You don’t need to be a real estate guru to guess which American cities are most popular for Airbnb investments. But what about the hidden gems? Lesser-known locations where investors can still yield strong profits? Well, you’re in luck because we’ve ranked the top 25.

Ranked by AirDNA: Best Hidden Gem Airbnb Locations

You don’t need to be a real estate guru to guess which American cities are hottest for Airbnb investments—Phoenix, Nashville, Denver, Tampa, and so on.

But what about hidden gems? The lesser-known locations that are more affordable, less competitive, and still plenty profitable for vacation rental investors?


AirDNA exists to answer questions exactly like this one. And to help you make smart, revenue-driven decisions at every turn of your rentalpreneur journey.

So, we tapped into our database of 10 million Airbnb and Vrbo properties to determine which small markets (between 100 and 500 high-quality listings) offer the best yield for investors. And it turns out that coastal and Midwestern towns are ripe with overlooked opportunities.

Start perusing the list below, or create a unique ranking of your own with AirDNA’s Property Performance Dashboard. (This free demo will help you get started!)

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Methodology: For this list, we filtered for markets with at least 100 listings but fewer than 500. Markets meet these criteria: less than 50% professional hosts; at least 85% of listings still available from 2022; positive booking growth from 2022; and no strictly regulated markets. Properties also meet the following criteria: 4.5 guest rating; at least 10 reviews; entire home; 1 to 5 bedrooms; and no luxury or budget listings.

The best small cities for Airbnb investors

Niagara Falls is the only city on our list to offer a yield of over 30%. No, not the one in Ontario, Canada, but the one just across the Niagara River in New York State.

Niagara Falls, New York, is less populated and typically less crowded than its Canadian sister city. However, it still offers a virtually identical experience: gorgeous vistas of North America’s most powerful waterfall (Horseshoe Falls), along with passport-free access to Niagara Falls State Park, Cave of the Winds, and Maid of the Mist boat tours. 

Plus, it’s just 40 miles from Toronto and 20 miles from Buffalo. That means this region is home to nearly 3.5 million people—all of whom are just a short drive from a weekend getaway. Not to mention, the falls attract approximately 12 million tourists from around the world every year.

You’ll notice water is a big theme on the list, because Geneva, Ohio, is a close second to Niagara Falls with a 29.1% yield. This small city is 40 miles northeast of Cleveland and only minutes south of the banks of Lake Erie, where you’ll find Geneva State Park and resort town Geneva-on-the-Lake.

Mississippi’s Biloxi (26.4%) and Gulfport (25.4%) are next up on the list, both located just miles apart on the Gulf of Mexico's shoreline.


And rounding out the top five is Wisconsin Dells, Wisconsin (24.5%). Even though this blossoming tourism destination appears landlocked, it takes its name from the rocky valleys of the nearby Wisconsin River and is also home to a handful of water parks.

Waco, Texas, a growing city located halfway between Austin and Dallas (24%)

State College, Pennsylvania, one of America’s quintessential college towns and home of Penn State University (22.8%)

Captain Cook, Hawaii, a small coffee-growing town situated on the west side of the Big Island (21.5%)

Ellsworth, Maine, a coastal town located just 15 miles outside Acadia National Park (20.9%)

Fairbanks, Alaska, the largest city in this sparsely populated state’s Interior region (20%)

Ranked #2_ Hidden Gems_ Locations with the most untapped potential - Final for blog (1).csv

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Airbnb locations with the fewest professional hosts

Pay attention to locations with the lowest percentage of professional hosts, if you want an even better chance of making a big splash and becoming one of the top-performing hosts in your market. Less than 4% of all operators in these cities are professional, making them ideal landing spots for casual hosts and investors.

RevPAR means revenue per available rental and is calculated by dividing a property’s annual revenue by the number of nights it was available for booking. In short, it’s what shows up on your bank account each month. And these locations are where that revenue growth is strongest.

Airbnb locations with the most listing growth

Supply growth provides an instant snapshot of which locations are up-and-coming. If a city is seeing a 30% or even 40% jump in listings year to year, that’s a sign its tourism scene is booming—and you might be able to make an investment before prices skyrocket.

Alternatively, if a location shows strong RevPAR growth, few professional hosts, and very little supply change from last year, you might have stumbled on a true hidden gem. 

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Ranked by AirDNA: Best Hidden Gem Airbnb Locations

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