The best short-term rental markets for 2025 are not always the ones you hear about. Some of the most profitable Airbnb markets are hiding in smaller cities and overlooked neighborhoods across the country.
As a benefit, many of these areas are still underpriced compared to the returns they offer. That means lower upfront costs and a much better chance of long-term appreciation as demand continues to grow.
Below, we’re breaking down the best short-term rental markets in the USA based on real Airbnb data from SummerOS. You’ll get a full snapshot of the best Airbnb markets in the West, Northeast, Midwest, and South so you can find areas with strong nightly rates and steady demand.
If you are planning to invest this year, read on to find the best short-term rental markets to watch.
Why selecting the right market matters
In the tough world of short-term rentals, your market can make or break your numbers. Even the best property won’t perform well in a city with inconsistent demand, tough regulations, an oversaturated market, or low nightly rates. That’s why picking the right spot is the first of many strategic moves you need to make.
The best short-term rental markets in the U.S. tend to share a few key traits:
- Strong and predictable guest demand (bonus points for a market that performs well in multiple, or even all, seasons)
- High occupancy rates reflecting such demand
- Competitive average daily rates (or ADR for short)
- Above-average RevPAR (revenue per available rental)
- Clear and STR-friendly regulations
And, as the saying goes, numbers don’t lie. No matter which market you’re looking at, data helps tell the real story.
That’s why tools like SummerOS are invaluable. With actual Airbnb market data, you can compare metrics across cities, model potential earnings, and understand how your rental might perform before you buy. It’s the best way to take the guesswork out and make decisions grounded in real numbers, not just instinct.
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How we chose the best short-term rental markets
With the short-term rental landscape evolving fast, the smartest hosts aren’t just asking what to buy, they’re asking where. In 2025, market selection matters more than ever. And this year’s strongest markets reveal a clear trend: travelers want unique, experience-driven stays. As a host, your task is to find that quality in places that balance profitability with long-term potential.
We didn’t pick the flashiest vacation towns or the big names. We focused on places that are backed up by real numbers pulled directly from SummerOS Airbnb data and verified with extensive extra research and on-the-ground market insights.
Here’s what we considered:
- Seasonality and versatility: Markets that provide more consistent income to reduce risk.
- Guest types: Places that attract a diverse mix of families, couples, remote workers, and lifestyle travelers.
- Regulatory climate: We prioritized cities with clear, relatively stable short-term rental rules (or at least pathways for compliance). Note: Always check your local regulations before investing, as these regulations can and do change over time.
- Market momentum: We factored in supply growth, search interest, rising competition, and booking velocity to identify growing markets and avoid oversaturated ones.
- Investment accessibility: We considered entry prices and the balance of revenue potential to cost. While high gross yields were a plus, so was appreciation potential.
We also made sure to represent a mix of luxury markets, budget-friendly options, year-round cities, and high-growth areas so you’ll find opportunities no matter your budget or risk profile.
Each pick earned its spot because it stands out in its region and makes sense for today’s short-term rental strategies. Let’s get to it!
The best short-term rental markets in the Western U.S.
When it comes to the best Airbnb markets in the West, this region has it all, including laid-back beach towns and cities with multi-million dollar mansions.
Below, we shine the spotlight on four standout Western U.S. cities, each claiming the top spot in a different category. Backed by SummerOS data, these markets are all worth your attention.
Waianae, HI: Best for overall numbers
Waianae isn’t as famous as Waikiki, but it’s a Western Oahu destination that’s absolutely crushing it by the numbers.
According to the data, this beachside community boasts an occupancy rate of 81%, one of the highest in the country. Guests are drawn to Waianae’s uncrowded white-sand beaches and authentic local vibe, keeping bookings high nearly year-round.
Even with moderate home prices, especially for Hawaii, (~$669K), short-term rentals here rake in eye-opening revenue of roughly $139,735 per year on average, with a hefty $517 ADR.
This rare combo of high income and reasonable cost makes Waianae arguably one of the best short-term rental markets in the West for pure cash flow. If you’re a host seeking strong, steady returns, Waianae’s performance is hard to beat.
