Top 10 Airbnb Investment Markets in the US (May 2023)

Investing in an Airbnb property can be a lucrative opportunity for those looking to generate passive income. However, not all locations are created equal when it comes to short-term rentals. In this article, we've compiled a list of the top Airbnb investment locations in the country, based on factors such as market size, average revenue per available night, and occupancy rate. Whether you're a seasoned investor or just starting out, these locations offer the potential for a high return on investment and are worth considering for your next investment.

Looking for the best locations to invest in an Airbnb property? Here are the top 10 Airbnb investment locations in the country, based on factors such as market size, revenue potential, and occupancy rates:

1. Tofte, MN - Best for outdoor activities and scenic beauty.
2. Alexandria Bay, NY - Best for boating, fishing, and historic attractions.
3. Wawona, CA - Best for proximity to Yosemite National Park and year-round tourism.
4. Sylvan Beach, NY - Best for water sports and proximity to a casino.
5. Lutsen, MN - Best for skiing, hiking, and Lake Superior views.
6. Jefferson, TX - Best for historic charm and proximity to outdoor recreation areas.
7. Rileyville, VA - Best for Shenandoah National Park and small-town charm.
8. Fairlee, VT - Best for Lake Morey and skiing at Killington and Stowe.
9. Natchitoches, LA - Best for history, culture, and unique events.
10. Ovid, NY - Best for the Finger Lakes region and outdoor activities.

Investing in an Airbnb property in any of these locations can offer the potential for a solid return on investment.

1. Tofte, MN - Best for outdoor activities and scenic beauty.

Tofte is an attractive location for vacationers due to its scenic beauty, outdoor activities, and proximity to popular tourist destinations. The Boundary Waters Canoe Area Wilderness, a vast wilderness area known for its pristine lakes and forests, is just a short drive away. In addition, the North Shore of Lake Superior is a popular destination for hiking, fishing, and sightseeing. With such a variety of activities available, it's no surprise that Tofte has a high demand for vacation rentals, especially during peak seasons.

Investing in an Airbnb property in Tofte can offer a high return on investment. The average revenue per available night  in Tofte is $237, with an occupancy rate of 69.8%. This translates to an impressive ROI of 31%. Additionally, the average Airbnb home price in Tofte is $165,000, making it a more affordable investment option than some other popular vacation destinations. With a market size of medium and 102 active Airbnb listings, Tofte is a competitive market with plenty of potential for growth.

2. Alexandria Bay, NY - Best for boating, fishing, and historic attractions.

Another top Airbnb investment location in the country is Alexandria Bay, NY. Located in the Thousand Islands region of New York, Alexandria Bay is a popular vacation destination for boating, fishing, and other outdoor activities. It's also home to historic attractions like Boldt Castle and Singer Castle, which draw in visitors from around the world.

Investing in an Airbnb property in Alexandria Bay offers the potential for a high return on investment. The average revenue per available night in Alexandria Bay is $312, with an occupancy rate of 60.1%. This translates to an ROI of 24%, making it a lucrative investment opportunity. The average Airbnb home price in Alexandria Bay is $135,000, making it an affordable option for those looking to invest in a vacation rental property.

While the market size for Airbnb properties in Alexandria Bay is small, with just 100 active listings, it's a competitive market with plenty of potential for growth. With its picturesque location and proximity to popular tourist attractions, Alexandria Bay is a promising investment location for those seeking a profitable Airbnb property.

3. Wawona, CA - Best for proximity to Yosemite National Park and year-round tourism.

Investing in an Airbnb property in Wawona, CA, is a smart choice for those looking to tap into the lucrative short-term rental market. Wawona is located just a few miles from the southern entrance of Yosemite National Park, making it an attractive location for tourists who want to explore the park's stunning natural beauty. As a result, Wawona has a high demand for vacation rentals year-round.

The potential for a high return on investment is one of the reasons why Wawona is a recommended choice for Airbnb investors. The average revenue per available night in Wawona is $446, with an occupancy rate of 68.7%. This translates to an ROI of 24%, making it a profitable investment opportunity. While the average Airbnb home price in Wawona is higher than some other investment locations, at $395,000, the potential for high rental income makes it a worthwhile investment.

Despite having a small market size, with just 66 active Airbnb listings, Wawona's popularity as a tourist destination and proximity to Yosemite National Park make it a competitive market. With its stunning natural beauty and numerous outdoor activities, it's no surprise that Wawona is a sought-after vacation destination. Investing in an Airbnb property in Wawona can offer a promising return on investment, making it one of the top Airbnb investment locations in the country.

