- Peoria, IL, leads the nation with affordable rentals and strong short-term rental (STR) performance, making it the top market for gross yields in 2025.
- Fairbanks, AK, with high occupancy rates and revenue potential, is proving to be a strong contender for STR investors, especially in the winter.
- Akron, OH, and Columbus, GA, stand out due to their growing STR markets and high gross yields, offering strong cash flow opportunities in mid-sized cities.
- Other cities, like Crescent City, CA, and Shreveport, LA, are gaining momentum due to their local attractions and increasing STR demand.
- Small cities and rural areas are seeing real growth, with listings up 16%, signaling a shift to more affordable, less saturated markets for STR investments.
If you’re looking to invest in short-term rentals (STR), the following US cities are expected to deliver strong returns in 2025, according to GlobeSt. Based on AirDNA’s analysis of 540K active properties, these 10 markets show the most promise in terms of occupancy, daily rates, and revenue potential.
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Top 10 Rental Markets
- Peoria, IL: Peoria tops the list for its affordability and strong STR performance. The market is showing great potential for high gross yields, with growing local tourism adding to its appeal.
- Fairbanks, AK: Known for its winter tourism, Fairbanks offers high occupancy (66%) and nightly rates, making it a top choice for STR investors seeking strong revenue potential.
- Akron, OH: Akron is seeing strong listing growth, indicating rising investor interest. The market remains underdeveloped, making it an ideal place for investors looking for high returns with relatively low competition.
- Columbus, GA: Columbus offers strong cash flow with a gross yield of 13.4%, and its growing tourist attractions provide steady demand for short-term rentals.
- Crescent City, CA: With coastal charm and natural beauty, Crescent City offers high revenue potential despite higher home prices, making it an attractive destination for STR investors.
- Shreveport, LA: Shreveport’s STR market is on the rise, with improving occupancy and RevPAR. The city’s popular riverboat casinos and festivals continue to attract tourists, boosting performance.
- Page, AZ: Home to iconic landmarks like Horseshoe Bend, Page offers high average daily rates over $300 and strong cash flow, though the limited number of properties makes it a competitive market.
- Rockford, IL: Rockford combines affordable real estate with solid STR performance, offering strong yields and steady cash flow. Its 27% increase in Airbnb listings signals rising demand and investor interest.
- Dayton, OH: Dayton is attracting a growing number of visitors, driving 8.1% higher RevPAR. With strong cash flow opportunities, it’s an increasingly attractive market for STR investments.
- Frankfort, KY: Known for its bourbon tourism, Frankfort saw a 64.7% rise in STR listings, contributing to solid revenue growth and rising occupancy rates. Its unique local attractions make it a hot spot for short-term rental investors.
Why It Matters
Despite challenges in 2024—such as a limited supply of homes and rising home prices—AirDNA’s report shows that 2025 presents new opportunities for STR investors. Occupancy rates and average daily rates are projected to rise, offering strong potential for returns, especially in smaller cities and rural markets with less competition.
The market for short-term rentals is evolving in 2025, and as cities adapt to growing demand, investors can expect to see more metros emerge as lucrative STR destinations. Mid-sized cities and rural areas are likely to continue outpacing larger, saturated markets.
