The Next Big STR Markets: Where Airbnb Hosts Should Invest in 2025

Everyone’s chasing the same Airbnb hotspots. You know the ones—Joshua Tree, Gatlinburg, Nashvile...

They’re solid markets…but they’re becoming crowded, expensive, and long past that sweet “hidden gem” phase.

If you’re hunting for the next high-potential market, one with affordable land, low competition, and massive upside—you’re in the right corner of the internet.

Real estate developer and land-hacking expert Kai Andrew analyzed every state to uncover promising Airbnb markets most investors haven’t even noticed yet. These are Kai’s Sleeper Market Picks for 2025. Your next big investment might be on this list. 👇

What Makes a “Sleeper City”?

A sleeper city is an underbuilt market that’s still affordable, but primed to blow up.

They’re perfect for Airbnb hosts who want to invest before prices skyrocket.

Look for markets with:

✅ Consistent tourism growth or drive-to traffic

✅ Lenient or developing STR regulations

✅ Affordable land or property prices

✅ A magnetic draw — a lake, park, ski slope, or view that sells itself

“You don’t need to find the next Nashville. You just need to find the next place before everyone else does.” — Kai Andrew.

How to Spot a Promising Airbnb Market

Research like an investor, not a tourist.

Here’s your goldmine hunting game plan:

✅ Follow the foot traffic and demand. Look at visitor numbers and STR supply. Under 200 listings? That’s a green flag.

✅ Study existing listings. Use tools like AirDNA and Airbnb to check occupancy, rates, and listing quality. Find the gaps no one’s filling.

Want discounts on STR tools like AirDNA and Guesty? Check out our exclusive offers here.

✅ Look for tourism anchors. National parks, lakes, or mountains guarantee steady guest traffic. A great sleeper city has a wow factor.

✅ Watch local growth. New breweries, coffee shops, and developments often signal an up-and-coming market.

✅ Know your guest avatar. What type of people are coming here? Families? Remote workers? Adventure seekers? Are there any needs they have that haven't been catered to? If yes, there’s potential.

✅ Run “The Triangles.” You want proximity to a major city, a major attraction, and accessible roads or airports. Your city should ideally be less than an hour away from these.

✅ Check local regulations. Call the county — don’t just trust a seller or realtor’s “no restrictions” line.

✅ Run your numbers. Once you have a property in mind, factor in land, setup, furnishings, and ongoing STR costs to see if the returns actually pencil out. A good market needs to be profitable. Use our Free STR Analysis worksheet to get an idea.

Kai’s Top Sleeper Cities for Airbnb Investment

These underrated markets are showing early signs of growth, affordable entry prices, and a strong pull for experience-driven travellers.

Lewisburg, West Virginia

This mountain town feels like it was made for weekend getaways. Set near New River Gorge National Park (over 2 million visitors) , Lewisburg is becoming one of the East Coast’s most underrated vacation hubs — with affordable land, a walkable downtown, and year-round outdoor activities.

🔥 Why it’s hot: Affordable entry, small-town walkability, and outdoor adventure make it a winner. Artsy meets Appalachian.

💡 STR opportunity: Boutique cabins, renovated farmhouses, and nature-forward stays with views.

⛰️ Attractions: Greenbrier River Trail, Carnegie Hall, New River Gorge National Park. Lost World Caverns, The Greenbrier Resort

⚖️ Lewisburg STR Regulations: Moderate —business licences and permits required and occupancy limits in tourist-heavy zones.

Bryson City, North Carolina

Just outside the Great Smoky Mountains National Park (13+ million annual visitors), Bryson City is perfect for outdoor lovers, families, and rail tours.

🔥 Why it’s hot: Year-round traffic, small-town charm, low STR saturation.

💡 STR opportunity: Mid-sized cabins for families and pet-friendly stays for road trippers.

⛰️ Attractions: Fontana Lake, Deep Creek Trail, Nantahala Outdoor Center, Smoky Mountains National Park

⚖️ Bryson City STR Regulations: Medium —  permits, business licenses and inspections required for commercial zones.

Broken Bow, Oklahoma

Can’t afford the Smokies? Well, they’re calling this one the “next Smoky Mountains.” Broken Bow isn’t much of a secret anymore. Located in the Ouachita Mountains, 15 minutes away from Beavers Bend State Park, Broken Bow draws millions from Dallas, Little Rock and Oklahoma City every year. Higher average daily rates, and it’s still early enough to invest smart.

🔥 Why it’s hot: Outdoor tourism is exploding, new Choctaw casino project, low hotel competition, and strong return traffic from Texas.

💡 STR opportunity: Large family cabins with luxury finishes — firepits, game rooms, and outdoor tubs win big.

⛰️ Attractions: Broken Bow Lake, Beavers Bend State Park, Mountain Fork River., Hochatown Maze and Petting Zoo

⚖️ Broken Bow STR Regulations: Low — no zoning limits yet. Basic license, inspection and insurance proof required.

Joseph, Oregon

Nicknamed the “Little Switzerland of Oregon,” Joseph blends art-town vibes with alpine beauty. It’s conveniently close to the Wallowa Mountains and Wallowa Lake. 

🔥 Why it’s hot: Jaw-dropping views, low competition, and rising ADRs and occupancy.

💡 STR opportunity: A-frame cabins, modern lodges, and creative, design-forward stays.

⛰️ Attractions: Wallowa Lake State Park, Eagle Cap Wilderness, Joseph Art Walk, downtown galleries.

