The Top 50 STR Markets for Bonus Depreciation
We took 197 of the most-watched short-term rental markets in the US, scored every active STR-suitable listing in each, and re-ranked them by median bonus-eligible % of purchase price. Lake Cumberland topped Aspen. Angel Fire beat Vail. Diamond density (share of listings ≥24% bonus-eligible) drives the ranks. Here's the top 50 leaderboard — sortable by market type (ski, mountain, beach, desert, lake, urban) — plus the famous markets that didn't make the cut.
Top 50 leaderboard
Click any column header to sort. Click a market type below to filter. Click a market name to see its full profile. Ranks 1–20 are shown below; ranks 21–50 unlock with your email.
| Rank ▲ | Details | State | Market Type | Diamond Density ▼ | Median Year 1 Deduction ▼ | Median Bonus Dep % ▼ | Land Ratio ▼ | State Tax |
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Built by DepreciMax
DepreciMax is the bonus depreciation intelligence platform for short-term rental investors. Most cost segregation studies happen after closing — we built the only tool that lets you score the Year 1 deduction before you make an offer. Every active STR listing in any US market, scored in seconds. Pre-purchase reports closely calibrated to formal cost seg studies, for $99 instead of $5,000+.
This report is a free annual snapshot. To run the same methodology on a specific property you're considering, use the property scorer below.
The biggest movers when you re-rank by tax math
Three markets that don't dominate the mainstream STR charts — but absolutely dominate when you score by Year 1 bonus depreciation. The reasons differ (state conformity, amenity stack, price-to-basis ratio), but the lesson is the same: investors leave tax savings on the table by chasing the famous markets.
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 Top 50
Every market in this Top 50 was scored by the same engine that powers our individual property reports. The rank is set by the market's median bonus-eligible percentage (share of purchase price that classifies as 5-year or 15-year property under §168(k)), blended with market depth and state §168(k) conformity.
Medal tiers, briefly
Every scored listing earns a national medal based on its bonus-eligible % of purchase price: Diamond at ≥24%, Gold at ≥22%, Silver at ≥20%, and Bronze at ≥18%. A market's Diamond density — the share of active STR-suitable listings that hit the Diamond tier — is the single strongest signal of pre-purchase bonus depreciation potential across the market.
Calibrated against the real thing
Individual property estimates are 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.
To see the same methodology applied to a specific property you're considering, run a $99 DepreciMax property report. Same engine, same accuracy target, on a single address.
Version: 2026. Bonus depreciation outcomes vary by individual property; this page estimates ranges for typical purchases in each market. Not tax advice — consult a qualified CPA before making investment decisions.