Let’s face it: In the world of Airbnb, everyone’s a host these days. But if you want to be a good host — one who makes money, gets 5-star reviews, and maybe even becomes the talk of the town — then picking the right location is key. The most promising markets often feature a blend of regional tourism and populations that rely on temporary housing, such as traveling nurses or graduate students.
These areas typically offer a steady flow of visitors throughout the year. According to AirDNA’s recent ranking of the best places in the U.S., several factors contribute to the top markets. These include: the number of nights current Airbnb and Vrbo listings are booked annually, the growth in revenue per listing over the past year, and the affordability of homes and apartments available for sale.
These elements combine to create environments ripe for short-term rental success, ensuring both consistent demand and potential for profitable returns. Based on our research, here are the best places for your next Airbnb Business;
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Peoria, Illinois
Peoria is quickly becoming a standout choice for Airbnb investors looking for an affordable yet profitable market. With the highest gross yield (15.3%) among all ranked markets, this Midwest gem offers incredible potential for short-term rental success. The city’s real estate remains remarkably affordable, with the average listing price sitting at just $202,930, the lowest on our list.
Despite this affordability, Peoria has seen a 21% increase in Airbnb listings from 2023 to 2024, paired with a solid 59% occupancy rate. Investors can expect average annual revenues of $31,131, with established hosts seeing a 7.7% increase in RevPAR.
Beyond its financial appeal, Peoria’s straightforward regulations make it easy to operate. Whether it’s the local attractions like the Peoria Riverfront Museum or the Luthy Botanical Garden, the city is proving to be an ideal spot for Airbnb businesses to thrive.
Fairbanks, Alaska
Fairbanks is currently one of the most lucrative markets for Airbnb investors thanks to its impressive revenue potential and a remarkable occupancy rate. With an occupancy rate of 66.5%, one of the highest in the market, properties in Fairbanks are likely to maintain a full calendar year-round.
The average nightly rate of $224.35 leads to substantial annual earnings, with properties generating about $49,459 on average, against a typical listing price of $327,690. This combination of high occupancy and strong revenue puts Fairbanks among the top performers in terms of gross yield.
However, potential investors should note that the city enforces stricter short-term rental regulations than other areas in Alaska. Hosts must secure both state and city business licenses, register for an 8% room tax, and comply with zoning regulations that classify short-term rentals as “tourist homes.”
In certain cases, a Conditional Use Permit may also be required. Also, hosts are responsible for collecting and remitting lodging taxes directly, as platforms like Airbnb and Vrbo do not handle this in Fairbanks.
Akron, Ohio
Akron is rapidly emerging as a prime destination for short-term rental investments. The city’s listing growth reflects a growing investor interest, with demand driven by cultural attractions like the Akron Art Museum, Cuyahoga Valley National Park, and Stan Hywet Hall & Gardens.
As visitor numbers increase, properties in Akron are becoming increasingly lucrative. Key performance metrics like Revenue per Available Room (RevPAR) are up 11.5% and average nightly rates rose 8.5% between 2023 and 2024. These positive trends make Akron a promising market for both new and existing hosts looking for strong returns.
However, hosts must adhere to local regulations. These include; the requirement to register properties annually, pay a registration fee, provide proof of ownership, and comply with a 5.5% excise tax on guest stays. Nevertheless, Akron’s promising growth and stable demand make it one of the top U.S. markets for short-term rental success.
Columbus, Georgia
Columbus is an exceptional location for running an Airbnb business, offering impressive financial returns with a gross yield of 13.4%. This charming southern city continues to thrive due to its unique blend of history, cultural vibrancy, and outdoor activities. The city’s prime attractions, like the Chattahoochee Riverwalk and the thrilling whitewater rafting on the Chattahoochee River, consistently draw visitors.
With a 20.5% year-over-year increase in Airbnb listings and an average for-sale price of $298,039, Columbus remains an affordable market with solid growth potential. The typical nightly rate of $187.04 is also seeing steady increases, making it an attractive option for investors seeking a combination of growth, strong cash flow, and long-term success.
Crescent City, California
Crescent City offers a unique opportunity for Airbnb investors, combining high revenue potential with growing demand. With a gross yield of 11.9%, properties in this coastal city offer the chance for quick returns on investment. This makes it a prime location for savvy investors looking to capitalize on an emerging market.
One of the deterring factors for investors is the steep average entry price (around $432,453). But Crescent City’s average annual revenue potential of $51,318 bolstered by healthy occupancy rates of 63.3% and nightly rates averaging $269.16, more than make up for it. The city’s appeal is enhanced by its breathtaking natural surroundings, including towering redwood forests and an unspoiled coastline.
Shreveport, Louisiana
Shreveport, the city renown for its riverboat casinos, vibrant music scene, and year-round festivals, has seen a noticeable increase in occupancy rates. It jumped 12.9% from last year to 57.3%. This surge in bookings has driven a 12.6% growth in revenue per available room (RevPAR). This indicates that Shreveport is becoming a sought-after location for travelers.
Despite a slight dip in nightly rates (averaging $185.04) the increased occupancy suggests that the city’s unique offerings are drawing visitors without overwhelming the market. With average annual earnings of around $36,106 for properties priced at about $294,995, the potential for solid returns remains high.
However, investors should be aware of local regulations. These include zoning and permitting requirements, which include a two-year renewal for Type A (shared) or Type B (whole-home) permits. For Type B rentals, there’s also the stipulation of a 500-foot distance between other short-term rentals.
Conclusion
No matter where you choose to set up your next Airbnb business, remember that location is key. But so is creating a unique experience that will leave guests with unforgettable memories.
