Top US Airbnb investment locations - 2026
Vacation Rental Management

Top US Airbnb investment locations - 2026

As we enter 2026, the short-term rental market is evolving with steady demand growth in key tourist hotspots, emerging secondary markets offering high yields, and a focus on regulatory-friendly areas. Investors are shifting toward locations that balance strong occupancy rates, reasonable property prices, and consistent traveler appeal—driven by events like the World Cup, national park anniversaries, and experiential tourism. Data from sources like AirDNA, Airbtics, and industry reports highlight markets where cash-on-cash returns can exceed 12-20%, especially in affordable mid-tier cities and coastal/resort areas.

Here are 10 top Airbnb investment locations for 2026, selected for their revenue potential, occupancy trends, and growth forecasts:

1. Orlando, Florida 
   Theme parks, conventions, and year-round tourism make Orlando a powerhouse. Expect annual revenues around $48,000 with 68% occupancy and strong cash-on-cash returns near 17%. Florida's Gulf Coast submarkets remain investor-friendly despite regulations in some urban areas.

2. Nashville, Tennessee
   Known as the "Live Music Capital," Nashville draws crowds for events and nightlife. Average daily rates hit $267, with annual revenues of $42,000 and solid 14-15% returns. Proximity to the Smoky Mountains adds seasonal boosts.

3. Fairbanks, Alaska
   An emerging standout for experiential travelers seeking Northern Lights and adventure. High revenue potential (up to $49,000 annually) and gross yields make it ideal for affordable entry points around $272,000 median prices.

4. Peoria, Illinois  
   Top-ranked for gross yield due to low property prices (~$200,000) and strengthening demand from business and leisure travelers. It's a cash-flow leader in the Midwest, with high ROI potential in undersaturated markets.

5. Austin, Texas
   Festivals like SXSW, tech growth, and vibrant culture drive demand. ADRs around $292 yield strong revenues, with 12%+ returns in a pro-business state.

6. Clearwater/St. Petersburg, Florida
   Beach tourism and year-round snowbird visitors ensure steady bookings. Unincorporated areas offer regulatory clarity and high cash-on-cash returns in Gulf Coast leisure markets.

7. Savannah, Georgia
   Historic charm and coastal appeal push revenues over $60,000 in top spots, with high RevPAR from events and tourism.

8. Gatlinburg/Pigeon Forge, Tennessee (near Smoky Mountains)
   National park celebrations in 2026 boost visits. Mountain cabins and family rentals see 63-70% occupancy and strong seasonal performance.

9. Charleston, South Carolina  
   Cobblestone streets, festivals, and beaches attract year-round guests. Reliable demand supports healthy yields in this charming Southern gem.

10. Rockford, Illinois
    High ROI (~7%) from affordable homes and rising arts/outdoor tourism. A sleeper hit for investors seeking 50%+ monthly income potential.

Considerations
- Regulations - Favor states like Florida, Texas, and Tennessee for lenient rules; avoid heavily restricted areas like parts of Hawaii or New York City.
- Trends - Emerging mid-sized cities and rural/experiential spots (e.g., near national parks) outperform oversaturated metros. Expect slower demand growth but positive ADR increases.
- Risks & Tips - Use tools like Roomspilot for real-time data. Focus on properties with amenities like hot tubs or proximity to attractions for higher bookings.

The best investments combine tourism demand with affordability - 2026 rewards data-driven choices in these resilient markets. Always research local laws and run pro forma analyses before buying.