"There are some tailwinds, finally, this year, around a little bit of weakness in home values, moderating interest rates, and short-term rental revenues that did expand in 2025 heading into 2026," Jamie Lane, chief economist at AirDNA, a firm that compiles and analyzes Vrbo and Airbnb data, tells Realtor.com®.
The short-term rental premium, which is the difference between what a typical short-term rental earns in a month and the average mortgage payment, reached $989 in early 2026, the highest since late 2022.
Notably, the top 10 U.S. metros promising investors the highest returns this year are all relatively affordable and predominantly small and rural—far removed from the typical sun-soaked resort towns or trendy mountain getaways—with the average home price across the ranking registering at just $296,000, according to a new report from AirDNA.
According to AirDNA, the most desirable investment markets of 2026 average over $40,000 in annual revenue potential and post an average yield of 13.7%—calculated as the ratio of a home’s annual returns to its value.
A general rule if thumb is the higher the yield, the better for the investor.
What the report highlights is that contrary to popular belief, demand in some of the best markets for STR investors is not driven by sun worshipping vacation travelers, but rather by transient workers, patients seeking care at medical facilitates, and government or military visitors.
"The relatively small role played by traditional tourism is part of what makes these markets cost-effective to invest in," states the report. "They fly under the radar of short-term rental investors, which means reasonable home prices and limited competition if you get in early."
So where are the most desirable, off-the-beaten-path markets for buyers looking to invest in short term-rentals in the coming months?
This three-bedroom in Port Arthur, TX, is listed for $240,000.
Average home price: $243,000 Annual revenue potential: $35,000 Expected yield: 14.4% Occupancy rate: 77.6% Booked listing growth: 23%
Port Arthur, TX, may not look like a typical top-ranked Airbnb market, but the Gulf Coast city, dubbed "The Cajun Capital of Texas," tops the ranking for a reason, offering high yields for a budget-friendly price.
The key to Port Arthur's success as an STR market is not beachgoers or ski enthusiasts, but industry: Port Arthur is home to the largest oil refinery in the U.S., a major shipping port, and multibillion-dollar energy and infrastructure projects.
Additionally, a new natural gas terminal is currently under construction, bringing in thousands of contractors, engineers, and workers all looking for temporary housing.
At the same time, Port Arthur does still have some traditional tourist attractions, including beaches, state parks, and a local dining scene.
A general rule if thumb is the higher the yield, the better for the investor.
What the report highlights is that contrary to popular belief, demand in some of the best markets for STR investors is not driven by sun worshipping vacation travelers, but rather by transient workers, patients seeking care at medical facilitates, and government or military visitors.
"The relatively small role played by traditional tourism is part of what makes these markets cost-effective to invest in," states the report. "They fly under the radar of short-term rental investors, which means reasonable home prices and limited competition if you get in early."
So where are the most desirable, off-the-beaten-path markets for buyers looking to invest in short term-rentals in the coming months?
This three-bedroom in Port Arthur, TX, is listed for $240,000. (Realtor.com)
Average home price: $243,000 Annual revenue potential: $35,000 Expected yield: 14.4% Occupancy rate: 77.6% Booked listing growth: 23%
Port Arthur, TX, may not look like a typical top-ranked Airbnb market, but the Gulf Coast city, dubbed "The Cajun Capital of Texas," tops the ranking for a reason, offering high yields for a budget-friendly price.
The key to Port Arthur's success as an STR market is not beachgoers or ski enthusiasts, but industry: Port Arthur is home to the largest oil refinery in the U.S., a major shipping port, and multibillion-dollar energy and infrastructure projects.
Additionally, a new natural gas terminal is currently under construction, bringing in thousands of contractors, engineers, and workers all looking for temporary housing.
At the same time, Port Arthur does still have some traditional tourist attractions, including beaches, state parks, and a local dining scene.
"Port Arthur is a great example of a really good mix of both business and leisure demand," says Lane. "So on one end, Port Arthur is a major hub for oil and gas. They've got a large refinery, and a lot of that lodging demand is sort of extended stay, a week-plus long stays for business rather leisure. But then also Port Arthur serves as departure point for a lot of coastal Gulf Coast cruises."
This four-bedroom, two-bath home in Abilene, TX, is on the market for just under $330,000. (Realtor.com)
Average home price: $336,000 Annual revenue potential: $55,000 Expected yield: 16.4% Occupancy rate: 77.2% Booked listing growth: 15%
Like Port Arthur, Abilene is not widely known as an in-demand vacation hotspot, but, as the AirDNA report points out, it doesn't need to be: The one-time humble cattle town boasts the highest yield in the 2026 rankings.
Jobs, health care, and education are the major demand drivers in Abilene. The city of 127,000 people is home to Dyess Air Force Base, which is the market's largest employer with nearly 9,000-strong personnel. Additionally, there are several colleges in the vicinity, including Abilene Christian University, and the Hendrick health care system.
Lane notes that a massive artificial intelligence (AI) data center, Oracle's $500 billion Stargate Project, is being developed in Abilene, which promises to be a major demand driver.
"These infrastructure projects are having an impact on local lodging operations," says the economist.
Plus, the Grace Museum, Frontier Texas! and the National Center for Children's Illustrated Literature attract daytrippers and families with children.