Lake Isabella, CA: Best for affordability
If you’re looking for a budget-friendly investment, Lake Isabella is a Western U.S. market that should be on your radar.
Tucked in California’s Kern River Valley near Sequoia National Forest, this small lakeside town offers an incredibly low entry price of around $385,372 on average. That makes it one of the most cost-effective Airbnb markets in California.
Annual rental income is modest (about $29,557 gross, with a $176 ADR), but the low property cost balances things out for solid ROI. With only a handful of active rentals in the area, competition is minimal, so new hosts have room to thrive.
Visitors here come for peaceful outdoor adventures rather than luxury, but they provide a steady trickle of bookings drawn by the budget-friendly rates and natural beauty of the area. If you’re a first-time investor or expanding on a tight budget, Lake Isabella lets you break into one of the best short-term rental markets in the West without overextending.
Henderson, NV: Best luxury investment
Henderson is a prime pick for investors seeking a luxury Airbnb market with dependable returns. It’s located right outside Las Vegas, but unlike Sin City, it’s known for its safe, upscale communities and family-friendly feel (think tranquil parks and lakeside neighborhoods instead of the Strip).
As expected for a luxury market, the buy-in cost is steep at around $1.16M on average for a home, but you’re getting a piece of Southern Nevada’s high-end rental market.
The payoff? Short-term rentals in Henderson average $78,442 in gross annual revenue with an ADR of $362. Occupancy is solid year-round at 67%, as visitors happily pay a premium for spacious, upscale accommodations away from the casino crowds.
With over 200 active rentals, the market also isn’t oversaturated, allowing top-tier properties to stand out and command top dollar. In short, Henderson offers the best of both worlds: luxury pricing and amenities, coupled with consistent demand.
Florissant, CO: Best up-and-coming area
Florissant, Colorado may not be a household name, but that’s exactly why it’s such an exciting up-and-coming Airbnb market in Colorado.
This small mountain town sits near the Florissant Fossil Beds National Monument and offers visitors a relaxing mountain escape with a dose of history and nature.
From 2023 to 2024, active short-term rentals in Florissant grew by 34%, signaling a market on the rise. According to data from SummerOS, Florissant rentals command a healthy $272 ADR and about $54,108 in average annual revenue, which is impressive for a town of this size.
Occupancy at 61% reflects steady demand throughout the year. With only about 100 listings currently in town, new hosts have plenty of room to establish themselves and capture that growing demand.
As a caveat, the typical home price (around $650K) is a bit higher than other rural towns, but investors are betting on Florissant’s trajectory. If you’re eager to “get in early” on a market poised for growth, Florissant offers a lot of potential paired with a charming Colorado setting.
The best short-term rental markets in the South
The Southern U.S. is home to some of the best Airbnb markets, offering high returns and unique advantages for short-term rental investors.
We’ll dive into four top-performing Southern cities based on strong occupancy rates, rising demand, affordable prices, and host-friendly environments. All of these factors ensure you get into the absolute best short-term rental markets in the South for your next investment.
Sevierville, TN: Best for overall ROI
Sevierville stands out for its amazing return on investment thanks to the Smoky Mountains. Nestled at the foot of Great Smoky Mountains National Park, this tiny Tennessee town–we’re talking a population of 18,000–benefits from roughly 12 million annual park visitors in the area.
And, coupled with family attractions (it’s Dolly Parton’s hometown!), this means bookings remain strong through peak seasons and even shoulder months. The occupancy rate of 66% reinforces that.
The typical Sevierville short-term rental boasts an ADR of $378. That yields roughly $78,000 in gross annual revenue on average. Home prices average $881,435, but travelers are willing to pay a premium for proximity to the Smokies and luxury amenities, resulting in strong overall ROI for investors.
The local regulations are also very welcoming in this tourism-driven county, so hosts can capitalize on the high demand without complicated legal hurdles.
