Are you seeing signs of a shifting rental market? Whether you own a single property or multiple vacation rentals, it pays to stay aware and ahead of trends—especially in short-term rental markets.
Leisure and business travel are on the rise, meaning more tourists and corporate travelers are looking for temporary places to stay. As a result, the coming year could be a significant one for real estate investors and landlords. So, where are the best short-term rental markets for 2023?
Diving into data sources across the U.S., we compiled a list of the top 35 cities for investors and landlords who are considering rental property markets with potentially high returns over the coming year. Before investing, we always recommend underwriting and analyzing the specific prospective property and confirming short-term rental rules and regulations.
How We Created This List
We extracted Airbnb data to find listings with the following characteristics (you can uncover the same data for free here to see how much an address might earn as a short-term rental):
- Rating: 4.6 stars or above
- Property Type: Entire homes
- Guest Review Count: Minimum of 20
- Occupancy Rate: 1% (minimum) to 99% (maximum)
- Average Daily Rate: $1 (minimum) to $2,000 (maximum)
This gave us about 300,000 Airbnb listings. We also pulled the historical average monthly revenue over the past 12 months to find the historical average annual revenue for each rental market. It should be noted that the historical data that was pulled for all of these stats is based on the past 12-months of data, so the data below reflects the historical stats at the time of publication. If you search any of the markets today, current numbers may vary slightly as the past 12-months of data has been updated since the time of publication.
Next, to avoid outliers, we filtered out cities that didn’t have at least 100 active listings meeting the above criteria. This process left us with just over 500 markets.
To refine the list further, we removed cities that didn’t have an average occupancy of more than 60% over the past 12 months. This step helped ensure we were looking at places with evidently high occupancy and brought the list down to about 140 markets in total.
We also added the median home price (from Zillow data as of October 2022) for each market to calculate the gross yield (historical average yearly revenue divided by median home price). We ranked the list in order of rental markets with the highest gross yield.
The 35 Best Short-Term Rental (STR) Markets
1. Kitty Hawk, NC
Kitty Hawk is a popular tourist destination within the Outer Banks of North Carolina. With its beautiful beaches along the Atlantic, rich maritime history, and a large selection of outdoor activities, it's no wonder this town ranks as the best short-term rental market in the country.
Key STR Metrics:
- Occupancy: 66.26%
- Average Daily Rate (past 12 months): $898
- Average Yearly Revenue (past 12 months): $223,749
- Median Home Price: $660,255
- Gross Yield: 33.89%
Airbnbs for sale in Kitty Hawk, NC →
2. Wisconsin Dells, WI
Wisconsin Dells is a bustling tourist destination roughly an hour north of Madison, Wisconsin. With a wide range of activities, it’s the perfect weekend getaway for families or couples wanting to escape city life.
Key STR Metrics:
- Occupancy: 62.13%
- Average Daily Rate (past 12 months): $298
- Average Yearly Revenue (past 12 months): $69,569
- Median Home Price: $243,183
- Gross Yield: 28.61%
Airbnbs for sale in Wisconsin Dells, WI →
3. Kamuela, HI
One of the most beautiful and luxurious spots in the U.S., Kamuela, Hawaii, offers a stunning landscape, a year-round warm climate, and world-renowned beaches. It’s popular with people seeking a slice of island life while renting a home away from home.
Key STR Metrics:
- Occupancy: 73.54%
- Average Daily Rate (past 12 months): $872
- Average Yearly Revenue (past 12 months): $234,648
- Median Home Price: $862,938
- Gross Yield: 27.19%
Airbnbs for sale in Kamuela, HI →
4. Davenport, FL
Davenport, Florida, is a destination with a little bit of everything for everyone. Several theme parks and attractions are nearby, such as Walt Disney World and Universal Studios. It's also conveniently located between Orlando and Tampa and provides easy access to both cities.
