Alaska is home to many thriving short-term rental markets, but identifying the top-performing cities can be overwhelming, especially when combing through data from countless locations across the state.
To simplify this process, we analyzed data from markets statewide and compiled a list of the top 11 cities for investors and landlords seeking potentially high-return rental properties in the coming year.
As always, we recommend thorough underwriting and analysis of any prospective property and a review of local short-term rental regulations before making any investment decisions.
How We Created This List
First, we looked at all Airbnb listings in Alaska that met the following criteria as of January 2025:
- Average Rating: 4.8 stars and above
- Guest Review Count: Minimum of 10
- Average Daily Rate: $1 (minimum) to $2,000 (maximum)
- Occupancy Rate: 1% (minimum) to 99% (maximum)
- Property Size: 1 to 10 bedrooms
- Property Type: Entire homes
We did this to eliminate Airbnb listings from our analysis that fall outside of what we consider "realistic" situations. This left us with a total of 2,876 Airbnb listings across the state of Alaska to work with.
Next, we grouped these listings by city and eliminated markets that didn't have at least 75 Airbnb listings meeting the above criteria. We took this step to avoid outlier cities we felt didn't have enough data to be considered at this current time. This left us with 11 cities in Alaska to rank.
Then, we needed to arrive at a gross yield number for each of our remaining cities in order to create our rankings. We did this by taking the average annual Airbnb revenue for each city and combining it with the cities median property value (from Zillow as of December 2024) to calculate our gross yield for each city.
Finally, we ordered the cities by highest gross yield.
The Top 11 STR Markets in Alaska
1. Seward, AK
Seward, AK, is a vibrant hub for tourists, offering lucrative opportunities for real estate investors in the short-term rental market. Nestled along the picturesque Kenai Peninsula, its appeal lies in breathtaking attractions like Kenai Fjords National Park and the renowned Alaska SeaLife Center. With events such as the Mount Marathon Race, Seward draws adventure seekers year-round. Vacation homes in this scenic locale promise good returns, making them ideal investment properties for Airbnb hosts aiming to maximize rental income amidst Seward's booming tourism.
Key STR Metrics:
- Average Gross Yield: 12.2%
- Average Property Value: $525,762 (as of December 2024)
- Average Annual Revenue: $63,996 (past 12 months)
- Average Occupancy Rate: 60% (past 12 months)
- Qualifying Airbnbs: 220 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 116%
Find Airbnbs For Sale in Seward, AK →
2. Kenai, AK
Kenai, AK, is a hidden gem for real estate investors seeking opportunities in the short-term rental market. Known for its stunning landscapes and rich wildlife, Kenai attracts tourists year-round with top attractions like Kenai Fjords National Park and fishing along the Kenai River. Home to exciting events such as the Kenai River Festival, this area promises great potential for vacation rentals. With a solid housing market, investing in vacation homes here can yield good returns and consistent cash flow, making it an ideal spot for Airbnb hosts seeking rental income.
Key STR Metrics:
- Average Gross Yield: 10.8%
- Average Property Value: $470,082 (as of December 2024)
- Average Annual Revenue: $50,643 (past 12 months)
- Average Occupancy Rate: 41% (past 12 months)
- Qualifying Airbnbs: 94 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 102%
Find Airbnbs For Sale in Kenai, AK →
3. Homer, AK
Homer, AK, renowned as the "Halibut Fishing Capital of the World," is attracting real estate investors eyeing the lucrative short-term rental market. This picturesque town, nestled by Kachemak Bay, is a haven for tourists seeking adventure and tranquility. With attractions like the Homer Spit, art galleries, and the annual Shorebird Festival, it's a hotspot for visitors. The strong demand for vacation homes and Airbnb stays offers investors a promising rental income potential, making it one of the best places for investing in short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 9.8%
- Average Property Value: $592,215 (as of December 2024)
- Average Annual Revenue: $57,852 (past 12 months)
- Average Occupancy Rate: 42% (past 12 months)
- Qualifying Airbnbs: 309 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 101%
Find Airbnbs For Sale in Homer, AK →
4. North Pole, AK
North Pole, AK, a charming Alaskan town known for its year-round festive spirit, is a hidden gem in the short-term rental market offering great potential for real estate investors. Known for the Santa Claus House and its unique Christmas-themed experiences, this town entices tourists seeking magical holidays. With easy access to Fairbanks’ hiking trails and aurora borealis viewing spots, vacation homes here promise strong rental income. Hosting annual events like Winterfest, North Pole ensures high visitor traffic, making it a lucrative choice for short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 9.7%
- Average Property Value: $403,661 (as of December 2024)
- Average Annual Revenue: $39,085 (past 12 months)
- Average Occupancy Rate: 50% (past 12 months)
- Qualifying Airbnbs: 99 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 56%
Find Airbnbs For Sale in North Pole, AK →
5. Fairbanks, AK
Fairbanks, AK, is a gem for real estate investors eyeing the vibrant short-term rental market. With its rich cultural tapestry and captivating natural phenomena like the Northern Lights, Fairbanks draws tourists year-round. The annual World Ice Art Championships and the allure of the Midnight Sun redefine vacation experiences. Visitors revel in attractions like the Museum of the North, while sports enthusiasts enjoy hockey games. As the gateway to the Arctic, Fairbanks offers strong rental income potential, making it among the best places for vacation rentals and airbnb hosts aiming for good returns.
