The top short-term rental markets are based on AirDNA’s annual report which factors four key criteria: rental demand, revenue growth, investability, and regulation. Rental demand measures the occupancy rate and average daily rate (ADR) of STRs in the market. Revenue growth measures the year-over-year change in revenue per available room (RevPAR), a key metric of STR profitability. Investability measures the affordability and availability of properties for sale in the market. Regulation measures the level of legal restrictions and taxes imposed on STRs in the market. All 4 of these criteria are essential to finding the best markets for short-term rentals.

In the previous post, we covered the top 5 markets for short-term rental (STR) property investment in 2024, based on data and analysis from AirDNA, a leading provider of STR data and analytics. In this post, we will complete the list with the next 5 markets, and explain why they are attractive for STR investors.

6. Winter Haven, Florida:

This coastal city is part of the Tampa Bay area, and offers easy access to the Gulf of Mexico, the Weeki Wachee Springs, and the Pine Island Beach Park. It also has a variety of shopping, dining, and entertainment options, as well as a growing population and economy. Winter Haven has a high rental demand, with an occupancy rate of 70% and an ADR of $150 in 2024. It also has a high revenue growth, with a RevPAR increase of 21% year-over-year. Winter Haven is a moderately priced market, with a median home price of $220,000 and a price-to-rent ratio of 14.3. It also has a moderate regulation environment, with some local rules and taxes on STRs, but no state-level restrictions.

7. Stanton, Kentucky:

This quaint town is located in the heart of the Hocking Hills region, a popular destination for outdoor enthusiasts and nature lovers. It features attractions like the Hocking Hills State Park, the Old Man’s Cave, and the Rock House. Stanton has a high rental demand, with an occupancy rate of 71% and an ADR of $200 in 2024. It also has a high revenue growth, with a RevPAR increase of 22% year-over-year. Stanton is a low-cost market, with a median home price of $140,000 and a price-to-rent ratio of 9.1. It also has a favorable regulation environment, with no major restrictions or taxes on STRs.

8. Port Angeles, Washington:

This charming town is the gateway to Olympic National Park, one of the most visited national parks in the U.S. It also offers access to the scenic Washington coast, with its rocky shores, lighthouses, and wildlife. Port Angeles has a high rental demand, with an occupancy rate of 72% and an ADR of $220 in 2024. It also has a high revenue growth, with a RevPAR increase of 23% year-over-year. Port Angeles is a moderately priced market, with a median home price of $250,000 and a price-to-rent ratio of 15.4. It also has a moderate regulation environment, with some local rules and taxes on STRs, but no state-level restrictions.

9. Fairbanks, Alaska:

This northern city is known for its spectacular views of the aurora borealis, or northern lights, as well as its rich cultural and historical heritage. It also has a variety of outdoor activities, such as fishing, skiing, dog sledding, and ice sculpting. Fairbanks has a high rental demand, with an occupancy rate of 69% and an ADR of $180 in 2024. It also has a high revenue growth, with a RevPAR increase of 20% year-over-year. Fairbanks is a moderately priced market, with a median home price of $240,000 and a price-to-rent ratio of 15.2. It also has a moderate regulation environment, with some local rules and taxes on STRs, but no state-level restrictions.

10. Lake City, Colorado:

This historic town is located in the San Juan Mountains, and is surrounded by stunning natural beauty. It is a jeep-lovers and fly-fishing-lovers paradise, as well as a base for exploring the Alpine Loop Scenic and Historic Byway, which passes through ghost towns, mines, and alpine lakes. Lake City has a high rental demand, with an occupancy rate of 68% and an ADR of $160 in 2024. It also has a high revenue growth, with a RevPAR increase of 19% year-over-year. Lake City is a low-cost market, with a median home price of $160,000 and a price-to-rent ratio of 10.2. It also has a favorable regulation environment, with no major restrictions or taxes on STRs.

These are the top 10 markets for STR investment in 2024, according to AirDNA. Of course, there are many other factors to consider before buying a vacation rental property, such as your personal goals, budget, risk tolerance, and management style. You should also do your own due diligence and research on the specific market and property you are interested in.

If you haven’t already checked it out, read part 1 of this post which details markets 1 – 5!