Best Places to Invest 
in Short-Term Rentals
in 2025

We’ve put together this year’s list of the top 25 short-term rental markets, showcasing the best opportunities for investors based on key performance indicators. 

2024 brought new challenges for investors seeking to capitalize on the most profitable short-term rental markets. Nationwide, the supply of entire home and apartment short-term rental listings grew by just 6.8%—a sharp slowdown compared to 14.4% in 2023 and 22.1% in 2022. There were fewer new vacation rentals entering the market in 2024 than in previous years.  

Our 2024 Best Places to Invest report accurately predicted that small and mid-sized cities would lead the way for short-term rental growth. Small city and rural areas saw a 16% increase in listings, while mid-sized cities grew by 10.3%. These gains reflect an influx of new investment properties entering the market as active vacation rentals. On average, markets listed in last year’s report increased their short-term rental supply by 10.6%, consistent with the typical growth trends observed in mid-sized cities.

High interest rates, rising home values, and declining growth in short-term rental performance have made it tougher to invest in short-term rental properties over the past few years. These challenges are expected to persist into 2025, with 30-year fixed mortgage rates remaining well above 6% and home values projected to climb another 4.9%, according to Oxford Economics.

Despite these hurdles, there’s good news for STR investors: both occupancy rates and average daily rates (ADR) are expected to rise in 2025, building on the stabilized performance seen in 2024. These increases should help offset the higher cost of property acquisition, making strategic investments more viable. We talk about these trends in more detail in the 2025 U.S. Outlook report. 

The broader housing market also continues to impact STR investors, with inventory for single-family homes still at historically low levels. We've refined our methodology for the 2025 Best Places to Invest report to help investors navigate this constrained landscape. Our analysis focuses on the hundreds of thousands of homes that are currently for sale and their potential as short-term rentals.

The numbers don't lie. Discover markets that are really worth your investment, based on real properties that are for-sale today.

Invest smarter with the metrics that matter.

This year, we’ve taken a fresh approach to identifying the best airbnb markets in 2025, with a focus on pinpointing where real investment opportunities exist today.

In previous years, we looked at market-wide data, such as average home prices and typical short-term rental income. Knowing an area is profitable for STRs is helpful, but average home prices and rental revenue data often reflect properties already operating as rentals or being used as primary residences. For investors, those properties are off-limits, making it critical to identify markets where investment-ready properties are actually available.

For 2025, we've zeroed in on actionable opportunities. We analyzed over 540,000 properties currently for sale (as of January 1, 2025) and calculated the potential rental income for each property relative to its listing price. 

The result? Our top-ranked markets aren't just theoretically good—they're places where you can find promising investment properties today.

Our 2025 rankings feature 25 of the best short-term rental markets, each evaluated using a Best Places to Invest (BPTI) Score.

Demand reflects how often rentals are booked and whether travel interest in the market is growing. This measures how often rentals are booked and how travel demand is growing. It includes:

Trailing 12-Month (TTM) Occupancy Rate: This measures the percentage of available nights that rentals were booked over the past year. For instance, a TTM occupancy rate of 70% means that 70% of all available listing nights were rented.

Booked Listing Growth: This tracks how the number of rented properties has increased over time, offering insight into market expansion.

Together, these metrics capture the popularity of a market and whether demand is on the rise.

We take into account revenue growth, which indicates whether properties in a market are becoming more profitable over time. We track year-over-year changes in Revenue Per Available Rental (RevPAR) for properties booked over the past two years to assess revenue growth. RevPAR is your Average Daily Rate (ADR) multiplied by your occupancy rate. It's a crucial indicator of market profitability because it reflects both pricing power and booking frequency, offering a clear picture of how well properties in a market are performing.

Investability evaluates the strength of current opportunities by focusing on properties that are actively for sale. We calculate gross yield—a key metric for investors—by dividing a property’s annual revenue potential by its sale price. We’ve aggregated yields at the market level to identify locations where there are real opportunities to secure high-performing investments right now.

Regulations weren’t included in the calculation of BPTI Scores this year, but they played an important role in our overall methodology. Locations with strict policies—such as those requiring rentals to be primary residences or mandating hosts to be on-site—were excluded to ensure the list reflects markets with viable opportunities for short-term rental investors.

For the markets included in this report, we’ve highlighted any particularly stringent or complex regulations in the individual market write-ups. These may include permit requirements, zoning restrictions, or short-term rental taxes. Some markets require hosts to collect transient occupancy taxes, obtain specific business licenses, or adhere to zoning rules that make parts of the area off-limits to short-term rental operators—all of which can affect operational costs and profitability.

