Best College Towns to Buy a Short-Term Rental Property

Key Takeaways

• College town Airbnb properties tend to perform best in markets where home prices are reasonable relative to campus-driven revenue potential.
• Proximity to a university often matters more than luxury finishes, especially during events, graduations, and sports match weekends.
• AirDNA helps investors compare university-adjacent markets by yield, revealing where steady demand and acquisition costs are better balanced.

University-driven travel is steady by nature. Campus events, visiting families, graduations, conferences, and sports weekends all create recurring demand year after year across college towns.

For short-term rental investors, that consistency is appealing. However, it isn’t guaranteed in every market. Home prices, enrollment, proximity to campus, and local competition all influence short-term rental performance. In some markets, demand is strong, but home prices or oversupply makes returns harder to balance. The trick is to find the sweet spot where campus-driven demand and entry costs are better aligned.

If you’re set on an STR near campus, use this list of the best college towns to buy short-term rental properties to guide your search. We looked at markets that function as true university hubs and compared how properties currently for sale perform relative to what it costs to buy in. Our findings highlight where pricing and income potential are in perfect balance.

Why Proximity to a University Is a Powerful STR Investment Driver

University proximity creates a very different demand profile than most short-term rental markets. STR demand is tied to people, institutions, and recurring local events, which shape how often guests book, where they want to stay, and what they’re willing to prioritize.

Demand shows up whether tourism is up or down

Campus-related travel is built into the calendar. Move-in and move-out weekends, graduation events, alumni events, conferences, and game days don’t change much year to year. That creates demand you can see coming, which is a big contrast to markets where bookings depend on discretionary travel.

Being close to campus is the value

In college towns, guests usually care less about luxury amenities and more about location. Parents want to be near dorms, alumni want to walk to the stadium, and visiting speakers want a short commute. Properties close to campus often win on convenience alone, even if they’re more modest than listings in traditional vacation markets.

Short trips, repeated often

University travel isn’t always long, but is frequent. You can always count on families to return multiple times over a student’s college career and alumni to come back for games or reunions. That repeat traffic keeps your calendar booked across semesters, not just during one peak window.

Our Methodology for Ranking the Best College Towns to Buy Rental Property

To identify the best college towns to buy rental property, we looked at:

• The average revenue potential of homes currently for sale in university-adjacent markets
• The average yield those properties generate

In other words, we assessed how much short-term rental income a property might produce relative to what it costs to buy.

Looking at yield (annual rental income ÷ property purchase price) shifts the focus away from headline revenue and towards what matters for investors: The return on their investment. 

Using AirDNA data, we evaluated college towns across the U.S. and ranked them by yield to surface markets where pricing and revenue potential line up. Our resulting list highlights places where proximity to a university, demand patterns, and acquisition costs appear to be in balance for short-term rental investors.

Note: Average home prices, revenue potential, and yield for each market is based on currently for-sale properties, which change day to day. The figures in this report are based on data from December 2025 but will fluctuate as the real estate landscape evolves.

Best Places to Invest in an Airbnb Near a University

These college towns stand out based on yield, looking at how revenue potential stacks up against home prices for short-term rentals near universities. Together, they show where campus-driven demand and pricing tend to line up more cleanly for STR investors.

Let's dive into the specifics around the 5 best college towns to buy short-term rental property.

1. South Bend, Indiana – University of Notre Dame

South Bend, Indiana, leverages Notre Dame’s year-round demand engine with an affordable cost of entry, creating reliable occupancy and peak-weekend pricing power. Notre Dame athletics, campus visits, conferences, graduations, and alumni events plus a growing downtown scene keeps heads in beds and helps well-located homes near the university push ADR during event spikes. While occupancy hits a low of 35% in January, the average length of stay during that month is 7 days, reducing costs associated with frequent turnovers.

Low home prices below $250K plus a whopping 16.7% average yield make South Bend a no-brainer for college town property investors. Airbnbs near Notre Dame University monetize peak periods (game days and campus events) while still generating bookings in shoulder seasons.

Regulations:

South Bend appears to require city licensing/permits for short-term rentals. However, the specifics on zoning restrictions and operational limits are hazy, so prospective investors should verify directly with the city.

2. Lansing, Michigan – Michigan State University

Attainable buy-in and multiple year-round demand engines make Lansing, Michigan, and neighboring East Lansing, one of the best places to invest in an Airbnb near Michigan State University. 

This strong Midwest STR market is built on consistent occupancy (an average low of 54% and a high of 76%) and long average stays that range from 5 days in October to over 8 days in January. In addition to MSU athletics, graduations, and conferences, there’s legislative and business travel tied to the state capital. 

Visitor demand is diversified and not just university-dependent. East Lansing delivers classic college-town energy, but Lansing offers travelers a lively downtown, plenty of parks, and a strong calendar of activities and events. These are all reliable catalysts for year-round booked calendars. 

Lansing’s return profile stands out relative to its entry cost. The average home price is less than $300K, while average revenue potential is just over $40K to deliver a substantial 14.8% yield. For investors, that combination (low acquisition cost + solid annual revenue) creates room for healthy performance across multiple guest segments, from game-day travelers to visiting families.

Regulations:

Overall, Lansing’s STR regulatory environment is manageable but not hands-off. Lansing indicates that non-owner-occupied short-term rentals must be registered as rentals through the City’s Code Enforcement Division. In East Lansing, operating a rental involves a rental license process that can take two to five months. The city also has a Residential Rental Restriction Overlay District tool that lets community members vote to restrict rental licenses in certain neighborhoods. With this in mind, investors should confirm licensing feasibility at the address level before buying.

3. Syracuse, New York – Syracuse University

Syracuse, New York, stands out as a high-yield short-term rental market driven by multiple, overlapping demand engines. University travel, healthcare visits, large-scale events, and regional leisure all contribute to steady year-round bookings, while home prices remain relatively accessible for the Northeast.