Keep in mind that all these advantages come at a cost. Sevierville is a crowded Tennessee Airbnb market with over 2,500 active rentals, which means you’ll be up against stiff competition from the start. Still, the numbers speak for themselves, and even with plenty of competition, there’s still room to earn a healthy return if you can find the right property.
Lubbock, TX: Best affordable investment
Looking for strong cash flow on a budget? Lubbock, Texas delivers.
This West Texas college town (home to Texas Tech University) draws a constant flow of visitors for football games, graduations, and local arts events, all without the sky-high costs you’d find in bigger tourist cities.
That means demand is consistent year-round with no extreme seasonality, giving hosts reliable income from both weekend tourists and visiting students’ families.
Let’s look at the numbers. Lubbock’s average listing price is just $258,511, among the lowest in any top market. Yet hosts earn roughly $29,640 in gross annual revenue per property, thanks to a reasonable 58% occupancy rate and $165 ADR.
That combination of modest home prices and solid income potential makes for an accessible market. And, with just about 500 active rentals in the city, Lubbock isn’t oversaturated, so new hosts can still carve out a niche.
Finally, you’ll be happy to know that regulations are straightforward. Texas generally has a hospitable climate for STRs, so an affordable investment here can start generating returns with minimal red tape.
Largo, FL: Best growing market
Largo, Florida should be on your radar (if it isn’t already). Located in Pinellas County near Clearwater’s famous beaches, travelers are now discovering Largo’s central location, which is just minutes from Gulf Coast beaches and Tampa attractions. That means investors are catching on as well.
The Airbnb market here has shown impressive growth–with listings growing 43% from 2023 to 2024– yet it remains less saturated than Florida’s traditional Airbnb markets with less than 500 other active rentals.
It also has an average home price of around $397,000. That makes it much more accessible than many coastal cities, yet it punches above its weight in earnings. Hosts see about $61,572 in annual gross revenue per property on average, with daily rates around $268 and a healthy 73% occupancy rate.
Such strong metrics signal a lot of demand: guests get the Florida vacation experience for slightly less cost, and hosts enjoy reliable bookings without the need to slash rates.
So while the number of active rentals is still relatively low, that just means there’s room to grow, and investors who get in early can ride the momentum as this market continues to gain traction. It’s definitely one to watch.
Beaufort, SC: Best under-the-radar area
If you’re hunting for a South Carolina Airbnb market with less competition than average–while still retaining that famous Southern charm–put Beaufort, South Carolina on your list.
Often overshadowed by Charleston and Hilton Head, this historic coastal town also has quiet streets lined with antebellum homes, a vibrant waterfront park, and easy access to beaches and islands.
Beaufort’s tourism is steady but not overwhelming. Think weekend getaways for history buffs, marine families (Parris Island is nearby), and snowbirds seeking mild winters. The result is a market that provides consistent occupancy without feeling overrun.
With average property prices of $605,804, a typical Beaufort short-term rental sees 59% occupancy on average with an ADR of $198. The average host here grosses $37,881 annually per property.
And, with only about 200 active STR listings in the area, Beaufort truly is an under-the-radar gem where a well-run Airbnb can stand out. Hosts face standard South Carolina regulations and some local permitting, but at the moment, no especially difficult restrictions. It’s a great spot if you’re after a taste of lowcountry charm and a rental that can actually bring in solid income.
The best short-term rental markets in the Midwest
For the Midwest region, we’ve identified three standout cities that cater to different investment goals: one with exceptional overall performance, one offering an affordable entry point, and one with steady, year-round bookings.
You’ll be surprised to find out that these Midwestern locales hold their own among the best Airbnb markets in the U.S., combining strong demand with investor-friendly conditions.
Traverse City, MI: Best overall numbers
Look around the Midwest and you’ll find some surprisingly strong returns on short-term rentals, especially when you compare them to what you’re paying for the property.
Take Traverse City, for example. This laid-back lakeside spot punches way above its weight, thanks to its beaches, wineries, and the popular National Cherry Festival that brings in tons of visitors each summer. In our opinion, Traverse City stands out as one of the best Airbnb markets in the Midwest.
