The 25 best Airbnb investment locations in North America

With this comes opportunities for investors, who can potentially make hundreds of dollars per day, per property from a vacation rental in a high-demand market.

However, as with any investment property there comes risk, and North America is a vast pool of possible locations, all with their own different characteristics.

To help narrow the field, we selected the top 25 destinations by Revenue per Available Rental (RevPAR) and analyzed both the potential income and the cost of acquiring properties in these areas.

What is RevPAR & why is it important for property investors?

Revenue Per Available Rental (RevPAR) represents the revenue generated by a property, averaged across all availability in a given period. If a property is 50% occupied for an available month with a booked ADR of $100, the RevPAR would be $50.

The magic of this metric is as a combined barometer of rate and occupancy to help to measure and project revenue performance, also allowing hosts to factor this into pricing accordingly. The metric also aids in benchmarking against other properties or brands.

On another hand, DMOs and tourism bodies can use RevPAR metrics for a myriad of business tasks. This knowledge enables them to assess economic impact, evaluate destination competitiveness, monitor performance, forecast and attract investments and foster collaboration opportunities, all of which contribute to the sustainable growth and success of the tourism sector.

Ultimately, RevPAR is arguably the most pivotal metric in understanding the ROI potential of any given property or market.

To make sure that we have only selected locations where there is a substantial pool of potential properties for real estate investment, we have excluded locations with less than 10,000 listings.

Best North American cities to invest in short-term rentals from a purely RevPAR perspective

Looking first at purely the RevPAR generating capability of Airbnb listings in North American locations, the top 25 is dominated by sea front destinations.

These range from the islands of Hawaii, which has three entrants not just in the top 25, but in the top five, down to the complete other side of the US in Miami, sun and sand destinations are heavily represented in the top 25. Sixteen of the cities we have uncovered are coastal destinations and therefore these represent some of the best locations to look at investments into short-term rentals.

Outside of beachfront condos, other trends in the top 25 are for ski resorts, with Park City, Utah, and Breckenridge, Colorado in the top 25, and a surprisingly strong showing for Tennessee.

Four of the top 25 are located in the state around Nashville and in Sevierville County in the state’s east. It seems that this is driven by a relatively high density of attractions in these two locations, with the latter home to major theme parks such as Dollywood, the Island and Anakeesta.

Rounding out the top 25 are some of North America’s popular tourist destinations, in Las Vegas, Miami and New York.

Similar to the situation in Barcelona and Malaga in Spain, Hawaii's short-term rentals may be on the brink of being phased out, so it is wise to proceed with caution. This development comes as the state government wrestles with a housing crisis, which was intensified by last year's wildfires on Maui and ongoing issues of overtourism.

The all-important revenue ratio

As we covered in our comparable research into European investment locations, purely looking at RevPAR misses a huge part of the investment decision making process: asset price.

Average prices for a city center two bedroom apartment run from $17,733 per square meter in New York down to $3,062 in Las Vegas according to figures taken from Numbeo and Properstar. This nearly six-fold differential between top and bottom markets underlines that the potential time to break even on Airbnb rental property investment can be drastic, especially given that the differential between 1st and 25th for RevPAR is only 3x.

Therefore, what we decided to do was to gather average prices across these locations from Numbeo and Properstar and then divide that by our RevPAR figure to give a ratio that could roughly represent the potential for investment returns relative to the cost of purchasing a city center apartment.

What we end up with is a very similar spread to our European figures with the price-per-square-meter to RevPAR running from 19 in Ocean City up to 87 in New York, as compared to ratios ranging from 17 to 85 in Europe.

Another shared trend is for the major cities to be less affordable and have poorer ratios, with New York joined by Miami, Florida and San Diego, California at the bottom of the list.

The difference in sizes and general zoning and property usage can be stark. While New York has a population of 20 million across its metro areas, Park City and Ocean City have permanent resident numbers of less than 10,000. Both of these cities therefore have the majority of their property within city limits given over to tourism and leisure purposes.

This works out to a much faster return on investment for rental property in these destinations with low ratios..

