The most profitable Airbnb cities in 2026 are Charleston, SC ($266 ADR, 74% occupancy, $73,587 annual revenue), Maui, HI ($353 ADR, 78% occupancy, $101,694 annual revenue), and Jacksonville, FL ($220 ADR, 62% occupancy, $51,436 annual revenue per listing). These numbers come from Airbtics’ 2025-2026 market data covering over 100 U.S. short-term rental markets. I’ve cross-referenced this data with what I see across my own 24 properties and what our students report from markets across the U.S. and Canada.
But here’s what the data alone won’t tell you: the difference between a property pulling $60,000 per year and one barely covering rent usually comes down to market selection, not interior design or five-star reviews. I’ve watched operators with average listings crush it in strong markets while talented hosts in oversaturated cities struggle to break even.
How We Ranked These Cities
Every “best Airbnb cities” list uses different criteria. Some rank by total revenue, which favors expensive coastal markets. Others rank by occupancy alone, which ignores pricing power. Here’s what actually matters when you’re choosing where to operate.
We scored each market across six factors:
- Average Daily Rate (ADR): The average nightly price guests pay. Higher ADR means more revenue per booking, but also typically requires higher startup costs. Data sourced from Airbtics 2025-2026 market data.
- Occupancy Rate: What percentage of available nights are booked. Anything above 65% is strong. Below 55% signals oversupply or weak demand.
- Annual Revenue Per Listing: ADR multiplied by occupancy multiplied by 365. This is the number that pays your bills.
- Regulation Status: Lenient markets let you operate freely. Strict markets require permits, impose caps, or ban non-owner-occupied STRs entirely.
- Competition Density: Total active listings relative to market demand. Markets with fast-growing supply and flat demand are trouble.
- Arbitrage Viability: Can you rent a property long-term and list it short-term at a profit? This depends on the gap between monthly rent and monthly STR revenue.
The revenue figures below are market averages. Top-performing operators (the top 10-20% of hosts with optimized listings, professional photos, dynamic pricing, and strong reviews) typically earn 30-50% above these averages.
The 20 Most Profitable Airbnb Cities in 2026
1. Charleston, SC
| Average Daily Rate | $266 |
| Occupancy Rate | 74% |
| Average Annual Revenue | $73,587 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Charleston ranks first for a simple reason: high pricing power combined with strong occupancy. A 74% occupancy rate at $266 per night produces nearly $74,000 in annual revenue per listing. The city draws a mix of weekend travelers, destination weddings, and corporate retreats that keeps demand consistent across seasons.
The Charleston rental arbitrage market is particularly strong because long-term rents remain reasonable relative to STR income. A 2-bedroom in the downtown area renting for $2,200/month can generate $5,000-$6,500/month on Airbnb during peak season. The regulatory environment is lenient compared to many coastal cities, though you’ll need a business license and short-term rental permit.
2. Maui, HI
| Average Daily Rate | $353 |
| Occupancy Rate | 78% |
| Average Annual Revenue | $101,694 |
| Regulation | Strict |
| Data Source | Airbtics, Jan-Dec 2025 |
Maui produces the highest per-listing revenue on this list at over $101,000 annually. The $353 ADR paired with 78% occupancy creates exceptional gross income. The catch: Hawaii has strict STR regulations, property prices are among the highest in the country, and the 2023 Lahaina wildfire created additional regulatory uncertainty. This is a purchase market, not an arbitrage market. Entry costs are high, but so are the returns for operators who can get permitted.
3. Orange Beach, AL
| Average Daily Rate | $355 |
| Occupancy Rate | 69% |
| Average Annual Revenue | $91,192 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Orange Beach is one of the best-kept markets on the Gulf Coast. A $355 ADR with lenient regulations and $91,000+ in annual revenue makes it a top pick for investors who want beach-market returns without the regulatory headaches of Florida or California. The Alabama Gulf Coast draws heavy drive-in traffic from Birmingham, Atlanta, Nashville, and the broader Southeast. Supply is naturally limited by geography, which protects existing operators from the kind of saturation hitting other beach markets.
