A profitable Airbnb investment starts with choosing the right market. A good vacation rental market needs to offer strong, year-round demand, good daily rates, excellent revenue, and high profit.
With thousands of options across the U.S., it’s difficult for beginner investors to find the top Airbnb locations without wasting months on research and analysis. That’s why we’ve listed the top 10 short term rental markets in the US that cater to the expectations and objectives of different investors in search of successful real estate investments.
The top 10 short term rental markets are:
- Kissimmee, FL: Best overall short term rental market
- Charleston, SC: Best for occupancy
- Sevierville, TN: Best for access to the Smoky Mountains
- New Orleans, LA: Best for Cultural Experiences
- Henderson, NV: Best for access to Las Vegas
- Wichita, KS: Best for affordable property prices
- Gulfport, MS: Best for access to the Gulf of Mexico
- Alexandria Bay, NY: Best for daily rates
- Wawona, CA: Best for short term rental income
- Tofte, MN: Best for ROI
While this article aims to list out the best short term rental markets in the U.S., choosing one can still prove to be a tricky task. Consider speaking to investment professionals at Summer to help you narrow down your focus and find the perfect investment for a short term rental property.
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How We Determined Our List of the Top Short Term Rental Markets
Finding the top locations for vacation rental investing requires the incorporation of multiple factors that cover both qualitative features and quantitative aspects. For the necessary short term rental data, we relied on Summer.
The main indicators that we included in our selection of the 10 best short term rental markets for investors include:
- ROI: First and foremost, we focused on locations that offer above-average return on investment for the Airbnb rental strategy. Afterall, investors buy real estate properties to drive profits.
- Revenue: We chose markets that have strong annual revenue, both in absolute terms and relative to property prices. Rental income is one of the main determinants of ROI, together with startup and operating costs.
- ADR: The average daily rate (ADR) is one of the most important metrics in the short term rental industry. Actual daily rates of Airbnb properties are dynamic, and this metric shows the average level across the year. The higher the ADR, the higher the revenue and the ROI.
- Occupancy Rate: The Airbnb occupancy rate shows the balance between supply and demand in the local market. High occupancy means that the market is not oversaturated with listings and can accommodate more rentals.
- Number of Airbnb Listings: We looked at the number of available listings as an indicator of the level of development of the short term rental market and the available supply in it. We aimed for locations where the Airbnb market is neither nascent nor saturated.
- Average Property Price: We listed only areas with average sales prices below $1 million for affordability and profitability.
- Tourist Attractions: The best short term rental markets have many different attractions to show to visitors with different interests, including nature, culture history, shopping, and more.
- Geography: We chose markets nationwide, with no specific geographic focus.
After diligent research and analysis driven by the factors listed above, we’ve been able to identify and rank the 10 best locations for investing in Airbnb in the US market. As you will see, the list is a mix of smaller and larger markets, with various natural and tourist attractions that are able to satisfy the needs of all kinds of investors. We’ve arranged them in an order of increasing ROI, leaving the best for last.
1. Kissimmee, FL: Best Overall Short Term Rental Market
It’s only logical for the list of the top 10 short term rental markets to be headed by a Florida location. Florida in general and Kissimmee in specific have alway been and are expected to continue to be one of the best locations for investing in Airbnb because of the continuous influx of tourists.
Here is what the Kissimmee short term rental market looks like in terms of numbers:
- ROI: 7%
- Revenue: $32,000
- ADR: $170
- Occupancy Rate: 77%
- Number of Airbnb Listings: 17,557
- Average Property Price: $482,000
Although Kissimmee does not lie on the oceanfront like other Florida top Airbnb markets, it has plenty to offer to visitors of all backgrounds and ages. The main attractions include the proximity to regional amusement and theme parks, such as Walt Disney World Resort, SeaWorld Orlando, Universal Orlando Resort, and LEGOLAND Florida Resort.
Moreover, Kissimmee is located on the northwest shore of Lake Tohopekaliga (Lake Toho), which provides access to world-class fishing experiences, playgrounds, and walking paths.
