Massachusetts 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 Massachusetts 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 3,455 Airbnb listings across the state of Massachusetts 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 21 cities in Massachusetts 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 20 STR Markets in Massachusetts
1. Harwich, MA
Harwich, MA, a charming coastal town on Cape Cod, is a thriving hub for short-term rental properties and real estate investing. Known for its pristine beaches, cranberry bogs, and scenic bike trails, Harwich attracts tourists seeking picturesque vacation homes. Its vibrant tourism scene is bolstered by events like the Harwich Cranberry Festival and Cape Cod Baseball League games. With a strong rental income potential and thriving short-term rental market, Harwich offers real estate investors a good return and steady cash flow, making it one of the best places for Airbnb hosts.
Key STR Metrics:
- Average Gross Yield: 10.9%
- Average Property Value: $1,008,589 (as of December 2024)
- Average Annual Revenue: $109,621 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 80 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 72%
Find Airbnbs For Sale in Harwich, MA →
2. Salem, MA
Salem, MA, renowned for its rich history and vibrant culture, offers a thriving short-term rental market perfect for real estate investors seeking good returns. With attractions like the Salem Witch Museum, stunning colonial architecture, and events such as the annual Salem Haunted Happenings, tourists flock here year-round. The local sports scene includes the Salem Academy athletics, providing sports enthusiasts more reasons to visit. For Airbnb hosts, Salem’s tourism ensures substantial rental income and steady visitor interest in vacation homes.
Key STR Metrics:
- Average Gross Yield: 10.6%
- Average Property Value: $734,403 (as of December 2024)
- Average Annual Revenue: $77,653 (past 12 months)
- Average Occupancy Rate: 52% (past 12 months)
- Qualifying Airbnbs: 199 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 112%
Find Airbnbs For Sale in Salem, MA →
3. Plymouth, MA
Plymouth, MA is a gem for real estate investors eyeing the short-term rental market. Known as "America's Hometown," it attracts tourists year-round with iconic attractions like Plimoth Patuxet Museums and Mayflower II. The robust tourism scene is bolstered by vibrant events like the annual America's Hometown Thanksgiving Celebration. With vacation homes offering good rental income and amenities for visitors, the housing market here promises a good return on investment, making it a top pick for short-term rental properties on platforms like Airbnb.
Key STR Metrics:
- Average Gross Yield: 10.2%
- Average Property Value: $805,066 (as of December 2024)
- Average Annual Revenue: $81,760 (past 12 months)
- Average Occupancy Rate: 40% (past 12 months)
- Qualifying Airbnbs: 179 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 81%
Find Airbnbs For Sale in Plymouth, MA →
4. East Falmouth, MA
East Falmouth, MA is a charming coastal destination perfect for real estate investors eyeing the short-term rental market. Known for its stunning beaches and vibrant local attractions such as the Cape Cod Fairgrounds and Falmouth Commodores baseball games, it draws a steady stream of tourists. The housing market supports lucrative vacation rentals, providing promising rental income and good return on investment. This makes East Falmouth an ideal spot for an Airbnb host looking to capitalize on tourism and maximize cash flow through investment property.
Key STR Metrics:
- Average Gross Yield: 9.6%
- Average Property Value: $1,003,161 (as of December 2024)
- Average Annual Revenue: $96,633 (past 12 months)
- Average Occupancy Rate: 35% (past 12 months)
- Qualifying Airbnbs: 157 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 87%
Find Airbnbs For Sale in East Falmouth, MA →
5. Eastham, MA
Eastham, MA is a hidden gem for real estate investors exploring the lucrative short-term rental market. Known for its stunning beaches like Coast Guard Beach and outdoor activities in Cape Cod National Seashore, Eastham draws tourists year-round. With its robust tourism industry and events like Eastham Windmill Weekend, this area guarantees good return and cash flow for vacation homes. Short-term rental properties here attract numerous guests, making it one of the best places for rental income and an ideal destination for real estate investing.