4. Miramar Beach, FL (30A Corridor)
| Average Daily Rate | $338 |
| Occupancy Rate | 62% |
| Average Annual Revenue | $78,064 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
The 30A corridor along Florida’s Emerald Coast has quietly become one of the strongest STR markets in the Southeast. Miramar Beach properties average $338 per night with lenient regulations and nearly $78,000 in annual revenue. The broader 30A East area (which Airbtics tracks separately) shows even stronger numbers: $496 ADR and $118,071 in annual revenue, though that includes luxury properties that skew the average upward.
5. Destin, FL
| Average Daily Rate | $305 |
| Occupancy Rate | 67% |
| Average Annual Revenue | $75,918 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Destin sits adjacent to the 30A corridor and benefits from the same tourism demand at slightly lower property costs. The $305 ADR and 67% occupancy produce strong annual revenue. Destin’s advantage is its established vacation rental infrastructure: property management companies, cleaning services, and maintenance providers are all readily available, which makes remote operation easier than in less established markets.
6. Hilton Head Island, SC
| Average Daily Rate | $290 |
| Occupancy Rate | 64% |
| Average Annual Revenue | $68,884 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Hilton Head combines a $290 ADR with lenient regulations and a premium guest demographic. Golf tourism, family vacations, and retiree travel create steady year-round demand. The island’s resort-style reputation attracts guests willing to pay more per night than comparable beach destinations, and the proximity to Savannah (45-minute drive) gives guests access to two tourism markets in one trip.
7. San Diego, CA
| Average Daily Rate | $253 |
| Occupancy Rate | 71% |
| Average Annual Revenue | $67,215 |
| Regulation | Strict |
| Data Source | Airbtics, Jan-Dec 2025 |
San Diego’s rental arbitrage market generates strong revenue at $67,215 per year with 71% occupancy. The regulations are strict, requiring a Type 1 (home-sharing) or Type 2 (whole-home) license with caps on total permits. But permitted properties benefit from reduced competition, since the permit cap limits new supply. Year-round warm weather, military bases, conventions, and cross-border tourism from Mexico create diversified demand that doesn’t depend on any single season.
8. Kalispell, MT (Glacier Country)
| Average Daily Rate | $286 |
| Occupancy Rate | 62% |
| Average Annual Revenue | $65,472 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Kalispell serves as the gateway to Glacier National Park and Flathead Lake. The $286 ADR is driven by summer tourists visiting the park and winter visitors accessing Whitefish Mountain Resort. Lenient regulations and relatively affordable property prices (compared to other national park gateway towns like Jackson Hole or Bozeman) make it accessible for both purchase and arbitrage models. Supply growth has been moderate, keeping the market healthy for existing operators.
9. Gatlinburg/Sevierville, TN (Smoky Mountains)
| Average Daily Rate | $249 |
| Occupancy Rate | 65% |
| Average Annual Revenue | $60,000 |
| Regulation | Lenient |
| Data Source | Airbtics (Gatlinburg), Sep 2024-Aug 2025 |
Great Smoky Mountains National Park is the most-visited national park in the U.S. with over 13 million annual visitors, and Gatlinburg sits at its front door. The cabin rental market here has been strong for decades. Lenient regulations, no state income tax in Tennessee, and consistent demand across seasons make it a reliable performer. Average annual revenue sits around $60,000 for a typical listing, though well-positioned cabins with hot tubs and mountain views regularly clear $80,000-$100,000.
The broader Sevier County market (including Pigeon Forge and Sevierville) shows slightly lower numbers: Pigeon Forge averages $202 ADR with 62% occupancy for $47,000 in annual revenue per Airbtics data. The trade-off is lower property prices in Pigeon Forge and Sevierville compared to Gatlinburg proper.
10. Scottsdale, AZ
| Average Daily Rate | $242 |
| Occupancy Rate | 66% |
| Average Annual Revenue | $59,898 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Scottsdale benefits from Arizona’s preemption law that prevents cities from banning STRs (though cities can impose reasonable regulations). The $242 ADR and 66% occupancy produce about $60,000 in annual revenue. Demand peaks from October through April when snowbirds, golf tourists, and spring training baseball fans flood the market. Summer occupancy drops significantly due to extreme heat, but year-round averages remain strong. Scottsdale has seen listing growth of roughly 8% year-over-year with ADR holding steady, a healthy sign.