4. Sylvan Beach, NY - Best for water sports and proximity to a casino.

Another promising Airbnb investment location in the country is Sylvan Beach, NY. Located on the eastern shore of Oneida Lake, Sylvan Beach is a popular summer destination for boating, fishing, and other water sports. It's also just a short drive from the Turning Stone Resort Casino, a year-round attraction that draws in visitors from across the region.

Investing in an Airbnb property in Sylvan Beach offers the potential for a high return on investment. The average revenue per available night in Sylvan Beach is $219, with an occupancy rate of 60.6%. This translates to an ROI of 23%, making it a profitable investment opportunity. The average Airbnb home price in Sylvan Beach is $110,000, making it an affordable option for those looking to invest in a vacation rental property.

While the market size for Airbnb properties in Sylvan Beach is small, with just 52 active listings, it's a competitive market with potential for growth. With its picturesque location on Oneida Lake and proximity to the Turning Stone Resort Casino, Sylvan Beach is a promising investment location for those seeking a profitable Airbnb property. With the right strategy and management, investing in an Airbnb property in Sylvan Beach can offer a promising return on investment.

5. Lutsen, MN - Best for skiing, hiking, and Lake Superior views.

Lutsen, MN is another top Airbnb investment location in the country. Located in northeastern Minnesota, Lutsen is a popular ski destination in the winter and offers plenty of outdoor activities in the summer, making it a year-round vacation spot. Its location on the shores of Lake Superior also adds to its appeal, with stunning scenic views and water activities available.

Investing in an Airbnb property in Lutsen offers a promising return on investment. The average revenue per available night in Lutsen is $366, with an occupancy rate of 68.0%. This translates to an ROI of 23%, making it a lucrative investment opportunity. The average Airbnb home price in Lutsen is $350,000, making it a more expensive investment option than some other locations, but with a medium market size of 106 active listings, it's a competitive market with plenty of potential for growth.

Lutsen's popularity as a vacation destination is a key factor that makes it a recommended choice for Airbnb investors. With numerous outdoor activities available throughout the year, including skiing, hiking, fishing, and boating, there's always a high demand for vacation rentals in Lutsen. Additionally, its location on Lake Superior, the largest of the Great Lakes, adds to its appeal for tourists. Investing in an Airbnb property in Lutsen can offer a promising return on investment for those willing to invest in a higher-priced property.

6. Jefferson, TX - Best for historic charm and proximity to outdoor recreation areas.

Jefferson, TX is a promising Airbnb investment location for those seeking a profitable short-term rental property. Located in East Texas, Jefferson is a small town with historic charm and plenty of outdoor recreation opportunities nearby. It's also known for its popular festivals and events, which attract visitors from around the region.

Investing in an Airbnb property in Jefferson can offer a promising return on investment. The average revenue per available night in Jefferson is $141, with an occupancy rate of 52.8%. This translates to an ROI of 22%, making it a profitable investment opportunity. The average Airbnb home price in Jefferson is $105,000, making it an affordable option for those looking to invest in a vacation rental property.

While the market size for Airbnb properties in Jefferson is small, with just 85 active listings, it's a competitive market with potential for growth. With its historic charm and proximity to outdoor recreation areas like Caddo Lake, Jefferson is a promising investment location for those seeking a profitable Airbnb property. Its popular festivals and events also add to its appeal, with visitors coming from around the region to attend. With the right strategy and management, investing in an Airbnb property in Jefferson can offer a promising return on investment.

7. Rileyville, VA - Best for Shenandoah National Park and small-town charm.

Rileyville, VA is another top Airbnb investment location in the country. Located just a few miles from the northern entrance to Shenandoah National Park, Rileyville offers plenty of opportunities for outdoor activities like hiking, camping, and fishing. It's also a small town with historic sites and local charm, making it a unique and authentic vacation destination.

Investing in an Airbnb property in Rileyville offers the potential for a high return on investment. The average revenue per available night in Rileyville is $221, with an impressive occupancy rate of 75.6%. This translates to an ROI of 22%, making it a profitable investment opportunity. The average Airbnb home price in Rileyville is $263,000, making it a more expensive investment option than some other locations, but with a small market size of 74 active listings, it's a competitive market with potential for growth.

