From Kickoff to Write-Off: The Tax Playbook for College-Town STRs
College football weekends don’t just bring roaring fans and packed stadiums — they also create some of the most lucrative short-term rental (STR) markets in the country. While the buzz is about cash flow, the real victory often happens off the field: in the tax benefits.
First Down: STRs vs. Long-Term Rentals
Long-term rentals are usually passive, meaning losses can’t offset W-2 or business income unless you qualify as a Real Estate Professional (REP).
STRs play by a different rulebook: under the right conditions, they’re treated as active businesses, opening the door to bigger write-offs.
Second Down: The Material Participation Rulebook
If you meet the IRS tests for material participation (like 100+ hours and more than anyone else, or 500+ total hours), STRs can generate non-passive losses.
That means your STR losses can offset ordinary income — salary, consulting fees, or business profits.
Third Down: Depreciation as Your Power Play
Cost Segregation + Bonus Depreciation can accelerate deductions on property components like flooring, furniture, and landscaping.
Example: A $500,000 STR property in a college town could yield $25K–$50K in first-year deductions.
Think of it as your tax “touchdown” before the first whistle even blows.
Halftime: Everyday Deductions That Move the Chains
Operating your STR like a business means everyday expenses can chip away at taxable income:
Furnishings and décor
Travel for setup or oversight
Cleaning and management fees
Marketing, booking platforms, software
Each one is a small gain that adds up to a scoring drive.
Game Day Hotspots: Top 10 College Towns for STR Wins
According to BiggerPockets, these college football markets consistently score high for STR performance. Investors here see strong game-day demand layered on top of tax advantages:
Tuscaloosa, AL (University of Alabama) – Roll Tide weekends keep occupancy near 100%.
Columbus, OH (Ohio State University) – One of the largest alumni bases drives year-round demand.
Ann Arbor, MI (University of Michigan) – Historic rivalries boost nightly rates during football season.
Athens, GA (University of Georgia) – SEC powerhouses mean repeat guests and packed Saturdays.
Knoxville, TN (University of Tennessee) – Neyland Stadium fills up, and so do STR calendars.
Austin, TX (University of Texas) – A football hub and booming travel city rolled into one.
South Bend, IN (Notre Dame) – Loyal fan base traveling nationwide to support the Irish.
Baton Rouge, LA (Louisiana State University) – LSU game days fuel both rentals and repeat visitors.
Norman, OK (University of Oklahoma) – Another strong fan base with consistent travel demand.
Clemson, SC (Clemson University) – Small town, big team, huge demand for STRs.
Tip: Pairing these high-demand markets with a smart tax strategy can turn a seasonal bump into a lasting advantage.
Fourth Down: Risks, Flags, and Fumbles
Regulations: College towns may enforce permits, occupancy taxes, or zoning restrictions.
Vacancy: Game-day weekends are packed, but you need off-season strategies (think business travelers, alumni, or special events).
Recordkeeping: To claim non-passive status, your hours must be documented — no stats, no score.
Final Whistle: The Big Win
STRs in football towns can deliver both game-day profits and long-term tax advantages. When structured correctly, they’re one of the few strategies that let investors offset ordinary income with real estate losses.
💡 Key Takeaway: Cash flow gets the highlight reel, but tax strategy is what puts points on the board. If you’re investing in STRs, especially near stadiums, don’t just watch the scoreboard — make sure your tax playbook is dialed in.