Hawaii 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 19 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 Hawaii 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 7,512 Airbnb listings across the state of Hawaii 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 19 cities in Hawaii 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 19 STR Markets in Hawaii
1. Kapolei, HI
Kapolei, HI, known as Oahu's "Second City," is a burgeoning hotspot for real estate investors eyeing the short-term rental market. With its rapid growth and proximity to Honolulu, it's ideal for vacation homes and attracting tourists. Guests can explore attractions like Wet'n'Wild Hawaii and Ko Olina Beach Park, home to luxurious resorts. The area's vibrant events, such as the Kapolei City Lights Festival, further boost tourism. Its potential for rental income and good return makes Kapolei a prime destination for vacation rentals and Airbnb hosts.
Key STR Metrics:
- Average Gross Yield: 17.7%
- Average Property Value: $1,090,149 (as of December 2024)
- Average Annual Revenue: $192,415 (past 12 months)
- Average Occupancy Rate: 62% (past 12 months)
- Qualifying Airbnbs: 131 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 118%
Find Airbnbs For Sale in Kapolei, HI →
2. Waianae, HI
Waianae, HI is a hidden gem for real estate investors seeking a vibrant short-term rental market with good return potential. Known for its stunning beaches and lush hiking trails, Waianae attracts tourists looking for a unique Hawaiian experience. Visitors can enjoy local attractions like Pokai Bay Beach Park and Ka'ena Point, or immerse in cultural events such as the Waianae Coast Culture & Arts Festival. The area's growing tourism makes it one of the best places for vacation homes, offering airbnb hosts a lucrative opportunity for rental income and positive cash flow.
Key STR Metrics:
- Average Gross Yield: 17.1%
- Average Property Value: $762,674 (as of December 2024)
- Average Annual Revenue: $130,244 (past 12 months)
- Average Occupancy Rate: 55% (past 12 months)
- Qualifying Airbnbs: 142 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 79%
Find Airbnbs For Sale in Waianae, HI →
3. Kahuku, HI
Kahuku, HI, offers a vibrant short-term rental market ideal for real estate investors seeking a good return. Known for its beautiful beaches and golf courses, travelers flock to Kahuku for its natural attractions and events like the Turtle Bay Championship. The area is a hotspot for tourists looking for vacation homes with rental income potential. Proximity to the Polynesian Cultural Center and thrilling shark cage dives make it one of the best places for Airbnb guests. For savvy investors, Kahuku's real estate market promises excellent cash flow opportunities.
Key STR Metrics:
- Average Gross Yield: 10.9%
- Average Property Value: $1,535,259 (as of December 2024)
- Average Annual Revenue: $167,656 (past 12 months)
- Average Occupancy Rate: 68% (past 12 months)
- Qualifying Airbnbs: 165 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 128%
Find Airbnbs For Sale in Kahuku, HI →
4. Pahoa, HI
Pahoa, HI, a hidden gem for real estate investors seeking lucrative short-term rental properties, boasts a vibrant tourism scene. With its proximity to Hawaii Volcanoes National Park, Ahalanui Hot Pond, and Kehena Black Sand Beach, it attracts nature-loving visitors. This region's unique charm and active short-term rental market, bolstered by festivals like the Puna Music Festival, offer airbnb hosts and vacation rental investors substantial rental income and cash flow. Pahoa's blend of natural beauty and cultural festivities makes it one of the best places for STR investments.
Key STR Metrics:
- Average Gross Yield: 9.4%
- Average Property Value: $395,969 (as of December 2024)
- Average Annual Revenue: $37,382 (past 12 months)
- Average Occupancy Rate: 44% (past 12 months)
- Qualifying Airbnbs: 199 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 89%
Find Airbnbs For Sale in Pahoa, HI →
5. Mountain View, HI
Mountain View, HI, nestled on the lush Big Island, makes a compelling case for real estate investors eyeing the short-term rental market. Known for its proximity to Hawaii Volcanoes National Park and the serene Akatsuka Orchid Gardens, it offers a unique charm to tourists. Guests enjoy the captivating natural attractions and annual events like the Big Island Film Festival, ensuring steady visitor influx. The area's burgeoning tourism scene makes it an ideal location for vacation homes, offering a good return and promising rental income for Airbnb hosts.
