Explore 18 up-and-coming vacation rental markets across the U.S. and Canada, offering unique attractions and promising returns for savvy investors.

18 Up-and-Coming Vacation Rental Markets in the U.S. and Canada

Emerging vacation rental markets span a wide array of unique destinations in the U.S. and Canada.

These areas show promising trends in listing and occupancy growth, coupled with high yields, marking them as profitable STR investment opportunities.

Local attractions, whether natural wonders or cultural events, drive the demand for short-term rentals.

Opportunities in the vacation rental market often feel very “blink and you’ll miss it.” Investors have started to seek out up-and-coming vacation rental markets: those as-yet-unsaturated markets with promising upward trends in the metrics that matter. 

What are those metrics, you ask? According to AirDNA data, the emerging short-term rental (STR) markets are those with: 

Listing Growth: All markets on our list have demonstrated an increase in the average number of listings over the past year.

Occupancy Growth: The occupancy rates in each market have also trended upward, suggesting a growing demand for STRs in these areas. 

High Yields: Investors in these markets have also seen high yields — money earned on their investment — indicating there’s revenue to go around. 

From the scenic landscapes of California to the cultural hubs of Alberta, these are the 18 emerging vacation rental markets offering promising investment opportunities right now. Want to see even more markets? Check out our Best Places to Invest report.

Gain insights into the revenue and occupancy trends in your market.

13 Up-and-Coming Vacation Rental Markets in the U.S. 

Roswell, New Mexico, a city steeped in intrigue and mystery, beckons visitors with its captivating UFO history and rich local culture. Beyond its extraterrestrial allure, Roswell presents promising opportunities for vacation rental properties. With abundant short-term rental potential, investors can capitalize on the city's unique appeal to tourists and enthusiasts alike. Roswell’s market data shows that occupancy has increased by 7% this year, suggesting a growing demand for short-term rentals. Yet, home values remain modest, inviting investors to capitalize on the city's UFO-themed festivals or tap into its vibrant local culture to boost bookings. 

Explore the rustic charm of Oakhurst, California, a quaint town near the gateway to Yosemite National Park. Tourists have flocked to this picturesque area for outdoor adventures and natural beauty. Vacation rental investors are right on their heels, attracted by the enticing revenue opportunities. Home values in the area are still reasonable for California, especially given the high annual revenue payoff. The booming vacation rental market in Oakhurst offers a diverse range of vacation houses, from cozy cabins to spacious retreats. Listings cater to travelers' preferences for a memorable stay amidst stunning surroundings.

Nestled at the northern gateway of Yellowstone National Park, Gardiner attracts outdoor enthusiasts both for its stunning landscapes and its convenient location. Despite its high home value, Gardiner offers one of the highest annual revenues among the vacation rental markets on our list. Occupancy rates have increased 38% since last year, suggesting there’s demand aplenty for investors new to the area. Investors keen on capitalizing on this growth can tap into Gardiner's thriving tourism industry to achieve favorable cap rates and lucrative short-term rental investments in Montana's scenic wilderness.

Tucked into the captivating landscapes near Carlsbad Caverns National Park you’ll find quaint Carlsbad, New Mexico. This up-and-coming vacation rental market is a promising opportunity for those seeking profitable investment properties in a destination renowned for its outdoor activities and scenic beauty. With its abundance of natural attractions, Carlsbad beckons both adventure seekers and short-term rental investors alike. The area promises a blend of exploration and financial success in the heart of enchanting New Mexico.

Baraboo may not be on your vacation bucket list, but our data shows it should make your STR investment short-list. Despite its modest home values, Baraboo boasts the highest median rental revenue on our list, presenting an unparalleled opportunity for investors. Located near scenic Devil’s Lake State Park, Baraboo has a rich history, family-friendly attractions like the Circus World Museum, and thriving vacation rental market trends. It attracts visitors seeking outdoor adventures, cultural experiences, and a glimpse into the past. This blend of affordability and high revenue potential makes Baraboo an irresistible destination for real estate investors looking to capitalize on the growing demand for vacation rentals.

Ahwahnee, California, is a serene town beloved for its breathtaking landscapes and abundant outdoor activities. As a haven for outdoor enthusiasts, Ahwahnee presents an enticing opportunity for vacation rental owners to capitalize on the growing demand for short-term rentals. With favorable home prices and a thriving market for outdoor adventures in Sierra National Forest or Yosemite National Park, Ahwahnee beckons investors seeking to establish a foothold in one of California's most picturesque destinations.

