AirDNA used home prices, occupancy rates, and revenue growth to rank promising spots for investors.
It's a relatively tougher time for short-term-rental hosts, who saw revenue dip nearly 6% in 2023.
Many of the best places to invest in an Airbnb are small cities in the South near national parks.
The short-term-rental market has been a rollercoaster for the last few years.
Pandemic lockdowns grounded travelers in early 2020, hurting owners, hosts, and property managers with listings on Airbnb, Vrbo, and other sites. But then, a hunger for adventure and a remote-work boom sparked record numbers of nights booked nationwide and demand for unique stays that has continued to grow. New investors poured in, hoping for profits, only to see increased competition from other new hosts and host revenue dip nationwide in 2023.
Some hosts called it quits.
"It's the most overheated market I've ever seen in my career," Peggy Gascon, a host in Phoenix, Arizona, with 30 years of experience in real estate, told Business Insider last year. Gascon flipped four Airbnbs that she owned for five years into long-term rentals in 2023, opting for the consistency of tenants with yearlong leases over the ups-and-downs of keeping rooms booked amid stiff competition.
Still, many owners and hosts remain profitable. Take Montana host Ryan Villines, who saw revenue drop 10% in July 2023 compared to the previous year but was still able to rake in $5,900 that month. He put together a "romance package" of chocolate-covered strawberries and sparkling wine to woo couples about to propose.
Some of the best places to invest in short-term-rentals today are in smaller cities near outdoor attractions, according to analytics site AirDNA, which ranks the best places for Airbnb hosts to invest each year.
AirDNA economist Jamie Lane told Business Insider that even though average host revenue dipped 6% in 2023, there are still places where short-term-rental owners can find opportunities. For its list, AirDNA considered locations where homes are relatively affordable but occupancy rates are still high: above 50%.
"It's tougher and tougher to find them," Lane said. "There's not as many grand-slam deals."
AirDNA also highlighted spots that bucked the national trend to show growth in host revenue last year.
Many of the places that topped this year's list of best places to invest in a short-term rental are smaller towns near coastlines and national parks, like Ellsworth, Maine, near Acadia National Park, and Port Angeles, Washington, near Olympic National Park.
Columbus, Georgia, the top-ranked spot, draws visitors with its whitewater-rafting courses on the Chattahoochee River. Average home values there hover around $160,000 — well below the national average of $492,300.
Increasing regulations on short-term rentalsfrom New York City to Dallas have reshaped the investing landscape, and AirDNA factored new rules into their rankings. Take Marquette, Michigan, a town on the shores of Lake Superior, which initially ranked high among the best places to invest. But, Lane said, the AirDNA team removed it from the list because of its strict cap on short-term rentals.
Here are the best 24 cities and towns to invest in an Airbnb in 2024, according to AirDNA, which provided all the data.
24. Largo, Florida
Largo, Florida.
Norm Lane/Shutterstock
Largo is an 80,000-person city in the Tampa Bay area that is home to the Florida Botanical Gardens as well as numerous beaches and parks.
Average home value: $440,764
Occupancy rate: 61.7%
Growth in revenue in 2023: 89.1%
23. Bradenton, Florida
Lakefront homes in Bradenton, Florida.
John Coletti/Getty Images
Set on the Manatee River near Florida's idyllic Gulf Coast, Bradenton has attractions including the Planetarium at the Bishop Museum and the Parker Manatee Aquarium.
Average home value: $454,413
Occupancy rate: 61.4%
Growth in revenue in 2023: 86.6%
22. Cocoa Beach, Florida
Cocoa Beach, Florida.
Getty/Paul Hennessy/NurPhoto
Home to the Kennedy Space Center and the Florida Surf Museum, Cocoa Beach is a quintessential Sunshine State destination on the Atlantic coast.
Average home value: $695,389
Occupancy rate: 66.3%
Growth in revenue in 2023: 80.3%
21. Huddleston, Virginia
Smith Mountain Lake Park, located near Huddleston, Virginia.