11. Lake Buena Vista, FL (Orlando Area)
| Average Daily Rate | $227 |
| Occupancy Rate | 69% |
| Average Annual Revenue | $58,698 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
The Orlando/Lake Buena Vista area ranks as the #1 U.S. market by total listings (14,925 per Airbtics) for obvious reasons: Walt Disney World, Universal Studios, and SeaWorld drive massive year-round tourism. The $227 ADR is moderate, but 69% occupancy and consistent demand make cash flow predictable. The market’s scale means strong infrastructure for property management, cleaning, and guest services. For rental arbitrage operators, the gap between long-term rent and STR income remains favorable in the communities surrounding the theme parks.
12. Panama City Beach, FL
| Average Daily Rate | $260 |
| Occupancy Rate | 60% |
| Average Annual Revenue | $58,305 |
| Regulation | Strict |
| Data Source | Airbtics, Jan-Dec 2025 |
Panama City Beach has stricter regulations than other Florida beach markets, but the $260 ADR and nearly $58,000 in annual revenue make it worth the compliance effort. Spring break season drives massive spikes in March and April, while summer family travel extends the high season through August. The “strict” rating here primarily refers to registration and tax requirements rather than outright bans or caps.
13. Fort Lauderdale, FL
| Average Daily Rate | $213 |
| Occupancy Rate | 68% |
| Average Annual Revenue | $54,547 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Fort Lauderdale sits in Miami’s shadow but often produces better returns for operators. The $213 ADR is lower than Miami ($199 ADR, but at higher property costs), while the 68% occupancy rate and lenient regulations create a more operator-friendly environment. Fort Lauderdale-Hollywood International Airport handles 36 million passengers annually, creating a steady flow of visitors who prefer vacation rentals over the hotel strips.
14. Kissimmee, FL
| Average Daily Rate | $201 |
| Occupancy Rate | 69% |
| Average Annual Revenue | $52,062 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Kissimmee is the budget-friendly alternative to Lake Buena Vista for Disney-area STR operators. Property costs are lower, rents are cheaper for arbitrage, and the guest demographic is families looking for space (pools, multiple bedrooms) at lower nightly rates than resort hotels. The $201 ADR and 69% occupancy translate to over $52,000 annually. Many operators in this market focus on 4-5 bedroom houses that accommodate large families or multi-family groups.
15. Miami, FL
| Average Daily Rate | $199 |
| Occupancy Rate | 69% |
| Average Annual Revenue | $51,798 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Miami’s $199 ADR might surprise you given its reputation as a luxury destination. The average is pulled down by the sheer volume of listings (7,236 active). Top-performing properties in South Beach, Brickell, and Wynwood regularly exceed $300+ per night. The Miami rental arbitrage market works best in neighborhoods where long-term rents are moderate relative to STR potential. International tourism from Latin America and Europe provides demand that’s less dependent on the domestic economy.
16. Jacksonville, FL
| Average Daily Rate | $220 |
| Occupancy Rate | 62% |
| Average Annual Revenue | $51,436 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Jacksonville earns a B+ grade from Airbtics, one of the highest in the top 100. The combination of $220 ADR, lenient regulations, and affordable entry costs makes it one of the strongest risk-adjusted markets in Florida. The city’s beaches (Atlantic Beach, Neptune Beach, Jacksonville Beach), NFL game-day demand, and growing tech sector create multiple demand drivers. Property prices are 30-40% below Miami and Orlando, which dramatically improves cash-on-cash returns for purchasers.
17. Savannah, GA
| Average Daily Rate | $208 |
| Occupancy Rate | 65% |
| Average Annual Revenue | $51,148 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Savannah delivers $51,148 in annual revenue with a 65% occupancy rate and lenient STR regulations. The historic district is the primary draw, with bachelorette parties, destination weddings, and weekend trips from Atlanta (4-hour drive) driving consistent bookings. SCAD (Savannah College of Art and Design) adds a university demand layer during move-in weekends, graduation, and parent visits. The compact geography of the tourist district means properties within walking distance of Forsyth Park and River Street command premium rates.
18. Nashville, TN
| Average Daily Rate | $220 |
| Occupancy Rate | 60% |
| Average Annual Revenue | $49,980 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Nashville was a top-3 Airbnb market from 2018-2023, but listing growth has pushed occupancy down. The 60% average is still workable but represents a decline from the 68-70% range of previous years. The city now has 8,288 active listings per Airbtics. ADR spikes dramatically during events: CMA Fest, NFL games, SEC conference weekends, and bachelor/bachelorette weekends can push nightly rates to $400-$500+. The key to succeeding in Nashville now is pricing strategy. A flat-rate approach will kill your returns. You need dynamic pricing tools to capture event premiums and fill gaps during slow periods.