Key STR Metrics:
- Average Gross Yield: 9.3%
- Average Property Value: $486,429 (as of December 2024)
- Average Annual Revenue: $45,077 (past 12 months)
- Average Occupancy Rate: 45% (past 12 months)
- Qualifying Airbnbs: 81 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 84%
Find Airbnbs For Sale in Mountain View, HI →
6. Hilo, HI
Hilo, HI, offers a vibrant short-term rental market ideal for real estate investors seeking vacation homes with good return potential. This charming town is nestled on the Big Island, featuring stunning natural attractions like Rainbow Falls and the majestic Mauna Kea. Tourists flock to Hilo for its annual Merrie Monarch Festival, showcasing Hawaiian culture, and its array of local sports events. As a tourism hotspot, Hilo presents lucrative opportunities for Airbnb hosts and investors aiming for consistent rental income and cash flow from short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 8.8%
- Average Property Value: $705,465 (as of December 2024)
- Average Annual Revenue: $61,837 (past 12 months)
- Average Occupancy Rate: 48% (past 12 months)
- Qualifying Airbnbs: 172 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 67%
Find Airbnbs For Sale in Hilo, HI →
7. Kapaa, HI
Kapaa, HI, on the scenic island of Kauai, is an enticing market for real estate investors focusing on short-term rental properties. Known for its stunning beaches like Kealia and vibrant attractions such as the Kauai Path and Nounou Mountain trail, Kapaa offers ample opportunities for vacation rentals. With a bustling tourism scene, including festivals like the Coconut Festival, it draws numerous visitors, ensuring attractive rental income. The dynamic housing market presents excellent prospects for investors seeking good returns on investment properties.
Key STR Metrics:
- Average Gross Yield: 8.7%
- Average Property Value: $1,303,674 (as of December 2024)
- Average Annual Revenue: $113,210 (past 12 months)
- Average Occupancy Rate: 57% (past 12 months)
- Qualifying Airbnbs: 226 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 55%
Find Airbnbs For Sale in Kapaa, HI →
8. Keaau, HI
Keaau, HI, is a hidden gem for short-term rental properties, perfect for real estate investors looking for a good return. Nestled on the Big Island’s eastern edge, Keaau attracts tourists with its lush landscapes and close proximity to Hawaii Volcanoes National Park. The local scene boasts charming farmers' markets and unique cultural festivals, drawing visitors year-round. With a thriving short-term rental market, vacation homes here offer excellent cash flow potential for Airbnb hosts aiming to capitalize on the area's burgeoning tourism appeal.
Key STR Metrics:
- Average Gross Yield: 8.4%
- Average Property Value: $582,118 (as of December 2024)
- Average Annual Revenue: $49,153 (past 12 months)
- Average Occupancy Rate: 52% (past 12 months)
- Qualifying Airbnbs: 179 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 72%
Find Airbnbs For Sale in Keaau, HI →
9. Waikoloa, HI
Waikoloa, HI, is a gem for real estate investors seeking short-term rental properties, with its thriving vacation homes market promising good return and robust cash flow. Visitors are drawn to the idyllic beaches, world-class golf courses, and vibrant cultural attractions, such as the annual Waikoloa Beach Resort Music & Arts Festival. The region's tourism appeal ensures a steady stream of guests, making it one of the best places for Airbnb hosts. For those entering the housing market, Waikoloa offers appealing investment property opportunities in this flourishing short term rental market.