If you’re interested in a specific market, it’s crucial to research local short-term rental regulations. This process can take time, as the information isn’t always easy to find or centrally located. It often requires searching through local ordinances or city websites. 

While we’ve focused in this report on the regulations that are most relevant to investors, we’ve also put together a guide to help you find short-term rental ordinances in your area. Taking the time to understand these rules helps you make informed decisions and avoid surprises as you plan your investment.

If you’ve used AirDNA before, you’re probably familiar with the 0-100 Market Score that contextualizes performance information for every market and submarket in our database. As similar as they may seem, the BPTI score is NOT the same as the Market Score. 

While both are AirDNA metrics designed to evaluate STR markets, they’re calculated differently and serve distinct purposes. Understanding these differences will help you get the most out of this report and confidently use it to guide your next investment decision.

The BPTI Score is designed to identify current investment opportunities by focusing on properties actively for sale. It’s ideal for investors ready to take action now.

In contrast, the Market Score offers a broader snapshot of market health, incorporating additional factors like seasonality and regulation to provide a longer-term perspective that serves both investors and existing hosts.

The BPTI Score is the better choice for this report because it provides investors with the most practical and actionable insights. The score’s investability calculation is based on the average home values of properties that are currently for sale relative to their earning potential.

Best Places to Invest Based on Your Budget

In this year's Best Places to Invest report, we've introduced a new analysis that segments markets by property price ranges. This addition helps investors identify opportunities that match their specific budget constraints, complementing our overall market rankings.

Our primary rankings use the average for-sale listing prices to evaluate markets holistically. However, we recognize that investment returns can vary significantly at different price points within the same market. 

The best place to buy short-term rental property depends on your budget. To address this, we analyzed markets through the lens of five specific price brackets:

We focused on yield, which is the annual revenue potential divided by the sale price, as the key metric to evaluate performance within each price bracket. Yield tells you what percentage of the sale price is covered by your projected short-term rental earnings annually. It’s a standard real estate metric that can be used to compare how effectively properties generate revenue relative to their purchase price across different budget levels. 

Our Best Places to Invest by investor budget is a more nuanced view of market opportunities, helping buyers identify locations where properties in their price range perform particularly well.

Don’t let Best Places to Invest be a one-and-done read. We want to see you start or expand your Airbnb business with this report as your launching point. Here’s how to take the next steps.

Each featured location in this report includes a link to its market overview page, where you can:

Explore active short-term rental listings to see the competition in the area.

View properties for sale, complete with detailed performance projections.

Dive deeper into market performance metrics, such as occupancy, revenue, and RevPAR.

Use filters to tailor your search by bedroom count, amenities, and more.

Diving into the market overview in the AirDNA app will help you better understand the opportunities in that location and how they align with your goals.

This report can and should be more than a list of top airbnb markets—it's a comprehensive resource for developing your short-term rental investment strategy.

Apply our evaluation framework to markets that interest you, whether they're featured in our rankings or not. Focus on the key performance indicators we've highlighted: demand patterns, revenue growth, and overall investability. Calculate yield to compare investment potential across different locations, or study how seasonality impacts revenue in various market types. The report's methodology gives you a systematic way to conduct your own rental market analysis that matches your criteria.

Deciding where you want to invest is just the beginning of your short-term rental investment journey. Next comes finding the right property, financing the purchase, and preparing the property for Airbnb. It’s a lot to consider, but don’t worry—whatever it is, we’ve got a guide for it.  

Best Places to Buy Short-Term Rental Property

We recognize that investing isn’t one-size-fits-all, so we’ve also included a table graphic to help you compare the best locations in the U.S. to invest in Vrbo and Airbnb properties side by side. 

Easily compare how different markets perform across the metrics that matter most and align your investment strategy with the opportunities that best fit your goals.

Understanding the metrics we feature is crucial for making informed decisions. Here’s a quick overview of the performance metrics included in the table and what they reveal about each market:

Listing Growth: This metric captures listing percent change, or how much the number of Airbnb listings has grown in the past year. It’s a signal of market expansion, where higher percentages indicate growing investor interest and traveler demand.

Gross Yield: Calculated as annual revenue potential divided by property sale price, gross yield shows how quickly an investment can pay off. Markets with higher yields typically offer stronger cash flow, making them attractive for investors seeking quick returns.

RevPAR Growth: This reflects the year-over-year growth in revenue per available rental (RevPAR), combining the effects of average nightly rates (ADR) and occupancy. Positive changes signal improving market performance and high earning potential.

Average Revenue Potential: This is the estimated yearly income that properties currently for sale in that market could earn as short-term rentals.

Occupancy rate: This reflects the percentage of available nights that get booked among active listings in that market. Higher occupancy rates mean consistent traveler demand, which is key to generating reliable revenue.