Key STR Metrics:
- Average Gross Yield: 9.7%
- Average Property Value: $414,303 (as of December 2024)
- Average Annual Revenue: $40,028 (past 12 months)
- Average Occupancy Rate: 48% (past 12 months)
- Qualifying Airbnbs: 409 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 95%
Find Airbnbs For Sale in Fairbanks, AK →
6. Talkeetna, AK
Talkeetna, AK, a charming town nestled at the base of North America's tallest peak, Denali, offers a thriving short-term rental market perfect for real estate investing. Vacation homes here attract adventurers with attractions like flightseeing tours, the picturesque Talkeetna River, and the vibrant arts community. Visitors flock to annual events like the Moose Dropping Festival, ensuring robust rental income potential. For real estate investors eyeing good returns, Talkeetna is one of the best places to explore short-term rental properties on platforms like Airbnb.
Key STR Metrics:
- Average Gross Yield: 8.5%
- Average Property Value: $396,293 (as of December 2024)
- Average Annual Revenue: $33,640 (past 12 months)
- Average Occupancy Rate: 40% (past 12 months)
- Qualifying Airbnbs: 143 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 84%
Find Airbnbs For Sale in Talkeetna, AK →
7. Soldotna, AK
Soldotna, AK offers a vibrant short-term rental market, ideal for real estate investors seeking good returns. This picturesque town is a hub for tourists with attractions like the Kenai River, famous for its salmon fishing, and the Kenai National Wildlife Refuge. Soldotna's hosting of events like the Kenai Peninsula Beer Festival draws visitors year-round, enhancing rental income for Airbnb hosts. Featuring abundant opportunities for outdoor adventures and a thriving tourism scene, Soldotna's vacation homes promise profitable cash flow for those investing in short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 8.5%
- Average Property Value: $532,486 (as of December 2024)
- Average Annual Revenue: $45,077 (past 12 months)
- Average Occupancy Rate: 37% (past 12 months)
- Qualifying Airbnbs: 142 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 59%
Find Airbnbs For Sale in Soldotna, AK →
8. Kodiak, AK
Kodiak, AK, is a hidden gem for real estate investors seeking lucrative opportunities in the short-term rental market. Known for its breathtaking natural scenery, Kodiak attracts tourists and outdoor enthusiasts to its world-renowned fishing, hiking, and wildlife viewing opportunities, including the famous Kodiak Island brown bear. Annual events such as the Kodiak Crab Festival and a vibrant local arts scene provide year-round attractions for visitors. With demand for vacation rentals rising, real estate investing here promises good returns and potential for consistent cash flow from tourists.
Key STR Metrics:
- Average Gross Yield: 8.0%
- Average Property Value: $573,021 (as of December 2024)
- Average Annual Revenue: $45,594 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 82 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 69%
Find Airbnbs For Sale in Kodiak, AK →
9. Wasilla, AK
Wasilla, AK, is a hidden gem for real estate investors seeking lucrative short-term rental properties. Nestled amidst stunning natural beauty, it boasts attractions like the Iditarod Trail Headquarters and the breathtaking Matanuska-Susitna Valley. With a thriving tourism sector, Wasilla hosts exciting events such as the Iditarod and local festivals, drawing visitors year-round. The robust housing market offers good returns for investment property owners. This scenic destination promises steady rental income for Airbnb hosts catering to tourists and vacation rentals.
Key STR Metrics:
- Average Gross Yield: 7.3%
- Average Property Value: $519,875 (as of December 2024)
- Average Annual Revenue: $37,777 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 173 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 109%
Find Airbnbs For Sale in Wasilla, AK →
10. Palmer, AK
Palmer, AK, is a hidden gem in the short-term rental market, ideal for real estate investors seeking vacation rentals with good returns. Nestled amidst breathtaking Alaskan scenery, Palmer attracts tourists with its rich agricultural heritage and annual Alaska State Fair. Visitors can explore the historic Hatcher Pass or indulge in outdoor adventures like hiking and skiing. With its unique attractions and growing tourism, the Palmer housing market offers lucrative opportunities for Airbnb hosts and investors looking to capitalize on rental income and cash flow.
Key STR Metrics:
- Average Gross Yield: 6.9%
- Average Property Value: $524,831 (as of December 2024)
- Average Annual Revenue: $36,287 (past 12 months)
- Average Occupancy Rate: 43% (past 12 months)
- Qualifying Airbnbs: 178 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 86%
Find Airbnbs For Sale in Palmer, AK →
11. Anchorage, AK
Anchorage, AK is a vibrant hub for short-term rental markets, attracting tourists with its stunning natural beauty and attractions. Known for the Northern Lights, it's a prime spot for vacation homes. Outdoor enthusiasts flock to Chugach State Park and the Alaska Wildlife Conservation Center. Anchorage also hosts the Iditarod Trail Sled Dog Race and the Great Alaska Beer & Barleywine Festival. With a strong housing market, real estate investors find good return potential in short-term rental properties. It's ideal for Airbnb hosts aiming to maximize rental income and cash flow.
Key STR Metrics:
- Average Gross Yield: 6.6%
- Average Property Value: $563,019 (as of December 2024)
- Average Annual Revenue: $37,382 (past 12 months)
- Average Occupancy Rate: 45% (past 12 months)
- Qualifying Airbnbs: 1,027 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 80%