19. Seattle, WA
| Average Daily Rate | $183 |
| Occupancy Rate | 72% |
| Average Annual Revenue | $49,192 |
| Regulation | Strict |
| Data Source | Airbtics, Jan-Dec 2025 |
Seattle has strict STR regulations but rewards compliant operators with 72% occupancy, the second-highest on this list behind Charleston. The $183 ADR is moderate, but high occupancy keeps annual revenue near $49,000. Tech industry business travel, tourism (Pike Place, Space Needle, cruise ship departures to Alaska), and a strong convention calendar drive consistent year-round demand. The regulatory barrier actually benefits permitted operators by limiting new supply.
20. Las Vegas, NV
| Average Daily Rate | $199 |
| Occupancy Rate | 60% |
| Average Annual Revenue | $45,066 |
| Regulation | Lenient |
| Data Source | Airbtics, Jan-Dec 2025 |
Las Vegas has 11,329 active listings, making it the second-largest U.S. market by supply. The $199 ADR and 60% occupancy produce $45,066 in annual revenue. The market thrives on events: Formula 1, NFL Raiders games, major conventions (CES draws 130,000+ attendees annually), and weekend entertainment drive sharp demand spikes. Properties within 10 minutes of the Strip perform best. The caveat: Las Vegas is highly seasonal and event-dependent, so monthly revenue can swing wildly. Strong operators use aggressive event-based pricing to compensate for slower midweek periods.
Best Cities for Rental Arbitrage in 2026
Rental arbitrage, where you lease a property long-term and list it on Airbnb, has different requirements than buying investment property. The math is simpler: your monthly STR revenue needs to exceed your rent plus operating costs by enough margin to make the effort worthwhile.
Shaun Ghavami, who manages 24 properties through Iconic Retreats across Vancouver, Whistler, Squamish, Kelowna, and Tofino, built his portfolio on a specific method for finding arbitrage-friendly properties:
“Step 1: Find the pain points. Go to Craigslist and search furnished rentals in your city. Sort by oldest listings first. Properties sitting 20+ days means a landlord is bleeding money daily.”
His properties earn roughly $8,000/month on short-term rentals compared to about $3,000/month on long-term leases, a gap that creates the arbitrage opportunity. Since 2018, his portfolio has generated over $5 million in booking fees.
The best arbitrage markets in 2026 share three traits: affordable rents relative to STR revenue, lenient regulations that allow non-owner operators, and strong tourism demand. Based on these criteria, here are the top arbitrage markets:
Jacksonville, FL: Median 2-bedroom rent around $1,500/month with $4,200+ monthly STR revenue potential. Lenient regulations. B+ Airbtics grade.
Columbus, OH: Low rents ($1,200-$1,400 for a 2-bedroom), $42,031 annual STR revenue per Airbtics, and lenient regulations make the margin work for arbitrage operators. The Ohio State University creates predictable demand spikes during football weekends, graduation, and move-in.
San Antonio, TX: Rents are among the lowest of any major Texas city ($1,300-$1,600 for a 2-bedroom) while STR revenue averages $36,047 annually per Airbtics. The River Walk, Alamo, and military bases provide year-round tourism and business travel.
Tampa, FL: 65% occupancy, $158 ADR, $38,886 annual revenue per Airbtics. Tampa’s rents are rising but still offer enough spread for arbitrage operators, especially in neighborhoods near Ybor City, Bayshore, and the convention center.
Charlotte, NC: $165 ADR, 59% occupancy, $36,933 annual revenue. Charlotte’s advantage is its corporate travel base (Bank of America, Lowe’s, Honeywell headquarters) combined with NFL Panthers and NBA Hornets game-day traffic. Rents in the $1,400-$1,700 range leave margin for arbitrage.
Student Sarah from Denver scaled to 3 properties earning $8,500/month within 90 days using the arbitrage model. Another student, John, booked $50,000 from 4 properties in his first 3 months. The speed is what makes arbitrage attractive: you can go from zero to cash-flowing in 30-60 days without needing a down payment for a property purchase.
