Top 7 Airbnb Markets in the USA 2025

The United States continues to lead the global short-term rental market, commanding an impressive 37% share, outpacing Europe and other regions by a wide margin. And while cities like New York and Los Angeles have tightened regulations, investor interest hasn’t cooled. If anything, it’s evolving, shifting focus toward emerging markets with steady demand, better regulatory environments and strong returns.

For hosts, property managers and short term rental investors looking to grow in 2025, the key isn’t just investing in the biggest markets, it’s finding the right ones. Places with balanced growth, reliable occupancy rates and room to scale.

In this article, we’ll walk you through seven U.S. Airbnb markets that are primed for smart, sustainable investment in the year ahead.

U.S. Short-Term Rental Industry: 2024 Year-in-Review

In 2024, the U.S. short-term rental market regained its balance. Occupancy rates steadied and RevPAR (revenue per available rental) turned positive again thanks to a 7% rise in demand that finally outpaced supply growth. But what really shaped this recovery was location.

Resort destinations led a strong comeback after a sluggish 2023 and small cities, rural towns and mid-size metros posted the fastest growth overall. Their appeal? Lower housing costs and fewer barriers to entry, which made it easier for new hosts to meet rising guest demand.

Urban markets, on the other hand, struggled. High costs and tighter regulations, especially in cities like New York, where enforcement nearly wiped out STR activity caused both supply and demand to shrink. That said, urban listings still saw the fastest ADR (average daily rate) growth in 2024. And in a surprising twist, New York had the highest RevPAR growth of any U.S. market (+19.0%), thanks to fewer but more premium listings.

Other top-performing cities included:

• Chicago (+18.2% RevPAR, +15.6% demand, +11.8% ADR)

• Gulf Shores/Mobile, AL (+16.2%)

• Panama City, FL (+15.7%)

• Philadelphia, PA (+15.5%)

• Houston, TX (+14.9%)

While most of these markets benefited from limited new supply, Chicago stood out growing in listings and demand at the same time. It was one of the few urban markets to thrive on momentum rather than scarcity.

Ultimately, success in 2024 came down to smart market picks, understanding guest behavior and knowing when supply changes could work in your favor.

Projections for 2025 and Beyond

The future looks bright for the U.S. short-term rental market. After a steady recovery in 2024, the industry is projected to grow at a compound annual growth rate (CAGR) of 7.4%, reaching a market value of $102.86 billion by 2030. That’s not just a rebound, it’s a signal that STRs are becoming a long-term staple in the American travel economy.

Traveler preferences 

Modern travelers want more than just a place to stay, they want experiences. That’s why short-term rentals have an edge. From beach houses and downtown lofts to themed properties and cozy cabins, STRs offer personalized, home-like stays that traditional hotels often can’t match. This desire for variety, authenticity and flexibility is expected to keep driving bookings in the years ahead.

The rise of ‘bleisure’ travel

The remote work revolution is here to stay and it’s reshaping travel habits. With more people mixing work and leisure, demand is growing for rentals that support extended stays and include work-friendly amenities like high-speed internet and office space. This “bleisure” trend is helping spread demand beyond weekends and holidays, creating new opportunities for STR investors all year round.

Technology and growth

Booking platforms like Airbnb, Vrbo and Booking.com have made STRs easy to find and book — and that ease is a major growth engine. In 2024, over 95% of bookings were made online and that number isn’t slowing down. Guests expect smooth, transparent and secure booking experiences and platforms that deliver on that trust will continue to dominate.

Regulations 

With growth comes oversight. Many cities are tightening STR regulations to manage housing availability, neighborhood impact and safety standards. This includes caps on rental days, mandatory registrations and new tax rules. For STR investors, navigating these evolving policies smartly will be just as important as setting the right price.

What Makes a Great Short-Term Rental Market?

Before diving into the top-performing short-term rental markets in the U.S., it’s important to ask, what actually makes a location great for Airbnb investment? It’s not just about picking a popular destination — it’s about finding a market that aligns with your goals, budget and level of risk.

Is the area busy year-round or highly seasonal? Are there local rules limiting short-term rentals? What are the average occupancy rates and nightly prices? These are the questions that help you separate high-performing STR markets from those that look good on paper but underdeliver.

