Hosting in Small Towns: Why It’s the New Big Opportunity

The vacation rental industry has seen explosive growth in recent years, and while major cities and resort destinations have long been the stars of the show, a quieter trend is gaining momentum: hosting in small towns. For short-term rental (STR) owners and aspiring hosts, small-town America is becoming one of the most promising frontiers for profitable, sustainable, and community-rooted hospitality.

At Skyview Vacations, we’ve witnessed firsthand how small-town hosting offers big potential. Whether it's the charm of historic squares, the warmth of local communities, or the draw of nature, guests are increasingly choosing smaller destinations for their getaways. Here’s why hosting in small towns might just be the next big thing.

Lower Costs, Higher Margins

One of the most compelling reasons to host in small towns is cost. Property prices, taxes, and maintenance expenses are generally much lower than in large urban areas. This means your upfront investment and monthly costs are significantly reduced—allowing you to enjoy higher profit margins, even at slightly lower nightly rates.

Additionally, utility costs, cleaning services, and general upkeep are typically more affordable in smaller communities. With fewer overhead expenses, small-town STRs can quickly become cash-flow positive and deliver solid long-term returns.

Less Competition, More Visibility

While big cities are saturated with thousands of listings, small towns often have limited inventory—making it easier for your property to stand out. A beautifully designed, well-managed rental in a small town can quickly become a local favorite, especially if it fills a gap in the market.

Guests are also more likely to discover your listing when there are fewer options to sort through. This visibility advantage can lead to more consistent bookings and a loyal customer base that returns year after year.

The Rise of Remote Work & "Workations"

The shift toward remote work has transformed travel habits. Today’s guests aren’t just vacationing—they’re taking extended "workations," blending business and leisure in places that offer peace and inspiration.

Small towns, with their slower pace and access to nature, are ideal for this lifestyle. With strong Wi-Fi and a comfortable workspace, your rental can appeal to digital nomads, entrepreneurs, and remote workers looking to escape the hustle.

A Desire for Authenticity

Today’s travelers are seeking more than just a place to stay—they want connection, story, and authenticity. Small towns deliver this in spades.

From mom-and-pop diners to locally owned shops and historic landmarks, guests are drawn to the charm and personality of these communities. As a host, you have the opportunity to connect visitors with local businesses and hidden gems, adding value to their stay and strengthening your ties within the town.

Tourism is Spilling Over

As big cities and resort areas become overcrowded (and often overpriced), tourists are exploring nearby small towns for a quieter, more affordable experience. Events like wine festivals, holiday markets, and seasonal celebrations draw guests from surrounding regions and beyond.

Hosting in a town adjacent to a popular destination allows you to capture overflow traffic while offering guests a more laid-back stay. With the right marketing, you can position your property as the "best of both worlds"—close enough to attractions, yet peaceful and personal.

You Become a Part of the Community

One of the unexpected joys of hosting in a small town is the sense of belonging. You’re not just running a business—you’re part of a local ecosystem. Supporting local vendors, recommending local restaurants, and participating in community events create a deeper connection with your guests and your town.

Many STR owners find that hosting in a small town brings a sense of pride and purpose that goes beyond bookings. It’s about sharing a place you love and helping it thrive through thoughtful tourism.

Easier to Build a Brand

In a small town, your rental isn’t just another listing—it’s a standout stay. This makes it easier to build a recognizable brand around your property. Whether you create a unique aesthetic, a memorable guest experience, or even a name that becomes known locally, branding becomes a powerful tool for repeat business and word-of-mouth referrals.

Small towns also allow you to form stronger relationships with local photographers, designers, and artisans to enhance your property’s presence and personality.

Room to Grow

Finally, small towns often offer room for growth. Want to add a second rental? Expand into boutique hotel-style hosting? Offer retreats or experiences? The lower cost of land and slower pace of development give you more flexibility to scale your hosting business organically.

Many hosts start with one small-town rental and grow into managing multiple properties, offering add-on services, or even partnering with local tourism boards.

Hosting with Purpose

At Skyview Vacations, we believe that small-town hosting is more than a business opportunity—it’s a chance to create meaningful, community-rooted experiences for travelers and locals alike. As more guests seek out destinations that feel authentic, safe, and special, small towns offer the perfect canvas.

So if you’ve been considering launching or expanding your short-term rental business, don’t overlook the magic of the little places on the map. They just might be the biggest opportunity of all.