Fresno, California, is unique as they come, with rich culture, diverse attractions, national parks, and historic landmarks all within reach. From exploring the breathtaking landscapes of Yosemite and Sequoia National Parks to discovering the fascinating history of Kearney Mansion Museum, Fresno offers a plethora of experiences for visitors. Its short-term rental market is equally attractive, with affordable home values and respectable annual revenue. Investors will also appreciate the 8% increase in occupancy, driven by the city's favorable market average and convenient access to outdoor adventures and coastal escapes.

Explore the dynamic city of North Las Vegas, Nevada, celebrated for its vibrant entertainment scene and abundant outdoor recreation opportunities. From the excitement of the Las Vegas Motor Speedway to the tranquility of nearby natural wonders, North Las Vegas offers diverse experiences for visitors. Investors should take notice of its appeal, as it boasts some of the highest revenues and ADRs among all markets on our list. The modest home value presents a lower barrier to entry than Las Vegas proper. 

Consider taking your investment journey to Keystone, South Dakota, the gateway to the iconic Mount Rushmore and the majestic Black Hills. This historic destination not only offers breathtaking natural beauty but also presents reasonable home values and attractive annual revenue. Investors are drawn to Keystone for its promising cap rates and the allure of its proximity to renowned historic sites. As travelers flock to explore the rich cultural heritage and scenic wonders of the region, vacation rental properties in Keystone stand poised for success in the thriving short-term rental market.

Nestled near the majestic Wallowa Mountains and the serene Wallowa Lake, Joseph, Oregon, beckons with its stunning natural beauty and outdoor-centric community. As a prime destination for nature lovers and outdoor enthusiasts, Joseph offers promising opportunities in the vacation rental market.With AirDNA market data indicating a favorable landscape for investment, Joseph presents an idyllic setting for those seeking to capitalize on the allure of Oregon's wilderness.

Virginia Beach, Virginia, attracts visitors with its pristine coastline, vibrant boardwalk, and an array of family-friendly attractions. As a popular vacation destination, Virginia Beach offers a diverse range of activities, from relaxing beach days to water sports and outdoor adventures. The variety of options drive steady demand for short-term accommodations. Our market data indicates Virginia Beach has the highest ADR on our list, though that’s countered by a higher average home value. Investors keen on coastal properties and lucrative rental incomes should take note of Virginia Beach's thriving vacation rental market and its potential for profitable returns.

Revere, Massachusetts, offers a blend of coastal charm and urban convenience, nestled along the scenic coastline near Boston. Its proximity to historic landmarks, cultural attractions, and beaches makes it a sought-after vacation destination. Despite its high home values, Revere remains appealing because it’s less seasonal than other up-and-coming vacation rental markets. This is a boon to investors seeking year-round rental income. Market data underscores Revere's emergence as a winning vacation rental market, with increasing demand reflected in median listing prices. 

Palm Beach, Florida, which AirDNA breaks out from the West Palm Beach STR market, is renowned for its pristine beaches and upscale lifestyle. Though occupancy rates here haven’t increased as much as other markets on our list, this stability offers reassurance to investors seeking consistent returns. Palm Beach boasts equally high home values and revenue, indicating a higher barrier to entry but a promising pay-off. With its allure as a premier vacation destination and affluent clientele, Palm Beach presents a considerable opportunity for investors looking for stability and substantial returns in the vacation rental market.

5 Up-and-Coming Vacation Rental Markets in Canada

Nestled in the heart of Alberta, Calgary beckons with its vibrant cultural scene and a plethora of outdoor activities. This dynamic Canadian city is not only a tourist hotspot but also a burgeoning vacation rental market. Investors keen on short-term rental properties will find ample opportunities in Calgary, supported by robust market data showcasing the city's upward trajectory in the hospitality sector.

Situated along the picturesque Detroit River near the U.S. border, Windsor, Ontario, exudes historic charm and cultural richness. The city has recently experienced a surge in tourism, particularly in its vibrant downtown area. Investors are eyeing Windsor's vacation rental market with keen interest as a result. With a favorable median rental revenue and a growing demand for short-term rental properties, Windsor emerges as one of the top up-and-coming vacation rental markets in Canada.

Known for its coastal scenery and outdoor activities, Campbell River, British Columbia, is a goldmine for travelers seeking adventure and tranquility alike. The allure of this picturesque Canadian destination extends beyond its natural beauty. Investors are drawn to the burgeoning vacation rental market characterized by a favorable cap rate and growing demand for short-term rental properties.

