Orlando Short-Term Rental Market Report

Orlando’s short-term rental market is recalibrating. After years of rapid supply growth, active listings have stabilized and occupancy rates are recovering. Average daily rates remain strong at $244, but the story this quarter is about which corridors and communities are pulling ahead and which are falling behind.

This report combines publicly available data from AirDNA with anonymized performance data from our managed portfolio of 100+ vacation rental properties across Kissimmee, Davenport, and Orlando. Every number cites its source and date range. Where data platforms disagree, we show the range and explain why.

Market Snapshot

Supply Trends

Orlando’s short-term rental supply is among the largest in the country. AirDNA tracks approximately 42,700 active listings across Airbnb, Vrbo, and Booking.com as of August 2026. That figure includes everything from studio condos on International Drive to nine-bedroom resort homes in ChampionsGate.

A note on data reliability: AirDNA’s own subpages report different listing counts for the same market. Their supply page shows roughly 36,100 active listings for the same period.

The difference likely comes from how each page defines “active.” When we reference listing counts in this report, we use the AirDNA overview page figure and note the date accessed.

What matters more than the headline number is the direction. After years of aggressive supply growth driven by new-build resort communities in Osceola and Polk counties, the pace has slowed. Several factors are contributing: construction costs have risen, some underperforming listings have exited the market, and local enforcement of STR registration requirements has tightened.

Revenue Trends

The average active listing in the Orlando metro earned approximately $48,700 in gross revenue over the trailing twelve months through August 2026, according to AirDNA. ADR has held steady at $244, while occupancy has ranged from 53% to 61% depending on the snapshot date and season.

Revenue growth this cycle is being driven primarily by occupancy recovery rather than rate increases. That is a healthier dynamic than ADR-driven growth, because it means more nights are being booked rather than fewer nights being sold at higher prices.

Operator Insight

Data platforms scrape listing prices, not actual payouts. They miss owner blocks, last-minute discounts, cleaning fee structures, and platform service fees. Across our managed portfolio, we consistently see a 12-18% gap between what AirDNA reports as average revenue and what owners actually receive in net payouts. Always verify projected revenue against actual owner statements, not scraped data.

How Much Do Orlando Vacation Rentals Earn by Bedroom Count?

Orlando’s STR market rewards larger homes. Revenue scales significantly with bedroom count, though the returns begin to flatten past seven bedrooms as the buyer pool narrows and operating costs increase.

Source: AirDNA, trailing 12 months through mid-2026. Highlighted rows indicate the investor sweet spot where revenue-to-acquisition cost ratio is typically strongest.

The 5-7 bedroom range is where most successful Orlando STR investors operate. These homes attract multi-family groups and reunion travelers who split the nightly cost among several parties, making a $350-per-night rate feel affordable when divided four or five ways.

One-bedroom units underperform dramatically in this market because they compete directly with hotels. A traveler choosing between a $180/night hotel room with daily housekeeping and a $150/night one-bedroom condo will often pick the hotel. The value proposition of vacation rentals only kicks in at three bedrooms and above.

What the data shows: Properties in our managed portfolio that converted a flex room or den into an additional bedroom (adding a Murphy bed or bunk room) saw an average revenue increase of 15-22% within the first full quarter after the upgrade. Bedroom count is the single largest revenue lever in this market.

Which Orlando Zones Perform Best for STR Investors?

Orlando’s vacation rental market is not one market. It is five distinct corridors, each with different supply dynamics, guest demographics, pricing power, and regulatory environments. Treating them as interchangeable is the most common mistake investors make.

Zone 1: Disney Corridor South (Kissimmee / Champions Gate)

This is the largest concentration of vacation rentals in the Orlando metro and likely in the entire state. Kissimmee and the communities south of Highway 192 account for the majority of the region’s STR inventory. ADR runs in the $190-250 range depending on bedroom count, with occupancy typically between 57% and 61%.

The corridor’s strength is its proximity to Walt Disney World and, now, Universal’s Epic Universe. Its weakness is density.

With thousands of competing listings, properties must differentiate through amenities (private pools, game rooms, themed bedrooms) or professional management with dynamic pricing. A generic four-bedroom with dated furnishings will underperform the market averages significantly.

