Best Short-Term Rental Markets to Invest In (September 2026)
56 US Airbnb markets ranked by what an investor buying today would actually earn: the median cap rate of homes for sale right now, each one underwritten against real Airbnb comps.
Key takeaways
- Finger Lakes, NY ranks first with a 10.3% median cap rate across 12 homes for sale.
- 6 of 56 markets show positive median cash flow at 20% down and a 7.5% rate. Cash flow is the exception, not the rule.
- Branson, MO has the most Strong Buy listings right now: 16 of 41.
- Best market under $500K: Finger Lakes, NY at a 10.3% cap rate and a $437K median price.
The full ranking
Cash flow is the median monthly figure after the mortgage at 20% down and a 7.5% rate. Strong Buys are listings scoring 9 or 10 out of 10. Click any market for its full analysis.
| # | Market | Median cap rate | Median cash flow | Strong Buys | Median price | Nightly rate | Occupancy |
|---|---|---|---|---|---|---|---|
| 1 | Finger Lakes, NYNortheast | 10.3% | $1,127/mo | 8 of 12 | $437K | $384 | 45% |
| 2 | Branson, MOMidwest | 10.1% | $862/mo | 16 of 41 | $385K | $303 | 52% |
| 3 | St. Augustine, FLSoutheast | 8.2% | $497/mo | 3 of 41 | $375K | $218 | 62% |
| 4 | Destin, FLSoutheast | 8.2% | $392/mo | 8 of 41 | $510K | $471 | 35% |
| 5 | Poconos, PANortheast | 8.0% | $470/mo | 10 of 40 | $460K | $328 | 47% |
| 6 | Myrtle Beach, SCSoutheast | 7.6% | $300/mo | 3 of 41 | $491K | $353 | 43% |
| 7 | Asheville, NCSoutheast | 6.5% | -$178/mo | 0 of 39 | $620K | $370 | 51% |
| 8 | Bar Harbor, MENortheast | 5.8% | -$439/mo | 0 of 27 | $760K | $361 | 59% |
| 9 | Bend, ORPacific Northwest | 5.8% | -$578/mo | 0 of 41 | $650K | $344 | 44% |
| 10 | Napa Valley, CAWest Coast | 5.6% | -$930/mo | 2 of 41 | $1.0M | $584 | 46% |
| 11 | Joshua Tree, CASouthwest | 5.3% | -$442/mo | 0 of 39 | $379K | $229 | 43% |
| 12 | Kissimmee, FLSoutheast | 5.3% | -$480/mo | 0 of 41 | $575K | $243 | 59% |
| 13 | Moab, UTMountain West | 4.8% | -$901/mo | 0 of 41 | $680K | $249 | 62% |
| 14 | Broken Bow, OKSouth Central | 4.7% | -$693/mo | 0 of 41 | $454K | $280 | 33% |
| 15 | New Orleans, LASoutheast | 4.7% | -$937/mo | 0 of 41 | $490K | $284 | 38% |
| 16 | Big Bear Lake, CAWest Coast | 4.6% | -$888/mo | 0 of 41 | $525K | $339 | 33% |
| 17 | Outer Banks, NCMid-Atlantic | 4.6% | -$1,241/mo | 0 of 41 | $660K | $324 | 41% |
| 18 | Galveston, TXSouth Central | 4.5% | -$685/mo | 0 of 41 | $374K | $226 | 34% |
| 19 | Door County, WIMidwest | 4.5% | -$915/mo | 0 of 41 | $500K | $248 | 42% |
| 20 | Port Aransas, TXSouth Central | 4.5% | -$1,107/mo | 0 of 41 | $640K | $359 | 39% |
| 21 | Ocean City, MDMid-Atlantic | 4.2% | -$956/mo | 0 of 543 | $469K | $293 | 29% |
| 22 | Panama City Beach, FLSoutheast | 4.2% | -$1,061/mo | 0 of 41 | $525K | $294 | 38% |
| 23 | Palm Springs, CAWest Coast | 4.2% | -$1,777/mo | 0 of 41 | $879K | $460 | 36% |