2265524729/Shutterstock
An unincorporated area one hour east of Roanoke, Virginia, Huddleston is known for its proximity to Smith Mountain Lake State Park camping, hiking, and picnicking facilities.
Average home value: $608,882
Occupancy rate: 59.6%
Growth in revenue in 2023: 83.8%
20. Oneonta, New York
Oneonta, New York.
Ruth Peterkin
A historic upstate New York town filled with charm, Oneonta is only 30 minutes from the Baseball Hall of Fame.
Average home value: $210,615
Occupancy rate: 59.6%
Growth in revenue in 2023: 63.3%
19. Wisconsin Dells, Wisconsin
Horse-drawn carriages carry visitors through the Lost Canyon near Wisconsin Dells.
Jacob Boomsma/Getty Images
A two-hour drive from Milwaukee, Wisconsin Dells is a regional vacation hub on the Wisconsin River offering multiple water parks, including one that is Noah's Ark-themed.
Average home value: $240,518
Occupancy rate: 55.2%
Growth in revenue in 2023: 94.6%
18. North Las Vegas, Nevada
North Las Vegas, Nevada.
Christopher Boswell/Shutterstock
Sitting right on the edge of the Las Vegas city limits, North Las Vegas offers easy access for visitors to Sin City. It's also Nevada's fourth-largest city itself.
Average home value: $384,973
Occupancy rate: 60.6%
Growth in revenue in 2023: 48.9%
17. Helen, Georgia
Helen, Georgia.
SeanPavonePhoto
Helen is one of Georgia's mountain destinations, set a two-hour drive north of Atlanta. A model Bavarian village, the Chattahoochee National Forest, and the Raven Cliff waterfalls bring visitors back year after year.
Average home value: $384,973
Occupancy rate: 60.6%
Growth in revenue in 2023: 48.9%
16. Fennville, Michigan
Fennville, Michigan.
Chicago Tribune
Fennville is a rural spot on Lake Michigan with vineyards and orchards that attract visitors. Located two hours east of Chicago, the town has a population of less than 2,000.
Average home value: $309,423
Occupancy rate: 56.2%
Growth in revenue in 2023: 81.4%
15. North Myrtle Beach, South Carolina
North Myrtle Beach, South Carolina.
John Coletti
North Myrtle sits along 60 miles of uninterrupted beaches on the South Carolina coast. Located a 20-minute drive from downtown Myrtle Beach, it boasts the reptile-filled Alligator Adventure attraction and other theme-park rides.
Average home value: $594,919
Occupancy rate: 60.7%
Growth in revenue in 2023: 92.7%
14. Beaufort, South Carolina
Beaufort, South Carolina.
Deborah McCague/Shutterstock
Located an hour north of Savannah, Georgia, Beaufort sits on Port Royal, one of South Carolina's sea islands. Known for its preservation of 19th-century architecture, Beaufort attracts history buffs interested in its stately mansions and military structures.
Average home value: $346,580
Occupancy rate: 60.9%
Growth in revenue in 2023: 74.4%
13. Anaheim, California
Disneyland in Anaheim, California.
MediaNews Group/Orange County Register via Getty Images
Home to Disneyland and the Anaheim Angels' baseball stadium, Anaheim is a fun destination for both Californians and visitors from farther afield.
Average home value: $867,724
Occupancy rate: 76.5%
Growth in revenue in 2023: 84.2%
12. Fernandina Beach, Florida
Fernandina Beach, Florida.
Aerial_Views
A 45-minute drive north of Jacksonville, Fernandina Beach is known for its pristine beaches hugging the Atlantic coastline and its Victorian-era architecture.
Average home value: $589,778
Occupancy rate: 61.5%
Growth in revenue in 2023: 90.4%
11. Mineral, Virginia
Lake Anna near Mineral, Virginia.
Aschen/Getty Images
With a population under 1,000, the tiny town of Mineral is located in rural Virginia, near Lake Anna State Park. Mineral is an hour northwest of Richmond.
