The Best Airbnb Markets to Invest In Right Now. What StaySTRA Data Shows for 2026

Key West generated $128,009 in average annual short-term rental revenue over the trailing 12 months ending February 2026, according to StaySTRA data. That is more than $40,000 ahead of the next closest market in our database. Think of it like a batting leaderboard: the gap between first and second place is wider than the gap between second and tenth.

That number caught my attention, and it should catch yours. But raw revenue alone does not make a market worth buying into. After 40 years of staring at data (first for the federal government, now for StaySTRA from my desk in Santa Fe), I have learned that the markets that look best on a single metric are often the ones that burn investors who do not dig deeper.

This guide gives you the full picture. I pulled trailing 12-month performance data from every market in the StaySTRA database, cross-referenced supply trends, regulatory environments, and DSCR viability, then ranked the results. Here are the 10 best Airbnb markets for investors right now, organized by category, with the data to back each one up.

How to Evaluate a Short-Term Rental Market

Before we get into specific cities, you need a framework. I evaluate every market against four criteria. If a market scores well on all four, it earns a spot on this list. If it scores well on three but poorly on one, I flag the risk.

1. Revenue Per Available Night (RevPAR)

RevPAR is your single best snapshot metric. It multiplies ADR (what you charge) by occupancy rate (how often you are booked), giving you the average revenue you earn per calendar night, booked or not. A market with a $400 ADR but 30% occupancy earns $120 RevPAR. A market with $300 ADR and 55% occupancy earns $165 RevPAR. The second market puts more money in your account. Think of RevPAR as miles per gallon for your rental property: it tells you how efficiently the market converts available nights into dollars.

2. Regulatory Stability

The best revenue numbers in the world do not help if the city council votes to ban short-term rentals next quarter. States with preemption laws (Florida, Texas, Arizona, Tennessee, Idaho, Indiana) prevent local governments from imposing outright bans. That does not mean anything goes, but it does mean your investment is not one city council meeting away from zero. For a full breakdown of which states passed preemption bills in 2026, we track the legislative landscape closely.

3. Supply Trend

A market where listing counts are shrinking or holding steady is structurally better for existing investors than one where new supply is flooding in. When supply grows 15% in a year, occupancy almost always drops. When supply contracts, the remaining operators capture a larger share of demand. StaySTRA tracks supply-constrained markets in detail.

4. DSCR Loan Viability

Most STR investors buying in 2026 are using DSCR loans, which qualify based on the property’s income rather than your personal W-2. At current rates near 7.5%, a $400,000 property at 75% LTV carries roughly $2,100 in monthly principal and interest, plus taxes and insurance. You need the property’s net operating income to cover that payment. In practical terms, that means a market needs at least $50,000 in annual gross revenue to support a DSCR ratio of 1.0 on a median-priced property. Our STR financing guide walks through DSCR math step by step.

Best Beach Markets for Airbnb Investment

Key West, FL

StaySTRA data: $689 ADR | 50% occupancy | $128,009 annual revenue | $351 RevPAR | 1,172 active listings

Key West is not just the top beach market. It is the top market, period. The combination of a $689 average daily rate and 50% occupancy yields a RevPAR of $351, the highest in our database. Listing counts dropped 6.2% year over year (from 1,250 to 1,172), which means supply is contracting while rates climb. Florida’s statewide preemption framework adds regulatory protection.

The catch is entry price. Typical home values on the island push well past $800,000. Key West is not a first-investment market for most buyers. But if you can get in, the revenue numbers speak clearly.

Run the numbers for Key West in the StaySTRA analyzer | Key West market data

Destin, FL

StaySTRA data: $456 ADR | 41% occupancy | $71,191 annual revenue | $195 RevPAR | 4,157 active listings

Destin delivers strong ADR on the Gulf Coast with a $456 average nightly rate. Occupancy runs lower than Key West at 41%, which reflects Destin’s seasonal concentration (summer months carry the bulk of bookings). Supply grew 6.5% year over year, so this market needs monitoring. But Florida preemption protects the regulatory side, and $71,000 in annual revenue clears the DSCR bar comfortably on most property price points in the area.