ADR (Average Daily Rate): The average amount that active listings in that market earn per booked night. ADR reflects both host pricing power and traveler demand.

RevPAR (Revenue Per Available Rental): Combining ADR and occupancy, RevPAR reflects how much you make per night, whether your place is booked or not. 

What sets this market apart: Number one for gross yield among all ranked markets, Peoria’s affordable real estate market and strengthening short-term rental performance makes it an easy choice for Airbnb investors. 

Looking for an investment gem that won't break the bank? Say hello to Peoria, Illinois. 

This Midwest marvel offers local attractions like the Peoria Riverfront Museum and Luthy Botanical Garden, but its low entry that’s turning investor heads. The average for-sale listing price clocks in at $202,930—the lowest of all markets featured here—all while delivering the highest gross yield (15.3%) of any Best Places to Invest location.

Airbnb listings in Peoria jumped 21% in 2024 compared to the prior year, and properties maintain a healthy 59% occupancy rate. Potential annual revenue averages $31,131 for available investment properties in the area and RevPAR climbed 7.7% over the last year for established hosts. New investments could start paying off sooner than you think.

Regulations: Peoria’s appeal goes beyond affordability—it’s also easy to operate in. With straightforward regulations and no overly complex requirements for short-term rentals, investors can focus on maximizing returns without navigating an overwhelming administrative process.

What sets this market apart: Average revenue potential is among the highest of Best Places to Invest (#4), supporting an outstanding gross yield that’s made possible by growing traveler demand. 

Fairbanks, Alaska, is a returner from our last Best Places to Invest list, and its stellar performance has bumped it from #9 in 2024 to #2 in 2025. This arctic gateway destination leads in occupancy rate for all Best Places to Invest locations with a remarkable 66.5%, meaning your property is likely to maintain a consistently booked calendar. 

Combined with strong nightly rates averaging $224.35, properties generate substantial annual revenue. Our data shows typical annual earnings of $49,459 for properties at an average for-sale listing price of $327,69. This high occupancy and revenue combination delivers one of the strongest yields among all markets.

Regulations: Investors should be aware that Fairbanks enforces stricter short-term rental regulations compared to other areas in Alaska. Hosts must obtain business licenses at the state and city level, register for an 8% room tax, and adhere to zoning rules that classify short-term rentals as "tourist homes." In some cases, a Conditional Use Permit may also be required. Additionally, hosts are responsible for collecting and remitting lodging taxes, as platforms like Airbnb and Vrbo do not handle this in Fairbanks. For more information, contact the City of Fairbanks. 

What sets this market apart: Sky-high listing growth shows increasing investor interest, but the market isn’t saturated yet. Improving short-term rental performance promises continued returns for new and existing hosts alike.

Akron has risen from #8 in last year’s Best Places to Invest report to #3 in 2025. Known for its industrial heritage and vibrant attractions like the Akron Art Museum, Cuyahoga Valley National Park, and Stan Hywet Hall & Gardens, this market draws a steady stream of visitors. It's a destination that supports consistent bookings.

As traveler interest grows, properties in Akron are becoming more lucrative. RevPAR increased by 11.5% and average nightly rates by 8.5% between 2023 and 2024. These trends reflect a market poised for strong returns, making it one of the best places for short-term rentals in the U.S.

Regulations: Akron’s growth comes with regulatory considerations that investors need to factor into their decision-making. Short-term rental operators in Akron must register their properties annually with the city, paying a registration fee and providing documentation such as proof of ownership, a floor plan, and a signed affidavit. Hosts are also required to collect a 5.5% excise tax from guests and adhere to hosting rules like quiet hours. 

What sets this market apart: With a gross yield of 13.4%, Columbus generates strong cash flow that supports a faster return on your initial investment.

Does this market look familiar? Columbus came in at #1 on last year’s Best Places to Invest report. Its southern charm, vibrant cultural scene, and outdoor attractions still drive a combination of growth and high returns for new investors–enough to bring it in at #4 in this year’s rankings.

Visitors are drawn to the city’s rich history, the Chattahoochee Riverwalk, and adventure activities like whitewater rafting on the Chattahoochee River. These unique experiences make it a favorite among travelers, ensuring consistent interest in short-term rentals.

The number of Airbnb listings in Columbus increased by 20.5% year-over-year, indicating that investors are catching on to the money-making potential of this riverside destination. The average for-sale listing price is still manageable at $298,039, though, and the typical nightly rate of $187.04 is growing by almost 5% year-over-year. 

For investors looking to capitalize on a growing market with strong cash flow potential, Columbus provides an excellent opportunity to enter a market that combines affordability with steady demand and solid performance.

What sets this market apart: High revenue potential paired with growing demand signals that your earning potential as an investor will only increase from here. 