Taking an average US two bedroom apartment, which is approximately 100 square meters and 80% loan-to-value purchase, a property in Ocean City (excluding interest on the loan) would take four years to pay off the initial loan and just over five years to recoup the complete investment. This compared to comparable numbers of nearly 19 years and 15 years in New York, respectively.

Top 10 US destinations for short-rerm rental investment based on price-to-revenue ratio

Investing in short-term rental real estate can be highly lucrative, especially in destinations that offer a favorable price per square meter to revenue ratio.

Here, we explore ten of the best Airbnb markets in the USA that provide excellent investment opportunities for Airbnb property, analyzing their travel industry outlook, investment data, and seasonal trends.

1. Ocean City, Maryland

Ocean City is a classic East Coast beach town known for its bustling boardwalk, sandy shores, and vibrant nightlife. With millions of tourists flocking here annually, the Airbnb property market remains strong and steady.

Investment insight:

• Average property value: $300,000 - $500,000

• Average Airbnb nightly rate: $200 - $300

• Peak seasons: Summer months (June–August), with occupancy rates reaching 90%

• Top attractions: Boardwalk, Jolly Roger Amusement Park, Assateague Island

Key events:The Oceans Calling music festival and the Maryland Air Show significantly boost rental demand.

2. Park City, Utah

Famous for its world-class ski resorts and the Sundance Film Festival, Park City has a stable tourism economy with year-round appeal for you Airbnb business.

Investment insight:

• Average property value: $600,000 - $1,200,000

• Average Airbnb nightly rate: $250 - $500

• Peak seasons: Winter ski season (December–March), summer hiking season (June–September)

• Top attractions: Deer Valley Resort, Park City Mountain, Historic Main Street

Key events:The Sundance Film Festival drives a substantial spike in demand during January.

3. Las Vegas, Nevada

As s a global entertainment hub, Las Vegas offers a strong and consistent demand for short-term rentals, thanks to its year-round appeal and numerous conventions.

Investment insight:

• Average property value: $250,000 - $450,000

• Average Airbnb nightly rate: $150 - $250

• Peak seasons: Spring and fall convention seasons, major holidays

• Top attractions: The Strip, Fremont Street, numerous casinos and shows

Key events:Conventions like CES, sporting events, year-round entertainment options and concerts such as Electric Daisy Carnival contribute to high occupancy rates 365 days a year.

4. Panama City Beach, Florida

A favorite Gulf Coast vacation spot, Panama City Beach attracts families and spring breakers alike, making it a solid investment option for Airbnb rental.

Investment insight:

• Average property value: $350,000 - $700,000

• Average Airbnb nightly rate: $180 - $300

• Peak seasons: Spring Break (March–April), summer (June–August)

• Top attractions: Pier Park, St. Andrews State Park, Shipwreck Island Waterpark

Key events: Spring Break and Gulf Coast Jam festival bring significant traffic.

5. Nashville, Tennessee

The "Music City" is a top tourist destination known for its vibrant live music scene and strong cultural appeal.

Investment insight:

• Average property value: $400,000 - $800,000

• Average Airbnb nightly rate: $200 - $350

• Peak seasons: Summer and fall, with weekend spikes year-round

• Top attractions: Broadway, Country Music Hall of Fame, Grand Ole Opry

Key events: Annual events like CMA Fest and Bonnaroo drive demand spikes.

6. Hilton Head Island, South Carolina

Hilton Head offers a more relaxed, upscale beach experience, attracting affluent travelers and retirees.

Investment insight:

• Average property value: $450,000 - $900,000

• Average Airbnb nightly rate: $250 - $400

• Peak seasons: Summer (June–August) and holiday weekends

• Top attractions: Harbour Town Lighthouse, Coligny Beach, golf courses

Key events: The RBC Heritage Golf Tournament draws thousands of visitors annually.

7. Breckenridge, Colorado

A premier ski destination with year-round outdoor activities, Breckenridge offers a strong short-term rental market, but high property prices are the counter balance.