A two-bedroom condo in this building in the heart of St. Paul, MN, has an asking price of $330,900. (Realtor.com)
Average home price: $331,000 Annual revenue potential: $45,000 Expected yield: 13.5% Occupancy rate: 64.1% Booked listing growth: 5.4%
Downtown Saint Paul generates big-city demand without the seven-figure price tag of other major metros. As the capital of Minnesota, Downtown Saint Paul draws lawmakers, lobbyists, and government officials throughout the year.
Major employers, including Ecolab and Securian Financial, bring in business travelers, while Regions and United hospitals generate medical tourism. The Xcel Energy Center and RiverCentre convention complex host concerts and sports events drawing big crowds in all seasons.
The urban center also has an array of cultural institutions attracting traditional tourists, including the Science Museum of Minnesota and the Cathedral of Saint Paul, as well as a walkable downtown dotted with shops and restaurants
This six-bedroom multifamily home in Charleston, WV, is on the market for $209,900. (Realtor.com)
Average home price: $228,000 Annual revenue potential: $32,000 Expected yield: 14.1% Occupancy rate: 62.9% Booked listing growth: 9.6%
Charleston offers a unique combination among the best places to invest of 2026: one of the lowest buy-in prices, at just $228,000, paired with one of the highest yields.
As the state capital and largest city in West Virginia with a population of 46,000 people, Charleston generates consistent traffic from government workers and tourists attending events at the downtown civic center.
The Charleston Area Medical Center is the state’s largest hospital with 5,000 staffers, drawing patients and specialists from across the region. The surrounding Kanawha Valley is also home to several chemical plants and energy companies, guaranteeing an inflow of engineers and workers to the area.
This five-bedroom in Springfield, IL, has an asking price of $254,900. (Realtor.com)
Average home price: $262,000 Annual revenue potential: $35,000 Expected yield: 13.2% Occupancy rate: 66% Booked listing growth: 17%
As the capital of Illinois and the historic home of President Abraham Lincoln, Springfield draws consistent demand from government staffers, tourists visiting the Abraham Lincoln Presidential Library and Museum, his home and tomb, and regional events.
In addition, Springfield hosts the annual Illinois State Fair, which was attended by over 1 million visitors in 2025.
This stately four-bedroom home in Lake Charles, LA, has an asking price of $289,000. (Realtor.com)
Average home price: $287,000 Annual revenue potential: $37,000 Expected yield: 12.7% Occupancy rate: 60.6% Booked listing growth: 7%
Lake Charles' two primary economic drivers are its robust petrochemical job sector and its port, one of the nation's busiest by tonnage.
The area is also home to the sprawling aviation maintenance hub at Chennault Airpark, which means a year-round influx of business travelers in need of short-term housing.
This four-bedroom home with a pool in Montgomery, AL, comes with a $345,000 price tag. (Realtor.com)
Average home price: $342,000 Annual revenue potential: $42,000 Expected yield: 12.2% Occupancy rate: 62.6% Booked listing growth: 2.6%
Montgomery sits at the higher end of the ranking in terms of buy-in price, but AirDNA contends that the additional investment is worth it because short-term rentals in the metro deliver a relatively high yield over 12%.
In Montgomery, slow and steady is the name of the game. The city's short-term demand comes predominantly from government travel, health care, education, and regional tourism.
This four-bedroom home in Akron, OH, is on the market for $299,900. (Realtor.com)
Average home price: $297,000 Annual revenue potential: $39,000 Expected yield: 13.1% Occupancy rate: 62.4% Booked listing growth: 18%
Akron boasts has more active short-term rentals than any other market in the ranking, with 757 STR listings and counting, which is a sign of strong demand and solid market fundemntals.
Akron's demand comes from a mix of sources: It sits just outside of Cuyahoga Valley National Park and home to three major hospital systems, several universities, and a smattering of company headquarters, including Goodyear Tire & Rubber, Purell hand sanitizer manufacturer, and Gojo Industries.
Akron's proximity to Cleveland gives it additional versatility. Some visitors use it as a base to explore Northeast Ohio on a budget.
This three-bedroom home in Lebanon, PA, is offered for $265,000. (Realtor.com)
Average home price: $265,000 Annual revenue potential: $42,000 Expected yield: 15.7% Occupancy rate: 59.2% Booked listing growth: 8%
Located just between Hershey and Lancaster, Lebanon generates demand from guests who want to explore Central Pennsylvania’s attractions without paying top-dollar rates for lodging in the big cities. It’s a go-to hub for families, weekend travelers, and outdoor travelers visiting the region’s trails, parks, and small-town attractions.
Fort Indiantown Gap, one of the nation’s busiest National Guard training centers, is also located nearby. The base’s military mission annually supports around 20,000 Guard personnel plus over 120,000 other trainees from various branches.
This stately four-bedroom in Jackson, MS, comes with a price tag of $365,000. (Realtor.com)
Average home price: $366,000 Annual revenue potential: $44,000 Expected yield: 11.9% Occupancy rate: 64.4% Booked listing growth: 11.6%
Among the top 10 markets, Jackson has the highest average home price at $366,000 but still manages to turn out 11.9% gross yield.
Major institutions like the University of Mississippi Medical Center and Jackson State University generate medical and education-related bookings, while the Jackson Convention Complex draws midweek demand from trade shows and civic events.
On the traditional tourism side, the Mississippi Civil Rights Museum and Children’s Museum attract visitors on weekends and during school breaks.
Lane, with AirDNA, says that the good news for would-be investors thinking of entering the short-term rental market in 2026 is that after several years of volatility, returns have become more consistent.
" It's much easier to get comfortable with what those earnings are going to be, given that we've seen a couple years of stabilization," he says.