Average home value: $699,268
Occupancy rate: 57.6%
Growth in revenue in 2023: 87.9%
10. Fairbanks, Alaska
Fairbanks, Alaska
Joel W. Rogers/Getty Images
The second-largest city in Alaska, Fairbanks attracts visitors from around the world to catch a glimpse of the Northern Lights.
Average home value: $238,668
Occupancy rate: 64.8%
Growth in revenue in 2023: 54.6%
9. Akron, Ohio
Akron, Ohio.
Sean Pavone/Getty Images
A 40-minute drive south of Cleveland, Akron is a historic city that brings in 20 million visitors a year. Two notable reasons: Its museums and the historic Stan Hywet Hall & Gardens, the grand estate of the Goodyear Tire Company's founder.
Average home value: $145,322
Occupancy rate: 57.2%
Growth in revenue in 2023: 77.4%
8. Port Angeles, Washington
Olympic National Park near Port Angeles in Washington state.
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Located at the foot of Olympic National Park, Port Angeles is a gateway to some of the best vistas in the Pacific Northwest. Visitors come for the mountain peaks as well as four temperate rainforests.
Average home value: $390,475
Occupancy rate: 64.3%
Growth in revenue in 2023: 79.6%
7. Stanton, Kentucky
Red River Gorge near Stanton, Kentucky.
Joshua Moore
Two hours west of Louisville, Stanton is known for its proximity to the Red River Gorge Geological Area, which has stunning waterfalls, and Natural Bridge State Resort Park, featuring a 78-foot-wide naturally occurring sandstone bridge.
Average home value: $146,471
Occupancy rate: 55.5%
Growth in revenue in 2023: 91.2%
6. Winter Haven, Florida
Winter Haven, Florida.
Bo Shen
A small city in the center of the Sunshine State, Winter Haven is known for its 50 lakes and their water sports. Winter Haven — population 50,000 — is also a prominent site for Major League Baseball's spring training.
Average home value: $263,811
Occupancy rate: 62.1%
Growth in revenue in 2023: 80.7%
5. Sneads Ferry, North Carolina
Sneads Ferry, North Carolina
Douglas Rissing
Sneads Ferry is a tiny fishing village on North Carolina's coast that has doubled in population to 10,000 residents since 2000. A hub for the local seafood industry, the town holds an annual shrimp festival.
Average home value: $555,133
Occupancy rate: 62.9%
Growth in revenue in 2023: 89.7%
4. Spring Hill, Florida
Weeki Wachee Springs near Spring Hill, Florida
Adventures On Wheels/Shutterstock
Spring Hill is best known for Weeki Wachee Springs, a water park built around the deepest freshwater cave system in America. In addition to riverboat rides and paddleboarding, there is a famous live "mermaid" show.
Average home value: $388,681
Occupancy rate: 61.7%
Growth in revenue in 2023: 89.7%
3. Logan, Ohio
Hocking Hills State Park in Ohio.
Bill Swindaman/Getty Images
A town of fewer than 8,000 people about an hour southeast of Columbus, Logan is a regional draw for its proximity to Hocking Hills State Park, which has 25 miles of hiking trails and sites including waterfalls and caves.
Average home value: $233,144
Occupancy rate: 57.3%
Growth in revenue in 2023: 85.7%
2. Ellsworth, Maine
Cadillac Mountain in Acadia National Park.
Zack Frank/Shutterstock
Ellsworth is just a 20-minute drive from the mountains and coastlines of Acadia National Park. Acadia's Cadillac Mountain is the first place to see the sunrise each day in the continental US.
Average home value: $324,672
Occupancy rate: 72.8%
Growth in revenue in 2023: 83%
1. Columbus, Georgia
Columbus is Georgia's second-biggest city after Atlanta.
SeanPavonePhoto/Getty Images
The best place to invest in an Airbnb has both relatively affordable home prices and robust growth in revenue per available room. The second-largest city in Georgia behind Atlanta, Columbus is home to several museums and the longest urban whitewater-rafting course in the world.