Fairview, Vancouver, emerges as a vibrant destination in the short-term rental market. It offers a unique blend of natural beauty and urban sophistication, with picturesque streets lined with heritage homes and trendy boutiques. This bustling neighborhood is renowned for its diverse culinary scene, cultural attractions, and proximity to downtown Vancouver. With its blend of modern amenities and scenic beauty, Fairview presents an exciting opportunity for vacation rental investors looking to tap into Vancouver's thriving tourism scene.

Immerse yourself in the rich cultural tapestry of Regina, Saskatchewan, renowned for attractions such as the Royal Saskatchewan Museum, the Saskatchewan Science Centre, and the Regina Symphony Orchestra. With diverse family-friendly attractions and cultural offerings, Regina presents enticing opportunities for real estate investors seeking to capitalize on the growing demand for this vibrant Canadian city. Median annual revenue figures reflect promising returns for smart investors looking to tap into Regina's up-and-coming hospitality scene.

From the natural wonders of Oakhurst, California, to the cultural richness of Regina, Saskatchewan, each destination boasts unique attractions and investment potential. It’s important to note, though, that the metrics in this guide are just that: potential. 

Savvy investors know that the “right” market comes down to a blend of factors unique to you, from the properties you can afford to the areas you’re most attracted to. Our guides are a great place to start, but don’t be afraid to make your own. Get all our tips for short-term rental market analysis to find ideal up-and-coming vacation rental markets for you. 

Find the next big thing in STRs with our guide to 18 hidden gems in North America—perfect for investors ready to lead the pack and cash in on emerging markets.

Key Takeaways:
Emerging vacation rental markets span a wide array of unique destinations in the U.S. and Canada.
These areas show promising trends in listing and occupancy growth, coupled with high yields, marking them as profitable STR investment opportunities.
Local attractions, whether natural wonders or cultural events, drive the demand for short-term rentals.

Opportunities in the vacation rental market often feel very “blink and you’ll miss it.” Investors have started to seek out up-and-coming vacation rental markets: those as-yet-unsaturated markets with promising upward trends in the metrics that matter. 

What are those metrics, you ask? According to AirDNA data, the emerging short-term rental (STR) markets are those with: 

Listing Growth: All markets on our list have demonstrated an increase in the average number of listings over the past year.
Occupancy Growth: The occupancy rates in each market have also trended upward, suggesting a growing demand for STRs in these areas. 
High Yields: Investors in these markets have also seen high yields — money earned on their investment — indicating there’s revenue to go around. 

From the scenic landscapes of California to the cultural hubs of Alberta, these are the 18 emerging vacation rental markets offering promising investment opportunities right now. Want to see even more markets? Check out our Best Places to Invest report.

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13 Up-and-Coming Vacation Rental Markets in the U.S. 
1. Roswell, New Mexico

Average Home Value: $182K
Occupancy: 62%
Average Daily Rate: $167
Annual Revenue: $39K

Roswell, New Mexico, a city steeped in intrigue and mystery, beckons visitors with its captivating UFO history and rich local culture. Beyond its extraterrestrial allure, Roswell presents promising opportunities for vacation rental properties. With abundant short-term rental potential, investors can capitalize on the city's unique appeal to tourists and enthusiasts alike. Roswell’s market data shows that occupancy has increased by 7% this year, suggesting a growing demand for short-term rentals. Yet, home values remain modest, inviting investors to capitalize on the city's UFO-themed festivals or tap into its vibrant local culture to boost bookings. 

Explore Roswell

2. Oakhurst, California

Average Home Value: $439K
Occupancy: 57%
Average Daily Rate: $332
Annual Revenue: $62K

Explore the rustic charm of Oakhurst, California, a quaint town near the gateway to Yosemite National Park. Tourists have flocked to this picturesque area for outdoor adventures and natural beauty. Vacation rental investors are right on their heels, attracted by the enticing revenue opportunities. Home values in the area are still reasonable for California, especially given the high annual revenue payoff. The booming vacation rental market in Oakhurst offers a diverse range of vacation houses, from cozy cabins to spacious retreats. Listings cater to travelers' preferences for a memorable stay amidst stunning surroundings.