Key STR Metrics:
- Average Gross Yield: 9.4%
- Average Property Value: $1,126,294 (as of December 2024)
- Average Annual Revenue: $105,454 (past 12 months)
- Average Occupancy Rate: 44% (past 12 months)
- Qualifying Airbnbs: 172 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 87%
Find Airbnbs For Sale in Eastham, MA →
6. Mashpee, MA
Mashpee, MA, is a prime location for short-term rental investment properties, attracting tourists with its stunning beaches, Mashpee National Wildlife Refuge, and the vibrant Mashpee Commons shopping area. Visitors flock to events like the annual Lobster Fest and can enjoy local sports teams or explore the region's cultural history at the Mashpee Wampanoag Indian Museum. As an Airbnb host in Mashpee, investors can tap into a thriving short-term rental market, promising good returns and steady cash flow in this beautiful coastal town.
Key STR Metrics:
- Average Gross Yield: 9.0%
- Average Property Value: $1,209,164 (as of December 2024)
- Average Annual Revenue: $109,256 (past 12 months)
- Average Occupancy Rate: 32% (past 12 months)
- Qualifying Airbnbs: 111 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 83%
Find Airbnbs For Sale in Mashpee, MA →
7. Great Barrington, MA
Great Barrington, MA, is a vibrant destination for real estate investors eyeing vacation homes. Nestled in the Berkshires, this town boasts attractions like the Berkshire Botanical Garden, Ski Butternut, and Scenic trails. A thriving short-term rental market, Great Barrington attracts tourists with events like the Berkshire International Film Festival. As a potential Airbnb host, leverage strong tourism to ensure good rental income and cash flow, making it one of the best places for short-term rental investment properties in 2025.
Key STR Metrics:
- Average Gross Yield: 7.9%
- Average Property Value: $959,664 (as of December 2024)
- Average Annual Revenue: $76,193 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 163 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 88%
Find Airbnbs For Sale in Great Barrington, MA →
8. Brewster, MA
Brewster, MA, nestled on Cape Cod, is a gem for real estate investors eyeing the short-term rental market. Known for its pristine beaches, charming shops, and lush golf courses, Brewster attracts tourists year-round. It's home to attractions like the Cape Cod Museum of Natural History and the year-round Brewster in Bloom Festival. With its vibrant tourism scene and growing interest in vacation homes, real estate investing in Brewster offers a good return, making it a prime spot for rental income and cash flow through short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 7.8%
- Average Property Value: $1,240,186 (as of December 2024)
- Average Annual Revenue: $96,420 (past 12 months)
- Average Occupancy Rate: 43% (past 12 months)
- Qualifying Airbnbs: 137 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 73%
Find Airbnbs For Sale in Brewster, MA →
9. Orleans, MA
Orleans, MA, is an idyllic destination nestled in Cape Cod, known for its charming beaches and vibrant arts scene, making it an appealing spot for vacation rentals. Travelers flock to Nauset Beach, a prime attraction offering stunning ocean views and outdoor activities. The town hosts cultural festivals, art fairs, and lively events like the annual Orleans ClamBQ! Orleans stands out for real estate investors seeking a lucrative short-term rental market, where demand from tourists ensures promising rental income and a good return on investment with platforms like Airbnb.
Key STR Metrics:
- Average Gross Yield: 7.1%
- Average Property Value: $1,999,751 (as of December 2024)
- Average Annual Revenue: $142,106 (past 12 months)
- Average Occupancy Rate: 43% (past 12 months)
- Qualifying Airbnbs: 84 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 80%
Find Airbnbs For Sale in Orleans, MA →
10. Gloucester, MA
Gloucester, MA is a prime destination for real estate investors eyeing the short-term rental market. Known for its scenic coastal beauty, this charming town offers top attractions like the historic Cape Ann Museum, Good Harbor Beach, and the iconic Fishermen’s Memorial. Popular events such as the Gloucester Schooner Festival and St. Peter's Fiesta draw tourists annually, creating ample opportunities for rental income. With robust tourism and a vibrant cultural scene, Gloucester is among the best places for vacation homes, promising good return and steady cash flow for investors in short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 6.6%
- Average Property Value: $1,290,340 (as of December 2024)
- Average Annual Revenue: $85,014 (past 12 months)
- Average Occupancy Rate: 47% (past 12 months)
- Qualifying Airbnbs: 150 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 76%
Find Airbnbs For Sale in Gloucester, MA →
11. Boston, MA
Boston, MA, stands out as a vibrant short-term rental market for real estate investors in 2025, offering strong rental income potential. Renowned for its historical landmarks like the Freedom Trail and cultural hotspots such as the Museum of Fine Arts, Boston attracts tourists year-round. Home to passionate sports fans, the city hosts the Boston Marathon and is the proud base for teams like the Red Sox and Celtics. With its thriving tourism scene, investing in vacation homes here promises a good return and consistent cash flow.