| 24 | Traverse City, MIMidwest | 4.1% | -$1,290/mo | 0 of 41 | $659K | $309 | 47% |
| 25 | Savannah, GASoutheast | 4.0% | -$1,517/mo | 0 of 41 | $675K | $253 | 46% |
| 26 | Lake Tahoe, CAWest Coast | 4.0% | -$1,669/mo | 0 of 41 | $699K | $318 | 44% |
| 27 | Lake of the Ozarks, MOMidwest | 3.8% | -$1,454/mo | 0 of 41 | $650K | $279 | 33% |
| 28 | Nashville, TNSoutheast | 3.7% | -$2,767/mo | 0 of 40 | $999K | $386 | 44% |
| 29 | Gatlinburg, TNSoutheast | 3.6% | -$1,486/mo | 0 of 54 | $798K | $274 | 34% |
| 30 | Gulf Shores, ALSoutheast | 3.3% | -$1,557/mo | 0 of 41 | $585K | $231 | 38% |
| 31 | Pigeon Forge, TNSoutheast | 3.2% | -$1,612/mo | 0 of 41 | $549K | $253 | 31% |
| 32 | Sedona, AZSouthwest | 3.2% | -$5,347/mo | 0 of 41 | $1.8M | $494 | 50% |
| 33 | Amelia Island, FLSoutheast | 3.1% | -$2,212/mo | 0 of 41 | $719K | $282 | 35% |
| 34 | Scottsdale, AZSouthwest | 3.1% | -$2,872/mo | 0 of 41 | $1.1M | $365 | 47% |
| 35 | South Padre Island, TXSouth Central | 2.9% | -$2,800/mo | 0 of 40 | $965K | $477 | 33% |
| 36 | Austin, TXSouth Central | 2.9% | -$2,496/mo | 0 of 48 | $752K | $274 | 39% |
| 37 | Rehoboth Beach, DEMid-Atlantic | 2.8% | -$4,750/mo | 0 of 40 | $1.4M | $393 | 45% |
| 38 | Anna Maria Island, FLSoutheast | 2.8% | -$6,118/mo | 0 of 41 | $1.7M | $493 | 48% |
| 39 | Cape Cod, MANortheast | 2.7% | -$2,828/mo | 0 of 25 | $790K | $348 | 31% |
| 40 | Fredericksburg, TXSouth Central | 2.7% | -$2,370/mo | 0 of 41 | $795K | $254 | 42% |
| 41 | Sarasota, FLSoutheast | 2.6% | -$8,397/mo | 0 of 41 | $2.5M | $504 | 49% |
| 42 | Clearwater Beach, FLSoutheast | 2.6% | -$7,336/mo | 0 of 41 | $2.4M | $517 | 45% |
| 43 | 30A / Santa Rosa Beach, FLSoutheast | 2.5% | -$3,528/mo | 0 of 41 | $969K | $260 | 36% |
| 44 | Hilton Head Island, SCSoutheast | 2.4% | -$7,553/mo | 0 of 41 | $2.4M | $473 | 54% |
| 45 | Virginia Beach, VAMid-Atlantic | 2.4% | -$5,471/mo | 0 of 41 | $1.5M | $473 | 35% |
| 46 | The Hamptons, NYNortheast | 2.2% | -$9,751/mo | 0 of 39 | $2.5M | $707 | 36% |
| 47 | Mammoth Lakes, CAWest Coast | 2.1% | -$9,091/mo | 0 of 27 | $2.5M | $641 | 36% |
| 48 | Steamboat Springs, COMountain West | 2.0% | -$8,894/mo | 0 of 41 | $2.5M | $372 | 62% |
| 49 | Breckenridge, COMountain West | 1.9% | -$6,753/mo | 0 of 41 | $1.7M | $449 | 32% |
| 50 | Charleston, SCSoutheast | 1.8% | -$23,009/mo | 0 of 41 | $5.8M | $733 | 56% |
| 51 | San Diego, CAWest Coast | 1.8% | -$12,201/mo | 0 of 41 | $3.0M | $524 | 44% |
| 52 | Jackson Hole, WYMountain West | 1.5% | -$36,687/mo | 0 of 40 | $8.6M | $868 | 59% |
| 53 | Key West, FLSoutheast | 1.2% | -$6,445/mo | 0 of 41 | $1.4M | $283 | 30% |
| 54 | Park City, UTMountain West | 0.7% | -$63,659/mo | 0 of 41 | $12.5M | $1,160 | 28% |
| 55 | Miami Beach, FLSoutheast | 0.6% | -$79,046/mo | 0 of 40 | $15.7M | $1,113 | 36% |
| 56 | Vail, COMountain West | 0.5% | -$56,670/mo | 0 of 25 | $10.9M | $929 | 27% |
Held out this month while their data is re-verified: Catskills, NY.