Here are some of the key factors to consider when deciding where to invest:

1. Destination popularity

The more tourists a location draws, the better your chances of staying booked — and the more confidently you can set your nightly rate. Proximity to attractions, cultural sites and city centers increases appeal. Guests often pay more for convenience, so being walkable to the action gives you a serious edge.

2. Seasonality

Some destinations thrive year-round, while others have clear on and off seasons. Look for places with short off-peak periods to keep income steady. Less downtime means more reliable revenue and easier planning.

3. Occupancy rates

The national average occupancy rate for Airbnb and Vrbo is around 54%. While 70% is considered strong, only a few markets consistently hit that. Locations that outperform the average signal reliable guest demand and better income potential.

4. Revenue potential

High demand doesn’t always equal high profit. Calculate your expected ROI by subtracting costs — like your mortgage, taxes and management — from projected income. A healthy ROI for short-term rentals typically falls between 8% and 12%. Focus on the full financial picture, not just nightly rates.

5. Regulatory landscape

No matter how promising a market looks, strict regulations can limit or even ban short-term rentals. New York, for example, requires properties to be a host’s primary residence. LA imposes a 120-day annual limit. Always research local laws — because even the best opportunity can turn into a costly misstep if you’re not compliant.

Top 7 Airbnb Markets in The USA 2025

Now that we’ve covered what makes a location ideal for short-term rental success, let’s look at where the opportunity actually is. Based on occupancy rates, rental demand, regulations and revenue potential, these are the best Airbnb markets in the U.S. for 2025.

Whether you're a first-time investor or a seasoned host looking to expand, these cities offer a strong mix of affordability, guest demand and long-term growth. From coastal gems to rising urban hubs, each market on this list stands out for a reason — and could be the perfect spot for your next Airbnb investment property.

1. New Orleans, LA

With its world-famous festivals, rich culture and unmistakable charm, New Orleans continues to be one of the best STR markets in the U.S. in 2025. Every year, over 18 million visitors flock to the city for events like Mardi Gras, the Jazz & Heritage Festival and the Essence Music Festival — creating consistent demand for short-term rentals and high occupancy rates across all seasons.

What makes New Orleans even more appealing for short-term rental investors is its affordable real estate market. Compared to major metro areas like New York or San Francisco, property prices here are relatively low, making it easier to enter the market and see healthy returns. Neighborhoods like the French Quarter, Bywater and Marigny are especially popular among tourists for their historic architecture, walkability and vibrant nightlife.

Whether you’re targeting music lovers, foodies or culture-seekers, New Orleans offers a deep and steady stream of guests looking for unique, locally-rooted stays.

• Average daily rate: US $290.2

• Annual revenue potential: US $31,000

• Occupancy rate: 51%

• High and low season: February to May is the high season June to August is the low season

Regulations to know

New Orleans does have some notable short-term rental regulations. Hosts must obtain a valid STR permit and the city enforces zoning rules that limit the number of short-term rentals allowed per square block. If you're considering a vacation rental investment in New Orleans, it’s essential to review the latest local Airbnb laws to ensure compliance before listing.

2. Las Vegas, NV

When it comes to iconic American destinations, Las Vegas is always in the spotlight — and it’s just as hot in the short-term rental space. As the sixth most visited U.S. city by international tourists and a go-to getaway for millions of domestic travelers, Vegas offers a consistent stream of short-term rental guests year-round.

Its reputation as a hub for casinos, nightlife, shopping and entertainment makes it a top pick for weekenders, bachelor/bachelorette parties, business travelers and festival-goers. And with relatively affordable home prices compared to coastal cities, Las Vegas stands out as a smart choice for vacation rental investment in 2025.

What sets Vegas apart is the frequency and volume of its visitors — whether it’s for a long weekend or a major convention, demand rarely takes a break.

• Average daily rate: US $305

• Annual revenue potential: US $26.3k

• Occupancy rate: 51%

• High and low season: March to May and September to November is the high season June to August is the low season.

Regulations to know

Las Vegas has implemented strict short-term rental regulations, so due diligence is key. Hosts must obtain a short-term rental license and zoning laws restrict where STRs can operate within city limits. Additional rules include:

• A minimum two-night stay requirement.