The pull is strong here, and it shows in the numbers. The average daily rate sits around $342, and hosts bring in about $53,041 in gross revenue per year. Occupancy averages 53%, which is solid considering the market’s highly seasonal nature.
Home prices average $632,715, and competition is moderate with around 600 active rental units. That gives investors room to enter without going up against major competition in this Michigan Airbnb market.
Peoria, IL: Best affordable market
The Midwest as a whole is quite affordable, but for even more accessibility (with decent ROI, of course), take a look at Peoria.
This mid-sized Illinois city offers a median home price of $211,043–a bargain compared to markets in the West and in the South. Yet its short-term rentals generate surprisingly strong income, with occupancy rates of a whopping 71% and an ADR of $106.
While the ADR doesn’t sound too impressive, it does come out to a respectable $25,456 in annual revenue per property, meaning excellent cash-on-cash returns.
Peoria’s investor-friendly climate (e.g., no heavy STR bans, simple registration) and recent 10% growth in key metrics like ADR further cement its reputation as one of the best Airbnb markets for value-focused investors.
Milwaukee, WI: Best for year-round bookings
Milwaukee isn’t a flashy vacation town, but that’s exactly what makes it appealing. It stays busy all year thanks to a mix of events, business travel, and local attractions.
Guests come for Summerfest, stay for the brewery tours, and fill up listings during basketball and baseball season. It’s the kind of market that doesn’t rely on just one peak season, and bookings stay steady, no matter the time of year.
Airbnbs here bring in an average of $36,141 per year, with a 62% occupancy rate and $194 ADR. That’s solid performance for a Midwest city, especially when you consider the average home price is around $351,043. There are around 800 active listings, so it’s far from overcrowded, and there’s room to compete if you run a well-managed property.
Compared to nearby Peoria, which has slightly higher occupancy, Milwaukee pulls in nearly double the nightly rate while only being a bit more expensive in terms of property cost.
And, with flexible STR regulations and no hard cap on rental days, it’s a great Wisconsin Airbnb market to build consistent cash flow without the headaches.
The best short-term rental markets in the Northeast
We’ve already covered some of the country’s top STR regions, from the outdoor hotspots of the West to the sunny, high-performing markets down South.
Now, we’re wrapping things up with the Northeast. This corner of the U.S. might not have the same accessible year-round weather, but what it does offer is serious seasonal demand, strong urban markets, and some of the highest ADRs in the country.
If you’re eyeing a high-revenue summer market or a steady, regulation-friendly city, the best Airbnb markets in the Northeast U.S. are worth a close look.
Rileyville, VA: Best for ROI
Don’t sleep on Rileyville: this small rural community packs a big punch for ROI. Nestled in Virginia’s scenic Shenandoah Valley near Shenandoah National Park, Rileyville offers an impressive 62% occupancy rate and average gross revenue of $59,120 per year for Airbnbs.
What boosts ROI here is the low cost of entry. The typical property price hovers around $263,000 (though you’ll still find sprawling vacation cabins on large lots priced in the multi-millions, which tend to drive the average price up), so investors can earn strong returns without overspending.
The ADR sits at $268, reflecting the willingness of travelers to pay for cabins and cottages with Blue Ridge Mountain views.
Here, nature tourism is the main draw. Think hiking, river rafting, and Luray Caverns. That means crafting cozy stays for outdoor lovers and families looking to get away for a weekend.
Another perk is a relaxed regulatory environment; Rileyville currently has no special local short-term rental restrictions, and hosts just need to follow basic Virginia state rules.
Ithaca, NY: Best for steady income
For reliable, year-round income, it’s hard to beat Ithaca. It’s home to Cornell University and Ithaca College, so you can already tell that this upstate New York Airbnb market enjoys remarkably steady demand with no true off-season.