Crescent City, California offers investors a chance to establish themselves in a high-performing market before it reaches saturation.

With a gross yield of 11.9%, properties in this coastal destination offer the potential for quick returns on investment. The city’s average annual revenue potential of $51,318 is driven by healthy occupancy rates of 63.3% and nightly rates averaging $269.16. While the average price of entry is on the higher side among this year’s Best Places to Invest locations, the larger investment ($432,453) is supported by reliable earnings.

Known for its stunning natural beauty, including redwood forests and a pristine coastline, Crescent City is a year-round destination that appeals to outdoor enthusiasts and vacationers alike.

Make confident investment decisions with industry-leading data and actionable insights.

What sets this market apart: Improving occupancy rates are driving RevPAR growth in Shreveport, indicating that this market is becoming a travel hotspot that offers high yields for investors.

Shreveport, Louisiana, is drawing more travelers each year with its riverboat casinos, music scene, and year-round festivals. The clearest sign of this growing popularity? Occupancy rates have jumped 12.9% from last year to 57.3%—meaning properties are booking more frequently and consistently. This surge in bookings has pushed RevPAR up by 12.6%.

Properties bring in about $36,106 annually on an average for-sale listing price of $294,995. While nightly rates decreased ever so slightly between 2023 and 2024 (by a couple of tenths of a percent) to $185.04, the significant rise in occupancy suggests Shreveport's attractions are pulling in new visitors without saturating the market. 

Regulations: Investors in this market must navigate Shreveport’s permitting and zoning requirements. 

All short-term rentals require either a Type A (shared) or Type B (whole-home) permit, which must be renewed every two years. 

Eligible properties are limited to single-family homes, townhomes, condos, duplexes, and accessory dwelling units in specific zoning districts. 

Type B rentals must maintain a 500-foot distance from other short-term rentals. 

Despite regulatory challenges, Shreveport is still a sweet spot for investors: growing demand in a market that still has room to expand.

What sets this market apart: With an average daily rate (ADR) exceeding $300, Page is one of only three featured markets to reach this premium pricing tier—and that rate is on the rise.

Page, Arizona, is a small, but mighty short-term rental market. It has the second-highest RevPAR of $188.72, showing the market’s ability to generate substantial income. Investors can expect strong cash flow with a gross yield of 11.2%, meaning your investment could pay off faster.

That said, Page has just 30 properties that are currently available for purchase, making it one of the smallest home-buying markets on the list. While this exclusivity limits the number of new short-term rentals entering the market each year, reducing competition, it also means your choices are limited as an investor.  

Known for its iconic landmarks like Horseshoe Bend and Lake Powell, Page draws outdoor enthusiasts year-round, ensuring steady traveler demand. For investors seeking premium returns in a market with high pricing power and breathtaking natural appeal, Page offers a unique opportunity.

What sets this market apart: Affordable home prices paired with strong short-term rental performance enables strong gross yields and steady cash flow for investors in Rockford.

Rockford, Illinois, is making waves as one of the best short-term rental markets for strong returns and rapid growth. On top of a gross yield of 14%, Airbnb listings in Rockford have grown by 27.2% over the past year, indicating increasing demand and plenty of room for new investors to join this expanding market.

Located along the Rock River, Rockford is a charming destination known for its attractions like the Anderson Japanese Gardens, the Discovery Center Museum, and a historic downtown. These draws keep visitors coming year-round, driving reliable bookings and strong earnings. 

With an average nightly rate of $281.93 and affordable home prices averaging $256,516, Rockford is both accessible and profitable for investors.

What sets this market apart: Growing traveler demand drove an 8.1% increase in RevPAR in the last year, signaling a market that’s increasingly on traveler—and investor—radars.  

Known as the “Birthplace of Aviation,” Dayton is rich in short-term rental potential as well as history. Occupancy climbed 5.9% year-over-year, signaling growing interest in its unique attractions. This demand growth is the primary driver behind an 8.1% increase in RevPAR, reflecting hosts' ability to capitalize on more frequent bookings rather than significantly higher nightly rates.

Dayton offers a balanced investment landscape with an average listing price of $301,774 and a strong revenue potential of $35,456 per year. Investors can also enjoy a gross yield of 11.7%, underscoring its strong cash flow opportunities. 

With its aviation heritage, thriving arts scene, and growing short-term rental market, Dayton blends cultural charm with promising returns—making it a standout choice for 2025.

What sets this market apart: Despite a jaw-dropping surge in new short-term rentals entering the market over the last year, host earnings are still on the rise. 

