Best Airbnb Markets in 2026: 10 US Cities Where the Numbers Work

Looking for the best Airbnb markets to buy in this year? Here are the 10 US cities with the strongest 2026 investment data, what's driving demand in each, and the local rules to check before you make an offer.

Key Takeaways

• The best Airbnb markets for 2026 aren't the famous beach towns, and they aren't the priciest Airbnb investment locations either. AirDNA's 2026 Best Places to Invest list is led by mid-sized cities like Port Arthur and Abilene, Texas, where lower property prices meet steady, year-round demand for short-term rentals.
• The top 10 markets average a $296,000 home price, about $40,500 in annual revenue potential, and a 13.7% gross yield.
• The strongest markets have more than one demand driver: government, hospitals, universities, military bases, and industry keep calendars full outside tourist season.
• Regulations aren't part of AirDNA's score, so verify permits, zoning, and lodging taxes with the city before you buy.
• Buying is the easy part. A remote market only pays off if you can run it well from a distance, which is where automation tools like iGMS come in.

In real estate, location matters. In short-term rentals, it matters even more. The best Airbnb markets in 2026 combine reasonable property prices, steady rental demand, and local rules that let you actually operate, and that combination looks very different today than it did a few years ago, when the top STR markets were mostly beach towns and major cities.

From occupancy rate to local rules and regulations, there's a lot to weigh before you turn a condo, a cabin, or a three-bedroom house into an Airbnb property. Whether you're starting your own Airbnb business or adding to an existing portfolio, this guide walks through the top Airbnb markets for 2026, the data behind each one, and how to judge any Airbnb investment property on your shortlist.

What Makes an Airbnb Market Worth Investing In?

The best Airbnb markets are places where short-term rental revenue is high relative to the purchase price, demand stays steady year round, and local regulations allow non-owner-occupied short-term rentals. In practice, that means strong occupancy, a healthy average daily rate, a solid gross yield, and more than one reason for travelers to visit.

Amenities like a hot tub or fire pit help your Airbnb listings win bookings once you're in a market. But the market itself decides your ceiling, because property prices set your costs and local demand sets your income potential. Here's what Airbnb investors and Airbnb hosts should look at first when comparing Airbnb investment locations.

The Numbers That Matter

• Occupancy rate: The share of available nights that actually get booked. A high occupancy rate tells you demand is reliable, not just seasonal.
• Average daily rate (ADR): The average price per booked night. Revenue potential is driven by ADR and occupancy together.
• RevPAR (revenue per available rental): ADR multiplied by occupancy rate. It's the cleanest single number for comparing short-term rental performance across markets.
• Gross yield: Annual revenue potential divided by purchase price. It's quick, but it's gross, so it ignores expenses.
• Cash-on-cash return: Net operating income minus debt service, divided by the total cash you put in. This is the number that reflects your financing.
• Net operating income (NOI): Revenue minus operating costs like cleaning, utilities, insurance, local taxes, and management.

Gross yield and NOI work best together. A market can post a great gross yield and still disappoint on cash flow once property taxes, insurance, and cleaning fees come out. Positive cash flow, not top-line revenue, is what keeps short-term rental properties profitable when bookings slow. If you want a benchmark, our guide to what counts as a good rate of return on rental property breaks down the common targets.

Demand Drivers and Seasonality

Seasonality and competition shape short-term rental performance in most markets, regardless of market size. A market that relies solely on leisure travelers is more exposed during economic downturns, and a ski resort or beach town can leave you carrying a mortgage through a long off-season low point.

That's why the top markets on this year's list share a pattern: multiple demand drivers. State capitals, hospitals, universities, military bases, and industrial employers create a steady stream of business travelers, traveling nurses, contractors, and visiting families. Year round demand reduces your reliance on seasonal tourism, protects short-term rentals from slow months, and it's a big reason mid-sized metros are posting some of the highest gross rental yields in the country.

Regulations and Permits

Regulatory clarity is crucial for profitable short-term rentals. Before you buy, verify short-term rental rules at the local level: permits, zoning, HOA bylaws, night caps, rules limiting rentals to primary residences, and lodging taxes. Rules can also change after you buy, so build in a periodic review of local regulations to make sure your rental stays viable.

Our Airbnb regulations by state guide is a good starting point, but your local government always has the final word.

The 10 Best Airbnb Markets for 2026

The list below comes from AirDNA's 2026 Best Places to Invest report, released in January 2026. AirDNA scored homes currently for sale on three things: demand (trailing 12-month occupancy and booked listing growth), revenue growth (year-over-year RevPAR change), and investability (gross yield). Regulations aren't part of the score, but markets with strict rules like primary-residence or on-site host requirements were excluded.