• 1,000-foot distance between STRs and other rentals.

• Owner must live on-site or within a close distance (for some zones).

• Fines for non-compliance can be substantial — up to $1,000 per day.

3. Maui, HI

Maui, often referred to as the "Valley Isle," is a dream destination for travelers seeking pristine beaches, lush landscapes and a taste of Hawaiian culture. This allure makes it a compelling choice for vacation rental investments. While property prices are on the higher end, especially for luxury accommodations, the consistent influx of tourists ensures strong occupancy rates and potential for substantial returns.

The island's popularity isn't just seasonal visitors flock year-round, drawn by events, natural beauty and recreational activities. Areas like Wailea, Kihei and Lahaina are particularly sought after, offering investors opportunities to tap into a steady stream of guests looking for unique and comfortable stays.

• Average daily rate: US $635

• Annual revenue potential: US $66,600

• Occupancy rate: 65%

• High and low season: December to April is the high season April to June is the low season.

Regulations to know

Investing in Maui's short-term rental market requires navigating a complex regulatory landscape:

• Permit requirements: Operating a short-term rental in Maui mandates obtaining a Short-Term Rental Home (STRH) permit. These permits are subject to caps in various community plan areas and the application process can be stringent.

• Ownership duration: Applicants must have owned the property for a minimum of five years before applying for an STRH permit.

• Zoning restrictions: Short-term rentals are primarily allowed in hotel-zoned areas. Recent proposals aim to phase out approximately 7,000 short-term rentals in apartment-zoned districts by 2026, particularly affecting regions like West and South Maui.

• Operational standards: STRH operations must adhere to specific standards, including on-site parking requirements, noise regulations and having a local contact available 24/7

4. New York, NY

It’s no surprise that New York City is one of the top Airbnb markets in the U.S. for 2025. Known as "The City That Never Sleeps," NYC is not only the most visited city in the country but also one of the most iconic travel destinations in the world. With nearly 9 million international tourists annually — and tens of millions more domestic travelers — this bustling metropolis offers year-round demand for short-term stays.

From the energy of Times Square to the serenity of Central Park and from Broadway shows to world-class museums, New York packs endless attractions into every borough. Whether guests are visiting for business, culture or a weekend getaway, they’re constantly searching for centrally located, walkable accommodations — and that’s where Airbnb properties shine.

Despite its high real estate prices, the vacation rental investment potential in NYC remains strong — especially for properties near Manhattan, Brooklyn or tourist-heavy areas like SoHo, the Upper West Side and Williamsburg. But while the demand is steady, operating here requires a deep understanding of the city’s increasingly strict regulations.

• Average daily rate: US $262

• Annual revenue potential: US $19,600

• Occupancy rate: 57%

• High and low season: Late May to early September and November to December is the high season. January to March is the low season.

Regulations to know

New York City enforces stringent short-term rental regulations under Local Law 18:

• Registration requirement: Hosts must register their short-term rental properties with the Mayor’s Office of Special Enforcement (OSE).

• Primary residence rule: Only primary residences are eligible for short-term rentals. The host must be present during the guest's stay and the rental is limited to two guests.

• Prohibited buildings list: Certain buildings, including those with rent-regulated units, prohibit short-term rentals. Hosts must ensure their property is not on this list.

• Advertising restrictions: It's illegal to advertise entire apartments for short-term rentals if the host is not present during the stay.

Non-compliance can result in substantial fines, ranging from $1,000 to $7,500. Therefore, thorough understanding and adherence to these regulations are crucial for anyone considering a vacation rental investment in New York City.

5. Orlando, FL

If you're looking for one of the best Airbnb cities in Florida, Orlando absolutely deserves a spot on your radar. Home to Walt Disney World Resort and Universal Studios, Orlando draws over 70 million visitors annually, many of whom are families seeking home-like, flexible accommodations close to the parks.

What makes Orlando especially appealing is its year-round warm climate, a strong draw for both domestic and international tourists. It’s also highly accessible — Orlando International Airport (MCO) is just 6 miles from downtown, making it a convenient entry point for guests from across the globe.