Frankfort's not just home to Kentucky's finest bourbon—it's pouring up a 64.7% increase in short-term rental listings over the past year. The capital city's market is proving its strength with solid gains in both RevPAR (6.1%) and occupancy rates (5.1%). This Kentucky gem is far from peaking as a prime market for short-term rental ventures.

With an average listing price of $354,918 and an impressive revenue potential of $46,369, Frankfort offers a solid balance between investment cost and returns. The market’s gross yield of 13.1% highlights the market’s potential to deliver strong cash flow, particularly for new entrants. 

Regulations: Investors should be aware of Frankfort’s regulations which could impact their earnings and operations. The city limits occupancy to two times the number of bedrooms plus one person, which may reduce the maximum revenue potential for larger properties compared to more flexible markets. For more information, visit the City of Frankfort’s website. 

What sets this market apart: Montgomery leads the pack with the highest RevPAR growth of all 2025 Best Places to Invest locations at 14.5%. 

Montgomery, Alabama, is making history again—this time as a short-term rental hotspot. The market’s rise is fueled by a healthy balance of surging occupancy (up 6.4%) and nightly rate growth (up 7.6%).

With an average listing price of $291,867 and an annual revenue potential of $32,998, this market offers an affordable entry point with impressive returns. A gross yield of 11.3% underscores the strong cash flow opportunities waiting for investors. 

Known as a centerpiece of the Civil Rights Movement, Montgomery draws visitors year-round to explore landmarks like the Rosa Parks Museum, the Civil Rights Memorial, and Dexter Avenue Baptist Church. These historic sites, combined with cultural attractions like the Montgomery Museum of Fine Arts and the scenic Riverfront Park, continue to attract a growing number of travelers and investors. 

What sets this market apart: With the number of short-term rental listings in the area declining slightly, investors have the chance to capitalize on strong performance with limited competition from other new hosts. 

Kansas City's short-term rental market is defying expectations. While listings have dipped slightly (-0.4%), earnings are soaring—RevPAR is up 13.8% and occupancy has jumped 7.2%, signaling strong traveler demand in a market with shrinking supply.

For investors, the timing looks prime. With 2,149 homes on the market and properties averaging $365,109, Kansas City offers multiple entry points. Add in a yearly revenue potential of $44,142, and this BBQ capital serves up an appetizing blend of affordability and performance. As travelers discover more than just the city's famous food scene, Kansas City is emerging as 2025's sleeper pick for smart investors.

Regulations: Investors should note Kansas City's specific density restrictions for short-term rentals. For non-resident rentals in single- or two-family homes, registration is prohibited if another non-resident rental is already registered within a 1,000-foot radius. 

In multi-family buildings, only 12.5% of the units can be registered as non-resident short-term rentals. These rules ensure a balanced market while preventing oversaturation in key areas, making compliance essential for long-term success. For more information, visit the Kansas City website. 

What sets this market apart: Lansing’s exceptional gross yield points to strong earning potential within an affordable housing market—an ideal scenario for investors.

In Lansing and East Lansing, Michigan, your investment works as hard as you do. With a gross yield of 14.6%—the third highest on this year’s Best Places to Invest list—you’ll be back in the black in under seven years. Few markets promise such a swift payback, making this market a dream for investors focused on cash flow. 

While average nightly rates have dropped by 5.4%, an 8.5% rise in occupancy is driving steady bookings. This is why the market’s RevPAR went up by 2.7% despite the pricing adjustment. This resilience signals a market where travelers are increasingly drawn to the area, and savvy investors can capitalize on the performance growth.

With an average listing price of $252,081 and an annual revenue potential of $36,731, Lansing / East Lansing offers a rare combination of affordability and fast returns. Whether it’s university life or state capital charm that attracts guests, this market is built to deliver results.

What sets this market apart: Investor interest is high, with new short-term rental listings entering Springfield at a breakneck pace, and for good reason—gross yield is among the highest of the featured markets.

Springfield, Illinois, offers a rare mix of high returns and fast-growing potential. 

While occupancy has dipped slightly (down 3.5%), it’s still a solid 62.9%—comfortably above the national average of 54%. Even better, average nightly rates have grown by 5.9%, meaning that properties getting booked are earning more than ever. Together, these trends are driving steady performance growth, with hosts earning $113 per room per night on average (RevPAR).

At just $238,962 for the average listing price, Springfield offers an affordable entry point for investors, paired with a revenue potential of $32,295 per year. Home to Abraham Lincoln’s historic landmarks and a bustling cultural scene, Springfield attracts a steady stream of visitors—making it a smart choice for investors looking to combine strong returns with a touch of history.

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What sets this market apart: RevPAR growth is being driven by strong traveler demand, which outpaces the rate at which new short-term rentals are entering the market.