Use the Airbnb arbitrage calculator to model the numbers for any city you’re considering.
Markets to Watch Carefully in 2026
Not every popular Airbnb market is a good bet right now. Some have seen supply growth outpace demand, pushing occupancy and ADR down. Others face regulatory changes that could restrict operations.
Austin, TX: Austin has 9,167 active listings per Airbtics with only 60% occupancy and $181 ADR producing $40,959 in annual revenue. Between 2020-2023, listing counts in Austin exploded as operators chased the post-COVID migration boom. Austin’s rental arbitrage market still works in specific neighborhoods, but the overall market is softer than it was 2-3 years ago.
Dallas, TX: Similar to Austin, Dallas has seen supply growth that’s compressed margins. Airbtics data shows $154 ADR and 61% occupancy for $35,588 annual revenue. The market has added over 6,000 listings since 2020, and pricing power has weakened as a result. Not a bad market, but not the high-return opportunity it was in 2021-2022.
New York City: Strict regulations effectively killed the whole-home STR market in Manhattan. Airbtics data shows 10,556 listings, but many are concentrated in boroughs with less enforcement. The $164 ADR is surprisingly low for NYC because legal listings skew toward shared rooms and private rooms rather than whole apartments. Unless you have a deep understanding of NYC’s Local Law 18 and registration requirements, this market is hard to enter profitably.
Phoenix, AZ: Despite lenient regulations, Phoenix shows $181 ADR and 66% occupancy for $44,953 annual revenue. The numbers are workable, but listing growth has been aggressive. The bigger concern is summer seasonality: June through September occupancy drops sharply as temperatures exceed 110°F. If your numbers depend on year-round consistency, Phoenix requires careful modeling.
Atlanta, GA: Atlanta has 5,338 listings with only 56% occupancy and $170 ADR for $36,048 annual revenue per Airbtics. The market is large but diffuse. Success depends heavily on location: properties near the airport, downtown convention center, or Buckhead perform well. Suburban listings struggle with occupancy.
How to Evaluate Any City for Airbnb Profitability
You don’t need to limit yourself to the 20 cities listed above. There are profitable markets in every state. Here’s the framework I use when evaluating a new market, whether for my own portfolio or when advising students.
Step 1: Check the revenue numbers. Pull ADR and occupancy data from Airbtics or AirDNA. Calculate expected annual revenue: ADR x occupancy rate x 365. If the number is below $30,000 for a standard property, the market is likely too weak for most operators.
Step 2: Check regulations. Search “[city name] short-term rental ordinance” and read the actual municipal code. Look for permit requirements, caps on total permits, owner-occupancy requirements, and minimum stay requirements. A market with great numbers but a 30-day minimum stay requirement is a long-term rental market, not an STR market.
Step 3: Calculate the arbitrage spread. For arbitrage operators: find average 2-bedroom rents on Zillow or Apartments.com. Multiply your expected monthly STR revenue by 0.55 (to account for operating expenses). If that net number doesn’t exceed your monthly rent by at least $500, the margin is too thin.
Step 4: Count the competition. Search Airbnb for your target city and property type. Note total listings and how many have fewer than 10 reviews (indicating new operators entering the market). If more than 40% of listings have under 10 reviews, the market is experiencing a supply surge.
Step 5: Identify demand drivers. Strong markets have multiple demand drivers: tourism attractions, universities, hospitals, military bases, corporate headquarters, convention centers, sporting events. Markets dependent on a single demand source (one festival, one employer) carry concentration risk.
Step 6: Talk to local operators. No amount of data replaces a conversation with someone already operating in the market. Join local host Facebook groups or Airbnb meetups. Ask about seasonal patterns, cleaning costs, guest demographics, and regulatory enforcement reality (which often differs from what’s written in the code).
What Shaun Looks for in a New Market
When I’m evaluating whether to expand into a new market, I’m looking at five things. These are the criteria I used when building from Vancouver into Whistler, then Squamish, Kelowna, and Tofino.
The STR premium over long-term rent must be at least 2x. If a property rents for $3,000/month long-term, I need to see at least $6,000/month in realistic STR revenue to justify the extra work, risk, and operating costs. My properties typically hit closer to 2.5-3x, earning about $8,000/month short-term versus $3,000/month long-term.
