The Best Short-Term Rental Market in Every State

A “best” short-term rental market to you may be another investor’s worst nightmare. So, what is the “best”? 

Well, it’s relative, and we decided to put together our favorite markets in each state based on the numbers. We scoured the internet, pulled data from PriceLabs, and probably lost a few hours reading Reddit horror stories: all to bring you a list of two solid vacation rental markets in every single U.S. state. 

These cities were determined by a myriad of factors, including average daily rate (ADR), occupancy rates (OR), regulations, tourism numbers, and other relevant considerations. I wanted to use a metric based on whether each city had a Texas Roadhouse, but Pricelabs did not have this data (I will need to send a request to them to add it).

Now, before you go impulse-buying a cabin in a town you’ve never heard of, there are a few things you should know. Every city has its own set of short-term rental rules, and, yes, some are stricter than others. But regulations aren’t always a bad thing. Regulated markets often have more explicit rules, fewer legal surprises, and a more sustainable path forward because someone’s already fought that battle and lived to tell the tale. 

Just make sure you’re investing in the right part of the city. Being in a “good market” doesn’t help much if you accidentally buy in the part of town where STRs are banned, or neighbors are one noise complaint away from a lawsuit.

Also, don’t forget: A good market won’t save a bad host. You could have the highest average daily rate and the best occupancy stats in the country, but if your place smells weird, has blurry photos, or guests are unlocking the wrong door at midnight, it’s going to flop. This business combines real estate investing and hospitality. You’ve got to treat it like both.

And if you’re planning to hire a co-host from the start, that’s fine, but I still recommend managing your first property yourself, even if it’s just for a few months. You’ll learn what works, what breaks, and what systems you need before handing over the keys to someone else.

Two STR Markets in Each State You Should Consider

All right, disclaimers out of the way: Here are two vacation rental markets in every state that are worth a closer look.

StateTop Market No. 1Top Market No. 2

Alabama	Gulf Shores	Montgomery
Alaska	Fairbanks	Anchorage
Arizona	Sedona	Flagstaff
Arkansas	Little Rock	Fayetteville
California	Joshua Tree	San Diego
Colorado	Durango	Steamboat Springs
Connecticut	Hartford	New Haven
Delaware	Rehoboth Beach	Lewes
Florida	30A (South Walton)	Tampa
Georgia	Augusta	Savannah
Hawaii	Maui	Honolulu
Idaho	Idaho Falls	Boise
Illinois	Peoria	Galena
Indiana	Fort Wayne	Indianapolis
Iowa	Des Moines	Dubuque
Kansas	Overland Park	Wichita
Kentucky	Red River Gorge	Louisville
Louisiana	Lafayette	New Orleans
Maine	Augusta	Eastbrook
Maryland	Ocean City	Annapolis
Massachusetts	Easthampton	Worcester
Michigan	Grand Rapids	Ann Arbor
Minnesota	Tofte	Duluth
Mississippi	Oxford	Jackson
Missouri	Lake of the Ozarks	Branson
Montana	Bozeman	Whitefish
Nebraska	Omaha	Lincoln
Nevada	Las Vegas	Reno
New Hampshire	Berlin	Rochester
New Jersey	Cape May	Absecon
New Mexico	Santa Fe	Las Cruces
New York	Pocono Mountains	Niagara Falls
North Carolina	Myrtle Beach	Asheville
North Dakota	Fargo	Lake Sakakawea
Ohio	Logan	Columbus
Oklahoma	Broken Bow	Tulsa
Oregon	Rockaway Beach	Cannon Beach
Pennsylvania	State College	Pittsburgh
Rhode Island	Newport	Block Island
South Carolina	Myrtle Beach	Charleston
South Dakota	Sioux Falls	Rapid City
Tennessee	Gatlinburg	Nashville
Texas	Waco	Fredericksburg
Utah	St. George	Moab
Vermont	Stowe	Burlington
Virginia	Virginia Beach	Richmond
Washington	Gold Bar	Forks
West Virginia	Snowshoe	Fayetteville
Wisconsin	Green Bay	Door County
Wyoming	Jackson Hole	Cody

Final Thoughts

That’s 100 solid markets across all 50 states. From big names like Nashville and Joshua Tree to underrated gems like Tofte in Minnesota and Lake Sakakawea in North Dakota, this list proves that great short-term rental opportunities aren’t just hiding in plain sight—they’re everywhere. 

But remember: Buying in the best market doesn’t guarantee success. It’s what you do after the purchase that matters. Cleaning, communication, design, and guest experience are what separate five-star stays from forgettable ones.

Use this list as a launchpad, not a shortcut. Learn the local rules, walk the neighborhoods, test your systems, and treat every guest like it’s opening night. 

In this business, your property isn’t just an investment. It’s your reputation.