Key STR Metrics:
- Average Gross Yield: 6.5%
- Average Property Value: $1,218,760 (as of December 2024)
- Average Annual Revenue: $78,718 (past 12 months)
- Average Occupancy Rate: 50% (past 12 months)
- Qualifying Airbnbs: 460 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 64%
Find Airbnbs For Sale in Boston, MA →
12. Falmouth, MA
Falmouth, MA, is a prime spot for short-term rental properties, attracting visitors with its scenic beaches, charming downtown, and vibrant arts scene. Known for the Shining Sea Bikeway and annual events like the Falmouth Road Race, it's a top choice for tourists. The real estate market offers lucrative opportunities for real estate investors seeking investment property with good returns and strong rental income. As an Airbnb host, capitalize on tourism demand to maximize cash flow in one of the best places for vacation rentals.
Key STR Metrics:
- Average Gross Yield: 6.4%
- Average Property Value: $1,373,385 (as of December 2024)
- Average Annual Revenue: $88,056 (past 12 months)
- Average Occupancy Rate: 33% (past 12 months)
- Qualifying Airbnbs: 99 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 160%
Find Airbnbs For Sale in Falmouth, MA →
13. Chatham, MA
Chatham, MA, is an alluring spot for tourists and investors alike, boasting a vibrant short-term rental market. Known for its stunning beaches, scenic lighthouses, and charming village atmosphere, it's a prime destination for vacation homes. Visitors can enjoy the annual Chatham Festival of the Arts or explore the Monomoy National Wildlife Refuge. With a thriving tourism scene, real estate investing in Chatham offers a good return for investors seeking profitable Airbnb and short-term rental properties with attractive rental income potential.
Key STR Metrics:
- Average Gross Yield: 6.3%
- Average Property Value: $2,583,599 (as of December 2024)
- Average Annual Revenue: $163,246 (past 12 months)
- Average Occupancy Rate: 42% (past 12 months)
- Qualifying Airbnbs: 135 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 81%
Find Airbnbs For Sale in Chatham, MA →
14. Provincetown, MA
Provincetown, MA, a top destination on the short-term rental market, offers vibrant attractions perfect for real estate investors seeking vacation homes with good returns. Known for its stunning beaches, lively arts scene, and eclectic shops, Provincetown draws tourists year-round. Key attractions include the Pilgrim Monument and Provincetown Museum, while the annual Provincetown International Film Festival is a hotspot for visitors. This dynamic tourism hub provides Airbnb hosts with strong rental income potential, making it one of the best places for real estate investing.
Key STR Metrics:
- Average Gross Yield: 6.3%
- Average Property Value: $1,787,377 (as of December 2024)
- Average Annual Revenue: $112,632 (past 12 months)
- Average Occupancy Rate: 45% (past 12 months)
- Qualifying Airbnbs: 366 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 106%
Find Airbnbs For Sale in Provincetown, MA →
15. Wellfleet, MA
Wellfleet, MA, is a captivating destination on Cape Cod, ideal for investors eyeing the short-term rental market. Known for its pristine beaches like Cahoon Hollow and cultural hotspots such as the Wellfleet Harbor Actors Theater, it's a magnet for tourists. The area hosts the Wellfleet OysterFest, drawing visitors annually with its culinary delights. With a vibrant arts scene and iconic lighthouses, vacation rentals here promise high rental income and a good return. It's a prime spot for real estate investing, especially for those seeking Airbnb opportunities and reliable cash flow.