Key STR Metrics:
- Occupancy: 68.65%
- Average Daily Rate (past 12 months): $391
- Average Yearly Revenue (past 12 months): $99,641
- Median Home Price: $383,561
- Gross Yield: 25.98%
Airbnbs for sale in Davenport, FL →
5. Savannah, GA
Savannah is a charming and historic coastal city in Georgia that has been gaining popularity as a tourist destination in recent years. Beautiful architecture, lush gardens, quaint cobblestone streets, and a lively art scene make it the perfect place for people to enjoy some Southern hospitality.
Key STR Metrics:
- Occupancy: 63.20%
- Average Daily Rate (past 12 months): $300
- Average Yearly Revenue (past 12 months): $69,971
- Median Home Price: $286,501
- Gross Yield: 24.42%
Airbnbs for sale in Savannah, GA →
6. Ithaca, NY
Ithaca is a vibrant college town in New York steeped in history and culture. Home to Cornell University and Ithaca College, the city is full of outdoor activities like hiking, biking, and kayaking on Cayuga Lake, as well as trendy restaurants, galleries, and live music venues.
Note: In some areas of Ithaca, short-term rentals are regulated with a cap on number of nights the property can be rented out. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 64.14%
- Average Daily Rate (past 12 months): $307
- Average Yearly Revenue (past 12 months): $72,440
- Median Home Price: $301,733
- Gross Yield: 24.01%
Airbnbs for sale in Ithaca, NY →
7. Johns Island, SC
With its stunning beaches and marsh views, Johns Island offers a variety of activities. From kayaking through wetlands to seeking out local art galleries and eateries, the town has something for every traveler.
Note: In some areas of Johns Island, short-term rentals must be rented out with a 30-night minimum. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 61.26%
- Average Daily Rate (past 12 months): $635
- Average Yearly Revenue (past 12 months): $142,503
- Median Home Price: $603,590
- Gross Yield: 23.61%
Airbnbs for sale in Johns Island, SC →
8. Lahaina, HI
Lahaina provides plenty of options for those looking to make their Hawaiian vacation rental dreams come true, from world-class resorts to quaint beach cottages and everything in between. The warm, year-round climate makes it ideal for outdoor fun, while its small-town charm offers visitors art galleries, historic sites, and eclectic restaurants to explore.
Note: Short-term regulations in Maui county, where Lahaina is located, vary. Some asset types or county zones are subject to STR application waiting periods or permit caps. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 78.18%
- Average Daily Rate (past 12 months): $908
- Average Yearly Revenue (past 12 months): $259,514
- Median Home Price: $1,137,790
- Gross Yield: 22.81%
Airbnbs for sale in Lahaina, HI →
9. Clearwater Beach, FL
Clearwater Beach, Florida, could be an ideal market for investors interested in short-term rental properties or vacation homes. Its white sandy beaches, beautiful sunsets, warm climate, and close proximity to major attractions like Disney World and Universal Studios make it the winning combination of entertainment, luxury, and relaxation many guests are seeking.
Note: Properties owned in residential districts of Clearwater beach are subject a short-term rental ordinance that requires the property owner to rent out the property for no less than a month at a time.
Key STR Metrics:
- Occupancy: 63.80%
- Average Daily Rate (past 12 months): $306
- Average Yearly Revenue (past 12 months): $72,354
- Median Home Price: $369,552
- Gross Yield: 19.58%
Airbnbs for sale in Clearwater Beach, FL →
10. Fairbanks, AK
With stunning scenery, endless outdoor activities, and views of the Northern Lights during winter, Fairbanks, Alaska, provides visitors with a unique experience and offers plenty of potential for investment properties. It's conveniently located near Denali National Park, giving visitors easy access to some of the most sought-after natural landmarks in the state.
Key STR Metrics:
- Occupancy: 60.54%
- Average Daily Rate (past 12 months): $158
- Average Yearly Revenue (past 12 months): $34,965
- Median Home Price: $180,411
- Gross Yield: 19.38%
Airbnbs for sale in Fairbanks, AK →
11. Pahoa, HI
A small town on the Big Island of Hawaii, Pahoa is another attractive choice for investors looking to buy a vacation rental property. Pahoa boasts beautiful natural scenery, activities like snorkeling, surfing, and hiking, and many cultural attractions such as art galleries and boutique shops.
