The Depth Gauge

Sat 18 Jul 2026

The Preemption Test

Ohio may strip cities of their STR tools. The summer market just posted its strongest July 4th RevPAR growth since 2021.

Today's signals: Ohio SB104 would cap combined lodging taxes on STRs at 7.5% and remove city authority to ban, cap, or require owner-occupancy — hitting just as cities are deploying exactly those tools. US STR RevPAR rose 12.4% over the July 4th holiday weekend across 25 markets. West Manatee's proactive STR inspections cut fire incidents from nearly three-quarters of all structure fires to 17% in three years.


Ohio's Preemption Fight

Ohio may strip cities of their STR ban and occupancy tools — just as cities are using them

United States — Ohio

A third shooting at a Greater Cincinnati short-term rental in recent months added fuel to a debate that was already moving: Ohio Senate Bill 104, a state preemption bill that, if passed, would block cities from banning short-term rentals outright, imposing owner-occupancy requirements, capping the number of units a single operator can run, or setting up lottery-based registration systems.[1]

The July 15 incident — at a Corryville Vrbo near the University of Cincinnati, where approximately 50 rounds were fired during a party of roughly 75 people — marked the third such incident in Greater Cincinnati in recent months, including earlier events in Anderson Township and Liberty Township. Fox19 reported the same day that Ohio lawmakers are actively considering whether this pattern of incidents strengthens the case for a state-level resolution rather than continued city-by-city rulemaking.[1]

SB104 is still in the Senate Local Government Committee, where it has been since February 2025.[2] But its teeth are real: the bill would also cap combined lodging and excise taxes on STRs at 7.5%, limiting one of the primary fiscal tools cities use to recover enforcement costs. Local convention and visitors bureaus testified against it in committee, citing concerns about constrained revenue and reduced administrative flexibility.

The timing is pointed. Reynoldsburg, Ohio — roughly 15 miles from Cincinnati — passed new STR rules by a unanimous City Council vote on July 13, requiring primary-residency ownership, a three-night minimum stay, occupancy limits of two guests per bedroom, and annual permitting. Those rules were adopted explicitly in response to complaints about disruptive parties.[3] They are precisely the tools SB104 would prohibit cities from enacting.

The preemption argument has a logic to it: operators managing properties in multiple Ohio jurisdictions currently navigate a patchwork of conflicting rules, and state uniformity reduces that friction. The counterargument is equally direct: the incidents driving regulatory action are local problems that local governments are better positioned to calibrate. Ohio's open question is whether the right response to three shootings at Airbnb parties is a state floor that makes those local responses legally unavailable.

So what: If SB104 advances, cities that have spent years building layered STR frameworks — primary-residency requirements, occupancy caps, nuisance enforcement — lose those tools to a state minimum. That doesn't resolve the enforcement problem; it relocates it. Property managers in Ohio should watch the bill's committee status closely: it has been dormant, but the violence pattern is giving it a second look.


US STR Summer Performance

July 4th STR pacing: national RevPAR up 12.4%, booking windows lengthened, 22 of 25 markets positive

United States — Nationwide

Key Data analyzed short-term rental pacing across 25 US markets for the July 4th holiday weekend (July 3–6, 2026 vs. the equivalent Friday–Monday period in 2025), and the headline is broader strength than most mid-year sentiment suggested: national RevPAR up 12.4%, driven by occupancy growth of 6.5% and average daily rate up 5.5%. Twenty-two of the 25 markets posted positive RevPAR gains.[4]

The booking window finding is the sharpest counterpoint to the year's dominant narrative. The 2026 consensus has been that booking windows are compressing — travelers booking shorter and later, operators facing more volatile pacing. For the July 4th holiday specifically, the opposite happened: travelers booked an average of 134.2 days out, up from 131.5 days in 2025, a 2.1% increase. Committed leisure travel to peak periods is drawing earlier commitment, not less. The compression story may be more accurately a shoulder-season story than a structural platform shift.

Regional leaders by RevPAR growth: Midwest up 29.9%, Central States up 24.5%, Mid-Atlantic up 26.2%, New England up 18.1%. Florida markets continued performing above national averages, with Osceola County posting the dataset's highest ADR growth at 18.6%. Only three of 25 markets declined — Dare County NC (down 1.3%), Horry County SC (down 2%), and the Hawaiian Islands (down 3.7%, the only market where ADR also fell).[4]

This data sits alongside AirDNA's midyear US forecast, which projects 2026 annual occupancy just above the pre-pandemic average and full-year RevPAR growth driven by tighter supply and stable demand.[5] The July 4th performance is the peak expression of that trend: where demand concentrates, pricing power concentrates with it.

So what: Operators who adjusted their revenue management strategy toward shorter booking windows across the board may have left revenue on the table during peak-demand periods where the opposite is true. The July 4th data suggests a two-speed market: peak windows demand tight pricing discipline and early commitment incentives, while shoulder periods absorb the compression dynamic. Managing them the same way is the mistake.


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The Preemption Test — The Depth Gauge