AirDNA Picks The Best U.S Markets to Invest in Short-Term Rentals & Mid-Term Rentals

Earlier this year, the team at AirDNA crunched the numbers on thousands of short-term rental markets across the U.S. to find the best places to invest in 2026.

And the results aren't what you expect.

AirDNA's top cities for short-term rentals in 2026 are affordable, under the radar, and driven by diverse demand. We're not talking national parks or beaches. Think oil refineries, military bases, hospitals, universities, and state government.

If you're looking for your next investment—or a city that's perfect for mid-term rentals—keep reading.

Here are AirDNA's top ten picks, plus tips on using their tools to find profitable markets and properties on your own.

The Top 10 STR Markets to Invest in for 2026

AirDNA ranked the best U.S. metros for short-term rental investment based on yield, revenue potential, affordability, and demand drivers.

1. Port Arthur, Texas

Avg. Home Price: $243,000

Annual Revenue Potential: $35,000

Expected Yield: 14.4%

Occupancy Rate: 77.6%

Port Arthur isn't a tourist town. It's an oil and gas hub—home to the largest refinery in the U.S. and a major shipping port. A new natural gas terminal is under construction, bringing in thousands of contractors looking for temporary housing. Add in beaches, state parks, and cruise traffic, and you've got a rare mix of business and leisure demand.

2. Abilene, Texas

Avg. Home Price: $336,000

Annual Revenue Potential: $55,000

Expected Yield: 16.4%

Occupancy Rate: 77.2%

Abilene delivers the highest yield in the entire 2026 ranking. What's driving it? A massive AI data center (Oracle's $500 billion Stargate Project) is being developed nearby. Plus, Dyess Air Force Base brings in nearly 9,000 personnel, and multiple colleges and a major healthcare system round out the demand.

3. Downtown St. Paul, Minnesota

Avg. Home Price: $331,000

Annual Revenue Potential: $45,000

Expected Yield: 13.5%

Occupancy Rate: 64.1%

As the state capital, St. Paul draws lawmakers, lobbyists, and government officials year-round. Major employers like Ecolab bring business travelers, while Regions and United hospitals generate medical tourism. Add in the Xcel Energy Center and RiverCentre convention complex, and you've got steady, diversified demand.

4. Charleston, West Virginia

Avg. Home Price: $228,000

Annual Revenue Potential: $32,000

Expected Yield: 14.1%

Occupancy Rate: 62.9%

Charleston offers one of the lowest buy-in prices on the list, paired with a top-tier yield. The state capital draws government workers, hospital traffic (the Charleston Area Medical Center is the state's largest), and energy sector engineers.

5. Springfield, Illinois

Avg. Home Price: $262,000

Annual Revenue Potential: $35,000

Expected Yield: 13.2%

Occupancy Rate: 66%

Another capital city play, with steady government travel plus a massive tourism draw: Abraham Lincoln. The Lincoln Presidential Library and Museum, his home, and his tomb draw history buffs year-round. Plus, the Illinois State Fair drew over 1 million visitors in 2025.

6. Lake Charles, Louisiana

Avg. Home Price: $287,000

Annual Revenue Potential: $37,000

Expected Yield: 12.7%

Occupancy Rate: 60.6%

Lake Charles runs on petrochemicals and shipping. The port is one of the nation's busiest by tonnage, and the Chennault Airpark aviation hub brings in a steady stream of business travelers.

7. Montgomery, Alabama

Avg. Home Price: $342,000

Annual Revenue Potential: $42,000

Expected Yield: 12.2%

Occupancy Rate: 62.6%

Montgomery sits at the higher end of the buy-in range, but the yield holds strong at over 12%. Demand comes from government travel, healthcare, education, and regional tourism.

8. Akron, Ohio

Avg. Home Price: $297,000

Annual Revenue Potential: $39,000

Expected Yield: 13.1%

Occupancy Rate: 62.4%

Akron has more active STR listings than any other market in the ranking—757 and counting. That's a sign of strong, proven demand. The mix includes Cuyahoga Valley National Park, three major hospital systems, several universities, and headquarters for Goodyear and Gojo.