Academic events and visiting parents fill Airbnbs throughout the school year, while in summer the Finger Lakes wine trails, waterfalls, and gorges draw vacationers. The result? Ithaca’s short-term rentals average 65% occupancy–on par with some of the best Airbnb markets overall–and an ADR of $263.
The average STR here grosses roughly $48,000 in annual revenue, a strong performance fueled by that high occupancy and healthy nightly rates. With only slightly less than 300 active rentals in the area, competition is relatively mild.
Considering these numbers, it’s surprising that home prices aren’t higher. Currently, they average $540,813, and those who buy in gain access to this very reliable booking base. If you value predictable monthly income over big seasonal swings, Ithaca is a top-notch Northeast market for stability.
Bar Harbor, ME: Best for luxury returns
When it comes to seasonal demand and upscale rates, Bar Harbor is it. This charming coastal town adjacent to Acadia National Park buzzes with tourists each summer and fall, driving lucrative (if concentrated) returns for Airbnb hosts. How strong is the demand? Bar Harbor’s average occupancy sits around 63% annually, which is a phenomenal number for such a highly seasonal market.
During the peak months of summer, occupancy can approach 100% and nightly rates skyrocket, as visitors (nearly 4 million a year to Acadia) are willing to pay serious money for ocean-view homes.
According to SummerOS Airbnb data, the average Bar Harbor rental grosses about $75,499 per year in revenue, with summer weeks commanding high ADRs. All in all, the ADR here is at $446–still a very high number considering the seasonality of the area.
Many owners make the bulk of their income in July to October, then see an off-season lull. But, big events like the Bar Harbor Music Festival and fall foliage season also create spikes in demand.
The trade-off for these luxury returns is a hefty price tag. Local property values average $1.8M, though there are still properties under the $1M mark (and even in the mid-500Ks).
All this to say that Bar Harbor represents the Northeast’s quintessential seasonal market with huge summer payoffs and quiet winters. For investors with the budget or luck (and possibly the flexibility to use the home in the off-season), it delivers some of the best Airbnb market returns in the Northeast during peak season.
Jim Thorpe, PA: Best up-and-coming market
Jim Thorpe has earned the nickname “Switzerland of America,” and now this picturesque Pocono Mountains town is gaining fame among Airbnb investors as well.
Rich in Victorian architecture and outdoor adventure, Jim Thorpe is seeing a small surge in short-term rental interest. In fact, the number of active Airbnbs here jumped 18% from 2023 to 2024, indicating growing interest.
With a 54% occupancy rate, which is typical for a getaway town with a defined peak season, the gross yield is healthy–meaning home prices (average price of $411,072) are reasonable relative to rental income (gross annual revenue of $44,973 with an ADR of $286).
In Jim Thorpe, an investor can still snag a historic property with a great view–almost unheard of in other parts of the region and even the country. And, tourists seem to love it here: they flock for whitewater rafting in summer, brilliant foliage each fall, and events like the Jim Thorpe Fall Foliage Festival and Winterfest.
These varied draws give this Pennsylvania Airbnb market a steady baseline of bookings with excellent numbers during peak periods. And, as we mentioned, real estate here is still affordable compared to other Northeast markets, so buyers looking for an up-and-coming Airbnb market should definitely keep Jim Thorpe on their radar.
How to pick the best short-term rental market for you
The truth is, there’s no one-size-fits-all answer. The best Airbnb market depends on what you’re hoping to achieve.
If you’re after steady monthly cash flow, look for year-round markets with high occupancy and manageable home prices. If long-term appreciation is your goal, you might prefer up-and-coming areas in desirable regions, even if the returns won’t be immediate.
And, for luxury investors, seasonal hotspots with high ADRs can offer big annual payouts, even if prices are on the higher end.
But don’t stop at revenue projections. Think about how much time and effort you want to put into the property. How far is it from where you live? Are local regulations tightening? What’s the turnover workload like in peak season?
Instead of guessing, use tools like SummerOS to compare short-term rental markets side by side. With in-depth insights, you can spot trends, evaluate risks, and plan smarter. It’s the easiest way to base your next move on real data, and not just gut instinct.
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