Key STR Metrics:
- Average Gross Yield: 6.3%
- Average Property Value: $1,454,032 (as of December 2024)
- Average Annual Revenue: $91,554 (past 12 months)
- Average Occupancy Rate: 47% (past 12 months)
- Qualifying Airbnbs: 123 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 75%
Find Airbnbs For Sale in Wellfleet, MA →
16. Somerville, MA
Somerville, MA is a vibrant hub with thriving short-term rental markets, perfect for vacation rentals and attracting tourists year-round. Known for its artsy vibe and attractions like the Museum of Bad Art and the Somerville Theatre, it draws countless visitors. Its proximity to Harvard and MIT ensures steady tourism and rental income. Real estate investors find Somerville appealing due to events like the Somerville Arts Festival and Fluff Festival, offering good return potential. As an Airbnb host, capitalize on this bustling locale for optimal cash flow.
Key STR Metrics:
- Average Gross Yield: 5.7%
- Average Property Value: $1,292,974 (as of December 2024)
- Average Annual Revenue: $73,608 (past 12 months)
- Average Occupancy Rate: 52% (past 12 months)
- Qualifying Airbnbs: 106 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 73%
Find Airbnbs For Sale in Somerville, MA →
17. Marblehead, MA
Marblehead, MA is a charming coastal town known for its rich maritime history and bustling short-term rental market, making it ideal for real estate investors looking to capitalize on vacation rentals. Visitors can explore attractions like Fort Sewall, unique boutiques, and scenic Marblehead Harbor. The town hosts annual events such as the Marblehead Festival of Arts and boasts vibrant sailing and yachting communities. Its proximity to Boston and a range of family-friendly activities further enhance its appeal, offering potential for strong rental income and good return on investment.
Key STR Metrics:
- Average Gross Yield: 5.5%
- Average Property Value: $1,535,435 (as of December 2024)
- Average Annual Revenue: $84,619 (past 12 months)
- Average Occupancy Rate: 48% (past 12 months)
- Qualifying Airbnbs: 100 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 120%
Find Airbnbs For Sale in Marblehead, MA →
18. Rockport, MA
Rockport, MA, is a charming coastal town perfect for real estate investors eyeing vacation rentals. Known for its iconic Motif No. 1 and scenic Bearskin Neck, Rockport attracts tourists year-round seeking breathtaking ocean views and rich cultural experiences. The town's thriving art scene, scenic beaches, and renowned festivals like the Rockport Jazz Festival make it one of the best places for short-term rental properties. With an active tourism draw, investors can expect good return and steady rental income, making it an ideal spot for the short-term rental market.
Key STR Metrics:
- Average Gross Yield: 5.0%
- Average Property Value: $1,265,417 (as of December 2024)
- Average Annual Revenue: $63,053 (past 12 months)
- Average Occupancy Rate: 48% (past 12 months)
- Qualifying Airbnbs: 102 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 102%
Find Airbnbs For Sale in Rockport, MA →
19. Edgartown, MA
Edgartown, MA, a charming gem on Martha's Vineyard, boasts a thriving short-term rental market ideal for vacation homes and investment property opportunities. Renowned for its picturesque lighthouse, stunning beaches, and historic whaling captains' homes, it draws tourists year-round. With annual events like the Martha’s Vineyard Striped Bass & Bluefish Derby, this destination offers real estate investors strong rental income potential. The active tourism scene and increasing demand for short-term rental properties make Edgartown a top choice for AirBnB hosts seeking good returns and cash flow.
Key STR Metrics:
- Average Gross Yield: 4.9%
- Average Property Value: $3,885,980 (as of December 2024)
- Average Annual Revenue: $191,138 (past 12 months)
- Average Occupancy Rate: 36% (past 12 months)
- Qualifying Airbnbs: 118 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 93%
Find Airbnbs For Sale in Edgartown, MA →
20. Nantucket, MA
Nantucket, MA, a picturesque island known for its charming coastal setting, is one of the best places to invest in short-term rental properties. The real estate market here offers lucrative opportunities for real estate investors aiming for good returns and rental income. Attractions like pristine beaches, the Nantucket Whaling Museum, and annual events like the Nantucket Wine Festival draw tourists year-round. With its vibrant tourism, vacation rentals, including Airbnb properties, promise thriving cash flow for any Airbnb host.
Key STR Metrics:
- Average Gross Yield: 4.9%
- Average Property Value: $5,118,029 (as of December 2024)
- Average Annual Revenue: $249,386 (past 12 months)
- Average Occupancy Rate: 41% (past 12 months)
- Qualifying Airbnbs: 253 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 93%