9. Lebanon, Pennsylvania

Avg. Home Price: $265,000

Annual Revenue Potential: $42,000

Expected Yield: 15.7%

Occupancy Rate: 59.2%

Lebanon sits between Hershey and Lancaster—capturing overflow from two major tourism hubs without the premium price tag. Add in Fort Indiantown Gap (one of the busiest National Guard training centers in the U.S.), and you've got a winning market.

10. Jackson, Mississippi

Avg. Home Price: $366,000

Annual Revenue Potential: $44,000

Expected Yield: 11.9%

Occupancy Rate: 64.4%

Jackson has the highest average home price on the list, but still delivers a healthy 11.9% yield. The University of Mississippi Medical Center and Jackson State University drive medical and education bookings, while the Convention Center pulls trade show guests.

The Best Affordable Places to Invest in Airbnbs with $250K or Less

What if your budget is tighter—say, $250K or less?

AirDNA ran the numbers for that exact scenario, focusing on markets where low home prices meet healthy revenue potential. Here's where the math works best.

1. Finger Lakes, New York

Avg. Home Price: $184K | Revenue: $36K | Yield: 19.6%

Four-season demand from wine country, lakes, and foliage—all with an average home price under $200K.

2. South Bend, Indiana

Avg. Home Price: $180K | Revenue: $35K | Yield: 19.6%

Notre Dame drives weekends, but steady year-round demand comes from the university and regional medical traffic.

3. Rochester, New York

Avg. Home Price: $182K | Revenue: $35K | Yield: 19.4%

Museums, festivals, and Finger Lakes access create layered demand. Average stay is almost 6 days—less turnover.

4. St. Louis, Missouri

Avg. Home Price: $176K | Revenue: $34K | Yield: 19.3%

A "buy low, earn steady" market with sports, conventions, and cultural attractions.

5. Michigan West Coastal

Avg. Home Price: $186K | Revenue: $36K | Yield: 19.2%

Lake Michigan beach towns like Holland and Grand Haven draw repeat summer travelers.

6. Waco, Texas

Avg. Home Price: $194K | Revenue: $37K | Yield: 19.0%

Tourism from Magnolia and Baylor keeps demand steady.

7. Kansas City, Missouri

Avg. Home Price: $183K | Revenue: $34K | Yield: 18.8%

A balanced market with diversified demand from sports, conventions, and entertainment.

8. Milwaukee, Wisconsin

Avg. Home Price: $183K | Revenue: $34K | Yield: 18.7%

Lake Michigan frontage and major summer festivals drive seasonal and event traffic.

Important

Regulations vary widely—especially in the Finger Lakes and West Coast Michigan. Always check local ordinances before buying.

How to Find Profitable Markets Using AirDNA

Here's a quick checklist of what to do when you're analyzing a potential market on AirDNA.

Here's a quick checklist of what to look for when you're analyzing a potential market on AirDNA.

✅ Active Rentals

• Under 100 could mean low demand or tight regulations
• Over 2,000 might mean the market is oversaturated
• Somewhere in between usually indicates a healthy, growing market

✅ Average Daily Rate (ADR)

Look for markets averaging at least $125–$150/night. ADRs that are too low can attract the wrong guests.

✅ Occupancy Rate

65%+ market average is a solid benchmark. Most hosts only break even at 40–50% occupancy. If the market average is 65%, a great host can often achieve 80%+.

Don't Fall for the One-Metric Trap

A market can have great occupancy, but if it's driven by low ADRs, the math might not work. When you're analyzing a market, look at the full picture. Don't let one outstanding metric convince you.

Focus on yield, not just revenue

Yield = annual revenue ÷ purchase price. This tells you how hard your money is actually working.

A market where STRs are making $80K a year might sound amazing—until you realize home prices are incredibly high. A $1.6 million house at $80K is a 6.6% yield. Not great.

A $250,000 property generating $35,000 annually yields 14%.

See the difference?

Need a Coach for your Next Big Move?

At Host Camp, we help investors turn data into decisions.

Join our community for $1 to get access to beginner-friendly AirDNA courses, plus coaching calls and forums where we help you vet potential deals and markets.

👉 Join Host Camp for $1

Or get 10% off AirDNA, one of the most powerful STR analysis tools, with our AirDNA promo code link.

‍