The numbers speak for themselves. Kissimmee, FL offers a return of 7%, which is significantly above the average ROI for short term rental properties across the US. Property prices are just above the national average, and the Airbnb market is well-developed without being overfilled with vacation rentals.
2. Charleston, SC: Best for Occupancy
Charleston is another location that has always been present in the list of the best locations for short term rentals in the US, along with other cities in South Carolina.
Following are the figures characterizing short term rental activities in Charleston, SC:
- ROI: 7%
- Revenue: $51,000
- ADR: $244
- Occupancy Rate: 78%
- Number of Airbnb Listings: 1,473
- Average Property Price: $765,000
Located on the Atlantic Ocean, Charleston’s role as a major port has defined the long and rich history of the city which makes it a popular tourist attraction today. Some of the most renowned features of Charleston include the pastel-colored antebellum houses, the cobblestone streets, and the horse-drawn carriages.
The French Quarter and The Battery are particularly popular destinations among out-of-town visitors. Other attractions include the Waterfront Park, the Charleston City Market, South Carolina Aquarium, and Magnolia Plantation and Gardens.
The most impressive number in the Charleson short term rental data analytics is the occupancy rate. An occupancy of 78% is rarely seen in the industry and indicates that an average listing is booked for more than three-quarters of the time for which it is available for booking, owing to the subtropical climate that limits seasonality. This is the main driver of high rental income and high profit in the local market.
Charleston Airbnb hosts should be able to generate strong revenue with less marketing efforts than those needed in other locations.
3. Sevierville, TN: Best for Access to the Smoky Mountains
The close proximity and the easy access to the Smoky Mountains is enough to position Sevierville as one the top locations for investing in short term rentals.
The numbers that describe the Sevierville short term rental market look like the following:
- ROI: 7%
- Revenue: $50,000
- ADR: $240
- Occupancy Rate: 71%
- Number of Airbnb Listings: 2,776
- Average Property Price: $671,000
Known as “The Gateway to the Smokies”, Sevierville, TN is the chosen place of stay for tourists who want to enjoy the natural attractions and the sports activities offered by the Great Smoky Mountains.
The Great Smoky Mountains National Park, located to the south of Sevierville, attracts visitors with picturesque forest trails and beautiful waterfalls. Other popular tourist destinations include the Forbidden Caverns, the Smoky Mountains Deer Farm & Exotic Petting Zoo, the Tennessee Legend Distillery, and the Dolly Parton Statue.
In terms of investment numbers, the Sevierville short term rental market is characterized by high daily rates and strong occupancy, which together result in a very good return on investment of 7%. Since home values are about twice the national average, this market is generally a suitable option for investors with larger budgets and more experience.
4. New Orleans, LA: Best for Cultural Experiences
New Orleans is a unique tourist destination bringing together the French, African, and American cultures and all the benefits this combination brings. That’s why the Louisiana city continues to be one of the top short term rental markets for different types of investors.
Following are the numbers illustrating the New Orleans Airbnb market:
- ROI: 8%
- Revenue: $28,000
- ADR: $174
- Occupancy Rate: 64%
- Number of Airbnb Listings: 9,304
- Average Property Price: $379,000
New Orleans is known for the jazz music, the brass bands, the historic neighborhoods, the Creole and Cajun cuisines, and the vibrant nightlife. The destination offers a mix of city life and rural plantations, satisfying the needs and expectations of all kinds of travelers and vacationers.
The city hosts multiple festivals year-round, the most famous of which is Mardi Gras held annually at the beginning of spring, when Airbnb demand simply skyrockets. But visitors keep coming to New Orleans around the year because of the mild climate and the endless opportunities to have fun.
The vacation rental data speaks for the potential of the short term rental business in New Orleans. The average daily rate is very high compared to property prices, which results in a strong ROI of 8%, significantly above the prevailing numbers in the US market. Home values are close to the national average, which makes the market a good location for both beginner and experienced Airbnb investors.
