While short-term rental (STR) markets across much of the U.S. are cooling with falling occupancy rates and increased competition, Oklahoma is charting its own course. Driven by a mix of special events, infrastructure projects, and migration from higher-cost states, the state’s STR sector is producing opportunities for operators who understand its unique landscape.
Libby Ross, owner of Co-Host Oklahoma, who manages 47 STR properties in key Oklahoma markets, has watched this growth unfold. Her path from marketing professional to full-time STR operator began when her own investment properties outperformed expectations on Airbnb. After joining Airbnb’s co-host platform, her portfolio expanded rapidly. “I set a goal to grow from my personal properties up to five more by the end of 2024. We reached 14 houses, and by the end of 2025, we had grown to 47,” Ross says. “I’m almost onboarding a house every other week right now.”
Market Segmentation Shapes Results
Oklahoma’s STR market is not uniform. Different regions attract distinct guest profiles and respond to different demand drivers. In Norman, home to the University of Oklahoma, the move to the SEC conference has created strong demand for short-term housing during football weekends. Ross describes these weekends as so lucrative that “just a few bookings can cover your mortgage or investment if you’re pricing right and hitting the right occupancy.”
Oklahoma City, by contrast, is seeing demand from workers tied to the city’s rapid expansion and infrastructure construction. “We’re seeing a lot of work crews – construction workers, blue collar workers – coming in to build out the infrastructure,” Ross says. This has led to specific requirements, such as homes with ample parking for trucks and trailers.
Tulsa draws a broader mix, including corporate groups and conference attendees. Meanwhile, Lake Eufaula follows a seasonal pattern typical of recreational destinations, with amenities like hot tubs helping to sustain winter bookings even as nightly rates dip.
Oklahoma’s Changing Image
Ross points out that Oklahoma is no longer just a convenient stopover. The state is attracting high-profile guests and new residents who see value in the region. “We’ve had big movie stars, screenwriters, and Olympic athletes stay with us,” she says. With the 2028 Olympics approaching, rowing teams and other athletes are visiting to use Oklahoma’s facilities.
This influx reflects broader migration patterns. Many people relocating from expensive states are surprised by what their money can buy. “You could sell a modest home in California for $500,000 to $700,000. In Oklahoma, that can buy two nice properties, or even a multifamily unit,” Ross explains. This price differential is drawing both long-term residents and investors.
Regulatory Scrutiny Increases
Despite the market’s strength, Oklahoma STR operators face tightening regulations, especially in Oklahoma City. Ross, who serves as an Airbnb community leader for the state, has seen enforcement become much stricter. “The board of adjustments used to be lenient if you’d been operating without a permit. That’s no longer the case,” she warns. Now, operators caught running illegal STRs can be barred from getting permits for years.
This shift has made compliance a critical part of operating an STR business. Operators must stay up to date with local ordinances and ensure all necessary permits and licenses are in place. Ross emphasizes that staying compliant not only protects businesses but also helps maintain good relationships with neighbors and city officials.
New Investor Profiles Emerge
The types of investors entering Oklahoma’s STR market are changing. Ross sees both out-of-state buyers looking for growth markets and local parents investing near universities. “I have first-time investors whose child is going to the University of Oklahoma. They want a place to stay when visiting, and they can also rent it out the rest of the year,” she says. This hybrid approach allows owners to offset college costs while building equity.
At the same time, out-of-state investors are drawn by Oklahoma’s relatively low property prices and strong rental demand. Many see the state as a safer bet compared to pricier, saturated markets on the coasts.
Operational Realities vs. Investor Expectations
Many new STR investors arrive with unrealistic expectations shaped by social media and online success stories. Ross regularly sees people underestimate the operational challenges and overestimate potential profits. “They think owning an Airbnb means constant, easy cash flow, but that’s not always the case,” she says. “We may have some extra cash flow, but often we’re banking on equity or tax benefits.”
Operational challenges extend beyond finances. “Homeowners don’t always realize the wear and tear on a property, or how little regard some guests have for things like towels,” Ross notes. These realities can catch first-time operators off guard and eat into profit margins.
Supply and Market Saturation
With more investors entering the market, supply has increased, especially in places like Norman following the SEC transition. Ross argues that market saturation is not inevitable. “I don’t really believe in the term ‘saturated market’ – you can stand out if you’re a good manager, have strong photos, and write good descriptions,” she says.
Still, she acknowledges that specific market forces set absolute limits. In college towns, for example, event capacity determines demand. “If a college sells 200 tickets for a big weekend but there are now 500 STRs, not everyone will book out,” she explains. This means operators must differentiate themselves to compete for the limited demand.
Investment Strategy: Go Bigger and Do Your Homework
Ross advises investors to look beyond the standard three-bedroom, two-bath home. Larger properties with four or five bedrooms have less competition and can command higher nightly rates. “When you go bigger, you pop up in searches that have fewer options,” she says.
She also stresses the importance of due diligence, especially home inspections, even for cash buyers. “Paying a few hundred dollars for an inspection is worth it. It gives you a punch list and helps you prioritize repairs,” she explains. Inspections are not just about negotiating price; they are tools for effectively managing properties.
Looking Ahead: Focus on Operations and Compliance
As Ross moves into 2026, her priorities are shifting from rapid growth to operational excellence. With a team of six plus cleaning staff, she is targeting more sophisticated investors who already understand the responsibilities of STR ownership. “My word for 2026 is smooth – I want our operations to run smoothly,” she says. She is now looking to work with investors who already own several properties and are committed to professional management.
Ross’s main advice for the industry is to take compliance seriously. “If you need a permit or a license, go get it. The future of this industry is in responsible operators,” she says. She believes that professional, compliant STR businesses will face less resistance from neighbors, communities, and policymakers.
Implications for Investors and Operators
Oklahoma’s STR market shows how local dynamics can defy national trends. While other markets see declining occupancy and increasing competition, Oklahoma’s mix of event-driven demand, infrastructure growth, and in-migration continues to support strong performance for well-managed STRs. However, success is not automatic. Operators must navigate regulatory changes, set realistic expectations, and treat STR investment as a business, not a side hustle.
For investors considering Oklahoma, the opportunity lies in understanding where demand is strongest, differentiating properties, and committing to professional, compliant operations. As regulatory scrutiny increases, only those who take these steps will continue to benefit from Oklahoma’s unique STR environment.