Outside the theme parks, the city offers growing attractions in arts, sports and cuisine, giving visitors plenty of reasons to stay longer and explore more. And thanks to a wide range of housing options — from suburban homes to resort-style condos — Orlando is a highly flexible market for short-term rental investment.

• Average daily rate: US $240

• Annual revenue potential: US $23,100

• Occupancy rate: 55%

• High and low season: The high season is most of the year, with lower periods in January – February and during the hurricane season.

Regulations to know

Orlando is generally considered an STR-friendly city, but:

• Hosts must complete official registration with the city.

• Short-term rentals are typically allowed only in owner-occupied homes (for up to 30 days) or as part of designated commercial lodging zones.

• You’ll also need to pay local tourist development and sales taxes and comply with zoning and safety requirements.

6. Columbus, GA

Columbus may not be the first city that comes to mind when thinking about short-term rentals — but that’s exactly what makes it one of the most profitable emerging STR markets in the U.S. for 2025. With affordable property prices and relatively low market saturation, this Georgia city offers an excellent opportunity to get in early, before values and competition rise.

Columbus is home to Fort Moore (formerly Fort Benning) — one of the largest U.S. Army installations — bringing in a steady flow of visiting families, contractors and military personnel. The city also boasts a growing cultural scene, with attractions like the National Infantry Museum, the River Center for the Performing Arts and a vibrant downtown riverwalk that appeals to both tourists and locals.

For investors looking to diversify outside of major metro areas, Columbus stands out as a smart, high-ROI Airbnb investment location, especially for those interested in mid-size cities with solid fundamentals and long-term growth potential.

• Average daily rate: US $159

• Annual revenue potential: US $18,500

• Occupancy rate: 55%

• High and low season: April to May and September to October is the high season Winter months are the low season.

Regulations to know

Columbus has established clear short-term rental rules designed to balance neighborhood integrity with tourism demand:

• Each unit must have a valid STR permit.

• Rentals are subject to occupancy limits based on zoning and unit size.

• A local contact person must be available 24/7 to respond to issues or city inquiries.

• Additional requirements include safety inspections and mandatory payment of local lodging taxes.

7. Los Angeles, CA

Few cities blend star power, culture and coastlines like Los Angeles — which is why it ranks as the third most visited U.S. city by international tourists, welcoming 3.6 million international travelers annually. From Hollywood Boulevard to Venice Beach, LA’s year-round tourism is fueled by a constant stream of major events like Coachella, the Academy Awards and LA Fashion Week — not to mention the ever-present allure of celebrity sightings and entertainment experiences.

What makes short-term rental investment in Los Angeles especially attractive is this non-stop demand, paired with steadily rising property values. Whether guests are in town for a red carpet event, a beach vacation or a business trip, they’re looking for stylish, well-located accommodations — and Airbnb hosts are in a prime position to meet that need.

Areas like West Hollywood, Silver Lake and Venice continue to draw strong booking activity thanks to their walkability, nightlife and proximity to top attractions. With a mix of upscale and mid-range housing stock, LA offers diverse entry points for investors.

• Average daily rate: US $270

• Annual revenue potential: US $18,600

• Occupancy rate: 55%

• High and low season: The high season lasts the majority of the year, with a low period from December to February.

Regulations to know

Los Angeles enforces detailed short-term rental rules, so hosts must stay compliant to operate legally:

• You must register with the city’s Planning Department before listing your property.

• Rentals are limited to 120 days per calendar year, unless the host applies for extended use.

• The primary residence requirement means you can only short-term rent the home you live in for at least six months of the year.

• STRs in rent-stabilized buildings are prohibited.

• Additional requirements include remitting the Transient Occupancy Tax (TOT) and displaying your registration number in listings.

Where Will You Invest Next?

From powerhouse metros to rising small-city gems, these top U.S. STR markets for 2025 offer more than just travel appeal — they offer real investment potential. Whether you're looking for steady occupancy, long-term appreciation or short-term cash flow, there’s a city on this list that fits your goals.

But remember: success in short-term rentals isn’t just about location — it’s about strategy. Do your homework, stay on top of local regulations and lean into what makes each market unique. With the right property in the right place, 2025 could be your most profitable year yet.