-grade Year 1 tax answer on a specific listing — before your buyer makes an offer. Use the Top 50 above to steer your buyer's market choice, then build a co-branded side-by-side comparison on the 2 or 3 listings they actually want to tour. The comparison is in your hand in under 15 minutes, with your name and brokerage on every page.
Single comparison report: $199. Unlimited Broker Pro: $249/mo. Average STR commission is $30k–$60k — one closed deal pays for 150+ reports.
The biggest movers when you re-rank by tax math
Three markets that don't dominate the AirDNA charts — but absolutely dominate when you score by Year 1 bonus depreciation. The reasons differ (low land ratios, full state conformity, amenity stack), but the lesson is the same: STR investors leave tax savings on the table by chasing the famous markets. Bring this up on your next discovery call.
Markets that didn't make the cut
These are markets that AirDNA, BiggerPockets, and the STR Twitter sphere talk about constantly — and that we left out of the Top 50. Not because they're bad rentals, but because the bonus depreciation math doesn't work. Investors chasing them for tax purposes will be disappointed.
How we scored — the DepreciMax Score
The DepreciMax Score is a proprietary 0–100 rating estimating Year 1 bonus depreciation for any short-term rental — without commissioning a $5,000 engineering study. Every market in this report is the aggregate score across 100 active listings, scored with the same engine that powers our individual property reports.
How it works, briefly
We use multiple inputs — including land values and AI photo recognition — and a proprietary algorithm calibrated over time. Each visible asset is mapped to one of three IRS depreciation categories (5-year personal property, 15-year land improvements, 39-year structural), and location, vintage, and market-level adjustments handle the rest.
Calibrated against the real thing
The score is calibrated against a completed cost segregation study on a benchmark short-term rental. Our accuracy target is closely calibrated on bonus-eligible percentage of purchase price versus that formal study. The model is intentionally calibrated to land slightly on the optimistic side — within tolerance, but never overstating margin to the downside.
If you'd like to see the score applied to specific listings your buyer is touring, run a DepreciMax For Brokers comparison report. Same engine, same accuracy target, side-by-side on 2 or 3 addresses, co-branded with your name and logo.
Version: 2026. Bonus depreciation outcomes vary by individual property; this report estimates ranges for typical purchases in each market. Not tax advice — your buyer should consult a qualified CPA before making investment decisions.