This article ranks the 10 best hidden gem Airbnb locations based on yield, highlighting lesser-known markets with rising revenue and strong investment potential.

Best Hidden Gem Airbnb Locations in the U.S.

Hidden gems are defined by 400 to 1,000 listings, at least 10% yield, and positive growth in RevPAR and listings.

With under 25% of properties professionally managed, these areas indicate room for growth and investor advantage.

Hidden gem airbnb markets can be found across the United States, signaling opportunity for investors regardless of their home base. 

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.

What about hidden gems? Hidden gem Airbnb locations are the lesser-known locations that are more affordable, less competitive, and still plenty profitable for vacation rental investors.

We tapped into our database of over 10 million Airbnb and Vrbo properties to determine which small markets (between 400 - 1000 listings) offer the best yield for investors. 

Check out the list below—do any of these hidden gem Airbnb locations surprise you?

The Best Hidden Gem Airbnb Locations for Airbnb Investors

Here are the top 10 short-term rental submarkets ranked by yield, giving you a glimpse into the best under-the-radar opportunities for Airbnb investments this year.

Peoria is a Midwest city—the largest city on the Illinois River—that has quietly become a hotspot for Airbnb investments. 

With home values significantly lower than the national average, Peoria offers a highly affordable entry point for investors. The city's stable STR occupancy rate of 56% illustrates consistent demand, with families and business travelers seeking short-term rentals close to Peoria’s bustling downtown area and its array of parks and nature preserves. Peoria stands out with an impressive yield of 23%, making it a worthwhile choice for Airbnb investments.

Located in the heart of Wisconsin, Castle Rock Lake is the fourth largest lake in the state and offers serene lakeside living. The combination of scenic views and water activities makes this area attractive to families and nature lovers seeking weekend retreats. 

Despite its rural charm, Castle Rock Lake offers some of the highest nightly rates among these hidden gems, with an ADR of $412. Its rising average revenue of over $55,000 per year is a testament to the area's growing popularity.

Shreveport is a cultural gem nestled along the Red River in northern Louisiana. Known for its vibrant music scene, riverboat casinos, and historical landmarks, the city attracts a wide variety of tourists. 

Shreveport’s relatively low home prices make it an affordable option for real estate investors, while its proximity to attractions like the Louisiana Boardwalk, local museums, and natural parks draws in steady visitor traffic. Shreveport's 17% yield and consistent 55% occupancy rate signals a reliable demand from both tourists and business travelers.

Binghamton, known as the "Carousel Capital of the World," is attracting visitors with its charming blend of history, culture, and natural beauty. Between Binghamton University, beautiful parks, and the Roberson Museum and Science Center, guests have plenty to explore.

With an affordable average home value of $173,635 and a solid yield of 17%, Binghamton gives investors a unique opportunity to tap into a growing market. Its occupancy rate of 49% signals steady demand from both leisure travelers and families visiting the area.

Harrisburg, the capital of Pennsylvania, sits at the intersection of business and tourism. It offers a mix of attractions like the Pennsylvania State Capitol and the National Civil War Museum. Just a short drive away is Hershey, "The Sweetest Place on Earth," home to Hersheypark, a popular amusement park and tourist destination. 

Together, these cities draw a diverse range of visitors, from government employees and business travelers to families on vacation. With an average daily rate of $293 and a steady stream of bookings year-round, the Harrisburg/Hershey market is appealing to investors seeking to balance housing affordability with high nightly rates. 

Lansing, the capital of Michigan, and its neighboring city East Lansing, home to Michigan State University, offer a vibrant mix of government, education, and culture. 

With a strong collegiate presence, East Lansing attracts a constant flow of visitors attending university events, sports games, and conferences. Lansing, with its Capitol building and museums, draws in both business and leisure travelers. 

The area’s affordable home prices combined with its consistent demand for short-term rentals make it a solid choice for investors. With a 59% occupancy rate, properties here generate reliable returns throughout the year, particularly during the school calendar and legislative sessions.

Toledo, a city steeped in industrial heritage, is emerging as a hidden gem for short-term rental investors. With its average home value at $179,805, Toledo offers a budget-friendly entry into the market.

The city's attractions, such as the Toledo Museum of Art, the beautiful waterfront along the Maumee River, and the popular Toledo Zoo, draw visitors throughout the year. With a 53% occupancy rate and a yield of 14.1%, Toledo presents a solid opportunity for those looking to invest in a market with consistent demand and cultural richness.