Key STR Metrics:
- Average Gross Yield: 7.2%
- Average Property Value: $1,148,031 (as of December 2024)
- Average Annual Revenue: $83,067 (past 12 months)
- Average Occupancy Rate: 56% (past 12 months)
- Qualifying Airbnbs: 296 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 74%
Find Airbnbs For Sale in Waikoloa, HI →
10. Wailuku, HI
Wailuku, HI, offers a thriving short-term rental market with its rich history and stunning natural beauty, making it an attractive spot for real estate investors seeking good return and rental income. As the gateway to the Iao Valley State Park, it entices tourists with lush landscapes and cultural attractions. The town's proximity to Maui's beaches and vibrant local events like the Wailuku First Fridays make it ideal for vacation rentals and Airbnb hosts. Real estate investing here promises strong cash flow potential and a flourishing tourism scene for short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 6.3%
- Average Property Value: $1,250,068 (as of December 2024)
- Average Annual Revenue: $78,292 (past 12 months)
- Average Occupancy Rate: 53% (past 12 months)
- Qualifying Airbnbs: 157 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 118%
Find Airbnbs For Sale in Wailuku, HI →
11. Koloa, HI
Koloa, HI, a gem on the island of Kauai, is one of the best places for short-term rental properties. Known for its stunning beaches and proximity to the breathtaking Spouting Horn Park, it attracts guests seeking tropical getaways. The town hosts unique events like the annual Koloa Plantation Days, drawing tourists eager to explore its rich history. The thriving short-term rental market presents real estate investors with lucrative opportunities for vacation rentals. For an Airbnb host, this vibrant locale offers promising rental income and good return on investment.
Key STR Metrics:
- Average Gross Yield: 5.9%
- Average Property Value: $2,381,052 (as of December 2024)
- Average Annual Revenue: $139,582 (past 12 months)
- Average Occupancy Rate: 66% (past 12 months)
- Qualifying Airbnbs: 527 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 113%
Find Airbnbs For Sale in Koloa, HI →
12. Honolulu, HI
Honolulu, HI, is a prime spot for real estate investors seeking lucrative short-term rental properties. This vibrant city offers a thriving tourism scene with world-class attractions like Waikiki Beach, Diamond Head, and Pearl Harbor, making it one of the best places for vacation rentals. The year-round pleasant weather and cultural events, such as the Honolulu Festival, ensure a steady stream of visitors, maximizing rental income potential for Airbnb hosts. With a robust housing market, investing in vacation homes here promises good return and cash flow.
Key STR Metrics:
- Average Gross Yield: 5.4%
- Average Property Value: $1,452,827 (as of December 2024)
- Average Annual Revenue: $79,144 (past 12 months)
- Average Occupancy Rate: 59% (past 12 months)
- Qualifying Airbnbs: 1,125 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 82%
Find Airbnbs For Sale in Honolulu, HI →
13. Captain Cook, HI
Captain Cook, HI, offers real estate investors an ideal short-term rental market, boasting captivating attractions like the Pu'uhonua O Hōnaunau National Historical Park and breathtaking views of Kealakekua Bay. As a vacation hotspot, it draws tourists eager to explore its tropical beauty, enhancing rental income potential. The vibrant housing market is prime for investment property, attracting Airbnb hosts seeking good returns and cash flow. With ongoing tourism growth, Captain Cook presents one of the best places for vacation homes and short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 5.2%
- Average Property Value: $1,089,124 (as of December 2024)
- Average Annual Revenue: $56,514 (past 12 months)
- Average Occupancy Rate: 51% (past 12 months)
- Qualifying Airbnbs: 138 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 95%
Find Airbnbs For Sale in Captain Cook, HI →
14. Kailua Kona, HI
Kailua Kona, HI is a prime location for short-term rental properties due to its vibrant tourism scene and attractive real estate market. This charming coastal town offers visitors countless attractions, including snorkeling at Kahalu'u Beach Park and exploring the historic Hulihe'e Palace. Every October, the Ironman World Championship draws athletes and tourists worldwide, boosting demand for vacation homes. Real estate investors can find good returns and cash flow in Kailua Kona's short-term rental market, making it one of the best places for investment property in Hawaii.
Key STR Metrics:
- Average Gross Yield: 5.0%
- Average Property Value: $1,511,564 (as of December 2024)
- Average Annual Revenue: $75,676 (past 12 months)
- Average Occupancy Rate: 51% (past 12 months)
- Qualifying Airbnbs: 978 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 56%
Find Airbnbs For Sale in Kailua Kona, HI →
15. Haleiwa, HI
Haleiwa, HI is a prime location for real estate investors seeking short-term rental properties, thanks to its thriving tourism. Known for its stunning North Shore beaches, Haleiwa attracts surfers and sun-seekers from around the globe. Guests can explore the historic town, indulge in local eats, or experience annual events like the Vans Triple Crown of Surfing. With a vibrant housing market and consistent tourist influx, vacation homes here promise a good return and steady rental income, making it a top choice for vacation rentals and Airbnb hosts pursuing cash flow opportunities.
