California 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 20 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 California that met the following criteria as of December 2024:
- 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 33,925 Airbnb listings across the state of California 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 128 cities in California 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 November 2024) to calculate our gross yield for each city.
Finally, we ordered the cities by highest gross yield.
The Top 20 STR Markets in California
1. Coachella, CA
Coachella, CA, is a vibrant hub for short-term rental properties, enticing tourists with its iconic music and arts festivals like Coachella and Stagecoach. This desert city offers investors excellent opportunities in the vacation homes market, thanks to high demand for Airbnb accommodations. Visitors enjoy a rich tapestry of attractions, from hiking in Joshua Tree National Park to golfing at world-class courses. With a thriving tourism scene and a promising real estate market, Coachella presents real estate investors the potential for good returns and robust cash flow.
Key STR Metrics:
- Average Gross Yield: 19.8%
- Average Property Value: $496,506 (as of November 2024)
- Average Annual Revenue: $98,180 (past 12 months)
- Average Occupancy Rate: 28% (past 12 months)
- Qualifying Airbnbs: 123 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 63%
Find Airbnbs For Sale in Coachella, CA →
2. Crescent City, CA
Crescent City, CA offers an attractive short-term rental market for real estate investors seeking to tap into the booming tourism sector. Known for its scenic beauty along the rugged Northern California coast, it features attractions like the iconic Battery Point Lighthouse and the expansive Redwood National and State Parks. The area's allure is bolstered by events like the Del Norte County Fair, drawing visitors year-round. With strong rental income potential, vacation rentals here promise good returns, making Crescent City a prime spot for Airbnb hosts and short-term rental property investment.
Key STR Metrics:
- Average Gross Yield: 11.9%
- Average Property Value: $498,089 (as of November 2024)
- Average Annual Revenue: $59,425 (past 12 months)
- Average Occupancy Rate: 47% (past 12 months)
- Qualifying Airbnbs: 119 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 87%
Find Airbnbs For Sale in Crescent City, CA →
3. Idyllwild, CA
Idyllwild, CA offers a charming blend of natural beauty and vibrant culture, making it one of the best places for short-term rental properties in 2024. Nestled in the San Jacinto Mountains, it attracts tourists with stunning hiking trails and the Idyllwild Nature Center. The bustling art scene, highlighted by the Idyllwild Arts Festival, entices visitors and boosts tourism. For real estate investors seeking good returns and reliable rental income, the local housing market presents profitable opportunities in vacation homes perfect for Airbnb hosts.
Key STR Metrics:
- Average Gross Yield: 11.2%
- Average Property Value: $637,843 (as of November 2024)
- Average Annual Revenue: $71,140 (past 12 months)
- Average Occupancy Rate: 35% (past 12 months)
- Qualifying Airbnbs: 301 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 56%
Find Airbnbs For Sale in Idyllwild, CA →
4. Julian, CA
Julian, CA offers an enticing short-term rental market perfect for real estate investors seeking a good return. Known for its charming vacation homes, this historic town captivates visitors with local attractions like the Julian Pie Company and annual Apple Days Festival. Outdoor enthusiasts love the hiking trails and scenic views of Cuyamaca Rancho State Park. With strong tourism, hosting an Airbnb here promises steady rental income. Discovering Julian's appeal can make it one of the best places for short-term rental properties in 2024.
Key STR Metrics:
- Average Gross Yield: 11.1%
- Average Property Value: $792,518 (as of November 2024)
- Average Annual Revenue: $87,933 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 116 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 75%
Find Airbnbs For Sale in Julian, CA →
5. Twain Harte, CA
Nestled in the Sierra Nevada, Twain Harte, CA is a gem for real estate investors seeking lucrative short-term rental properties. Known for its charming vacation homes, this area attracts tourists with its serene pine forests, Twain Harte Lake, and the exciting Black Oak Casino. Outdoor enthusiasts will enjoy skiing in winter and hiking in summer, while events like the Twain Harte Summer Arts and Wine Festival draw crowds. With its appeal to visitors, Twain Harte offers a promising short-term rental market, providing a good return and steady rental income for investors.
