The 10 Best Places to Invest in an Airbnb in the U.S. (2025 Edition)

The short-term rental market continues to thrive, and for savvy investors, Airbnb remains a promising platform for generating passive income. But not all locations are created equal. Choosing the proper city or town is key to your success, whether seeking high occupancy rates, year-round tourism, or low startup costs.

Based on market trends, tourism demand, and local regulations, here are the 10 best places to invest in an Airbnb in the U.S. in 2025.

1. Asheville, North Carolina

Why It's Hot: A charming mix of mountains, breweries, and artsy culture draws visitors year-round.
Perks: High occupancy rates and relatively affordable real estate.
Tip: Properties with hot tubs or mountain views perform exceptionally well.

2. Joshua Tree, California

Why It's Hot: Instagram-worthy desert landscapes, stargazing, and proximity to L.A. make this a weekend getaway haven.
Perks: Booming demand for unique stays like Airstreams, domes, and eco-cabins.
Tip: Emphasize design and desert vibes in your listing.

3. Savannah, Georgia

Why It's Hot: A Southern gem known for its architecture, ghost tours, and historic charm.
Perks: Consistent tourism, walkable downtown, and relatively light regulations.
Tip: Historic homes near the squares are top earners.

4. Scottsdale, Arizona

Why It's Hot: Golf, spas, nightlife, and desert sun attract a high-spending crowd.
Perks: Great returns during spring training, events, and winter months.
Tip: Invest in properties with pools and outdoor entertaining areas.

5. Gatlinburg, Tennessee

Why It's Hot: Gateway to Great Smoky Mountains National Park, one of the most visited parks in the U.S.
Perks: Year-round demand for family cabins and group lodging.
Tip: Large cabins with game rooms and hot tubs yield the best ROI.

6. Austin, Texas

Why It's Hot: A trendy tech and music hub with nonstop events and festivals.
Perks: Strong urban appeal with solid weekday bookings.
Tip: Check local STR regulations, as they vary by neighborhood.

7. St. Petersburg, Florida

Why It's Hot: Beautiful beaches, art galleries, and sunshine nearly every day of the year.
Perks: Lower price point than Miami with rising popularity.
Tip: Waterfront condos or homes near downtown thrive.

8. Lake Tahoe, California/Nevada

Why It's Hot: Ski season in winter, lake season in summer - year-round draw.
Perks: Dual-season appeal and high nightly rates.
Tip: Look for properties with lake views or near ski resorts.

9. Charleston, South Carolina

Why It's Hot: A romantic coastal city steeped in history and cuisine.
Perks: High-end travelers, bridal parties, and year-round demand.
Tip: Homes with historic charm near King Street rent extremely well.

10. Boise, Idaho

Why It's Hot: A rising star in the Airbnb world thanks to outdoor access, affordability, and a vibrant downtown.
Perks: Emerging market = lower competition and cheaper homes.
Tip: Focus on homes near hiking trails or downtown for best returns.

While these locations offer incredible potential, always check:

Local short-term rental laws, HOA restrictions,  Occupancy taxes, permit requirements, seasonality and competition

A successful Airbnb investment hinges on great location, thoughtful amenities, and top-notch guest experience. With the right property in the right place, you can build a steady stream of income and maybe even enjoy your next vacation spot.