Key resort communities in this zone include ChampionsGate, Solterra, Windsor Island, and Windsor at Westside. HOA fees range from $300 to $500/month, with CDD assessments on top.

Zone 2: Highway 27 Corridor (Davenport / Haines City)

Davenport has emerged as the value play for STR investors. Entry prices run 15-20% below comparable Kissimmee properties, and occupancy rates track in the 55-60% range. ADR averages around $228, reflecting a mix of large resort homes and more modest single-family properties.

The corridor benefits from strong highway access (I-4 and US-27) and a more relaxed regulatory environment in Polk County compared to Osceola County. New construction communities continue to deliver inventory here, which keeps acquisition prices competitive but adds to supply pressure.

Davenport is particularly strong for 6+ bedroom homes targeting large family groups. For a closer look at specific subdivisions, see our Davenport vacation rental communities breakdown. Properties in this zone that invest in resort-style amenities (pools with water features, game rooms, outdoor kitchens) can close the ADR gap with Kissimmee while maintaining a lower cost basis.

Zone 3: I-Drive and Theme Park Corridor

Orlando proper, centered on International Drive and the theme park corridor, is a different animal. This zone has roughly 9,600 active listings with an ADR around $202 and occupancy of 64-65%. The higher occupancy reflects a more diverse demand base: business travelers, convention attendees, and tourists who prefer hotel-adjacent locations.

The property mix here skews toward condos and smaller units, which limits revenue potential per property. But the consistency of demand, driven by the Orange County Convention Center and the I-Drive entertainment district, provides more stable year-round cash flow than the family-resort corridors.

Zone 4: Premium and Boutique Markets

Winter Park and Windermere represent a small but distinct segment of the Orlando STR market. Winter Park has roughly 200 active listings with the highest occupancy in the metro at approximately 71%, but a lower ADR of around $168. These are primarily 1-3 bedroom properties targeting couples and small groups seeking a walkable, upscale experience.

This zone is not where investors buy for cash flow. The acquisition cost is high ($450K+ median home value), the property management model is different (boutique, hands-on), and the regulatory environment is more restrictive. But for investors seeking portfolio diversification or properties that double as personal-use second homes, it is worth understanding.

Zone 5: Emerging Markets

Clermont and the western corridor represent the earliest stage of STR market development. Listing density is low (under 2,000 active properties), and AirDNA data is thinner. ADR runs around $196 with occupancy at approximately 61%.

The thesis here is proximity to the new attractions corridor (Epic Universe, future developments along I-4) combined with lower acquisition costs and less competition. These markets may perform well in 2-3 years as infrastructure develops, but the current data set is too small to draw strong conclusions.

Sources: AirDNA submarket data and operator estimates. Figures represent ranges across multiple data snapshots. Verify current figures at time of purchase.

Resort Community Performance

For investors buying into Orlando’s purpose-built resort communities, the community itself matters as much as the individual property. HOA fees, CDD assessments, amenity packages, and brand recognition all affect net returns.

Estimated gross revenue based on AirDNA averages and operator experience with comparable properties. Actual results vary significantly by specific property, management quality, and furnishing level. HOA and CDD figures from recent estoppel letters; confirm with the specific HOA section before purchasing.

Reunion Resort cost warning: Reunion’s HOA fees are the highest in the market at $815-1,790/month depending on the section, plus a nightly resort fee of $34-59 charged to guests. These costs compress net margins significantly. Reunion can be a strong investment at the right price point, but underwriting it with average-market expense assumptions will produce dangerously optimistic projections. Run your numbers with the actual HOA for the specific section, not a market average.

When Is Peak Season for Orlando Vacation Rentals?

Orlando’s STR market has pronounced seasonality that directly affects cash flow planning. Understanding the peaks and troughs is essential for setting realistic expectations and maintaining adequate reserves.

Occupancy ranges based on AirDNA seasonal data for Kissimmee and Orlando metro combined with FunStay portfolio actuals. Individual property performance varies by location, bedroom count, and pricing strategy.

The revenue swing between peak (March) and trough (September) can exceed 100%. A property that generates $4,700 in March may produce only $2,300 in September. This is not a warning against investing; it is a planning requirement.

Budget for at least three months of carrying costs (mortgage, HOA, insurance, utilities) in cash reserves to cover the September-October trough without stress.