Key STR Metrics:
- Average Gross Yield: 10.7%
- Average Property Value: $538,626 (as of November 2024)
- Average Annual Revenue: $57,753 (past 12 months)
- Average Occupancy Rate: 32% (past 12 months)
- Qualifying Airbnbs: 106 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 67%
Find Airbnbs For Sale in Twain Harte, CA →
6. Borrego Springs, CA
Borrego Springs, CA, a hidden gem for real estate investors, is gaining traction in the short-term rental market. Known for its stunning desert landscapes and the nearby Anza-Borrego Desert State Park, it offers unique attractions for tourists seeking outdoor adventures. The town's annual Borrego Days Desert Festival draws visitors, enhancing tourism and rental income potential for Airbnb hosts. With its vibrant art scene and clear stargazing nights, Borrego Springs is ideal for vacation homes, promising good returns and cash flow from short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 10.7%
- Average Property Value: $522,752 (as of November 2024)
- Average Annual Revenue: $55,892 (past 12 months)
- Average Occupancy Rate: 36% (past 12 months)
- Qualifying Airbnbs: 80 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 76%
Find Airbnbs For Sale in Borrego Springs, CA →
7. Indio, CA
Indio, CA is a vibrant destination for tourism and short-term rental properties, making it a hot spot in the real estate market. Known for hosting the world-famous Coachella Valley Music and Arts Festival and Stagecoach Festival, the city draws tourists year-round. Investors seeking vacation homes will appreciate the robust rental income potential and good return on investment. With nearby attractions like the Empire Polo Club and the stunning Joshua Tree National Park, real estate investors find Indio one of the best places to capitalize on the thriving STR and Airbnb markets.
Key STR Metrics:
- Average Gross Yield: 10.6%
- Average Property Value: $660,164 (as of November 2024)
- Average Annual Revenue: $70,036 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 731 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 78%
Find Airbnbs For Sale in Indio, CA →
8. Desert Hot Springs, CA
Desert Hot Springs, CA is a prime spot for short-term rental properties due to its renowned hot mineral springs, offering tourists a unique wellness experience. Nestled near Joshua Tree National Park and the Coachella Valley, it draws guests seeking outdoor adventure and music events. Its thriving housing market presents real estate investors with ample vacation homes ideal for Airbnb. As one of the best places for investment property, Desert Hot Springs promises good return and cash flow, making it a compelling choice for forward-thinking investors.
Key STR Metrics:
- Average Gross Yield: 10.6%
- Average Property Value: $448,871 (as of November 2024)
- Average Annual Revenue: $47,493 (past 12 months)
- Average Occupancy Rate: 32% (past 12 months)
- Qualifying Airbnbs: 265 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 45%
Find Airbnbs For Sale in Desert Hot Springs, CA →
9. Anaheim, CA
Anaheim, CA is a prime destination for short-term rental market investments in 2024, offering real estate investors lucrative opportunities. Known for Disneyland Resort, it attracts millions of tourists annually, seeking vacation rentals near exciting attractions. Sports fans enjoy games by the Anaheim Ducks and Los Angeles Angels, while events like the NAMM Show amplify year-round tourism. The thriving tourism scene promises Airbnb hosts consistent rental income, making Anaheim one of the best places for those seeking good return and cash flow from investment properties.
Key STR Metrics:
- Average Gross Yield: 9.9%
- Average Property Value: $1,144,867 (as of November 2024)
- Average Annual Revenue: $113,694 (past 12 months)
- Average Occupancy Rate: 51% (past 12 months)
- Qualifying Airbnbs: 252 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 83%
Find Airbnbs For Sale in Anaheim, CA →
10. Santa Rosa, CA
Santa Rosa, CA, is a vibrant destination ideal for real estate investors seeking short-term rental properties. Nestled in the heart of wine country, it offers abundant attractions like the Charles M. Schulz Museum and the stunning Sonoma County vineyards. Sports enthusiasts can visit for cycling events like Levi's GranFondo, while others enjoy annual events such as the Sonoma County Fair. The active tourism and housing market ensure a good return and cash flow for Airbnb hosts, making Santa Rosa one of the best places to invest in vacation homes and capitalize on rental income.