I want to see at least two distinct demand seasons. Single-season markets (beach towns that die in winter, ski towns that die in summer) are harder to make work. My best markets have overlapping seasons. Whistler has ski season (November-April) and mountain biking/hiking season (June-September) with strong shoulder months. Tofino has summer beach tourism and winter storm-watching tourism.
Supply growth needs to be below 15% annually. If listings are growing faster than 15% per year and ADR is flat or declining, the market is heading toward saturation. I track this using Airbtics and AirDNA historical data.
Operating costs need to be manageable from a distance. I manage 24 properties. I can’t be on-site at all of them. So I need markets where reliable cleaners, handypeople, and backup support exist. Smaller markets that are too rural for a cleaning service infrastructure are hard to scale.
The regulatory direction matters more than current rules. A permissive market that’s trending toward regulation is riskier than a moderately regulated market with stable rules. I follow local council meetings, zoning discussions, and housing policy debates in every market where I operate.
You can learn more about market evaluation and building a portfolio in our Airbnb courses guide, and make sure you have the right insurance coverage before listing your first property.
Other Internal Resources
We’ve published detailed market guides for many of the cities on this list. Each guide includes neighborhood-level data, regulation specifics, and strategies tailored to that market:
- Denver Rental Arbitrage Guide
- Houston Rental Arbitrage Guide
- Dallas Rental Arbitrage Guide
- Atlanta Rental Arbitrage Guide
- Phoenix Rental Arbitrage Guide
- Austin Rental Arbitrage Guide
For tools, pricing strategy, and platform comparison, see:
Frequently Asked Questions
What is the most profitable city for Airbnb in 2026?
Based on annual revenue per listing, Maui, HI leads at $101,694 per year (Airbtics data, 2025). For markets with lenient regulations and lower entry costs, Orange Beach, AL ($91,192/year) and Charleston, SC ($73,587/year) rank highest. The “most profitable” depends on your budget and whether you’re buying property or doing rental arbitrage.
How much does the average Airbnb host make per year?
The national average is roughly $54,566 per year across all U.S. markets according to Airbtics’ 2025-2026 data. Top markets exceed $70,000-$100,000+, while weaker markets fall below $35,000. Top 10-20% operators typically earn 30-50% above market averages through better listing optimization, professional photography, dynamic pricing, and superior guest experience.
Is Airbnb still profitable in 2026?
Yes, in the right markets. National occupancy has recovered to around 55% (above pre-pandemic levels), and ADR continues to grow modestly. The operators struggling are those in oversaturated markets (Austin, Dallas, parts of Phoenix) or those using flat-rate pricing in event-driven cities. Market selection is more important now than it was in 2020-2022, when almost every market was profitable due to pandemic-driven travel shifts.
What occupancy rate do I need to be profitable?
For property owners, 55-60% occupancy is typically the break-even point after mortgage, insurance, and operating costs. For arbitrage operators, you need higher occupancy (65%+) because your rent is a fixed monthly cost regardless of bookings. The Airbtics data shows the national average at 60.91%, so aim for markets above that threshold.
Which states are the most STR-friendly?
Texas, Florida, Tennessee, Arizona, and Alabama have the most lenient STR regulations at the state level. Texas and Arizona both have preemption laws preventing cities from outright banning STRs. Tennessee has no state income tax, which improves net returns. Florida requires state registration but generally allows STR operations in most counties.
Should I use rental arbitrage or buy property for Airbnb?
Arbitrage requires less capital ($3,000-$8,000 to start versus $50,000-$100,000+ for a down payment) and lets you test a market without a long-term commitment. Buying builds equity and provides more control, but ties up capital and adds mortgage risk. Many operators start with arbitrage to learn the business and build cash reserves, then transition to purchasing. Our complete rental arbitrage guide covers the full process.
How do I find profitable Airbnb markets not on this list?
Use the evaluation framework in this article: check ADR and occupancy on Airbtics or AirDNA, verify regulations, calculate the arbitrage spread, count competition, and identify demand drivers. Some of the best opportunities are in smaller markets that don’t make national “best of” lists but have strong local demand and limited supply. National park gateway towns, college towns during football season, and growing mid-size cities with new corporate relocations are all worth investigating.
