Happy New Year! This is our first Industry News of 2026. We publish new posts every Friday to keep you informed on the most important developments in the vacation rental industry. We look forward to keeping you informed throughout this next year! This week’s roundup covers international short-term rental markets showing strong returns, Hawaii’s new “Green Fee,” the state of U.S. travel in 2025, Fort Myers Beach utilizing new software to enforce vacation rental rules, and Birmingham moving toward short-term rental regulations. Let’s dive in.
Realtor.com released its list of the top ten global markets for short-term rentals, highlighting destinations with the strongest demand and revenue potential. Citing AirDNA data, the article notes that affordability is playing a growing role in where investors are purchasing, as high prices in many U.S. markets push buyers to consider international options with lower entry costs and often higher returns. According to AirDNA’s chief economist, Jamie Lane, "We’ve seen more people think about it as U.S. home values soared in the (COVID-19) pandemic and afterward. Since it’s tough to find cash flow, investors have been more open to investing outside the United States." The top ten includes destinations such as Saint Barthélemy, Mykonos, Greece, and Cabo San Lucas, Mexico.
Hawaii’s new “Green Fee” went into effect January 1st, adding an additional 0.75 percent tax to vacation rental stays across the state. First passed as Act 96 and signed into law in May 2025, the measure allocates funding toward environmental initiatives, including water conservation, ecosystem restoration, and climate change mitigation. The tax also affects the hotel and cruise industries, as Hawaii continues to look for new ways to foster sustainable tourism. The move follows a related development reported in Industry News on December 19th, when Maui officials officially signed into law a decision to phase out thousands of vacation rentals in apartment-zoned districts.
Skift released an article this week examining the state of U.S. international travel in 2025. Using federal arrival data, the report found that international travel to the U.S. softened overall this year, with declines from key markets, including Canada and parts of Europe. However, some destinations outperformed the national trend, including Florida and Hawaii, which both saw modest growth in international visitors. Puerto Rico stood out as the strongest performer, with overseas visitors listing the island as their first stop, up 22.5 percent year over year. Skift notes that affordability, along with political polarization, played key roles in shaping international travel patterns to the U.S. in 2025.
Fort Myers Beach is ramping up enforcement against illegal short-term rentals after launching new software to scan Airbnb and Vrbo. The tool identified more than 500 active listings that were either not registered with the town or had not passed a required fire safety inspection, far exceeding initial expectations. The town’s public information officer stated, “We thought it was going to be 20, 30, maybe 40 rentals. It’s a very big problem, bigger than we anticipated. More than anything, this is a safety concern.” Town officials say noncompliant property owners will be notified and given a limited window to register and complete inspections before facing potential fines.
According to a recent report from BirminghamWatch, Birmingham, Alabama's City Council is expected to make key decisions on short-term rental regulations during the first part of 2026. Council President Wardine Alexander said she anticipates the council will begin considering proposed rules during the first quarter. Birmingham currently has no formal short-term rental regulations in place, and city leaders say public discussion will be an important part of the process as officials weigh potential zoning, safety, and enforcement measures. Vacation rental operators in the area should look for opportunities to engage and "speak up" during the early parts of this decision process.
As international travel demand, investment trends, and local regulations continue to shift, the vacation rental market is off to an exciting start in 2026. Check back next week for the latest industry news.