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The Most Popular Airbnb Locations to Invest in the US in 2025
In the real estate industry, location matters. When it comes to owning a vacation rental property, location matters even more. Existing Airbnb hosts will be well aware that their choice of US cities matters if they want to make a consistent profit from their Airbnb investments.
From occupancy rates to local rules and regulations, there are various factors that you need to keep in mind if you plan on turning a beach house, a one-bedroom condo, or even a two-bedroom house into a vacation rental.
Whether you’re thinking about starting your own Airbnb business or it’s time to expand your current portfolio of rental properties, here are the best Airbnb markets predicted for 2025.
What to Consider When Investing in an Airbnb Investment Property?
Although you might think most of this year’s travel will be international, many Americans will travel locally.
According to an Expedia survey, 59% of respondents expect to plan travel within the U.S. instead of traveling internationally or in addition to foreign trips.
There’s much more to buying a property with the aim of transforming it into a luxe Airbnb than simply looking at its location and all the amenities on offer. Successful Airbnb hosts need to keep these factors in mind when selecting profitable Airbnb properties.
Sure, amenities like a hot tub, fire pit or pool, and other modern comforts can be great selling points, but you’ll also need to pay attention to more technical matters like:
- Occupancy rate: the percentage of occupied rooms in your property at a given time.
- Revenue earned per available rental (RevPAR): Calculated by multiplying a hotel’s average daily room rate by its occupancy rate
- Average daily rate: Measures the average rental revenue earned for an occupied room per day.
- Local rules and regulations
- Property taxes: Property taxes, or real estate taxes, are paid by a real estate owner to county or local tax authorities
Other less technical factors to keep in mind include:
- The type of guests that a property will most likely appeal to
- The neighborhood’s crime rate
- Amenities and attractions the city has to offer
- The number of vacation rental properties in the area already
- Proximity to the city center
- The number of bedrooms
Armed with better insight into which data thanks to Airdna, and features to keep in mind, here are 10 of the best places to own an Airbnb in 2025, listed in no particular order.
10 of the Best Short-Term Rental Markets Predicted for 2025
Fairbanks, Alaska
Fairbanks, Alaska, is making waves as one of the best places to invest in short-term rentals. It ranks #4 on Airdna’s report for average revenue potential, thanks to a winning combination of strong traveler demand and outstanding gross yield.
This Arctic gem is no stranger to the spotlight—it made our Best Places to Invest list last year, but its performance has skyrocketed, jumping from #9 in 2024 to #2 in 2025.
Fairbanks leads all top investment markets in occupancy rate, sitting at an impressive 66.5%. Translation? Your Airbnb is likely to stay booked solid.
With average nightly rates of $224.35, properties in Fairbanks bring in serious cash. Understanding the potential monthly rental income is crucial for evaluating the profitability of properties in Fairbanks. The typical Airbnb in the area earns about $49,459 per year, with homes listing for an average of $327,690. That mix of high demand and solid earnings makes Fairbanks one of the most profitable markets out there.
One thing to keep in mind: Fairbanks has stricter short-term rental rules than other parts of Alaska. Hosts need business licenses at both the state and city levels, must register for an 8% room tax, and follow zoning laws that classify short-term rentals as “tourist homes.”
Some properties may also need a Conditional Use Permit. Plus, unlike in some cities, Airbnb and Vrbo don’t collect lodging taxes here—so hosts have to handle that themselves. If you’re thinking about investing, it’s worth reaching out to the City of Fairbanks for the latest details.
Peoria, Illinois
Peoria is absolutely crushing it when it comes to short-term rental investments. Real estate investors are increasingly looking at Peoria for its high-return potential and affordable real estate. It ranks #1 for gross yield among all the top markets, thanks to a mix of affordable real estate and strong Airbnb performance. If you’re looking for a high-return investment without spending a fortune, this is the place to watch.
Let’s talk about Peoria, Illinois—a hidden gem for budget-savvy investors. It’s got charming local attractions like the Peoria Riverfront Museum and Luthy Botanical Garden, but what really makes it shine is the low cost of entry. Homes here list for an average of just $202,930—the cheapest among all the best investment markets—while offering the highest gross yield (a solid 15.3%).
The short-term rental scene in Peoria is heating up, too. Airbnb listings jumped 21% in 2024, and properties are seeing a steady 59% occupancy rate. If you’re wondering about potential earnings, the average investment property pulls in around $31,131 per year, and RevPAR for established hosts has climbed 7.7% over the past year. Translation? A new investment here could start paying off pretty quickly.
And the best part? Peoria makes it easy to run an Airbnb. The city keeps short-term rental regulations refreshingly simple—no unnecessary hoops to jump through—so you can focus on making money instead of drowning in paperwork.
