Short-term rentals aren't dead. But the era when almost anything cash-flowed is over, and that's the part the "STRs are dead" headlines get half-right.
Here's my own evidence. I bought all four of my properties post-COVID, at higher interest rates, in competitive markets, when prices were high. None of them were easy "buy it and watch the money roll in" deals. They perform because they were chosen carefully and they're run well, not because the timing was generous. So when someone tells me the window has closed, I can point to a portfolio that was built entirely after it supposedly did.
What actually changed
A few years ago, demand was surging and supply was thin, so a lot of mediocre properties made money anyway. That cushion is gone. Higher purchase prices and interest rates mean the margin for error is smaller, and there are more rentals competing in many markets. The result is simple: the difference between a profitable property and a money pit now comes down to the things that were always supposed to matter, the market you choose, the price you pay, and how well you operate.
What still works
Profitable short-term rentals in 2026 tend to share the same traits. They're bought in markets with real, durable demand rather than hype. They're underwritten with honest numbers before purchase, not optimistic guesses. And they're operated to earn consistent five-star reviews, because in a more competitive market, guest experience is what keeps a calendar full.
The opportunity didn't disappear. It got more selective. Which is actually good news if you're willing to do the work, because it means the people buying on hype are clearing out, and the careful, well-prepared investors are the ones left standing.