Run the numbers for Destin in the StaySTRA analyzer | Destin market data

Jacksonville Beach, FL

StaySTRA data: $334 ADR | 50% occupancy | $59,800 annual revenue | $164 RevPAR | 789 active listings

Jacksonville Beach is the kind of market that does not make magazine covers but quietly rewards investors. Listing counts dropped 11.9% in the past year, one of the sharpest supply contractions in our database. With only 789 active listings, this is a small, tight market where demand outpaces supply. The $334 ADR is modest compared to Key West, but 50% occupancy is strong, and Florida preemption keeps the regulatory picture stable. Stay with me here: smaller markets with declining supply are often where the best risk-adjusted returns hide.

Run the numbers for Jacksonville Beach in the StaySTRA analyzer | Jacksonville Beach market data

Best Mountain Markets for Airbnb Investment

Park City, UT

StaySTRA data: $610 ADR | 33% occupancy | $74,174 annual revenue | $204 RevPAR | 4,317 active listings

Park City posts the second-highest ADR in our top 10 at $610 per night. The occupancy rate of 33% looks low at first glance. Don’t let that number scare you. Mountain ski markets concentrate their revenue in winter months. Park City’s January through March window alone can generate what some markets produce all year. Listings dropped 6.8% year over year, and the market benefits from Sundance Film Festival demand layered on top of ski season. Entry prices are steep (typical homes run over $1 million), making this a market for experienced investors with capital.

Run the numbers for Park City in the StaySTRA analyzer | Park City market data

Gatlinburg, TN

StaySTRA data: $365 ADR | 48% occupancy | $64,295 annual revenue | $176 RevPAR | 3,924 active listings

Gatlinburg is America’s cabin capital, and the data backs the reputation. A $365 ADR paired with 48% occupancy produces $64,295 in annual revenue across nearly 4,000 active listings. Tennessee’s preemption law provides regulatory stability. The one flag: supply grew 7.5% year over year. Gatlinburg has been a magnet for new cabin builds since 2020, and that inventory growth puts downward pressure on occupancy over time. Our coastal vs. mountain market comparison shows this trend in context.

Run the numbers for Gatlinburg in the StaySTRA analyzer | Gatlinburg market data

Broken Bow, OK

StaySTRA data: $455 ADR | 38% occupancy | $63,898 annual revenue | $175 RevPAR | 3,223 active listings

Broken Bow is the market that keeps surprising people. A rural Oklahoma lake and forest destination posting a $455 ADR? That is the power of the luxury cabin segment. Supply has grown 8.2% year over year and more than doubled since early 2024 (from 1,535 listings to 3,223), which is the primary risk here. Oklahoma has no significant local STR restrictions, and property prices remain far more accessible than coastal or mountain resort markets. If supply growth stabilizes, this market’s fundamentals are strong. If it does not, occupancy will continue to compress.

Run the numbers for Broken Bow in the StaySTRA analyzer | Broken Bow market data

Best Urban Markets for Airbnb Investment

Charleston, SC

StaySTRA data: $420 ADR | 55% occupancy | $84,843 annual revenue | $232 RevPAR | 2,136 active listings

Charleston posts the second-highest annual revenue in our top 10 and the highest occupancy rate at 55%. That occupancy number is what sets Charleston apart. Think of it like a restaurant that fills 55% of its tables every single night of the year, at premium prices. The $232 RevPAR trails only Key West. Supply dropped 5.7% year over year. Charleston’s regulatory environment requires permits and has occupancy limits in certain zones, but it has not moved toward a ban or severe restriction.

Run the numbers for Charleston in the StaySTRA analyzer | Charleston market data

Nashville, TN

StaySTRA data: $347 ADR | 46% occupancy | $57,111 annual revenue | $156 RevPAR | 5,988 active listings

Nashville’s most interesting number is not its revenue. It is the supply change: listings dropped 21.7% in a single year, from 7,652 to 5,988. That is the most dramatic supply contraction in our entire database. Nashville’s permit system and zoning restrictions have effectively capped new supply. For investors who already hold permits or can acquire permitted properties, this is a structural advantage. The remaining operators are splitting demand among fewer competitors. Tennessee’s state preemption law provides a floor of protection, though Nashville’s local regulations are among the more complex in the state.