Key STR Metrics:
- Average Gross Yield: 9.6%
- Average Property Value: $974,904 (as of November 2024)
- Average Annual Revenue: $93,407 (past 12 months)
- Average Occupancy Rate: 42% (past 12 months)
- Qualifying Airbnbs: 198 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 95%
Find Airbnbs For Sale in Santa Rosa, CA →
11. Mariposa, CA
Mariposa, CA, a charming gateway to Yosemite National Park, is an enticing destination for tourists, making it one of the best places for short-term rental properties in 2024. Offering attractive investment property opportunities in the short-term rental market, Mariposa is perfect for real estate investors seeking good return and rental income. Visitors can explore the historic Mariposa Museum, attend vibrant local events like the Mariposa Butterfly Festival, and enjoy outdoor activities, boosting tourism and making it ideal for Airbnb hosts and vacation homes.
Key STR Metrics:
- Average Gross Yield: 9.6%
- Average Property Value: $509,013 (as of November 2024)
- Average Annual Revenue: $48,622 (past 12 months)
- Average Occupancy Rate: 45% (past 12 months)
- Qualifying Airbnbs: 216 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 65%
Find Airbnbs For Sale in Mariposa, CA →
12. Cathedral City, CA
Cathedral City, CA, a prime spot for vacation homes, offers an enticing short-term rental market for real estate investors seeking strong rental income in 2024. Known for its proximity to the Coachella Valley Music and Arts Festival, this area attracts tourists and promises good returns. The burgeoning real estate market, golf courses, and hiking in Joshua Tree National Park create an unforgettable experience for guests. Becoming an Airbnb host here means tapping into a vibrant community of visitors and ensuring consistent cash flow.
Key STR Metrics:
- Average Gross Yield: 9.3%
- Average Property Value: $606,688 (as of November 2024)
- Average Annual Revenue: $56,150 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 91 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 71%
Find Airbnbs For Sale in Cathedral City, CA →
13. Seaside, CA
Seaside, CA offers a vibrant short-term rental market for real estate investors seeking good returns. Known for its scenic coastline, it attracts tourists with attractions like Fort Ord Dunes State Park and the nearby Monterey Bay Aquarium. The area's dynamic tourism scene, including events like the Monterey Jazz Festival and Pro-Am golf tournaments, ensures consistent rental income for vacation homes. With its proximity to California's picturesque Monterey Peninsula, Seaside is one of the best places for vacation rentals, ideal for Airbnb hosts aiming to maximize cash flow.
Key STR Metrics:
- Average Gross Yield: 9.1%
- Average Property Value: $958,304 (as of November 2024)
- Average Annual Revenue: $87,587 (past 12 months)
- Average Occupancy Rate: 49% (past 12 months)
- Qualifying Airbnbs: 79 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 71%
Find Airbnbs For Sale in Seaside, CA →
14. Escondido, CA
Escondido, CA, stands out as a top short-term rental market for 2024 with its diverse attractions and vibrant tourism scene. Nestled in sunny Southern California, it offers easy access to breathtaking spots like the San Diego Zoo Safari Park and the scenic Lake Dixon. The city hosts lively events, including the Cruisin' Grand Escondido car show, drawing car enthusiasts and tourists alike. With a favorable housing market and strong rental property demand, real estate investors can expect good returns and cash flow from vacation rentals and Airbnb properties in this inviting destination.
Key STR Metrics:
- Average Gross Yield: 9.1%
- Average Property Value: $1,175,409 (as of November 2024)
- Average Annual Revenue: $106,981 (past 12 months)
- Average Occupancy Rate: 43% (past 12 months)
- Qualifying Airbnbs: 142 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 77%
Find Airbnbs For Sale in Escondido, CA →
15. Guerneville, CA
Guerneville, CA, nestled in the lush landscapes of Sonoma County, is a prime spot for real estate investing with its vibrant short-term rental market. Known for the scenic Russian River and Armstrong Redwoods State Natural Reserve, it attracts tourists year-round, enhancing rental income potential. Vacation home investors will find unique attractions like local wine tasting and lively art festivals appealing. The town’s welcoming vibe and diverse attractions make it one of the best places for STR investments, promising good returns and consistent cash flow for Airbnb hosts.