Unlike markets that rely on one dominant tourism window, Syracuse functions as a true four-season city. STR operators can achieve a balanced calendar around university weekends, major events, and Finger Lakes-region getaways. That flexibility helps smooth occupancy and reduces exposure to feast-or-famine seasonality.

The numbers reinforce the appeal of investing in an Airbnb near Syracuse University. With an average home price of just under $260K, Syracuse offers a lower cost of entry than many comparable Northeastern markets, leaving more room for furnishings, emergency reserves, and operational flexibility. The market’s average yield of 14.2% reflects a strong income-to-price relationship that can offer more resilience if demand softens or expenses rise.

Regulations:

Syracuse appears generally operable but compliance-forward. Hosts likely need to register their short-term rental and complete periodic inspections. Keep in mind that New York State signed a bill into law in 2025 that introduced state-level registration requirements, which could add another layer of compliance alongside Syracuse’s local requirements.

4. Columbia, South Carolina – University of South Carolina

Columbia, South Carolina, is a smart short-term rental play for investors who want consistent bookings with year-round, diversified demand at a low-to-mid entry price. Columbia isn’t a one-season market; the University of South Carolina, state government, sports, and family travel will keep your calendar busy and support healthy nightly rates.

Average home prices in Columbia are just under $300K, making ownership accessible to first-time investors (and possibly even leaving space in the budget for value-add upgrades). With a fantastic average yield of 13.6%, Columbia offers an attractive risk/return profile for investors who want to operate an Airbnb near the University of South Carolina. Keep in mind that competition in this area may be fierce. With almost 1,700 active short-term rental listings in Columbia, you’ll need to consider strategies to stand out.

Regulations:

Columbia requires both a Short-Term Rental Permit and a Business License prior to allowing occupancy. Investors should also monitor local reporting on potential rule updates (e.g., minimum night requirements).

5. Champaign–Urbana, Illinois – University of Illinois Urbana-Champaign

Champaign–Urbana, Illinois, is a short-term rental investor’s dream thanks to its consistent demand and affordable home prices. The presence of a major university sets a dependable baseline, but it’s the depth of activity beyond campus that helps keep bookings steady throughout the year.

Campus weekends, graduations, performances, and sports drive predictable spikes, but they’re not doing all the work. In fact, occupancy peaks in July and August at approximately 77%, outside of the traditional fall and spring semesters. 

A strong local arts and entertainment scene brings in visitors for concerts, theater, and cultural programming, filling in the calendar outside of peak weekends for University of Illinois Urbana-Champaign happenings. That balance is what keeps the market durable.

Affordability plays a big role. With an average home price of just under $270K, Champaign–Urbana offers a lower barrier to entry than many university towns, while average revenue potential of ~$35K supports a healthy 13.3% yield. At that price point, investors often have more room to absorb operating costs, invest in management or furnishings, and structure deals more conservatively without squeezing performance.

Regulations:

Champaign–Urbana appears to require hosts to obtain a short-term rental license/permit prior to listing, with potential operating rules tied to guest limits, parking, and taxation. Overall, the environment reads as structured but doable. It’s not a free-for-all, but it’s generally navigable for professional operators who follow the licensing process.

How to Find the Best Markets to Invest In

One advantage of investing with demand drivers in mind is flexibility; you’re not limited to a single destination or property type. Instead, you can evaluate markets near the kinds of attractions or institutions that matter most to you, then narrow your search based on budget and performance goals.

AirDNA makes it easy to explore markets connected to specific demand drivers (like proximity to universities) and compare how those markets stack up based on pricing, revenue potential, and yield.

Use demand driver market filters

Different demand drivers create different booking patterns. By using AirDNA’s demand driver filters, you can surface markets where short-term rental demand is tied to a nearby attraction, rather than relying on broad location searches alone.

This makes it easier to:

• Identify markets where demand-driven travel plays a meaningful role
• Uncover nearby alternatives with similar demand characteristics but different pricing or competition levels

From the Find a Market tab in AirDNA, click the Market filter to choose which demand drivers you want to search for.

Filter by budget and yield

If you’ve found markets that match your desired demand profile, it’s time to assess for-sale properties within those markets.

To narrow down your options, use these filters:

Price range filter

Use the listing price filter and set upper and/or lower limits to focus on properties within your budget.  Find this filter in the For-sale properties tab.

Yield filter

Apply a minimum yield threshold to highlight properties where revenue potential appears better aligned with purchase price. Find this filter in the For-sale properties tab. 

FAQs 

Are college towns good markets for short-term rentals?

College towns can be great places to invest in short-term rentals when pricing, proximity to campus, and demand are well-balanced. Universities generate recurring travel tied to events, graduations, sports, conferences, and visiting families, but performance varies by market. Looking at yield (not just demand) can help clarify where investment opportunities are realistic and actionable.

What are the top colleges for real estate?

Some of the top colleges for real estate for short-term rentals are University of Notre Dame, Michigan State University, Syracuse University, University of South Carolina,and University of Illinois Urbana-Champaign.

How close does an Airbnb need to be to a university to perform well?

Proximity often matters more than amenities in university markets. Properties near campus, stadiums, or major event venues tend to benefit from convenience-driven demand. That said, nearby neighborhoods with reliable public transportation can also perform well, especially when pricing is more accessible and competition is lower.

Are college town short-term rentals seasonal?

Seasonality varies by market, but generally speaking, short-term rentals in college towns see relatively stable year-round demand. Some college towns slow down during summer or academic breaks, while others maintain steady demand through conferences, camps, tourism, or regional travel. Markets with multiple demand drivers tend to feel less dependent on a single peak period.