Explore Oakhurst

3. Gardiner, Montana

Average Home Value: $653K
Occupancy: 62%
Average Daily Rate: $347
Annual Revenue: $66K

Nestled at the northern gateway of Yellowstone National Park, Gardiner attracts outdoor enthusiasts both for its stunning landscapes and its convenient location. Despite its high home value, Gardiner offers one of the highest annual revenues among the vacation rental markets on our list. Occupancy rates have increased 38% since last year, suggesting there’s demand aplenty for investors new to the area. Investors keen on capitalizing on this growth can tap into Gardiner's thriving tourism industry to achieve favorable cap rates and lucrative short-term rental investments in Montana's scenic wilderness.

Explore Gardiner

4. Carlsbad, New Mexico

Average Home Value: $227K
Occupancy: 66%
Average Daily Rate: $147
Annual Revenue: $31K

Tucked into the captivating landscapes near Carlsbad Caverns National Park you’ll find quaint Carlsbad, New Mexico. This up-and-coming vacation rental market is a promising opportunity for those seeking profitable investment properties in a destination renowned for its outdoor activities and scenic beauty. With its abundance of natural attractions, Carlsbad beckons both adventure seekers and short-term rental investors alike. The area promises a blend of exploration and financial success in the heart of enchanting New Mexico.

7. Fresno, California

Average Home Value: $342K
Occupancy: 58%
Average Daily Rate: $182
Annual Revenue: $34K

Fresno, California, is unique as they come, with rich culture, diverse attractions, national parks, and historic landmarks all within reach. From exploring the breathtaking landscapes of Yosemite and Sequoia National Parks to discovering the fascinating history of Kearney Mansion Museum, Fresno offers a plethora of experiences for visitors. Its short-term rental market is equally attractive, with affordable home values and respectable annual revenue. Investors will also appreciate the 8% increase in occupancy, driven by the city's favorable market average and convenient access to outdoor adventures and coastal escapes.

Explore Fresno

8. North Las Vegas, Nevada

Average Home Value: $380K
Occupancy: 61%
Average Daily Rate: $298
Annual Revenue: $58K

Explore the dynamic city of North Las Vegas, Nevada, celebrated for its vibrant entertainment scene and abundant outdoor recreation opportunities. From the excitement of the Las Vegas Motor Speedway to the tranquility of nearby natural wonders, North Las Vegas offers diverse experiences for visitors. Investors should take notice of its appeal, as it boasts some of the highest revenues and ADRs among all markets on our list. The modest home value presents a lower barrier to entry than Las Vegas proper. 

Explore North Las Vegas

9. Keystone, South Dakota

Average Home Value: $418K
Occupancy: 69%
Average Daily Rate: $248
Annual Revenue: $45K

Consider taking your investment journey to Keystone, South Dakota, the gateway to the iconic Mount Rushmore and the majestic Black Hills. This historic destination not only offers breathtaking natural beauty but also presents reasonable home values and attractive annual revenue. Investors are drawn to Keystone for its promising cap rates and the allure of its proximity to renowned historic sites. As travelers flock to explore the rich cultural heritage and scenic wonders of the region, vacation rental properties in Keystone stand poised for success in the thriving short-term rental market.

Explore Keystone

10. Joseph, Oregon

Average Home Value: $435K
Occupancy: 63%
Average Daily Rate: $259
Annual Revenue: $47K

Nestled near the majestic Wallowa Mountains and the serene Wallowa Lake, Joseph, Oregon, beckons with its stunning natural beauty and outdoor-centric community. As a prime destination for nature lovers and outdoor enthusiasts, Joseph offers promising opportunities in the vacation rental market.With AirDNA market data indicating a favorable landscape for investment, Joseph presents an idyllic setting for those seeking to capitalize on the allure of Oregon's wilderness.

Explore Joseph

11. Virginia Beach, Virginia

Average Home Value: $453K
Occupancy: 60%
Average Daily Rate: $401
Annual Revenue: $63K

Virginia Beach, Virginia, attracts visitors with its pristine coastline, vibrant boardwalk, and an array of family-friendly attractions. As a popular vacation destination, Virginia Beach offers a diverse range of activities, from relaxing beach days to water sports and outdoor adventures. The variety of options drive steady demand for short-term accommodations. Our market data indicates Virginia Beach has the highest ADR on our list, though that’s countered by a higher average home value. Investors keen on coastal properties and lucrative rental incomes should take note of Virginia Beach's thriving vacation rental market and its potential for profitable returns.