Across the top 10, property prices average $296,000 per home, average annual revenue potential is about $40,500, and the average gross yield is 13.7%.

Source: AirDNA, 2026 Best Places to Invest. Listing data as of December 2025.

Only two names carry over from the 2025 list we covered last year: Akron and Montgomery. Everything else is new, which says a lot about how quickly the short-term rental market moves. Notice what's missing, too: no famous beach towns and no major cities. Lower property prices and strong demand from business travelers did the heavy lifting.

1. Port Arthur, Texas

Port Arthur is the top ranked market for 2026, and it isn't a vacation destination in the usual sense. Its rental demand comes from the oil refinery, the shipping port, and a liquefied natural gas (LNG) terminal under construction, with coastal and outdoor tourism layered on top.

That mix keeps the occupancy rate at about 77.6%, among the highest on the list. RevPAR grew 17% year over year and booked listings grew 23%. With an average home price of $243,000 and about $35,000 in revenue potential, Port Arthur posts a 14.4% gross yield, and it's one of the cheapest short-term rental markets to enter on this list.

Regulations: Port Arthur requires short-term rental hosts to register and obtain a permit under a new city ordinance, and hosts collect a 7% local hotel occupancy tax.

2. Abilene, Texas

Abilene is the top market on the list for income potential, with the highest annual revenue and the highest yield in the top 10: about $55,000 a year and a 16.4% gross yield on an average purchase price of $336,000. RevPAR jumped 49% year over year.

The demand here is about as diversified as it gets. Dyess Air Force Base brings nearly 9,000 personnel, and colleges, Hendrick healthcare, and the Stargate AI data center project add a steady flow of business travel. Occupancy stays above 75% for 10 months of the year and only dips to 50 to 65% in the darkest winter months.

Regulations: Abilene's STR regulations are mixed and uncertain, and sources disagree on whether a city permit is required. Check directly with the city before you buy.

3. Downtown Saint Paul (Minneapolis), Minnesota

Downtown Saint Paul is the closest thing to one of the major cities on the list, and it shows how a downtown core can work for short-term rentals when business travel stays strong. Demand comes from state government, corporate travel tied to employers like Ecolab and Securian, hospitals, and events at the Xcel Energy Center and RiverCentre.

Homes average $331,000, revenue potential sits around $45,000, and the gross yield is 13.5%. The occupancy rate is 64.1%, RevPAR is up 10%, and there were about 740 active listings and 165 homes for sale as of December 2025.

Regulations: Saint Paul requires a Short-Term Rental Host License. Registration asks for a management plan, insurance, neighbor notification, and a floor plan, and buildings with more than four STR units need a conditional use permit.

4. Charleston, West Virginia

Charleston has the lowest home prices in the top 10, averaging $228,000, which makes it one of the easiest entry points for new property investors. Revenue potential is about $32,000 for a 14.1% gross yield.

West Virginia's capital draws state government travel, visitors to CAMC (a hospital system with 5,000+ employees), and chemical industry business. Occupancy is 62.9%, RevPAR grew 15%, and the market had 309 active listings as of December 2025.

Regulations: There's no statewide STR license and no citywide STR ordinance. State sales tax applies, and local occupancy taxes may apply depending on the location.

5. Springfield, Illinois

Springfield pairs government travel with heritage tourism, and the Illinois State Fair drew more than 1 million attendees in 2025. That gives hosts a solid base of year round demand plus a few reliable peaks.

Homes average $262,000, revenue potential is about $35,000, and the gross yield is 13.2%. The occupancy rate is a healthy 66%, and booked listings grew 17%, a sign of growing demand and more investors moving in.

Regulations: Hosts must register for the state's Hotel Operators' Occupation Tax, and local rules may also apply.

6. Lake Charles, Louisiana

Lake Charles runs on workforce travel. Petrochemical and LNG projects, the Port of Lake Charles, and Chennault Airpark bring contractors who need furnished places to stay for weeks at a time, which also makes this a strong market for mid-term rentals.

The average home costs $287,000, revenue potential is about $37,000, and the gross yield is 12.7%. Inventory is tight: only 41 homes were for sale against 690 active listings in December 2025.

Regulations: Lake Charles requires STR hosts to register and obtain an occupational license, comply with zoning, and pay hotel occupancy taxes.

7. Montgomery, Alabama

Montgomery is one of two repeat names from last year's list. Government, healthcare, education, and regional travel keep demand steady, and AirDNA gives it a Market Score of 100.

Homes average $342,000, revenue potential is about $42,000, and the gross yield is 12.2%. The occupancy rate sits at 62.6% across more than 640 active listings.