Key STR Metrics:
- Occupancy: 62.35%
- Average Daily Rate (past 12 months): $268
- Average Yearly Revenue (past 12 months): $60,487
- Median Home Price: $314,070
- Gross Yield: 19.26%
Airbnbs for sale in Pahoa, HI →
12. Kissimmee, FL
Located just outside of Orlando and close to attractions like Walt Disney World, Universal Studios, and SeaWorld, Kissimmee offers an array of entertainment options. With warm weather all year, it's also a great place for fishing, golfing, and exploring nearby nature preserves.
Key STR Metrics:
- Occupancy: 66.07%
- Average Daily Rate (past 12 months): $303
- Average Yearly Revenue (past 12 months): $73,455
- Median Home Price: $383,956
- Gross Yield: 19.13%
Airbnbs for sale in Kissimmee, FL →
13. Virginia Beach, VA
Its warm, sunny climate and long stretches of beautiful beach make Virginia Beach the perfect backdrop for relaxation and recreation. The bustling boardwalk is full of restaurants and shops, and water activities like surfing are available year-round, in addition to whale watching during the winter months.
Note: Short-term rental regulations vary based on zoning requirements in Virginia Beach. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 62.28%
- Average Daily Rate (past 12 months): $312
- Average Yearly Revenue (past 12 months): $70,826
- Median Home Price: $278,710
- Gross Yield: 18.70%
Airbnbs for sale in Virginia Beach, VA →
14. St. Simons Island, GA
St. Simons Island is a picturesque retreat for those seeking a vacation rental property. It boasts white sandy beaches, lush forests, miles of marshland, and an array of charming restaurants, boutique shops, and outdoor entertainment. Its sunny, subtropical climate makes the town a lovely setting for relaxation and adventure.
Key STR Metrics:
- Occupancy: 61.75%
- Average Daily Rate (past 12 months): $296
- Average Yearly Revenue (past 12 months): $76,798
- Median Home Price: $363,814
- Gross Yield: 18.64%
Airbnbs for sale in Simons Island, GA →
15. Lincoln, NH
Lincoln is a charming New Hampshire mountain town known for its outdoor recreation opportunities. From skiing and snowmobiling in the winter to hiking and biking trails in the summer, Lincoln has something for everyone looking to explore the great outdoors. It also features plenty of shopping and dining options and historic sites like the iconic Flume Gorge and Lost River.
Key STR Metrics:
- Occupancy: 60.01%
- Average Daily Rate (past 12 months): $282
- Average Yearly Revenue (past 12 months): $63,504
- Median Home Price: $344,700
- Gross Yield: 18.42%
Airbnbs for sale in Lincoln, NH →
16. Daytona Beach, FL
With 23 miles of sandy shores along the Atlantic Ocean, Daytona Beach is a popular spot to soak up some sun and relax. The location offers outdoor recreation like fishing, surfing, and boating, plus an array of attractions, including the Daytona International Speedway, Boardwalk Amusement Area and Pier, Ponce de Leon Inlet Lighthouse & Museum, and Tuscawilla Park.
Key STR Metrics:
- Occupancy: 60.58%
- Average Daily Rate (past 12 months): $220
- Average Yearly Revenue (past 12 months): $48,265
- Median Home Price: $271,434
- Gross Yield: 17.91%
Airbnbs for sale in Daytona Beach, FL →
17. Kahuku, HI
Kahuku is a small town in the northern area of Oahu, Hawaii. Known for its beautiful beaches and lush tropical forests, it’s home to many farms specializing in growing taro, papaya, and other local fruits and vegetables. Visitors enjoy shopping at the local stores or grabbing a bite at one of the many local eateries.