Explore Virginia Beach

12. Revere, Massachusetts

Average Home Value: $470K
Occupancy: 68%
Average Daily Rate: $243
Annual Revenue: $44K

Revere, Massachusetts, offers a blend of coastal charm and urban convenience, nestled along the scenic coastline near Boston. Its proximity to historic landmarks, cultural attractions, and beaches makes it a sought-after vacation destination. Despite its high home values, Revere remains appealing because it’s less seasonal than other up-and-coming vacation rental markets. This is a boon to investors seeking year-round rental income. Market data underscores Revere's emergence as a winning vacation rental market, with increasing demand reflected in median listing prices. 

Explore Revere

13. Palm Beach, Florida

Average Home Value: $796K
Occupancy: 62%
Average Daily Rate: $382
Annual Revenue: $74K

Palm Beach, Florida, which AirDNA breaks out from the West Palm Beach STR market, is renowned for its pristine beaches and upscale lifestyle. Though occupancy rates here haven’t increased as much as other markets on our list, this stability offers reassurance to investors seeking consistent returns. Palm Beach boasts equally high home values and revenue, indicating a higher barrier to entry but a promising pay-off. With its allure as a premier vacation destination and affluent clientele, Palm Beach presents a considerable opportunity for investors looking for stability and substantial returns in the vacation rental market.

Explore Palm Beach

5 Up-and-Coming Vacation Rental Markets in Canada
1. Calgary, Alberta

Occupancy: 58%
Average Daily Rate: $113
Annual Revenue: $19K

Nestled in the heart of Alberta, Calgary beckons with its vibrant cultural scene and a plethora of outdoor activities. This dynamic Canadian city is not only a tourist hotspot but also a burgeoning vacation rental market. Investors keen on short-term rental properties will find ample opportunities in Calgary, supported by robust market data showcasing the city's upward trajectory in the hospitality sector.

Explore Calgary

2. Windsor, Ontario

Occupancy: 53%
Average Daily Rate: $110
Annual Revenue: $19K

Situated along the picturesque Detroit River near the U.S. border, Windsor, Ontario, exudes historic charm and cultural richness. The city has recently experienced a surge in tourism, particularly in its vibrant downtown area. Investors are eyeing Windsor's vacation rental market with keen interest as a result. With a favorable median rental revenue and a growing demand for short-term rental properties, Windsor emerges as one of the top up-and-coming vacation rental markets in Canada.

Explore Windsor

3. Campbell River, British Columbia

Occupancy: 63%
Average Daily Rate: $153
Annual Revenue: $27K

Known for its coastal scenery and outdoor activities, Campbell River, British Columbia, is a goldmine for travelers seeking adventure and tranquility alike. The allure of this picturesque Canadian destination extends beyond its natural beauty. Investors are drawn to the burgeoning vacation rental market characterized by a favorable cap rate and growing demand for short-term rental properties.

Explore Campbell River

4. Fairview, Vancouver

Occupancy: 74%
Average Daily Rate: $187
Annual Revenue: $30K

Fairview, Vancouver, emerges as a vibrant destination in the short-term rental market. It offers a unique blend of natural beauty and urban sophistication, with picturesque streets lined with heritage homes and trendy boutiques. This bustling neighborhood is renowned for its diverse culinary scene, cultural attractions, and proximity to downtown Vancouver. With its blend of modern amenities and scenic beauty, Fairview presents an exciting opportunity for vacation rental investors looking to tap into Vancouver's thriving tourism scene.

Explore Fairview

5. Regina, Saskatchewan

Occupancy: 59%
Average Daily Rate: $57
Annual Revenue: $19K

Immerse yourself in the rich cultural tapestry of Regina, Saskatchewan, renowned for attractions such as the Royal Saskatchewan Museum, the Saskatchewan Science Centre, and the Regina Symphony Orchestra. With diverse family-friendly attractions and cultural offerings, Regina presents enticing opportunities for real estate investors seeking to capitalize on the growing demand for this vibrant Canadian city. Median annual revenue figures reflect promising returns for smart investors looking to tap into Regina's up-and-coming hospitality scene.

Explore Regina

Learn How to Find Your Own Top Markets

From the natural wonders of Oakhurst, California, to the cultural richness of Regina, Saskatchewan, each destination boasts unique attractions and investment potential. It’s important to note, though, that the metrics in this guide are just that: potential. 

Savvy investors know that the “right” market comes down to a blend of factors unique to you, from the properties you can afford to the areas you’re most attracted to. Our guides are a great place to start, but don’t be afraid to make your own. Get all our tips for short-term rental market analysis to find ideal up-and-coming vacation rental markets for you. 

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