See which Finger Lakes listings are Strong Buys
This page shows which markets work. STRROI shows which properties in them work: every listing for sale, scored 1 to 10, with full cash flow underwriting.
Best STR markets by budget
Under $500K
- 1. Finger Lakes, NY10.3%
- 2. Branson, MO10.1%
- 3. St. Augustine, FL8.2%
- 4. Poconos, PA8.0%
- 5. Myrtle Beach, SC7.6%
$500K to $1M
- 1. Destin, FL8.2%
- 2. Asheville, NC6.5%
- 3. Bar Harbor, ME5.8%
- 4. Bend, OR5.8%
- 5. Kissimmee, FL5.3%
Over $1M
Top market in each region
Best places to buy an Airbnb, by state
State rankings for every state where STRROI tracks at least three markets.
How this ranking works
Most "best Airbnb markets" lists rank cities by average revenue. That tells you what a host earns, not what an investor buying today keeps. This ranking starts from the homes that are actually for sale in each market and underwrites every one of them, then ranks markets by the median cap rate of those listings.
- Revenue for each listing comes from real Airbnb comps near that property: nightly rate and availability-adjusted occupancy.
- Expenses are itemized, not a flat guess: 20% professional management, 3% platform fees, 3% supplies, maintenance and capital reserves scaled to the age of the home, $150 per cleaning turnover (about 85% of it typically covered by the guest cleaning fee), and the property tax and HOA dues listed for each home where available. Insurance is estimated at 0.45% of the list price (at least $2,000 a year) and utilities from each home's square footage. Swap in real quotes when you underwrite a specific home.
- Cap rate = net operating income divided by list price (before any mortgage).
- Cash flow is monthly, after the mortgage, assuming 20% down and a 30-year loan at 7.5%.
- Strong Buy means the listing scored 9 or 10 out of 10 on the STRROI buy rating, which weighs cash-on-cash return, cap rate, cash flow and property quality.
- A market is only ranked when it has at least 10 analyzed listings and recent data. Markets whose inputs look implausible (gross yield above 20% at the median) are held out until the data is re-verified, rather than published at the top of the list.
Market medians, not guarantees. Individual properties vary with location, amenities, management and local STR rules. Always underwrite the specific property before you buy.
Questions investors ask
What is the best place to buy a short-term rental right now?
Ranked by the median cap rate of homes currently for sale, Finger Lakes, NY is first at 10.3%, followed by Branson, MO at 10.1% and St. Augustine, FL at 8.2%. The ranking covers 56 US STR markets and 2,717 analyzed listings, last refreshed Sep 30, 2026.
What is a good cap rate for an Airbnb?
Across the 56 markets ranked here, the typical market has a 3.7% median cap rate. A useful rule of thumb: when the cap rate is below your mortgage rate (7.5% in this model), the property usually needs a large down payment to cash flow. 6 of 56 markets clear that bar at the median.
Do short-term rentals still cash flow?
In 6 of 56 markets, the median home for sale cash flows positive at 20% down and a 7.5% rate, after management, reserves, cleaning, insurance, utilities and fees. The strongest median cash flow is in Finger Lakes, NY at $1,127 per month. Individual listings in every market do better or worse than the median, which is why property-level underwriting matters.
What is the best affordable Airbnb market?
Among markets with a median list price under $500K, Finger Lakes, NY ranks highest at a 10.3% cap rate and a $437K median price. Branson, MO is next at 10.1%.
How often is this ranking updated?
Market data is refreshed on a rolling basis and this page updates automatically. It was last refreshed Sep 30, 2026. Each market's own page shows the date of its latest data and the number of listings behind it.
Use this data
Writers, agents and investors are welcome to quote these numbers. Please credit STRROI and link to this page.
Source: STRROI, "Best Short-Term Rental Markets to Invest In (September 2026)", www.strroi.com/best-str-markets