Occupancy, ADR, and their trend over time
Current average daily rate and occupancy tell you where a market is today; the trend over the past several years tells you whether it's improving, saturating, or declining. A market with strong current numbers but a declining trend is a different bet than one improving from a lower base.
Both figures should be checked at the submarket level, not a broad metro average that can hide very different performance across neighborhoods.
Permit availability and supply growth
Whether new short-term rental permits are being issued, capped, or frozen entirely materially affects both entry difficulty and the value of an existing permit if one comes with the property.
Supply growth -- how fast new short-term rental listings are being added to the market -- affects future rate compression even if current numbers look strong today. Both are checked as part of proper market vetting, not left to assumption.
BNB Accelerator's acquisitions team, led by Nick Korom, screens over 1,000 short-term rental listings a week and hand-delivers the roughly 2% that clear underwriting. Book a free consultation to see what a done-for-you short-term rental acquisition looks like for your situation.