Rileyville's proximity to Shenandoah National Park and popularity as an outdoor recreation destination make it an attractive location for Airbnb investors. Visitors come from around the region to enjoy the park's stunning natural beauty and numerous activities. Additionally, Rileyville's small-town charm and historic sites add to its appeal for tourists. Investing in an Airbnb property in Rileyville can offer a promising return on investment for those willing to invest in a higher-priced property in a small but competitive market.

8. Fairlee, VT - Best for Lake Morey and skiing at Killington and Stowe.

Fairlee, VT is a recommended choice for investors seeking a profitable Airbnb property. Located on the shores of Lake Morey in eastern Vermont, Fairlee is a picturesque location that attracts visitors for its natural beauty and outdoor activities. Its proximity to popular ski resorts like Killington and Stowe also adds to its appeal as a vacation destination.

Investing in an Airbnb property in Fairlee offers the potential for a high return on investment. The average revenue per available night in Fairlee is $244, with an occupancy rate of 68.3%. This translates to an ROI of 22%, making it a profitable investment opportunity. The average Airbnb home price in Fairlee is $213,000, making it an affordable option for those looking to invest in a vacation rental property.

While the market size for Airbnb properties in Fairlee is small, with just 32 active listings, it's a competitive market with potential for growth. With its scenic location on Lake Morey and proximity to popular ski resorts, Fairlee is a promising investment location for those seeking a profitable Airbnb property. Its popularity as a destination for outdoor activities like hiking, fishing, and boating also adds to its appeal. With the right strategy and management, investing in an Airbnb property in Fairlee can offer a promising return on investment.

9. Natchitoches, LA - Best for history, culture, and unique events.

Natchitoches, LA is a lesser-known but promising Airbnb investment location in the country. Located in central Louisiana, Natchitoches offers a unique blend of history, culture, and outdoor activities. The city is known for its historic district, which features well-preserved buildings dating back to the 18th and 19th centuries. It's also home to Cane River Creole National Historical Park, which offers visitors a glimpse into the region's Creole culture.

Investing in an Airbnb property in Natchitoches offers the potential for a solid return on investment. The average revenue per available night in Natchitoches is $226, with an occupancy rate of 56.3%. This translates to an ROI of 21%, making it a profitable investment opportunity. The average Airbnb home price in Natchitoches is $142,000, making it an affordable option for those looking to invest in a vacation rental property.

While the market size for Airbnb properties in Natchitoches is small, with just 30 active listings, it's a competitive market with potential for growth. The city's unique blend of history, culture, and outdoor activities make it an attractive destination for travelers seeking a unique and authentic experience. Additionally, Natchitoches hosts several popular events throughout the year, including the Natchitoches Christmas Festival, which attracts visitors from around the region. Investing in an Airbnb property in Natchitoches can offer a promising return on investment for those willing to invest in a smaller market with a unique and appealing character.

10. Ovid, NY - Best for the Finger Lakes region and outdoor activities.

Ovid, NY is a top Airbnb investment location for those seeking a profitable short-term rental property. Located in the heart of the Finger Lakes region, Ovid is surrounded by picturesque lakes, wineries, and outdoor activities. Its charming small town atmosphere adds to its appeal as a vacation destination.

Investing in an Airbnb property in Ovid offers the potential for a high return on investment. The average revenue per available night in Ovid is $182, with an occupancy rate of 66.4%. This translates to an ROI of 21%, making it a profitable investment opportunity. The average Airbnb home price in Ovid is $131,000, making it an affordable option for those looking to invest in a vacation rental property.

While the market size for Airbnb properties in Ovid is small, with just 55 active listings, it's a competitive market with potential for growth. The Finger Lakes region is a popular vacation destination, with visitors coming from around the region to enjoy its natural beauty and wineries. Investing in an Airbnb property in Ovid can offer a promising return on investment for those willing to invest in a smaller market with a charming character and plenty of outdoor activities nearby. With the right strategy and management, investing in an Airbnb property in Ovid can offer a promising return on investment.

Investing in an Airbnb property can be a smart financial decision, especially in the right location. The top Airbnb investment locations in the country offer a combination of scenic beauty, outdoor activities, and proximity to popular tourist destinations. By analyzing factors such as market size, revenue potential, and occupancy rates, we've identified some of the most promising locations for investors. Whether you're looking for an affordable investment option or are willing to invest in a higher-priced property, these locations offer the potential for a solid return on investment.