5. Henderson, NV: Best for Access to Las Vegas
Located just a short car drive from Las Vegas, Henderson is the perfect vacation spot for those who want to enjoy the fun opportunities provided by Sin City without paying the exuberant hotel and dining prices.
The Henderson short term rental data looks like this:
- ROI: 9%
- Revenue: $36,000
- ADR: $254
- Occupancy Rate: 65%
- Number of Airbnb Listings: 749
- Average Property Price: $459,000
The area around Henderson, NV is characterized by a rocky landscape with valleys and trails. Nearby attractions include Lion Habitat Ranch (a sanctuary for big cats) and Clark County Museum.
What really turns Henderson into one of the absolute best markets to invest in short term rentals is the geographical proximity to Las Vegas. Las Vegas has some of the strictest short term rental laws that prohibit non-owner occupied Airbnb rentals altogether, which means that guests cannot enjoy the benefits of this hospitality option, so many of them opt for Henderson short term rentals instead of expensive Las Vegas hotels.
In the Henderson Airbnb market, nightly prices are particularly high, driven by hotel rates in Las Vegas. At the same time, the number of short term rental listings is not too much, so occupancy is strong, resulting in excellent revenue and return. Real estate prices are relatively affordable.
6. Wichita, KS: Best for Affordable Property Prices
Next on our list of the top short term rental markets is Wichita, KS. While this particular location can come as a bit of a surprise to some investors, the performance of vacation rentals is convincing enough.
Following are the figures representing the current performance of the Wichita Airbnb market:
- ROI: 9%
- Revenue: $11,000
- ADR: $85
- Occupancy Rate: 59%
- Number of Airbnb Listings: 542
- Average Property Price: $152,000
Wichita is a relatively big city in south-central Kansas that is known as “The Air Capital of the World” because of the mass aircraft production, with Boeing, Airbus, and Textron Aviation operating design and manufacturing facilities there. The industry brings a large number of business visitors.
In terms of tourism, the main attractions in Wichita are Exploration Place (hands-on science exhibits), Kansas in Miniature (an animated-model display of Kansas in the 1950s), Botanica the Wichita Gardens, and Sedgwick County Zoo.
Analysis of the Wichita short term rental market reveals that the ADR is relatively low compared to other cities on this list, and the occupancy rate is only moderate. Considering the very affordable property prices, revenue is enough for a strong profit of 9%. Moreover, even beginner investors with limited financing options can make a down payment on a Wichita vacation rental.
7. Gulfport, MS: Best for Access to the Gulf of Mexico
The vibrant city of Gulfport, the second largest city in Mississippi, is another top Airbnb location in the South.
The Gulfport short term rental market produces the following figures:
- ROI: 14%
- Revenue: $23,000
- ADR: $154
- Occupancy Rate: 60%
- Number of Airbnb Listings: 554
- Average Property Price: $181,000
The rich history, the unique lodging, and the seafood-based cuisine bring visitors from near and far, year-round. Nevertheless, the main driver of vacation rental activities in Gulfport is the location of the city on the Gulf of Mexico.
This is a popular destination for a wide range of water sports including sport fishing, swimming, scuba diving, and boating. These coastal recreational opportunities attract thousands of tourists, especially in the winter months.
Both daily rates and occupancy rates are good in Gulfport, but they are even better when you compare them to the average real estate price that’s only half the national value. This boosts average short term rental to as much as 14%. Moreover, the Gulfport Airbnb market is far from being saturated yet, with a bit more than 550 active listings.
8. Alexandria Bay, NY: Best for Daily Rates
Located in the Thousand Islands region of northern New York State, Alexandria Bay is a profitable short term rental market with an average return of 20%.
Following are the numbers showing the current performance of the Alexandria Bay vacation rental market:
- ROI: 20%
- Revenue: $33,000
- ADR: $311
- Occupancy Rate: 60%
- Number of Airbnb Listings: 100
- Average Property Price: $135,000
This small village in the State of New York is a popular tourist destination, driving the vacation rental industry in the area. Alexandria Bay is best known for the scenic boat tours of the Thousand Islands region, a group of over 1,800 islands in the St. Lawrence River, on the border between the US and Canada.