Run the numbers for Nashville in the StaySTRA analyzer | Nashville market data

Best Desert and Leisure Markets for Airbnb Investment

Sedona, AZ

StaySTRA data: $430 ADR | 52% occupancy | $83,895 annual revenue | $230 RevPAR | 1,838 active listings

Sedona’s $83,895 in annual revenue puts it third overall, and the 52% occupancy rate is remarkably consistent for a leisure market. Unlike ski towns that compress revenue into a winter window, Sedona has a dual peak (spring and fall) that spreads income more evenly across the calendar. Arizona’s SB 1350 preemption law prevents local bans, though Sedona requires a $210 annual permit and $500,000 in insurance. Supply grew 6.1% year over year, which bears watching but has not yet eroded the market’s strong fundamentals.

Run the numbers for Sedona in the StaySTRA analyzer | Sedona market data

Joshua Tree, CA

StaySTRA data: $334 ADR | 48% occupancy | $61,441 annual revenue | $168 RevPAR | 1,344 active listings

Joshua Tree rounds out the top 10 with a story about supply constraints. Listings dropped 8.4% year over year in a market that already had relatively low inventory. The $334 ADR is driven by the design-forward cabin and A-frame segment that dominates this market. California’s regulatory environment is more complex than states with preemption laws, but San Bernardino County (where Joshua Tree sits) has maintained a functional permitting system. The combination of contracting supply, steady demand from the Los Angeles metro, and accessible property prices makes Joshua Tree worth serious analysis.

Run the numbers for Joshua Tree in the StaySTRA analyzer | Joshua Tree market data

The DSCR Question: Can These Markets Support a Loan?

Every market in this guide clears the minimum revenue threshold for a DSCR loan at current rates. But “clears the minimum” and “makes a comfortable investment” are different conversations.

At 7.5% on a 30-year fixed DSCR loan with 75% LTV, here is the rough math: a $400,000 property carries about $2,100 per month in principal and interest. Add taxes and insurance, and total debt service runs $2,500 to $3,000 per month depending on location. After operating expenses (cleaning, maintenance, supplies, property management at 20-25% of revenue), you need gross revenue of roughly $50,000 per year to hit a 1.0 DSCR.

Seven of our 10 markets generate $60,000 or more in average annual revenue. Key West, Charleston, and Sedona all clear $80,000. The markets where DSCR math gets tighter are the ones with higher property prices relative to revenue (Park City, Key West) or lower absolute revenue (Nashville at $57,111). Run the actual numbers on a specific property before you commit. That is what the StaySTRA analyzer is built for.

For a deeper breakdown of how DSCR loans work and which markets offer the best ratios, read our STR Financing Guide for 2026.

What the Q1 2026 Data Tells Us Going Into Summer

Our Q1 2026 STR performance report showed a national market that is stabilizing after two years of post-pandemic correction. Supply growth has slowed nationally to under 5% annualized. ADRs are holding or rising slightly in most leisure markets. Occupancy remains compressed in markets with oversupply (Kissimmee, Panama City Beach, Austin) but is recovering in supply-constrained markets like Nashville, San Diego, and Key West.

The FIFA World Cup (June and July 2026) will create temporary demand spikes in host cities, but the markets on this list were selected for their structural fundamentals, not event-driven windfalls. An event lifts revenue for a month. Strong fundamentals compound year after year.

Markets Where Caution Is Warranted

Not every high-revenue market belongs on an investment shortlist. A few that did not make this list despite strong raw numbers:

• Kissimmee, FL: $3,857 monthly revenue but supply grew 15.2% year over year with over 10,000 active listings. The Orlando-area vacation rental market is getting crowded.
• Panama City Beach, FL: Over 10,000 listings and 3.3% supply growth on a $315 ADR. Margins are thin and getting thinner.
• Austin, TX: Supply of 9,289 listings in a market generating only $2,963 per month on average. The city’s July 2026 platform enforcement deadline adds regulatory uncertainty.

These markets can work for the right operator with the right property. But average-market performance in all three is below what most DSCR lenders want to see.

We do our best to keep our data accurate and up to date, but markets move fast and we are only human. Always verify current figures directly with local sources before making investment decisions.

Ready to run the numbers on a specific market? The StaySTRA analyzer lets you plug in any city, property type, and financing scenario to see projected revenue, expenses, and cash flow. Start with the markets on this list and see which ones match your investment criteria.