Operator Insight

Dynamic pricing is non-negotiable in this market. Properties using flat-rate pricing leave 15-25% of potential revenue on the table during peak periods and sit empty during troughs. Our portfolio uses algorithmic pricing tools that adjust nightly rates based on local demand, competitor pricing, and booking pace. The best-performing properties in our portfolio are not the ones with the highest base rate; they are the ones with the most responsive pricing strategy.

How Does Epic Universe Affect Orlando Vacation Rentals?

Universal’s Epic Universe opened on May 22, 2025, adding a fourth major theme park to Orlando’s attractions lineup. The 750-acre development (110 acres for the park itself) represents the largest single investment in Orlando’s tourism infrastructure in decades.

The early data shows a measurable impact on vacation rental demand, though the numbers are less dramatic than some projections suggested.

What the data actually shows:

• Vacation rental bookings increased approximately 9% during the opening period in Kissimmee, according to Experience Kissimmee. Hotel bookings rose 12% over the same period. These are different property types with different demand drivers.
• Orange County tourist development tax collections reached $384.6 million in FY2025 (October 2024 through September 2025). June 2025 collections surged 10.3% year-over-year, a spike attributed directly to Epic Universe’s opening.
• Hotel ADR in the market rose approximately 4.7% in the months following the opening. STR-specific ADR data is less clear, as platform-scraped data lags actual booking patterns.

The longer-term effect:

The more significant impact may be on trip length rather than volume. Orlando was historically a 3-night destination for many families. With three major theme park complexes (Disney, Universal, SeaWorld) now requiring a minimum of 5-7 days to experience, average trip length appears to be extending.

Longer stays benefit vacation rentals disproportionately over hotels, because the cost-per-night advantage of a rental home compounds over more nights.

Orlando welcomed 75.3 million visitors in 2024, per Visit Orlando’s official count. That is up 1.8% from 2023, though still slightly below the 2019 pre-pandemic peak of 76 million. With Epic Universe fully operational and marketing in full swing, 2025 and 2026 figures are expected to set new records.

Geographic winners: Properties in Zone 1 (Kissimmee corridor) and Zone 2 (Davenport corridor) are best positioned to capture Epic Universe demand because of proximity and bedroom count. The I-Drive corridor also benefits from adjacency to Universal’s existing parks. Premium/boutique markets in Winter Park and Windermere see minimal impact from theme park expansion.

Regulatory Landscape

Florida’s STR regulatory environment remains a local patchwork. Governor DeSantis vetoed SB 280 on June 27, 2024, which would have moved vacation rental oversight to the state Department of Business and Professional Regulation and limited local government authority. With the veto, the 2011 state preemption stays in place, and each city and county continues to set its own rules.

County-by-County Overview

Orange County (Orlando, Winter Park): The City of Orlando requires STR registration and uses a hosted-rental model in residential zones, meaning the owner or a designated host must be on-site during guest stays. Rentals are limited to one booking at a time.

Registration fees apply annually. STR-specific enforcement has increased, with the city actively identifying unregistered listings on platforms.

Osceola County (Kissimmee, St. Cloud): The county uses Short-Term Rental Overlay maps to designate where STRs are permitted. Properties outside the overlay zones cannot legally operate as short-term rentals. This is the most critical pre-purchase verification for Kissimmee-area investors. Always check the overlay map at the parcel level before going under contract.

Polk County (Davenport, Haines City): Polk County maintains a more permissive framework compared to Osceola. The permit process is generally more straightforward, which is one reason Davenport has attracted significant STR development. However, enforcement is increasing here as well.

Critical due diligence step: Platform data-sharing agreements between Florida counties and Airbnb/Vrbo are becoming more common. Counties are using listing data to identify unregistered properties and issue fines. Always confirm STR eligibility at the parcel level, obtain the required county and state licenses, and display your registration number on all platform listings. For a complete compliance walkthrough, see FunStay Florida’s Orlando STR regulations guide.

What This Means for Investors

Orlando remains one of the strongest STR markets in the country. The fundamentals are sound: consistent tourism demand (75M+ annual visitors), a diversifying attractions base, and a property market where acquisition prices still support positive cash flow at current ADRs and occupancy levels. AirDNA’s Market Score of 95/100 reflects this strength.