Nestled at the confluence of the Potomac and Shenandoah Rivers, Harpers Ferry is rich in both natural beauty and historical significance. Known for its role in the Civil War and as the site of John Brown’s raid, the town is a major draw for history buffs and outdoor adventurers alike. Visitors come to hike the Appalachian Trail, explore Harpers Ferry National Historical Park, or simply enjoy the area's picturesque landscapes. 

Harpers Ferry’s historic charm and outdoor appeal ensure a steady flow of tourists, reflected in the market’s 54% occupancy rate and average annual revenue of $50,025.

Located along the shores of Lake Erie, Port Clinton is often referred to as the "Walleye Capital of the World." It's a go-to destination for fishing enthusiasts, boaters, and beachgoers looking to relax along Ohio’s northern coast. Visitors flock to Port Clinton for its easy access to islands like Put-in-Bay and Kelleys Island, as well as its picturesque lighthouse and waterfront dining options. 

The area’s booming summertime tourism is reflected in the high ADR of $358, particularly during the warmer months when demand for lakeside rentals skyrockets. The potential for vacation rental revenue in Port Clinton is clear, with properties generating over $54,000 annually in this hidden gem market.

Juneau, the capital of Alaska, offers unparalleled access to the state’s natural wonders, from glaciers to wildlife. It’s a gateway for cruise ships and adventurers seeking to explore the rugged Alaskan wilderness. Tourists are drawn to Juneau for outdoor activities like whale watching, glacier tours, and hiking, resulting in a strong 65% occupancy rate. 

With a high ADR of $334, properties in Juneau yield significant returns, especially during the busy summer months when tourism is at its peak. This remote yet thriving market is ideal for investors looking to capitalize on Alaska’s growing appeal as a travel destination.

The top 10 hidden gem Airbnb locations that we shared above aren’t the only destinations ripe for short-term rental investment. 

The additional markets outlined below, ranked 11-20, earn hosts anywhere from $26,298 (Warner Robins, Georgia) to $82,430 (Smith Mountain Lake, Virginia). 

Other locations have seen a rapid increase in Airbnb supply, with growth spiking between 6.5% (Grand Junction, Colorado) to over 40% (Stillwater, Oklahoma).

Our Criteria for Hidden Gem Airbnb Locations

For this list, we defined Airbnb hidden gems as cities or submarkets that aren't already in a defined rental market. All of the markets that we feature are in undefined state areas.

Positive year-over-year (YoY) growth in revenue per available night (RevPAR).

Less than 25% of properties that are professionally managed.

A yield of at least 5%, with all hidden gems on this list offering a yield over 10%.

Few or no restrictive short-term rental regulations.

When you see more professionally managed properties in a vacation rental area, that usually indicates that the market is more established and has had time for professional managers to make a presence there. We zeroed in on up-and-coming submarkets by excluding areas where more than a quarter of properties are professionally managed. 

We avoided markets that are banning STRs or considering stringent regulations that would severely impact the success of new short term rentals. However, some of these submarkets do have zoning, licensing, or permitting requirements as well as laws that enforce safety and occupancy standards. It’s important for investors to do their research before buying a vacation rental property.

Average monthly listings, listing growth, and percent of properties that are professionally managed are for all listings in the submarket. The annual ADR, occupancy, RevPAR, revenue potential, average home value, and yield values are only for single family homes that are full time properties.

Hidden Gem Airbnb Locations with the Most Growth

While established rental markets remain strong, many lesser-known locations are seeing rapid growth in listings. 

The rankings for hidden gem Airbnb locations change if you swap yield for listing growth. Hidden gem markets with the largest growth in Airbnb listings indicate increased traveler interest and investment potential for hosts:

The airbnb hidden gem markets highlighted in this article might not be hidden gems for long. The growth in Airbnb listings in each of these locations reflects a growing awareness of revenue potential among savvy investors.

With affordable home values, solid occupancy rates, and promising yields, cities like Peoria, Illinois; Toledo, Ohio; and Binghamton, New York stand out as ideal locations. Don't risk missing out on the opportunity to capitalize on rising demand before these Airbnb hidden gems become saturated. Explore our guide on how to finance your vacation rental to get the ball rolling on your investment today.

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Best Hidden Gem Airbnb Locations in the U.S.

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