Note: Short-term rental regulations in Kahuku, Hawaii are being discussed as of late 2022 and are in the process of changing. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 74.83%
- Average Daily Rate (past 12 months): $563
- Average Yearly Revenue (past 12 months): $153,717
- Median Home Price: $859,619
- Gross Yield: 17.88%
Airbnbs for sale in Kahuku, HI →
18. Murrells Inlet, SC
Murrells Inlet is an idyllic coastal town in South Carolina with lovely beaches and a laid-back atmosphere. Fishing and boating are popular here, as well as golfing at the numerous courses in the area. The MarshWalk boardwalk has some of the best seafood restaurants and an array of unique shops to explore.
Key STR Metrics:
- Occupancy: 60.65%
- Average Daily Rate (past 12 months): $306
- Average Yearly Revenue (past 12 months): $69,883
- Median Home Price: $398,710
- Gross Yield: 17.53%
Airbnbs for sale in Murrells Inlet, SC →
19. Charleston, SC
The city of Charleston has a rich history, remarkable architecture, and vibrant culture. Visitors flock to the area all year long. The beachfront location offers beautiful ocean views and a variety of activities, from golf and fishing to shopping and dining. Downtown hosts world-renowned festivals and holds historical attractions like Fort Sumter.
Note: Short-term rental regulations in Charleston, SC may vary based on city zoning. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 64.79%
- Average Daily Rate (past 12 months): $389
- Average Yearly Revenue (past 12 months): $93,088
- Median Home Price: $531,366
- Gross Yield: 17.52%
Airbnbs for sale in Charleston, SC →
20. Ann Arbor, MI
Located in Washtenaw County in southeastern Michigan, Ann Arbor is home to the University of Michigan. With a diverse population, this college town has cultural events, live music venues, art galleries, museums, and restaurants foodies adore. For outdoor adventure, the nearby Huron River offers fishing, kayaking, and canoeing, as well as parks and trails for biking or strolling.
Key STR Metrics:
- Occupancy: 63.18%
- Average Daily Rate (past 12 months): $358
- Average Yearly Revenue (past 12 months): $83,131
- Median Home Price: $484,135
- Gross Yield: 17.17%
Airbnbs for sale in Ann Arbor, MI →
21. Sarasota, FL
Boasting over 35 miles of sandy white beaches and a wealth of cultural attractions, Sarasota has something for everyone. The local economy is thriving due to its booming tourism industry and growing population—factors making Sarasota an attractive real estate market with the potential for steady returns on your investment.
Key STR Metrics:
- Occupancy: 66.68%
- Average Daily Rate (past 12 months): $322
- Average Yearly Revenue (past 12 months): $81,719
- Median Home Price: $492,189
- Gross Yield: 16.60%
Airbnbs for sale in Sarasota, FL →
22. Rapid City, SD
Rapid City serves as the county seat for Pennington County in South Dakota. Known for its proximity to Mt. Rushmore and Badlands National Park, the city offers a variety of cultural activities and events, such as music festivals and rodeos, and a vibrant downtown area.
Key STR Metrics:
- Occupancy: 61.29%
- Average Daily Rate (past 12 months): $236
- Average Yearly Revenue (past 12 months): $53,024
- Median Home Price: $322,518
- Gross Yield: 16.44%
Airbnbs for sale in Rapid City, SD →
23. Key West, FL
Key West is a tropical paradise in the southernmost part of Florida. Its beautiful beaches, crystal clear waters, and year-round warm climate make it an ideal destination for vacationers escaping the hustle and bustle of daily life. The town is known for its vibrant culture and nightlife, as well as plenty of great food and attractions.
Key STR Metrics:
- Occupancy: 62.98%
- Average Daily Rate (past 12 months): $765
- Average Yearly Revenue (past 12 months): $181,383
- Median Home Price: $1,107,560
- Gross Yield: 16.38%
Airbnbs for sale in Key West, FL →
24. North Myrtle Beach, SC
North Myrtle Beach is a popular beach town located just south of the Grand Strand in South Carolina. It provides a variety of activities, from shopping and dining to outdoor recreation, as well as an active nightlife scene with bars, restaurants, and live music venues.