Key STR Metrics:
- Average Gross Yield: 9.0%
- Average Property Value: $734,063 (as of November 2024)
- Average Annual Revenue: $65,985 (past 12 months)
- Average Occupancy Rate: 36% (past 12 months)
- Qualifying Airbnbs: 154 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 82%
Find Airbnbs For Sale in Guerneville, CA →
16. Windsor, CA
Windsor, CA is a hidden gem perfect for real estate investors seeking lucrative opportunities in the short-term rental market. With its charming town green, bustling farmers' markets, and proximity to Sonoma County wineries, it lures tourists year-round. Visitors can explore scenic trails, boutique shopping, and renowned culinary spots. Annual events like the Sonoma County Hot Air Balloon Classic elevate its tourism appeal. This vibrant locale offers strong rental income potential for vacation rentals and attracts Airbnb hosts aiming for a good return.
Key STR Metrics:
- Average Gross Yield: 8.8%
- Average Property Value: $977,919 (as of November 2024)
- Average Annual Revenue: $85,982 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 79 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 22%
Find Airbnbs For Sale in Windsor, CA →
17. Oakhurst, CA
Nestled at the gateway to Yosemite National Park, Oakhurst, CA offers a vibrant short-term rental market ideal for real estate investors. The area attracts tourists with its stunning natural beauty, outdoor activities, and intimate local charm. Major attractions include Bass Lake and the Sierra Vista Scenic Byway, making it a prime location for vacation homes and Airbnb properties. Oakhurst's growing tourism ensures stable rental income and a good return for those investing in vacation rentals, making it one of the best places for investment property in 2024.
Key STR Metrics:
- Average Gross Yield: 8.7%
- Average Property Value: $576,002 (as of November 2024)
- Average Annual Revenue: $49,930 (past 12 months)
- Average Occupancy Rate: 43% (past 12 months)
- Qualifying Airbnbs: 402 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 109%
Find Airbnbs For Sale in Oakhurst, CA →
18. Eureka, CA
Eureka, CA, nestled along the scenic Redwood Coast, is a hidden gem for the short-term rental market. Known for its vibrant arts scene, visitors are drawn to attractions like the Sequoia Park Zoo and the historic Old Town district. With events such as the Kinetic Grand Championship and its close proximity to iconic redwood forests, tourists flock here year-round. This thriving tourism industry offers real estate investors lucrative opportunities in vacation rentals, ensuring good return and steady cash flow for Airbnb hosts seeking rental income in one of the best places for real estate investing.
Key STR Metrics:
- Average Gross Yield: 8.6%
- Average Property Value: $520,269 (as of November 2024)
- Average Annual Revenue: $44,660 (past 12 months)
- Average Occupancy Rate: 40% (past 12 months)
- Qualifying Airbnbs: 90 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 99%
Find Airbnbs For Sale in Eureka, CA →
19. Temecula, CA
Temecula, CA, known for its vibrant tourism scene, offers exciting opportunities for real estate investors looking into the short-term rental market. Home to the famous Temecula Valley Wine Country, visitors flock to the area for wine tastings, hot air balloon rides, and scenic vineyards. Key attractions like Old Town Temecula and Pechanga Resort & Casino draw tourists year-round. With annual events like the Temecula Valley Balloon & Wine Festival, vacation homes here promise strong rental income and good return for Airbnb hosts and short-term property owners.
Key STR Metrics:
- Average Gross Yield: 8.5%
- Average Property Value: $977,426 (as of November 2024)
- Average Annual Revenue: $83,303 (past 12 months)
- Average Occupancy Rate: 35% (past 12 months)
- Qualifying Airbnbs: 265 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 74%
Find Airbnbs For Sale in Temecula, CA →
20. Groveland, CA
Nestled in the Sierra Nevada foothills, Groveland, CA is a hidden gem for real estate investors eyeing the short-term rental market. With its charming vacation homes, proximity to Yosemite National Park, and recreational activities like hiking and golfing, it's a hotspot for tourists. The annual 49er Festival and access to Pine Mountain Lake make it a top choice for vacation rentals. For Airbnb hosts, Groveland offers good rental income potential and a chance to capitalize on the booming tourism scene, providing a solid investment property opportunity.
Key STR Metrics:
- Average Gross Yield: 8.5%
- Average Property Value: $553,106 (as of November 2024)
- Average Annual Revenue: $46,797 (past 12 months)
- Average Occupancy Rate: 32% (past 12 months)
- Qualifying Airbnbs: 188 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 79%