Akron, Ohio
Akron is quickly becoming a hot spot for short-term rental investors. Listings are growing fast, showing strong investor interest—but the market isn’t overcrowded yet. With short-term rental performance on the rise, both new and experienced hosts have plenty of room to profit.
This Ohio city has climbed from #8 in last year’s Best Places to Invest list to #3 in 2025. It blends industrial history with top-tier attractions like the Akron Art Museum, Cuyahoga Valley National Park, and Stan Hywet Hall & Gardens, drawing a steady flow of visitors. Akron's blend of industrial history and top-tier attractions also makes it a convenient destination for business travelers. That demand translates into consistent bookings for Airbnb hosts.
And the numbers back it up—Akron’s rental market is thriving. Between 2023 and 2024, RevPAR jumped 11.5%, and nightly rates climbed 8.5%. With trends like these, Akron is shaping up to be one of the most profitable short-term rental markets in the country.
That said, investors should be aware of local regulations. Akron requires short-term rental hosts to register their properties with the city each year, pay a registration fee, and submit documents like proof of ownership, a floor plan, and a signed affidavit. Hosts also need to collect a 5.5% excise tax from guests and follow local hosting rules, including quiet hours. While there are a few hoops to jump through, Akron’s strong returns make it worth the effort.
Shreve Point, Louisiana
Shreveport is quickly becoming a travel hotspot, and it’s paying off for short-term rental investors. With occupancy rates on the rise, RevPAR is climbing, making this market a strong contender for high-yield investments.
This Louisiana gem is drawing more visitors every year, thanks to its riverboat casinos, thriving music scene, and year-round festivals. The proof? Occupancy rates shot up 12.9% over the past year, reaching 57.3%, which means properties are booking more often and staying full longer. That increase in demand has pushed RevPAR up by 12.6%, making Shreveport an increasingly attractive market.
Financially, the numbers look solid. Properties in the area typically generate around $36,106 in annual revenue, with an average listing price of $294,995. While nightly rates dipped ever so slightly (down just a fraction of a percent to $185.04), the rise in occupancy shows that Shreveport’s growing popularity isn’t leading to oversaturation—there’s still plenty of room for new investors to thrive. When investing in an Airbnb property in Shreveport, it's important to consider the local permitting and zoning rules.
On the regulatory side, investors will need to work through Shreveport’s permitting and zoning rules. Every short-term rental requires either a Type A (shared) or Type B (whole-home) permit, which must be renewed every two years.
Eligible properties include:
- single-family homes,
- townhomes,
- condos,
- duplexes,
- and accessory dwelling units,
- *but only within certain zoning districts.
Type B rentals also have to be at least 500 feet apart from one another. While these rules add an extra step, Shreveport’s rising demand and untapped potential make it a smart bet for investors willing to navigate the process.
Columbia, South Carolina
Columbia, South Carolina, is quickly gaining traction as a short-term rental hotspot. With its vibrant college-town atmosphere, deep historical roots, and easy access to outdoor gems like Lake Murray, it’s no surprise that more visitors—and investors—are taking notice.
While its current gross yield of 11.4% isn’t the highest on the list, Columbia’s strong year-over-year growth suggests that returns are on the rise. Columbia's strong year-over-year growth makes it an attractive option for property investment.
Occupancy rates have jumped 7.6% to 57.4%, and with an average daily rate (ADR) of $248.43, RevPAR has climbed 8.6%. These numbers show that Columbia’s demand is growing, making it an increasingly profitable market.
Investing here does require a bit more upfront—average home prices sit at $389,765—but with annual revenue averaging $44,372, the long-term potential is clear.
For those looking for a balance between steady returns and the charm of a lively Southern city, Columbia is shaping up to be a smart investment choice.
Kansas City, Missouri
While Dorothy and Toto might not be in Kansas anymore, investors should be. While the number of listings has dipped slightly (-0.4%), traveler demand is stronger than ever. RevPAR has jumped 13.8%, and occupancy rates are up 7.2%, meaning fewer competing properties but higher earnings potential for investors. Investors can expect solid rental income, with an average annual revenue of $44,142.
If you’ve been thinking about investing, the timing couldn’t be better. With 2,149 homes on the market and an average listing price of $365,109, there are plenty of entry points.
Plus, with an average annual revenue of $44,142, Kansas City is proving to be more than just a destination for world-class BBQ—it’s becoming one of 2025’s most promising short-term rental markets.