Investment insight:

• Average property value: $600,000 - $1,500,000

• Average Airbnb nightly rate: $300 - $500

• Peak seasons: Winter ski season and summer hiking season

• Top attractions: Breckenridge Ski Resort, Main Street, Boreas Pass

Key events: The Ullr Fest and International Snow Sculpture Championships draw tourists in droves.

8. Destin, Florida

Destin is known for its emerald-green waters and white sandy beaches, making it a favorite among families and couples.

Investment insight:

• Average property value: $400,000 - $800,000

• Average Airbnb nightly rate: $200 - $350

• Peak seasons: Spring and summer, with high occupancy rates

• Top attractions: Destin Harbor Boardwalk, Crab Island, Big Kahuna’s Water Park

Key events: The Destin Fishing Rodeo and Seafood Festival drive off-season interest.

9. Sarasota, Florida

Sarasota combines beautiful beaches with a thriving arts scene, offering consistent rental demand.

Investment Insight:

• Average property value: $450,000 - $900,000

• Average Airbnb nightly rate: $180 - $350

• Peak seasons: Winter (for snowbirds) and summer

• Top attractions: Siesta Key Beach, The Ringling Museum, St. Armands Circle

Key events:The Sarasota Film Festival and Chalk Festival attract cultural tourists.

10. Orange Beach, Alaska

An emerging beach destination along the Gulf Coast, Orange Beach offers lower property costs with strong rental income potential.

Investment insight:

• Average property value: $350,000 - $700,000

• Average Airbnb nightly rate: $180 - $300

• Peak Seasons: Summer (June–August)

• Top attractions: The Wharf, Gulf State Park, dolphin cruises

Key events: The Hangout Music Festival and fishing tournaments drive occupancy rates

Each of these destinations presents a unique opportunity for real estate investors looking to capitalize on the short-term rental market. 

Whether driven by beachfront appeal, seasonal events, or year-round tourism, these locations offer attractive price-to-revenue ratios that promise strong returns on investment for Aibnb hosts.

The lesson? Tourist towns with major draws have huge potential

The best performers are often smaller and tied to key major attractions and regularly host large events.

Nashville and Las Vegas are slightly different as they are major metro areas in their own right, but they do fit this profile. Key to their identities are the Strip for Las Vegas and Music Row for Nashville. Las Vegas has an enormous array of sporting and musical events, while Nashville hosts festivals such as Bonnaroo and CMA Fest.

Similarly, Ocean City, Panama Beach and Park City all revolve around their main geographic tourist attractions. This is the beachfront for the first two and a ski resort for the latter, with Ocean City also host to Oceans Calling and Country Calling festivals and Park City the home of the Sundance Film Festival.

Just outside of the top 25 for RevPAR, we found that 28th placed Myrtle Beach and Palm Springs – 29th – also fit this mold. They are both economies with high exposure to the tourism sector and home to festivals, most notably Coachella in Palm Springs. These cities have price per square meter to RevPAR ratios of 17 and 25, comparable to the best cities in the top 25.

The opposite end of the scale is dominated by major cities. Atlanta (40), Dallas (41), Houston (45), LA (65), Mexico City (52), Tampa (61), and Montreal (81) all have ratios that would place them at the bottom of our return on investment measure. Toronto is even further out with a massive ratio of price per square meter 142 times that of RevPAR!

Therefore, the clear pattern for airbnb investors and property management companies in North America looking for bang for their bucks is to look outside major metro areas and to smaller cities with strong sets of local attractions and events.

These provide outsized opportunities due to lower purchasing costs, typically high year-round occupancy rates and key moments to raise rates substantially during points of elevated demand due to events.

It is worth noting that the top location, Ocean City, has one of the most tourism dependent economies and populations in North America, with the 7,000 or so residents dwarfed by peak visitor numbers of over 300,000.

If you would like more insights like these, then check out our page dedicated to dissecting data trends, follow us on LinkedIn or why not start a trial and access one of the industry’s most comprehensive datasets covering the short-term rental market?