Note: Short-term rental regulations in North Myrtle Beach, SC may vary based on city zoning. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 61.82%
- Average Daily Rate (past 12 months): $286
- Average Yearly Revenue (past 12 months): $66,332
- Median Home Price: $406,691
- Gross Yield: 16.31%
Airbnbs for sale in North Myrtle Beach, SC →
25. St. Petersburg, FL
St. Petersburg offers stunning views of the Tampa Bay area, and its lush parks, marinas, museums, galleries, and performing arts venues give it a unique cultural atmosphere. A popular vacation destination, the town has ample opportunities for shopping, dining out, water sports, and sightseeing along the waterfront.
Note: Short-term rental regulations in St. Petersburg, FL may vary based on city zoning and asset type, and some areas may be subject to a 30-night minimum. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 65.94%
- Average Daily Rate (past 12 months): $251
- Average Yearly Revenue (past 12 months): $60,854
- Median Home Price: $375,964
- Gross Yield: 16.19%
Airbnbs for sale in Petersburg, FL →
26. Palm Desert, CA
Located in the Coachella Valley of Southern California, Palm Desert is close to several major attractions like Joshua Tree National Park, the Salton Sea, and Indian Canyons. The area boasts an array of golf courses, shopping centers, and a large retirement community, making it a top-notch tourist destination.
Key STR Metrics:
- Occupancy: 64.33%
- Average Daily Rate (past 12 months): $404
- Average Yearly Revenue (past 12 months): $95,406
- Median Home Price: $590,961
- Gross Yield: 16.14%
Airbnbs for sale in Palm Desert, CA →
27. Charlottesville, VA
Charlottesville is a picturesque city in the foothills of Virginia’s Blue Ridge Mountains. It's known for its vibrant art and music scene, world-class eateries, beautiful wineries, and numerous parks and outdoor attractions. Home to the University of Virginia and Monticello, the city is an inviting destination for visitors with its unique combination of educational opportunities and history.
Key STR Metrics:
- Occupancy: 67.54%
- Average Daily Rate (past 12 months): $283
- Average Yearly Revenue (past 12 months): $69,967
- Median Home Price: $452,356
- Gross Yield: 15.47%
Airbnbs for sale in Charlottesville, VA →
28. Marquette, MI
Situated on Lake Superior in Michigan's Upper Peninsula, Marquette offers breathtaking lakeshore views and easy access to activities such as hiking, fishing, and biking. It also features attractions like the historic Presque Isle Park and Northern Michigan University. Close to nearby towns like Ishpeming and Negaunee, Marquette is a great choice for those wanting to explore the Great Lakes state.
Note: In some areas of Marquette, MI, short-term rental permit caps apply. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 61.68%
- Average Daily Rate (past 12 months): $197
- Average Yearly Revenue (past 12 months): $45,202
- Median Home Price: $297,013
- Gross Yield: 15.22%
Airbnbs for sale in Marquette, MI →
29. Cape Coral, FL
Located along Florida's beautiful southwest coast, Cape Coral has dazzling views of the Gulf of Mexico. A wide variety of waterfront properties, ranging from spacious family homes to cozy condos, means there’s a place for every traveler. Local attractions include kayaking, fishing, swimming, snorkeling, golfing, and more—all bathed in Cape Coral’s famously sunny climate.
Key STR Metrics:
- Occupancy: 63.27%
- Average Daily Rate (past 12 months): $270
- Average Yearly Revenue (past 12 months): $64,336
- Median Home Price: $431,137
- Gross Yield: 14.92%
Airbnbs for sale in Cape Coral, FL →
30. Ashford, WA
Ashford is a small rural town in Pierce County, Washington, an idyllic setting for vacation rentals. Being near Mount Rainier and the Nisqually River makes it ideal for outdoor enthusiasts seeking an adventurous getaway. The area also has numerous hiking trails, lakes, rivers, and streams for fishing or boating and offers easy access to nearby cities like Tacoma.