Fort Wayne, Indiana, is making waves as one of the top markets for short-term rental investment, thanks to more and more travelers flocking to the area. Over the past year, occupancy rates have grown by an impressive 10%—the second-highest increase among all markets on our list. Translation? Guests are snapping up bookings, keeping calendars full and properties earning.

With an average property price of $281,246, Fort Wayne is an affordable option for investors looking to enter the short-term rental market without breaking the bank. The typical rental brings in $30,603 annually, giving you a gross yield of nearly 11%. That means your investment is poised to start paying off quickly, with strong cash flow potential.

While nightly rates (ADR) haven’t shifted much—up just 0.8%—the real growth story is RevPAR, which climbed by 10.8%. This indicates that more nights are being booked, even if prices haven’t moved significantly.

From its family-friendly attractions and thriving downtown to its reputation as a gateway to the Midwest, Fort Wayne strikes a winning balance of affordability, demand, and steady returns.

What sets this market apart: High yield potential paired with steady performance growth suggests that revenue potential will continue to rise in Wichita.

Wichita, Kansas, offers a steady and dependable opportunity for short-term rental investors. With an average property price of $294,573 and an annual revenue potential of $38,929, Wichita delivers a respectable gross yield of 13.2%, surpassing the national U.S. average of 8.8%. This means investors can expect strong cash flow, making it a solid option for those seeking rapid appreciation.

Occupancy rates have grown by 3.6% over the past year, reaching 56.3%. Coupled with an average daily rate (ADR) of $172.75, this has driven RevPAR (revenue per available room) up by 4.3%. The consistent growth in RevPAR, even with stable nightly rates, suggests that more nights are being booked—an encouraging indicator of steady demand.

With only 59 homes currently on the market, inventory is tight, which can limit competition for established hosts while maintaining property values. For investors looking for a market that balances affordability with reliable earnings, Wichita is a solid option.

What sets this market apart: With a strong baseline for revenue potential, improving performance suggests investor earnings could increase in the coming years.

Columbia, South Carolina, is rapidly making its mark as a short-term rental hotspot. Known for its college-town energy, rich history, and access to outdoor attractions like Lake Murray, the city offers plenty to draw visitors—and its performance metrics are catching the attention of savvy investors. 

While its current gross yield of 11.4% may not lead the pack, Columbia’s impressive year-over-year growth suggests it’s only a matter of time before returns climb even higher.

Occupancy rates have surged by 7.6%, reaching 57.4%. Paired with an average daily rate (ADR) of $248.43, this has driven RevPAR (revenue per available room) up by 8.6%. These numbers underscore Columbia’s growing demand and revenue potential, positioning it as a city on the rise.

With an average property price of $389,765, Columbia requires a slightly higher initial investment, but its average annual revenue of $44,372 makes it a compelling choice for those focused on long-term growth. 

For investors looking to blend steady returns with the cultural and recreational appeal of a dynamic Southern destination, Columbia is well worth a closer look.

What sets this market apart: Richmond’s solid performance across all growth metrics makes it a smart choice for investors who prioritize long-term profitability.

With an annual revenue potential of $44,104 and a gross yield of 10.9%, this mid-Atlantic city offers consistent returns for investors seeking a dependable addition to their portfolio. While the upfront investment—averaging $406,056—is moderate, the market’s stability enables both short-term rental success and longer-term property appreciation.

Occupancy rates have risen by 5% year-over-year, reaching 60.8%, well above the national average. Coupled with an ADR of $253.34, this has fueled a 5.6% increase in RevPAR, signaling that the market continues to thrive without relying on sharp pricing increases. It’s a sign of sustainable demand that ensures reliable earnings.

Regulations: Richmond has specific regulations that investors should keep in mind:

Short-term rentals in residential zoning districts must be located on the property owner’s primary residence lot, and only one rental is allowed per lot in these zones.

Occupancy is capped at eight adult renters per unit.

Double bookings—allowing more than one booking transaction at the same time—is prohibited. 

These rules ensure that Richmond’s short-term rental market remains balanced and sustainable. For more information, visit the City of Richmond website. 

What sets this market apart: Spartanburg is one of the fastest-expanding markets on our list, but demand has more than kept pace. RevPAR gains for hosts are steady. 

Spartanburg, South Carolina proves rapid growth doesn’t have to mean oversaturation. Despite an influx of new short-term rental properties, occupancy rates continue to rise at a rate of 10.2% year-over-year and currently sit at 58.1%. The result? Revenue per available room (RevPAR) climbed by 8.9%, showing the market’s resilience and ability to support increased supply.

At an average property price of $326,279, Spartanburg offers an affordable entry point for investors. The combination of listing growth and performance gains highlights a market with substantial upward potential.

