The Hidden Gem Short-Term Rental Markets of 2026: Where Owners Are Maximizing Returns

While popular beach towns and mountain getaways usually dominate short-term rental rankings, elevated mortgage rates are shifting the focus to smaller, under-the-radar destinations that offer budget-conscious investors a chance to break into the market without breaking the bank.AirDNA, a firm that compiles and analyzes Vrbo and Airbnb data, on Monday releases its report on the Best Hidden Gem Airbnb Locations in the U.S. of 2026. The results shared exclusively with Realtor.com® shine a spotlight on 17 locations—nearly all clustered in the Midwest or the South—that are relatively affordable, but offer a high profit potential.Topping the list of lesser-known short-term rental (STR) hot spots is Rockford, IL, a familiar name to Realtor.com readers after clinching the No. 1 spot in the Realtor.com August 2026 Hottest Housing Markets ranking, propelled by high buyer demand and fast market pace.Another Midwestern destination, Akron, OH, took silver, while Warner Robins, GA, secured bronze. Other markets promising projected returns on investment over 10% are Utica, NY; Otsego Lake, MI; Lawton, OK; Millersburg, OH; Midland, TX; Geneva, OH; Castle Rock Lake, WI; Houghton, MI; Michigan City,...