Louisiana 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 6 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 Louisiana 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 3,376 Airbnb listings across the state of Louisiana 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 6 cities in Louisiana 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 6 STR Markets in Louisiana
1. Shreveport, LA
Shreveport, LA offers a thriving short-term rental market ideal for real estate investors seeking good returns. Home to popular attractions like the Shreveport Municipal Auditorium and the Louisiana State Exhibit Museum, the city draws tourists year-round. Sports enthusiasts can catch Shreveport Mudbugs hockey games, while annual events like the Red River Revel Arts Festival boost tourism. Investing in vacation homes here provides promising rental income, making it one of the best places for Airbnb hosts and vacation rentals in 2025.
Key STR Metrics:
- Average Gross Yield: 10.9%
- Average Property Value: $259,115 (as of December 2024)
- Average Annual Revenue: $28,348 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 147 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 72%
Find Airbnbs For Sale in Shreveport, LA →
2. New Orleans, LA
New Orleans, LA, known for its vibrant culture, is a prime spot in the short-term rental market. Home to iconic attractions like the French Quarter, Mardi Gras, and Jazz Fest, it attracts tourists year-round. Sports enthusiasts can catch the Saints or Pelicans in action. With a strong tourism industry, the city offers real estate investors great opportunities in vacation rentals and Airbnb properties. Investing in the New Orleans housing market can yield good rental income and cash flow, making it one of the best places for real estate investing.
Key STR Metrics:
- Average Gross Yield: 10.3%
- Average Property Value: $478,875 (as of December 2024)
- Average Annual Revenue: $49,518 (past 12 months)
- Average Occupancy Rate: 40% (past 12 months)
- Qualifying Airbnbs: 2,357 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 86%
Find Airbnbs For Sale in New Orleans, LA →
3. Monroe, LA
Monroe, LA, is a thriving hub for short-term rental properties and a promising market for real estate investors seeking good returns. Home to attractions like the Biedenharn Museum and Gardens, the Masur Museum of Art, and the scenic Black Bayou Lake, Monroe attracts numerous visitors. Sports fans enjoy events at the University of Louisiana Monroe, making it a great location for vacation rentals. The city's tourism and vibrant housing market provide ample opportunities for rental income through platforms like Airbnb, making it a top destination for real estate investing.
Key STR Metrics:
- Average Gross Yield: 8.4%
- Average Property Value: $272,959 (as of December 2024)
- Average Annual Revenue: $23,025 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 78 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 108%
Find Airbnbs For Sale in Monroe, LA →
4. Baton Rouge, LA
Baton Rouge, LA is a vibrant destination for real estate investors eying the short-term rental market. Known for its lively culture, it boasts attractions like the LSU Tigers sporting events and the annual Bayou Country Superfest. As an Airbnb host, you can attract tourists seeking rich Cajun and Creole heritage experiences. With a robust housing market, investing in vacation homes here promises good returns and rental income, making it one of the best places for vacation rentals in 2025. Visitors are drawn by its unique charm, offering great potential for cash flow.
Key STR Metrics:
- Average Gross Yield: 6.9%
- Average Property Value: $381,511 (as of December 2024)
- Average Annual Revenue: $26,158 (past 12 months)
- Average Occupancy Rate: 32% (past 12 months)
- Qualifying Airbnbs: 401 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 83%
Find Airbnbs For Sale in Baton Rouge, LA →
5. Lake Charles, LA
Lake Charles, LA, is a vibrant destination perfect for short-term rental investments, offering attractions that lure tourists year-round. The bustling tourism scene is fueled by big-name casinos, lush golf courses, and the exhilarating Mardi Gras celebration. Outdoor enthusiasts flock to the Creole Nature Trail, while sports fans cheer on the local semi-pro teams. As a savvy real estate investor, you’ll find that vacation homes here often yield good returns and rental income due to the growing short-term rental market, making it ideal for AirBnB hosts.
Key STR Metrics:
- Average Gross Yield: 6.5%
- Average Property Value: $310,150 (as of December 2024)
- Average Annual Revenue: $20,075 (past 12 months)
- Average Occupancy Rate: 30% (past 12 months)
- Qualifying Airbnbs: 188 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 66%
Find Airbnbs For Sale in Lake Charles, LA →
6. Lafayette, LA
Lafayette, LA stands out in the short-term rental market for 2025, with vibrant attractions like the Acadiana Center for the Arts and lively festivals such as Festival International de Louisiane. This city is an attractive destination for tourists and real estate investors due to its rich Cajun culture and local sports events. Vacation rentals here promise strong rental income and good returns as guests enjoy Lafayette's unique offerings. The robust tourism scene makes it one of the best places for real estate investing in short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 6.3%
- Average Property Value: $354,798 (as of December 2024)
- Average Annual Revenue: $22,295 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 205 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 67%