⚖️Joseph STR Regulations: Medium — permits and zoning restrictions vary. Some parts only allow STRs in residential zones if it’s also the host's primary residence.

Crescent City, California

Tucked between redwoods and rugged coastline, Crescent City has a ton of potential for nature-loving travelers. Housing prices here are among California’s cheapest for cities along the coast. Houses here take much longer to sell, making it a great location to negotiate prices and put in the right offers.

🔥 Why it’s hot: Coastal access + Redwood National Park traffic.

💡 STR opportunity: Small eco-lodges, seaside cottages, or treehouse-inspired tiny homes.

⛰️ Attractions: Jedediah Smith Redwoods State Park, Crescent Beach and Pebble Beach Drive, Ocean World, Battery Point Lighthouse,

⚖️ Crescent City STR Regulations: Moderate, business licenses and Transient Occupancy Tax (TOT) certificates required. Occupancy limits, zoning restrictions and parking and noise rules apply. 

Talkeetna, Alaska

A quirky base camp for Denali climbers and Northern Lights seekers— with surprisingly high turnover and year-round demand.

🔥 Why it’s hot: Authentic Alaskan character, strong tourism, and room for creative builds.

💡 STR opportunity: Cabins, domes, and glamping setups that merge with the wilderness  (with good insulation!)

⛰️ Attractions: Denali, Alaska Railroad, Talkeetna River, Northern Lights, Denali Brewing Company, and historic downtown.

⚖️ Talkeetna STR Regulations: Low — no STR-specific laws yet, but always confirm locally.

Banner Elk, North Carolina

This city lies between 2 ski resorts, plus it’s set inside the Beech Mountain Resort. It’s a winner, and a four-season market.. Banner Elk is showing huge potential for short-term rentals. 

🔥Why it’s hot: Year-round demand from ski season to summer hiking, scenic views, plus increasing investor interest.

💡 STR opportunity: Family lodges, ski chalets, and luxury mountain-view tiny homes.

⛰️ Attractions: Sugar Mountain Resort,  Beech Mountain Resort, Banner House Museum, Wildcat Lake, Grandfather Mountain State Park, and local wineries.

⚖️ Banner Elk STR Regulations: Medium — permits and use approvals vary by zone.  Airbnbs permitted in tourist commercial zones, mixed-use zones, and only some residential zones. County properties face fewer restrictions.

Marquette, Michigan

A sleeper for the Midwest crowd. Kai called this one “a waterfront town with mountain-town energy”. Marquette sits on the shores of Lake Superior and has the hiking, breweries, and college-town vibe of a year-round destination.

It’s one of those places that’s quietly cool until everyone figures it out. So get in now before the catch on...

🔥 Why it’s hot: Affordable lakeside property, a booming outdoor scene, and four true seasons of tourism (summer festivals and winter ski traffic).

💡 💡STR opportunity: Modern lake cabins, cozy A-frames, or downtown lofts for weekenders and road trippers.

⛰️ Attractions: Lake Superior beaches, Presque Isle Park, Sugarloaf Mountain, Northern Michigan University.

⚖️ STR Regulations: Moderate — permits and registration typically required in residential zones.

St. George, Utah

St. George is one of Kai’s favorite “fast-growing but still underpriced” cities. It's exploding in popularity thanks to its proximity to Zion National Park, and the city itself is investing heavily in infrastructure and tourism. Despite fast growth, there’s still affordable housing compared to other Utah markets.

🔥 Why it’s hot: Massive tourism inflow from Zion and Las Vegas weekenders, strong year-round climate, and high ADR potential.

💡 STR opportunity: Desert-modern homes, family-friendly rentals, and poolside retreats with easy park access.

⛰️ Attractions: Zion National Park, Snow Canyon State Park, Sand Hollow Reservoir, and Red Cliffs Desert Reserve.

⚖️ STR Regulations: Medium — local ordinances vary; permits required within city limits, looser in county zones.

Sandpoint, Idaho

Think of Sandpoint as a mini Lake Tahoe without that scary Tahoe price tag. This Northern Idaho gem sits along Lake Pend Oreille and has that rare mix of small-town charm, resort amenities, and natural beauty.

🔥 Why it’s hot: Affordable mountain properties, year-round outdoor activities, and growing tourism driven by Schweitzer Mountain Resort.

💡 STR opportunity: Waterfront cottages, modern mountain chalets, or cozy ski cabins with lake views.

⛰️ Attractions: Lake Pend Oreille, Schweitzer Mountain Resort, Sandpoint City Beach, and local art galleries.

⚖️ STR Regulations: Low to Medium — Bonner County is relatively STR-friendly, but check for city-specific zoning.

Hungry for More Hidden Gem Markets?

Finding the right market is key to starting your Airbnb investing journey strong.

If you love uncovering high-potential places like these before they blow up, you’ll love our Host Camp Monthly Market Report.

Every month, Host Camp members get a Market Report sent to their inbox — packed with vetted properties, zoning and use insights, market gaps, and occupancy and revenue details.

This past September, we scouted one of the fastest-growing beach markets in the country.

🔥 8.3 million annual visitors.

🔥 A booming $1B+ STR economy.

🔥 And a huge gap in high-quality, pet-friendly and large-group stays that smart investors can fill right now.

Want to learn more and read our past reports?

👉 Join Host Camp for $1 to get instant access, plus:

• A free 1:1 coaching call to build a personalized wealth plan
• Access to our 400+ host community
• Host Camp masterclass course library (worth thousands)
• Monthly live calls with Rob + Kai

Your next big investment market is waiting. Don’t miss it.

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