But “Orlando is a good market” is not a strategy. The difference between a property that nets $30,000 per year and one that loses money comes down to execution: the right zone, the right bedroom count, the right expense underwriting, and professional management with dynamic pricing.

“

Most investors I work with are surprised when I tell them to underwrite to the 25th percentile, not the median. But that is the difference between an investment that survives a slow September and one that forces a panic sale. Conservative underwriting does not mean low returns. It means sustainable returns.

MC

Mike Chen

Advice from Mike

First-Time STR Investors

Start in Zone 1 (Kissimmee corridor) or Zone 2 (Davenport corridor) with a 5-6 bedroom home in the $350-500K range. Target communities with established STR track records like Solterra, ChampionsGate, or Windsor Island.

Budget 45-50% of gross revenue for total operating expenses (management, maintenance, HOA, insurance, taxes, supplies). Do not assume you will beat the median. Underwrite to the 25th percentile and treat anything above as upside.

Scaling Investors

Diversify across zones, not just communities. Own properties in both the Kissimmee and Davenport corridors to hedge against localized regulation changes or supply pressure.

Consider adding a condo in the I-Drive corridor for year-round occupancy stability. At scale, negotiate management fee reductions and bulk vendor pricing on cleaning, lawn, and pool service.

International Investors

Orlando’s international investor base is significant, particularly from Canada, the UK, and Brazil. Key considerations include FIRPTA withholding (15% of gross sale price for foreign sellers), the need for an ITIN for tax filing, and financing challenges.

Most conventional lenders require U.S. credit history; DSCR (debt service coverage ratio) loans are the primary financing vehicle for foreign nationals. Budget for a U.S.-based CPA who specializes in non-resident real estate taxation.

Frequently Asked Questions

Is Orlando a good market for short-term rentals in 2026?

Yes, for investors who buy in the right zone with realistic expectations. Orlando’s 75+ million annual visitors, strong ADR of $244, and AirDNA Market Score of 95/100 make it one of the top STR markets nationally. The key risk is buying a property that blends into a crowded listing pool. Differentiated properties with 5+ bedrooms, professional management, and dynamic pricing consistently outperform market averages.

What is the average Airbnb occupancy rate in Orlando?

Occupancy rates in the Orlando metro range from 53% to 61% depending on the data snapshot and season, per AirDNA. Winter Park leads at approximately 71%, while the broader Kissimmee corridor runs 57-61%. Seasonality is significant: occupancy peaks at 72-77% in March (spring break) and drops to 43-50% in September.

How much does a vacation rental make in Orlando per year?

AirDNA reports average annual revenue of approximately $48,700 per active listing. However, this varies enormously by bedroom count. Median revenue for a 1-bedroom is roughly $3,700, while 7+ bedroom homes can exceed $120,000 at the 90th percentile. In our managed portfolio, the median 5-bedroom resort home grosses $65,000-85,000 annually with professional management and dynamic pricing.

What is the best area for Airbnb in Orlando?

It depends on your investment goals. The Disney Corridor South (Kissimmee/ChampionsGate) has the deepest demand and most proven track record. Davenport offers the lowest entry prices with strong large-home performance. The I-Drive corridor provides the most consistent year-round occupancy. For a detailed breakdown, see our Orlando communities investment guide.

Is Orlando’s vacation rental market oversaturated?

Supply is high, but demand has kept pace. The approximately 42,700 active listings serve a market of 75+ million annual visitors with an average stay that is getting longer. The market is not oversaturated at the aggregate level, but it is saturated at the low end. Generic, poorly furnished 3-4 bedroom homes with no professional management are the properties struggling. Well-positioned 5-7 bedroom homes with resort amenities and professional pricing continue to perform above average.

How does Epic Universe affect Orlando vacation rental demand?

Epic Universe, which opened May 22, 2025, added measurable demand. Vacation rental bookings rose approximately 9% during the opening period, and Orange County tourist tax collections surged 10.3% in June 2025. The larger impact is likely on trip length: with three major theme park complexes now requiring 5-7 days to experience, vacation rentals gain a structural advantage over hotels for longer stays. Properties closest to the new park (Zones 1 and 2) benefit most.

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