Key STR Metrics:
- Occupancy: 60.82%
- Average Daily Rate (past 12 months): $207
- Average Yearly Revenue (past 12 months): $47,363
- Median Home Price: $334,085
- Gross Yield: 14.18%
Airbnbs for sale in Ashford, WA →
31. Rochester, NY
Rochester is a dynamic city in New York’s Finger Lakes region and home to renowned institutions like the University of Rochester, Monroe Community College, and Rochester Institute of Technology. The city boasts an array of cultural attractions, including the George Eastman Museum and the Memorial Art Gallery, and opportunities to hike, bike, and kayak along the Erie Canal and Genesee River.
Key STR Metrics:
- Occupancy: 60.44%
- Average Daily Rate (past 12 months): $138
- Average Yearly Revenue (past 12 months): $30,531
- Median Home Price: $218,737
- Gross Yield: 13.96%
Airbnbs for sale in Rochester, NY →
32. North Miami Beach, FL
North Miami Beach is a leading destination for experiencing the sunny climate and beautiful beaches of South Florida. The city's proximity to attractions such as SeaWorld, Zoo Miami, and Dolphin Mall make it ideal for a vacation rental property. North Miami Beach also offers guests year-round outdoor activities like sunbathing or swimming in the warm waters of Biscayne Bay.
Note: Short-term rental regulations in North Miami Beach, FL may vary based on city zoning and may be subject to minimum stay lengths. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 60.41%
- Average Daily Rate (past 12 months): $284
- Average Yearly Revenue (past 12 months): $63,277
- Median Home Price: $456,777
- Gross Yield: 13.85%
Airbnbs for sale in North Miami Beach, FL →
33. Arvada, CO
With its selection of nearby ski resorts and Rocky Mountain National Park, Arvada is for people longing to get away from the city and enjoy nature. Steady population growth has made Arvada an attractive area for investors seeking long-term returns on their rental investments. Numerous luxury amenities are found throughout the area, such as high-end shops, restaurants, and entertainment venues.
Key STR Metrics:
- Occupancy: 60.17%
- Average Daily Rate (past 12 months): $395
- Average Yearly Revenue (past 12 months): $88,529
- Median Home Price: $645,894
- Gross Yield: 13.71%
Airbnbs for sale in Arvada, CO →
34. Sonoma, CA
Sonoma, California, is a picturesque wine-producing region in the heart of Northern California. Home to some of the most celebrated wineries, Sonoma is an increasingly popular destination. With a mild climate and natural beauty, this charming town is an ideal vacation rental market for investors or guests seeking a luxurious home away from home.
Note: Short-term rental regulations in Sonoma, CA vary based on city zoning. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 62.77%
- Average Daily Rate (past 12 months): $612
- Average Yearly Revenue (past 12 months): $141,054
- Median Home Price: $1,044,382
- Gross Yield: 13.51%
Airbnbs for sale in Sonoma, CA →
35. Portland, ME
Portland offers captivating views of Maine's Casco Bay from its restaurants, cafes, parks, and maritime attractions. Guests enjoy walking along cobblestone streets lined with Victorian-era buildings or strolling through one of the city’s many art galleries. The town has an abundance of activities like kayaking, sailing, and fishing, as well as nearby beaches.
Note: Some properties types in Portland, Maine may be subject to short-term rental permit caps. Make sure to confirm local regulations prior to investing.
Key STR Metrics:
- Occupancy: 67.02%
- Average Daily Rate (past 12 months): $306
- Average Yearly Revenue (past 12 months): $76,315
- Median Home Price: $567,381
- Gross Yield: 13.45%
Airbnbs for sale in Portland, ME →
Wrapping Up
When it comes to finding potential investments in short-term rental markets for 2023, it pays to do your research before you dive in head first. Try our free Airbnb calculator to see how much any address can earn as a short-term rental, research short-term rental markets with free Airbnb market data, and find Airbnb properties for sale. All for free.