Regulations: Montgomery requires a business license, and hosts must collect and remit state, city, and county lodging taxes. There's no dedicated STR ordinance, primary-residence requirement, or night cap right now, though the city council has discussed future oversight.

8. Akron, Ohio

Akron ranked #3 on the 2025 list and holds its place in the top 10 for 2026. It also has the most active listings in the top 10 (757), which tells you investors have noticed.

The demand is broad: Cuyahoga Valley National Park, three hospital systems, universities, and corporate headquarters. Homes average $297,000, revenue potential is about $39,000, and the gross yield is 13.1%. Booked listings grew roughly 18%, meaning investors should expect more competition here than in smaller STR markets.

Regulations: Akron requires annual registration and a fee, health and safety compliance, and a local lodging tax.

9. Lebanon, Pennsylvania

Lebanon posts the second-highest gross yield on the list at 15.7%. Revenue potential of about $42,000 on a $265,000 average purchase price points to strong pricing power and growing revenue for a small market.

Location does a lot of the work here. Lebanon is close to Hershey and Lancaster, and Fort Indiantown Gap trains roughly 20,000 National Guard personnel plus more than 120,000 other trainees a year. Occupancy is 59.2%, and RevPAR is up 10%.

Regulations: Hosts must register with Lebanon's Department of Public Safety.

10. Jackson, Mississippi

Jackson has the highest home prices in the top 10, averaging $366,000, but revenue potential of about $44,000 keeps the gross yield at 11.9%. The occupancy rate is 64.4%, and RevPAR grew 15%.

State government, the University of Mississippi Medical Center, Jackson State University, and the Jackson Convention Complex supply steady demand from business travelers and visiting families.

Regulations: Jackson requires a permit, a business license, and lodging tax compliance, and zoning may limit where you can operate.

Why Mid-Sized Cities Are Beating Tourist Hot Spots

Real estate markets with low entry costs and modest property prices attract investors chasing high rental yields, and 2026 rewards that approach to Airbnb investment. AirDNA's mid-year outlook expects smaller cities, rural areas, and regional drive-to destinations to outperform as travelers prioritize value, and new listings are concentrating in lower-cost markets too.

Broader market trends across the US short-term rental market support a measured approach:

• Occupancy is flat. AirDNA forecasts 57.4% national occupancy for 2026. Airbtics, which tracks the 100 largest US Airbnb markets, puts the average across those markets at 60.41% for September 2025 to August 2026.
• Growth is coming from rate. AirDNA expects RevPAR to rise 2.9% in 2026, driven almost entirely by ADR.
• New supply is slowing. Available rental listings are forecast to grow just 2.7% in 2026, which helps existing owners.
• Financing is easing. Mortgage rates fell from near 7% in early 2025 to around 6.1%, and AirDNA puts the monthly STR premium (earnings minus financing cost) at $989 in early 2026, the highest since late 2022.

AirDNA's take is that 2026 is a better year to own than to buy, but its Best Places to Invest report still frames it as an investor-friendly year for anyone who buys carefully. Many investors are keeping their first purchase lean, too: 60% plan to commit under $100,000 (down payment, setup, and reserves) on their first property.

Classic Vacation Destinations: Higher Prices, Higher Ceilings

The top Airbnb markets by raw revenue still look like classic vacation destinations. Among the 100 largest US markets Airbtics tracks, San Diego leads on revenue at about $79,348 a year, with 74% occupancy and a $281 ADR. Coastal towns, national parks, and ski resort markets like Park City, Utah, and Breckenridge, Colorado, command premium rates for good reason: a prime location near a major attraction creates high demand in peak season.

The catch is the purchase price, plus a heavier reliance on one location's tourism season. A tourist destination with vibrant nightlife or a famous beach usually comes with expensive markets for property, more competition, and tighter rules. Lighthouse's price-to-revenue analysis of 25 North American markets ranked Ocean City, Maryland best, estimating a property payoff of roughly four to five years versus about 15 to 19 years in New York, though that model assumes no loan interest, so treat it as a comparison, not a forecast.

If you're weighing guest appeal as much as returns, our roundup of the best cities for Airbnb looks at locations through a traveler's eyes. And if a beach market appeals to you, our guide on whether a beach house is a good investment covers the tradeoffs in more detail.

Airbnb Markets to Approach With Caution

A popular market isn't automatically a smart buy. Ridge Street Capital's 2026 analysis flags a few short-term rental markets where supply has outpaced demand:

• Myrtle Beach, South Carolina: Condo oversupply has pulled occupancy down.
• Pigeon Forge, Tennessee: Cabin supply has outpaced tourism demand, pressuring nightly rates.
• Durham, North Carolina: A low ADR combined with high property taxes squeezes margins.
• Broken Bow, Oklahoma: Rising property taxes and oversupply have compressed yields.

