Location is one of the most critical factors for short-term rental profitability, so before you pick a town, it’s important to know which are the best cities for Airbnb investments.
Shifts in guest preferences have made finding the most profitable location more complex than just checking local listings or choosing your favorite vacation spot. You’ll also need to consider demand, local zoning laws, regulations and competition.
With the following insights on Airbnb profitability by city, you can begin planning your next short-term rental in 2025.
Top Cities for Airbnb Investments in 2025
If you’re ready to invest in your first or next short-term rental, here are the top Airbnb cities you might consider based on key data of average daily rates, revenue per available room, annual revenue potential and occupancy rates.
1. Savannah, Georgia
Savannah’s historic neighborhoods and attractions are big draws for tourists. In fact, 7.2 million overnight visitors in 2024 flocked to the city for its architecture, culture and unique experiences. Bookings peak mostly in March and April but hold throughout the year with festivals and a temperate climate.
- Key data points:
- Average daily rate (ADR): $295.80
- Revenue per available room (RevPAR): $169.60
- Annual revenue potential: $39,800
- Occupancy rate: 57%
- Short-term rental regulations or restrictions: Rentals permitted only in the downtown, Victorian and streetcar historic districts, and annual registration is required for landlords.
2. Nashville, Tennessee
Looking for a deeper connection to Music City’s rich cultural scene? Short-term rental properties provide a unique opportunity for vacationers to explore the city’s neighborhoods and nightlife. A full annual calendar of events keeps seasonality at bay.
- Key data points:
- Average daily rate (ADR): $373.20
- Revenue per available room (RevPAR): $201.40
- Annual revenue potential: $43,600
- Occupancy rate: 54%
- Short-term rental regulations or restrictions: Permits are required to list non-owner-occupied rentals allowed in designated areas.
3. Fairbanks, Alaska
Natural beauty and cultural attractions provide Fairbanks with year-round demand from tourists, and military training and deployment at nearby Fort Wainwright creates regular demand for temporary housing. Whether you’re chasing the Northern Lights or the Midnight Sun, Fairbanks has something for just about everyone. Low competition and infrastructure improvements make it appealing to investors.
- Key data points:
- Average daily rate (ADR): $191
- Revenue per available room (RevPAR): $107.20
- Annual revenue potential: $21,300
- Occupancy rate: 57%
- Short-term rental regulations or restrictions: General business license, state business license, and conditional use permit required for landlords.
4. Anaheim, California
The Disneyland Resort, major sports franchises and the Anaheim Convention Center attract tourists and business travelers year-round. A house is expensive at a median list price of $899,944, but the average monthly Airbnb rental income in the Anaheim Resort area is $7,065.
- Key data points:
- Average daily rate (ADR): $347.50
- Revenue per available room (RevPAR): $196.20
- Annual revenue potential: $40,800
- Occupancy rate: 57%
- Short-term rental regulations or restrictions: Strict regulation covers short-term rentals. Just 241 are permitted citywide.
5. State College, Pennsylvania
Big Ten college football and student-related events at Penn State University drive high demand for short-term rentals. When school is out, the natural beauty of the Keystone State attracts outdoor enthusiasts. Investment opportunities abound with affordable developments.
- Key data points:
- Average daily rate (ADR): $695.70
- Revenue per available room (RevPAR): $383.30
- Annual revenue potential: $33,700
- Occupancy rate: 52%
- Short-term rental regulations or restrictions: A short-term rental license is required for landlords, along with a safety inspection.
6. Portland, Maine
Portland attracts tourists year-round to its seafood culinary scene. Food enthusiasts are willing to pay a premium to walk cobblestone streets or stay close to the Old Port district. The city offers high demand and favorable yields.
- Key data points:
- Average daily rate (ADR): $351.40
- Revenue per available room (RevPAR): $202.70
- Annual revenue potential: $36,300
- Occupancy rate: 60%
- Short-term rental regulations or restrictions: No new short-term rentals are allowed in 2026, and you must register a unit.
7. New Orleans, Louisiana
More than 1 million people pack the French Quarter for Mardi Gras every year. New Orleans can keep your short-term rentals filled for two weeks at premium prices. A long list of other festivals (Big Easy music, food and spirits) fills up the rest of the year.
- Key data points:
- Average daily rate (ADR): $313.80
- Revenue per available room (RevPAR): $146.10
- Annual revenue potential: $31,800
- Occupancy rate: 49%
- Short-term rental regulations or restrictions: A permit is required to list units in the French Quarter and parts of the Historic Garden District.
8. Orlando, Florida
While you find seasonality in some markets, investing in the land of Mickey Mouse gives you one long tourist season with peaks. Orlando is a global destination, and single-family homes, multi-family units, condominiums and Airbnbs make the city ripe for investing.
- Key data points:
- Average daily rate (ADR): $244.80
- Revenue per available room (RevPAR): $127
- Annual revenue potential: $23,900
- Occupancy rate: 52%
- Short-term rental regulations or restrictions: A state license and city permit are required for landlords, and occupancy restrictions apply.
9. Lincoln, Nebraska
Nebraska is home to state and federal government offices and the University of Nebraska. Good returns may be found during Big Ten football seasons and graduation times. Tourism and business travel may smooth out the year’s occupancy.
- Key data points:
- Average daily rate (ADR): $179.70
- Revenue per available room (RevPAR): $82.10
- Annual revenue potential: $15,400
- Occupancy rate: 48%
- Short-term rental regulations or restrictions: Each unit must be licensed and renewed annually. Occupancy limits and zoning restrictions apply.
10. Akron, Ohio
Akron blends industrial history with top attractions to bring business travelers and tourists who book Airbnb rentals. Investors are taking note as well, and listings are growing. However, the market isn’t crowded.
- Key data points:
- Average daily rate (ADR): $142.80
- Revenue per available room (RevPAR): $78
- Annual revenue potential: $14,200
- Occupancy rate: 54%
- Short-term rental regulations or restrictions: Landlords must register with the city annually, pay a $250 fee, and collect a 5.5% excise tax from guests.
How Local Laws Can Make or Break Your Airbnb Investment
State and local laws, zoning codes, business regulations and tax collection can deflate your hopes of operating in the best cities for Airbnb investments. While some cities embrace vacation rentals, others prohibit short-term rentals or restrict how they operate or for how long,
In Anaheim, California, a 2019 ordinance overturned a ban and phase-out on short-term rentals, permitting 241 to remain, although those banned by homeowners' associations must relocate within the city. Akron, Ohio, adopted regulations on short-term rentals in 2023, rescinding a ban that didn’t align with state law. In Orlando, homesharing is permitted, but renting an entire home is restricted to certain zoning designations and some require special permission.
Before you invest, always check local short-term rental regulations.
Frequently Asked Questions
What city is the most profitable for Airbnb in 2025?
Based on the potential annual revenue a short-term rental can generate, Savannah, Georgia — which can earn you $64,394 per year — may be the most profitable city for an Airbnb in 2025. However, to find a successful rental, you should also consider such factors as occupancy rate, average daily rate, revenue per available room and seasonality.
How do I find out if Airbnb is legal in a city?
The Airbnb website provides the types of regulatory information you should consider. It also gives summary pages on regulations in about 200 cities and counties. You can review the websites of cities or counties to learn about possible short-term rental laws and regulations, or contact the local zoning department or housing authority.
Are rural areas or big cities better for Airbnb investing?
Investors are starting to find more opportunities in small cities and rural areas as guests seek more space and natural settings. Rural locations can offer less competition and growing demand, and short-term rentals there have grown 14% year-over-year.
