Top Airbnb Markets in Delaware

Delaware might be one of the nation’s smaller states, but its strategic location between major East Coast metros and its mix of beaches, history, and business travel make it a compelling place for short-term rental (STR) investments. Whether you’re eyeing affordable entry points or steady year-round demand, these are the two highest-ranking Airbnb markets in the First State according to AirDNA’s proprietary data.

What Is AirDNA’s Market Score?

Market Score is a proprietary metric that ranks how attractive a location is for short-term rental investment. Each score is calculated based on the following five metrics:

• Investability
• Rental Demand
• Revenue Growth
• Seasonality
• Regulation

Scores range from 0 to 100, with higher scores indicating stronger overall market health. In addition to an overall Market Score, each of the five metrics gets its own score on the same scale within the AirDNA app. This level of granularity is useful for Airbnb stakeholders interested in a particular aspect of market behavior.

Understanding Markets vs. Submarkets

This list focuses on two submarkets in Delaware, which are defined as:

• Markets refer to well-defined, often larger geographic areas like cities or metro regions.
• Submarkets are more granular locations, such as smaller towns, neighborhoods, or coastal communities within those larger regions.

By drilling down to the submarket level, investors can spot opportunities that may be overlooked when focusing solely on big-picture data. A state with modest overall metrics can contain submarkets with strong potential returns.

Airbnb Market Overview in Delaware

Delaware’s STR landscape is influenced by its proximity to Philadelphia, Baltimore, and Washington, D.C., as well as its own attractions—including historic towns, tax-free shopping, and Atlantic beaches. While beach towns like Rehoboth and Bethany often steal the spotlight, inland hubs such as Dover and Milford are carving out their own niches with lower acquisition costs and demand fueled by government, healthcare, and regional events

Top 2 Airbnb Markets in Delaware (Ranked by Market Score)

2. Milford

Market Score: 36.84

Average Annual Revenue: $36,670

Milford straddles Kent and Sussex counties, offering investors a gateway to both Delaware’s inland business corridors and its famous coastal resorts. Recent downtown revitalization, a growing arts scene, and easy access to Route 1 contribute to steady weekend traffic. Although its Market Score is moderate, Milford’s relatively high revenue potential reflects strong nightly rates during peak beach season and regional events.

1. Dover

Market Score: 42.28

Average Annual Revenue: $16,270

Delaware’s capital city benefits from government travel, Dover Air Force Base, and marquee events like NASCAR’s spring and fall races. Consistent occupancy from military families, contractors, and college visitors offsets its lower average revenue figure. Investors drawn to year-round demand and comparatively affordable property prices will find Dover an intriguing, if underrated, STR submarket.

Should You Invest in Delaware?

For investors seeking a lower-cost entry point into the Mid-Atlantic STR scene, Delaware merits consideration. While its submarkets currently post mid-range Market Scores, they benefit from:

• Proximity to high-income population centers
• Year-round drivers like government, healthcare, and military demand
• Seasonal tourism spikes tied to nearby beaches and special events
• Relatively light competition compared with larger coastal hotspots

As Delaware continues to diversify its economy and promote tourism beyond its beaches, submarkets such as Dover and Milford could see both revenue growth and higher Market Scores over time. For operators who prioritize affordability, steady demand, and strategic East Coast positioning, the First State offers a promising—if still emerging—playground for short-term rental investment.