If you’re eyeing the short-term rental (STR) market, AirDNA has just released its 2025 Best Places to Invest Report, a comprehensive guide to the U.S. markets with the highest potential for STR success.
Drawing on data from over 540,000 U.S. properties currently for sale, the report evaluates investment potential using AirDNA’s proprietary Best Places to Invest (BPTI) Score. This scoring system factors in demand, revenue growth, overall investability and regulatory landscape, giving investors a clear picture of where to focus their efforts.
AirDNA’s 2025 Outlook Report projects a rise in both occupancy rates and average daily rates, following the steady performance of 2024. While property acquisition costs are higher, these revenue trends suggest that strategic investments can still deliver solid returns.
Taking the top spot is Peoria, Illinois. The city's affordability and strong STR performance make it a standout for investors. With an average listing price of $202,930, Peoria offers the lowest entry cost of any featured market while boasting a gross yield of 15.3%—the highest on the list. Annual revenue potential averages $31,131, making this Midwest gem a top choice. Local attractions, like the Peoria Riverfront Museum and Luthy Botanical Garden, enhance its appeal to visitors.
Moving up from ninth place in 2024, Fairbanks, Alaska ranks second this year. With a market-leading occupancy rate of 66.5% and strong nightly rates averaging $224.35, Fairbanks generates impressive annual revenues of up to $49,459. Properties in this Arctic destination average $327,690—a higher buy-in, but one balanced by strong returns.
Akron, Ohio, has climbed from eighth to third place. Its rich industrial history and vibrant attractions—like the Cuyahoga Valley National Park and Akron Art Museum—are driving steady visitor demand. With growing traveler interest and consistent bookings, investment properties in Akron are becoming increasingly lucrative.
With occupancy rates and revenue projected to grow, the short-term rental market presents compelling opportunities for investors in 2025. Find the full list here.
Ten Best places to invest in Short-Term Rentals
- Peoria, Illinois
- Fairbanks, Alaska
- Akron, Ohio
- Columbus, Georgia
- Crescent City, California
- Shreveport, Louisiana
- Page, Arizona
- Rockford, Illinois
- Dayton, Ohio
- Frankfort, Kentucky