Key STR Metrics:
- Average Gross Yield: 4.8%
- Average Property Value: $2,496,728 (as of December 2024)
- Average Annual Revenue: $119,081 (past 12 months)
- Average Occupancy Rate: 46% (past 12 months)
- Qualifying Airbnbs: 80 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 75%
Find Airbnbs For Sale in Haleiwa, HI →
16. Kailua, HI
Kailua, HI is a prime spot for real estate investors eyeing short-term rental properties. Known for its stunning beaches like Kailua Beach and rich natural attractions such as Lanikai Pillbox Hike, Kailua attracts a steady stream of tourists and visitors. The vibrant town hosts various events, offering airbnb hosts a lucrative rental income opportunity. As one of the best places in the short-term rental market, Kailua offers a good return on investment, making it ideal for those looking to capitalize on the dynamic vacation homes sector.
Key STR Metrics:
- Average Gross Yield: 4.6%
- Average Property Value: $2,062,449 (as of December 2024)
- Average Annual Revenue: $95,812 (past 12 months)
- Average Occupancy Rate: 50% (past 12 months)
- Qualifying Airbnbs: 82 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 71%
Find Airbnbs For Sale in Kailua, HI →
17. Princeville, HI
Princeville, HI, is a top destination for real estate investors seeking lucrative opportunities in the short-term rental market. Nestled on Kauai's stunning North Shore, Princeville attracts tourists with its breathtaking beaches, the renowned Makai Golf Club, and scenic hiking trails like the Kalalau Trail. The vibrant local culture includes the Hanalei Bay music festivals and weekly farmer's markets. Vacation homes here promise a good return and strong cash flow, making Princeville one of the best places for investment properties that capture consistent rental income.
Key STR Metrics:
- Average Gross Yield: 4.6%
- Average Property Value: $2,324,777 (as of December 2024)
- Average Annual Revenue: $107,553 (past 12 months)
- Average Occupancy Rate: 47% (past 12 months)
- Qualifying Airbnbs: 547 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 71%
Find Airbnbs For Sale in Princeville, HI →
18. Lahaina, HI
Lahaina, HI, presents a thriving opportunity in the short-term rental market, attracting real estate investors seeking good returns from vacation homes. Known for its stunning beaches, historic Front Street, and vibrant luaus, the town is a hotspot for tourists. Visitors can enjoy snorkeling at nearby Molokini Crater or whale watching during the winter months. Lahaina’s annual events, like the Maui Film Festival, draw substantial tourism, making it ideal for Airbnb hosts aiming for strong rental income and cash flow.
Key STR Metrics:
- Average Gross Yield: 4.4%
- Average Property Value: $2,192,918 (as of December 2024)
- Average Annual Revenue: $95,751 (past 12 months)
- Average Occupancy Rate: 54% (past 12 months)
- Qualifying Airbnbs: 927 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 95%
Find Airbnbs For Sale in Lahaina, HI →
19. Kihei, HI
Kihei, HI, is a prime location on Maui's sunny southwest shore, attracting vacationers with its stunning beaches, vibrant reefs, and year-round sun, ideal for snorkeling and scuba diving enthusiasts. The area boasts popular attractions like the Maui Ocean Center and Kealia Pond National Wildlife Refuge. With a flourishing short-term rental market, Kihei offers real estate investors lucrative opportunities in vacation homes. The area's consistent tourism flow promises good returns and rental income for Airbnb hosts, making it one of the best places for real estate investing.
Key STR Metrics:
- Average Gross Yield: 4.2%
- Average Property Value: $2,153,693 (as of December 2024)
- Average Annual Revenue: $89,668 (past 12 months)
- Average Occupancy Rate: 60% (past 12 months)
- Qualifying Airbnbs: 1,360 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 84%