Adding to its appeal, Spartanburg blends cultural and economic draws. Visitors flock to its historic downtown, picturesque trails, and thriving arts scene, while its strong manufacturing and education sectors drive business travel. For investors, Spartanburg offers a rare balance of accessibility, demand, and long-term growth potential.

What sets this market apart: Average for-sale listing prices are high, but so are the potential earnings and the likelihood that they’ll continue to grow from here.

St. Petersburg, Florida is great for investors ready to make a higher upfront commitment. With an average property price of $608,894, it’s one of the most expensive markets on the list. However, this premium price point is matched by impressive revenue potential, with properties generating an average of $57,517 annually. While the gross yield of 9.4% is relatively modest compared to other markets on this list, it’s still above the national U.S. average of 8.8%.

The city’s occupancy rates climbed by 5.6% year-over-year to 64.9%, coupled with a 5% increase in average daily rate (ADR) to $354.45. This strong pricing power contributed to a 10.9% surge in RevPAR, signaling that demand is not only steady but supports higher nightly rates—an ideal scenario for maximizing revenue.

St. Petersburg’s appeal as a destination enhances its investment potential. Known for its pristine waterfront, vibrant arts scene, and top-tier dining, the city attracts a mix of leisure and cultural travelers year-round. With nearly 2,500 homes on the market, it offers abundant opportunities for investors looking to capitalize on a thriving, luxury-driven market.

What sets this market apart: RevPAR growth is exceptionally high in Columbus, supported by both increased traveler demand and strong pricing power among hosts.

Columbus, Ohio, may not grab headlines like coastal markets, but its performance metrics are solid. With RevPAR soaring 14% year-over-year—the second highest growth on this list—it’s clear that demand in Ohio’s capital is heating up. This jump is fueled by a 9.3% rise in occupancy rates to 54.4% and a 4.3% increase in ADR, now sitting at $270.88. Columbus is proving it can deliver robust returns for investors ready to seize the opportunity.

At an average property price of $374,992, Columbus strikes a sweet spot for affordability, with an annual revenue potential of $39,021. The resulting gross yield of 10.4% puts it comfortably above the baseline for a solid investment, offering dependable cash flow paired with high growth potential. From its bustling downtown and renowned food scene to cultural draws like the Columbus Museum of Art, the city attracts travelers for both business and leisure. With over 2,100 homes currently for sale, Columbus combines growth, accessibility, and diversity—making it an unexpected gem for short-term rental investors.

Regulations: Columbus does have specific regulations for short-term rental hosts. Each property requires its own permit, so if you operate multiple units, a separate permit is needed for each. Additionally, short-term rentals can host a maximum of five guestrooms, with the total number of guests determined by square footage requirements per occupant. These rules ensure a fair and manageable market while protecting community standards. For more details, refer to the City of Columbus website.

What sets this market apart: The short-term rental inventory in Cleveland, Ohio has grown massively in the last year, with both new and existing hosts benefiting from increased pricing power. 

Cleveland, Ohio, might not always be top of mind, but it’s carving out a solid spot for short-term rental investors. The city is buzzing with Airbnb activity, and there’s plenty of success to go around. 

Hosts are seeing nightly rates climbing to $228.57—a 4.5% increase—pushing annual revenue potential to $33,667. Even with occupancy holding steady at 54.5%, RevPAR is up 4.4%, showing that Cleveland’s pricing power is strengthening.

With an average property price of $296,196, Cleveland is an accessible market for a wide range of investors, offering a balanced opportunity for returns with a gross yield of 11.4%. 

Beyond the numbers, the city’s attractions—like the Rock and Roll Hall of Fame, lively sports culture, and the shores of Lake Erie—make it a draw for travelers year-round.

What sets this market apart: Noteworthy RevPAR growth is making it an investment no-brainer for investors who can expect to earn upwards of $51,000 annually right out of the gate.

Tampa, Florida, is making waves in the short-term rental market with its vibrant growth and strong performance metrics. With a year-over-year RevPAR growth of 13.7%, Tampa is seeing its hosts thrive thanks to a significant 8.2% boost in occupancy rates—now at an impressive 62%—and a 5.1% increase in ADR, which have climbed to $283.72.

For investors, Tampa offers significant revenue potential, with properties averaging $553,165 in price and an annual revenue potential of $51,587. While the higher property prices result in a gross yield of 9.3%—slightly below other markets on the list—the consistent demand and rising ADR signal strong long-term potential. The market’s stability is also reflected in its modest listing growth of 3.7% over the past year, suggesting balanced supply and demand dynamics.

Tampa offers more than just impressive statistics. Its sunny Gulf Coast location, lively arts scene, and attractions such as Busch Gardens and the Tampa Riverwalk attract visitors throughout the year. Overall, Tampa is an excellent choice for investors seeking steady growth and year-round tourist appeal.

