With Donald Trump returning to the White House in 2025, short-term rental (STR) investors across the U.S. are reevaluating their strategies and for good reason. A new administration means a new regulatory environment, tax priorities, and investor sentiment.
So, what does Trump’s second term mean for your STR portfolio? How will rental regulations shift, and where can you find the biggest opportunities?
In this guide, we’ll walk you through everything investors need to know—powered by real-time data from tools like the Rental Regulation Dashboard and Investor Guides that help you adapt to changing landscapes.
Trump 2.0: What to Expect for Real Estate & STRs
Donald Trump’s previous term was known for being real estate-friendly, and signs point to more of the same in 2025:
- 1031 Exchange stays safe: Trump has consistently supported this tax-deferral tool, a huge win for real estate investors wanting to scale.
- Relaxed regulatory oversight: The federal government is expected to stay out of the way of STR platforms like Airbnb and Vrbo.
- Incentives for property owners: Expect tax cuts and pro-investor deductions to return, especially for business-classified STRs.
If you’re seeking a high-ROI, business-forward environment for STR, Trump’s victory may provide just that.
Short-Term Rental Market Trends Post-Election
Following the 2024 election, STR investor confidence saw an uptick in several states:
- Florida, Texas, and Arizona – states with minimal STR restrictions—saw a 7–12% increase in new STR listings post-election, according to Mashvisor.
- Red-leaning counties became safer havens for STR investors wary of tightening city ordinances.
- Airbnb bookings surged 9% YOY in pro-STR markets in Q1 2025 (AirDNA)
While short-term rental market trends still depend heavily on location, the federal tone has shifted back in favor of fewer restrictions, more autonomy, and economic incentives for property owners.
Where Does Rental Regulation Stand Now?
Even with a federal nod toward deregulation, local governments still hold the pen. That means investors must continue monitoring regulations market by market.
Use this real-time tool to check current and upcoming rules in:
- New York City – Still tightly regulated post-Local Law 18
- Los Angeles – Permit enforcement expected to soften slightly
- Dallas, Austin, and Atlanta – More investor-friendly following state-level support
- Phoenix, Tampa, and Nashville – STR “green zones” with growing supply
Strategy: Use red-state markets as anchor points while cautiously exploring hybrid or seasonal models in tighter cities.
- 📊 Which Airbnb rental markets are set to outperform in 2025 based on revenue growth, occupancy trends, and supply shifts.
- 🏡 Where home prices are still affordable while generating high rental income.
- 📈 How to identify markets with strong appreciation potential for both short-term cash flow and long-term gains.
- ⚖ Which cities have the best (and worst) STR regulations—so you don’t get caught off guard.
- 🔎 The demand trends driving guest bookings and what amenities maximize revenue in each market.
How Should Your STR Strategy Evolve in a Trump Economy?
Trump’s re-election opens the door for bold investor moves. Here’s how to adjust your playbook:
1. Double Down on Business Classification
With tax breaks likely returning for real estate businesses, now’s the time to classify your STR as an active business—not passive income.
Use the Investor Guide to:
- Check if your rental qualifies
- Maximize depreciation and bonus deductions
- Prepare your portfolio for growth
2. Expand Into Regulation-Resistant Markets
Mid-size cities, college towns, and tourism-driven suburbs are less likely to clamp down on STRs in a Trump-led climate.
Hot 2025 STR markets to watch:
- Gulf Shores, AL
- St. George, UT
- Branson, MO
- Destin, FL
- Pigeon Forge, TN
Use data tools to identify areas with rising demand and light municipal interference.
3. Reinvest With 1031 Confidence
Trump’s stance suggests no changes to 1031 Exchanges through 2028. That gives you a window to:
- Sell underperforming STRs
- Reinvest in appreciating locations
- Upgrade to larger, better-zoned units without immediate tax hit
What About Lending and Taxes?
Expect favorable conditions here too:
- Lower capital gains risk for long-term investors
- Business deductions likely reinstated in full for STR operators
- Less aggressive IRS posture toward STR audits compared to the Biden era
Translation? You keep more of what you earn—and that’s a massive advantage for scaling operations.
Who Should Be Cautious?
While Trump’s win is largely good news for investors, not all markets will benefit equally.
- Blue cities in red states (e.g., Austin, Atlanta) may still enforce strict STR rules often in defiance of broader state or federal trends.
- Unlicensed operators will still face crackdowns. Trump may reduce federal oversight, but he won’t stop city inspectors from knocking on your door.
Keep your compliance tight. Use this Rental Regulation Tracker to stay a step ahead.
Final Checklist for STR Investors in Trump’s America
- Recalculate your ROI using current tax forecasts
- Review your city’s STR policy – even if you’re in a red state
- Plan a 1031 Exchange if you’re eyeing a strategic exit
- Diversify across low-regulation cities
- Position your rentals as active businesses
- Keep close tabs on local laws with investor tools
Don’t React – Refine Your Strategy
Whether you love or loathe Trump, one thing is clear: his return shifts the real estate game.
But smart investors don’t just celebrate, they calculate.
Start by exploring:
Real estate isn’t red or blue. It’s about data, location, and timing. And now, the timing is yours to own.