Helicopter and hot air balloon rides are also popular options for a bird’s eye view of the Islands. Other attractions in the Alexandria Bay area include Boldt Castle, the Boldt Yacht House, Thousand Islands Bridge, and Thousand Islands Winery.
Despite its small size, the Alexandria Bay short term rental market has the third highest ROI across the US, standing at an impressive 20%. This is the result of very high daily rates and low sales prices. Indeed, Alexandria Bay offers affordable investment opportunities for beginner investors with small budgets and limited financing options.
9. Wawona, CA: Best for Short Term Rental Income
Located within the Yosemite National Park in the State of California, Wawona is one of the absolutely best locations for investing in an Airbnb property nationwide.
The impressive performance of the Wawona Airbnb market is described as follows:
- ROI: 22%
- Revenue: $94,000
- ADR: $446
- Occupancy Rate: 69%
- Number of Airbnb Listings: 66
- Average Property Price: $356,000
The position of Wawona, CA inside the Yosemite National Park is the driving force behind the strong performance of the local short term rental market. Close to 4 million visitors come to the Park each year, and many of them prefer the comfort and uniqueness of vacation rentals over more expensive hotels or less convenient campsites.
An important benefit that Wawona offers over other local Airbnb markets, like Yosemite Village, is the relatively less crowded environment and the opportunity to enjoy nature at peace.
Wawona short term rentals generate one of the highest average daily rates nationwide, at $446. Accompanied by a good Airbnb occupancy rate, this leads to a staggering annual income of $94,000. Meanwhile, property prices are affordable, close to the national average. So, Wawona is a good option for investors looking for less expensive locations within California.
10. Tofte, MN: Best for ROI
Tofte, MN tops the list of the best short term rental markets in the US, with the highest average return on investment, at 41%.
Here are the rest of the numbers that characterize the Tofte Airbnb market:
- ROI: 41%
- Revenue: $50,000
- ADR: $237
- Occupancy Rate: 70%
- Number of Airbnb Listings: 102
- Average Property Price: $165,000
Tofte is a small community in Cook County, MN. The Superior National Forest offers some of the most scenic hiking trails nationwide. Meanwhile, the Temperance River State Park is famous for its bare rock cliffs.
Nature viewing, biking, camping, canoeing, skiing, and snowmobiling are other popular activities that attract tourists around the year. This leads to a strong occupancy rate, a major driver of the Tofte vacation rental market.
The Tofte short term rental market brings above-average revenue to its hosts, averaging $50,000 per year. This is the result of a good ADR and an excellent occupancy rate. Combining this annual income and the very affordable property prices brings a breathtaking average Airbnb ROI of 41%, the highest in the US market. That’s why this is the top short term rental market in the country.
Bottom Line
These are the top 10 short term rental markets in the US. While most of them tend to be located in the South, they cover a wide geographical area and bring diversity, including beach towns, ski resorts, and cities with rich history and culture. These 10 locations offer daily rates, occupancy rates, and annual revenue that significantly exceed the national averages. Meanwhile, property prices are relatively affordable and allow the entry of different types of investors.
As the short-term rental market continues to expand, choosing the right location is key to maximizing your investment returns. Top-performing markets offer a combination of high demand, seasonal popularity, and strong occupancy rates, all of which can lead to significant profitability. However, staying ahead in these competitive markets requires more than just intuition—it demands data-driven insights to guide your investment strategy. Whether you're looking to buy in established markets or identify emerging hotspots, understanding market trends and forecasting future performance is essential to making smart decisions.
That’s where Summer Forecast comes in. Designed specifically for property managers and investors, Summer Forecast provides institutional-grade Airbnb data and advanced forecasting tools to help you evaluate potential investments, optimize your current portfolio, and navigate market shifts with confidence. With insights on revenue, occupancy, and local market trends, Summer Forecast empowers you to make data-driven decisions that keep you ahead of the competition.
Your Airbnb revenue forecast: Brighter days ahead
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