What sets this market apart: Greenville’s strength lies in its ability to attract consistent bookings, with RevPAR growth driven by growing traveler demand.

With nearly 5,000 homes for sale, Greenville, South Carolina, has the largest inventory of properties available among the top 25 markets, making it an ideal destination for investors seeking diverse options. This abundance is matched by steady performance growth, with occupancy rising 7.7% year-over-year to 60.7% and RevPAR climbing 7.8% to $125.41. ADR remains stable at $206.77.

At an average property price of $394,299, Greenville offers an annual revenue potential of $36,843, resulting in a gross yield of 9.3%. This balanced combination of strong demand, stable pricing, and abundant inventory provides investors with a rare opportunity to find properties that align with their specific goals.

Regulations: Investors should be aware of Greenville’s zoning restrictions for short-term rentals:

Rentals of less than 30 days require a permit and a license.

Short-term rentals must be located in non-residential zoning districts where "General Lodging" is allowed. 

These rules make it crucial for investors to carefully evaluate property locations before purchasing to make sure they're in compliance with local regulations. For more information, visit the City of Greenville’s website. 

What sets this market apart: The influx of new Airbnbs to Indianapolis benefit from growing nightly rates, which have supported nearly a 10% increase in RevPAR year-over-year. 

Indianapolis, Indiana is racing ahead as a top short-term rental market, with Airbnb listings surging 24.7% over the past year—a sign of growing interest and opportunity for investors. This rapid growth hasn’t slowed performance, as RevPAR climbed 9.5%, fueled by an impressive 8.4% rise in ADR to $253.09. While occupancy remains steady at 50.5%, the market’s ability to sustain rising prices underscores its resilience.

With an average property price of $336,719 and an annual revenue potential of $38,041, Indianapolis delivers a solid gross yield of 11.3%. The city’s manageable inventory of nearly 200 homes for sale ensures opportunities without oversaturation, offering investors a strong foundation for long-term returns.

Indianapolis, known for its legendary Indy 500, boasts a vibrant downtown brimming with museums, dining options, and sports venues, making it a year-round attraction for visitors. For anyone looking for a high-growth market that offers a balanced performance and cultural appeal, Indianapolis stands out as an excellent option.

What are the best Airbnb markets in 2025?

The Best Places to Invest 2025 list ranks the top 25 U.S. short-term rental markets using a data-driven methodology designed to identify strong investment opportunities. Rankings are based on three key factors: rental demand (occupancy rates and traveler interest), revenue growth (metrics like RevPAR and ADR), and investability (the relationship between for-sale home prices and their revenue potential). Each market on the list offers a strategic balance of growth potential, profitability, and traveler appeal, making them the best markets for Airbnb. 

How did you create the Best Places to Invest list?

The rankings are based on the proprietary BPTI Score, which measures three critical factors:

Rental demand: The frequency of bookings in each market.

Revenue growth: Metrics like RevPAR and ADR that track market performance.

Investability: Compares current home prices with revenue potential to determine return on investment (ROI).

This methododology focuses on identifying today’s most lucrative opportunities for investors, ensuring the rankings reflect both current trends and future potential.

How can I use the Best Places to Invest report?

Identify top-performing markets: Evaluate destinations with high growth, profitability, and demand.

Refine your investment strategy: Find markets tailored to your budget and investment goals.

Dive deeper into market specifics: Access detailed pages with performance data, active listings, and filters for features like bedroom count or amenities.

Yes. Even if your target market isn’t listed, the methodology provides a framework for evaluating other profitable markets that are more local to you. Compare metrics like occupancy, ADR, and RevPAR in your preferred area to assess its investment potential.

What should I do after reading this report?

Visit the market overview page for detailed insights and active listings.

Use AirDNA’s investing tools to analyze investment locations and our Airbnb Revenue calculator to assess individual properties.

Check out our blog for expert advice on financing, investment strategies, and maximizing short-term rental performance.

For a complete overview of the Best Airbnb Markets 2025, explore the full report and start planning your next investment. 

This step-by-step guide demystifies short-term rental financing and arms you with the tips and tricks you need to confidently invest in a new Airbnb property.

Explore what properties earn the most and how to choose the right one based on your market, budget, and goals.

Find the perfect real estate agent for short-term rental investments. Learn essential tips to secure high-return properties with expert guidance.

We have the information you need for every step of your investing journey.

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Investing in short-term rentals can be lucrative — as long as you’re in the right location. Here's how to find the best place to invest in vacation rental property.

Best Places to Invest in Vacation Rental Property | AirDNA

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Best Places to Invest
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