That said, there are some key regulations to keep in mind. Kansas City has density restrictions for short-term rentals: in single- and two-family homes, non-resident hosts can’t register a property if another non-resident rental is already within 1,000 feet. In multi-family buildings, only 12.5% of units can be used as short-term rentals for non-resident owners. These rules help prevent oversaturation, so it’s important to check compliance before jumping in. For the latest details, visit the Kansas City website.
Dayton, Ohio
Dayton is quietly becoming a prime spot for short-term rental investors. Known as the “Birthplace of Aviation,” this city is steeped in history—and it’s also seeing a surge in traveler demand. Dayton's rising rental demand makes it a promising location for short term rental investment. Occupancy rates have climbed 5.9% year-over-year, driving an 8.1% increase in RevPAR. Instead of relying on higher nightly rates, hosts are benefiting from more frequent bookings, making Dayton a market to watch.
For investors, Dayton offers a well-balanced opportunity. With an average home price of $301,774 and annual revenue potential of $35,456, the numbers make sense. Plus, with a gross yield of 11.7%, the market offers solid cash flow potential.
Between its rich aviation history, vibrant arts scene, and rising rental demand, Dayton is shaping up to be a smart investment choice for 2025.
Crescent City, California
Crescent City, California, is a hidden gem for short-term rental investors, offering strong earning potential in a market that’s still growing. Vacation rental investors are finding Crescent City to be a hidden gem with strong earning potential. With demand on the rise, now is the perfect time to establish yourself before the area reaches saturation.
This coastal destination boasts a solid gross yield of 11.9%, making it a great spot for quick returns. The numbers back it up—annual revenue potential sits at $51,318, thanks to a healthy 63.3% occupancy rate and an average nightly rate of $269.16. While the average home price is on the higher side at $432,453, steady earnings make it a worthwhile investment.
Beyond the numbers, Crescent City’s appeal is undeniable. With breathtaking redwood forests and a stunning coastline, it’s a year-round haven for outdoor lovers and vacationers—meaning strong demand isn’t going anywhere anytime soon.
Montgomery, Alabama
Montgomery, Alabama, is quickly becoming a short-term rental powerhouse, leading all 2025 Best Places to Invest locations with the highest RevPAR growth at 14.5%. This impressive rise is driven by a solid combination of increasing occupancy (up 6.4%) and a boost in nightly rates (up 7.6%).
For investors, Montgomery offers an appealing entry point with an average listing price of $291,867 and annual revenue potential of $32,998. Montgomery offers an appealing entry point for investors looking to acquire Airbnb properties. The market’s gross yield of 11.3% highlights its strong cash flow potential, making it a smart choice for those looking to maximize returns.
Known for its pivotal role in the Civil Rights Movement, Montgomery draws visitors year-round. With landmarks like the Rosa Parks Museum, Civil Rights Memorial, and Dexter Avenue Baptist Church, as well as cultural spots like the Montgomery Museum of Fine Arts and Riverfront Park, the city’s rich history and vibrant attractions ensure ongoing traveler interest.
Page, Arizona
Page, Arizona, may be a small market, but it packs a serious punch for short-term rental investors. Page is proving to be a prime choice for investors looking for high returns in vacation rentals. With an average daily rate (ADR) topping $300—one of only three markets on this list to hit that mark—Page is proving its ability to command premium pricing, and that rate is still climbing.
It also boasts the second-highest RevPAR at $188.72, highlighting strong earning potential. Investors can expect solid cash flow, with a gross yield of 11.2% helping to speed up returns.
However, inventory is tight—only about 30 properties are currently available for purchase. While this exclusivity limits new competition, it also means investors need to act fast when opportunities arise.
With year-round demand fueled by iconic attractions like Horseshoe Bend and Lake Powell, Page is a prime choice for investors looking for high returns in a stunning natural setting.
Wrapping Things Up
Spanning nearly 4 million square miles, the United States offers a wealth of opportunities for aspiring Airbnb investors. From mountain retreats to tropical coastal towns to quaint villages, each type of traveler will find a vacation rental that will appeal to their wanderlust.
Not only are travelers spoiled with choice, but also investors looking to buy a property with the goal of turning it into a short-term rental for profitable Airbnb investments. That being said, aspiring hosts will have to do their due diligence when creating a shortlist of potential real estate markets.
Just because a city offers several in-demand tourist attractions doesn’t mean that it will be profitable for hosts.
There are several factors that vacation rental hosts need to keep in mind such as occupancy rate, average daily rate, and local rules and regulations before they choose which cities in which country to explore for Airbnb investment.
Always start by reading up on the current short-term rental regulations. The last thing you want is to crunch all the numbers only to find out that a particular city severely limits the number of nights that a property may be rented out or bans it altogether.
Once you’ve got it all set up, check out iGMS to help you run the business.