Heavy regulation is the other red flag. New York City, many California cities, and much of Hawaii restrict non-owner-occupied rentals through permit caps, primary-residence rules, or registration requirements. If you're set on California, our breakdown of the best places to Airbnb in California points to the friendlier spots. In some metros, properties just outside city limits face looser rules than those inside them, but confirm that with the county before you count on it.

Which States Are Best for Airbnb Investors?

There's no official ranking, but a few states consistently come up as friendly to short-term rentals, and to the profitable cities within them:

• Texas: Many cities remain STR-friendly, lower purchase prices outside major cities help returns, and two of the top three markets for 2026 (Port Arthur and Abilene) are here.
• Florida: Year-round tourism from vacationers, families, snowbirds, and international guests, though city permits and HOA rules vary widely.
• Tennessee: Steady demand in Nashville and the Smoky Mountains, with friendlier rules outside Nashville's urban core.
• Arizona: Snowbird, golf, spring training, and national parks demand, with strong appeal for larger luxury rentals.

California, New York, and Hawaii have some of the largest short-term rental markets in the country but the toughest rules for short-term rentals. Hosting there takes more compliance work, more capital, and a tighter strategy.

How to Evaluate Any Airbnb Market Before You Buy

Rankings are a starting point, not a buying decision. (If you're still deciding whether an Airbnb investment strategy fits your goals at all, start there.) A good market doesn't guarantee a good deal on an investment property, so do your own thorough research on every listing:

1. Check the rules first. Confirm permits, zoning, HOA bylaws, and local taxes. If a property isn't clearly legal as a short-term rental, move on.
2. Pull performance data for comparable listings. Look at the occupancy rate, ADR, and seasonality for Airbnb rental properties with the same bedroom count and amenities, not just the market average. Check whether the local market supports your property type, too.
3. Map the demand drivers. List every reason people visit: employers, hospitals, universities, events, outdoor recreation. More drivers mean more consistent demand.
4. Run conservative numbers. Use our rental property cash flow spreadsheet to model potential income, expenses, and cash-on-cash return, then stress-test your cash flow at a lower occupancy rate, and learn how to value a rental property before you make an offer.
5. Plan your operations. Decide whether you'll self-manage remotely, hire local help, or use professional managers. Superior day-to-day management is often what separates a profitable rental from an average one in competitive markets.

Revisit your market every year or so, too, because the short-term rental market doesn't stand still. Regulations, competition, and travel patterns shift, and the best Airbnb markets of 2026 won't all hold their spot.

Frequently Asked Questions

Which city is most profitable for Airbnb in 2026?

By AirDNA's 2026 data, Abilene, Texas has the highest annual revenue potential (about $55,000) and the highest gross yield (16.4%) among the top investment markets. Port Arthur, Texas is the top ranked market overall, with a 14.4% yield and about $35,000 in annual revenue on a $243,000 average home.

Where is the best place to buy an Airbnb right now?

For yield-focused investors, mid-sized cities with diverse demand lead the way in 2026: Port Arthur and Abilene in Texas, Downtown Saint Paul, Charleston, West Virginia, and Springfield, Illinois. If you prefer a classic vacation market, expect higher purchase prices and stricter rules in exchange for premium rates.

Are Airbnbs a good investment right now?

An Airbnb investment can still pay off in 2026, if you buy in the right market at the right price. National occupancy is roughly flat in 2026, but mortgage rates have eased, the STR premium is the highest since 2022, and new supply is slowing. Our guide to owning an Airbnb covers the costs and returns in more detail.

What Airbnbs make the most money?

Short-term rental properties in high-demand locations with premium amenities, extra bedrooms for groups, and year round demand tend to earn the most. Market matters, but so does execution: strong Airbnb listings, smart pricing, and fast guest communication are what separate making money from breaking even.

Run Your New Market Like a Local, From Anywhere

The best Airbnb markets for 2026 share a pattern: affordable property prices, more than one source of steady demand, and clear regulations for short-term rentals. But most of them also have something else in common. They're probably not where you live.

Buying a rental property in Port Arthur or Lebanon is the easy part. Answering guest questions at midnight, coordinating cleaners between same-day turnovers, and keeping your calendar in sync across Airbnb, Vrbo, and Booking.com from hundreds of miles away is where many investors stall.

iGMS handles that operational side for you. Automated guest messaging, cleaning schedules, and a unified inbox let you manage Airbnb rental properties in any market from one dashboard, so you can focus on finding your next deal instead of chasing your last turnover.