Best Places to Buy Vacation Rental Property in 2026: 15 Markets Compared

The best places to buy vacation rental property in 2026 are markets where annual revenue is high relative to price and rules are stable: in our data, Gulf Shores, Destin, the Poconos, Savannah, and Abilene lead on revenue-to-price ratio, while the Smoky Mountains and Gulf Coast lead on proven demand. No single market wins for every buyer.

If you are comparing the best places to buy vacation rental property, mortgage rates are the biggest change since last year. The Freddie Mac 30-year average was 7.03% in the week ending September 24, 2026, which means the purchase price you pay matters more than ever. Awning manages 20,000+ vacation rental properties across all 50 states, and we built this list to help owners and investors compare markets with the same yardstick.

Disclosure: Awning is a vacation rental management company with an interest in owners hiring a manager. We list markets where we have no presence alongside ones where we do, and we flag risks as well as strengths.

In this guide

• How we compared the markets
• The 2026 market backdrop
• Master table
• Beach markets
• Mountain and lake markets
• Urban and drive-to markets
• A realistic return
• Markets that did not make the list
• How to evaluate any market
• FAQ

How Did We Compare the Best Places to Buy a Vacation Rental in 2026?

We compared markets on five factors: revenue per listing, occupancy, nightly rate, revenue relative to home price, and regulatory risk. All performance data is AirDNA's trailing 12 months through August 2026, pulled from AirDNA's market pages updated September 22 to 29, 2026.

Revenue-to-price ratio is average annual revenue per active listing divided by the median home price. It is a screening tool for comparing markets, not a return: it ignores management fees, cleaning, taxes, insurance, and financing. Median home prices are approximate mid-2026 values from public listing data, so verify current prices for any area you are considering.

We grouped markets into beach, mountain and lake, and urban or drive-to categories and ordered each group by our editorial judgment of risk-adjusted potential, not by one number.

What Does the 2026 Vacation Rental Market Look Like for Buyers?

For buyers, 2026 is a steady market with slower supply growth and pricing power for well-run listings. AirDNA's July 2026 midyear outlook forecasts national occupancy of 57.4% (above the pre-pandemic average of about 57%), demand growth of 2.7%, listing growth of 2.7%, and RevPAR growth of 2.9%.

Three things shape the decision:

1. Rates are high. With 30-year loans near 7%, a financed purchase has to clear a higher hurdle. We compare markets by revenue-to-price for that reason.
2. Regulation is local and moving. Hillsborough County, Florida approved a registry in September 2026, Nashville runs a permit system, and several cities cap licenses.
3. Data can be noisy. In some markets AirDNA's active-listing count fell by 50% to 99% year over year (for example Kissimmee, Panama City Beach, and Miami Beach), which lifts average revenue per listing. Use the figures as directional, and run your own numbers with the Airbnb calculator (linked under Related Resources) before you offer.

Best Places to Buy Vacation Rental Property in 2026: The Master Table

The table below ranks all 15 markets by revenue-to-price ratio, the cleanest screening metric. Occupancy, ADR, and revenue come from AirDNA (trailing 12 months through August 2026).

Which Beach Markets Are the Best Places to Buy a Vacation Rental in 2026?

Gulf Shores and Destin are the strongest beach markets for buyers in 2026 because they combine 60%+ occupancy with high revenue per listing. The Outer Banks earns well but is expensive relative to revenue.

1. Gulf Shores, Alabama

Gulf Shores averages $68.9K per listing at 60% occupancy and a $402 ADR, a 15.7% revenue-to-price ratio on a median price near $437,762. It also has the largest supply in this group (11,548 active listings, up 18.3% year over year), so rates are slipping (ADR down 5%). Choose a property with a standout amenity: pool, gulf view, or room for 10+. Confirm the rules for the specific county or city before you offer.

2. Destin, Florida

Destin averages $75.5K at 61% occupancy and a $448 ADR with a median price around $556,197 (13.6%). Supply fell 24.6% year over year in AirDNA's data. Condo and HOA rental restrictions vary building by building, so confirm them before you offer. Our Destin investment guide goes deeper.

3. Panama City Beach, Florida

Panama City Beach averages $50.2K at 61% occupancy and $288 ADR with a lower entry price near $369,815 (13.6%). ADR fell 15.8% year over year, so it is a volume market with more price competition. Check city and county rental rules for the exact address, as Florida rules vary locally.

4. Outer Banks (Nags Head), North Carolina

Nags Head averages $68.2K at 60% occupancy and a $486 ADR, but a median price near $746,294 gives a 9.1% ratio. Occupancy was down 10.6% and RevPAR down 22.4% year over year in AirDNA's data. It suits buyers who value the long peak season and personal use more than yield.

5. Port Aransas, Texas

Port Aransas averages $58.5K at 48% occupancy and $417 ADR on a median price around $684,627 (8.5%). Rates fell 17.7% year over year while listings grew 7.4%, so it is the most supply-pressured beach market here. Be selective.

Which Mountain and Lake Markets Rank Highest for Vacation Rentals in 2026?

The Poconos and Smoky Mountains stand out in the mountain group because of lower purchase prices and drive-to demand. Breckenridge has the highest revenue but the highest price and strictest rules.

6. Poconos (East Stroudsburg), Pennsylvania

East Stroudsburg shows $64.4K per listing at 46% occupancy and a $414 ADR on a median price near $279,848, a 23.0% ratio, the highest in our list. Revenue per listing rose 69.3% year over year as active listings fell 30.3% to 680, so the sample is small. Treat the Poconos as high potential with high variance: occupancy is under 50% and seasonal.

7. Smoky Mountains (Pigeon Forge and Gatlinburg), Tennessee

Pigeon Forge averages $65.2K at 56% occupancy and a $344 ADR on a median near $464,767 (14.0%); Gatlinburg averages $66.8K at 57% and $343. Both hold occupancy steady while rates dip about 4.5%. The Smokies reward cabin-style homes with hot tubs and game rooms. See the Smoky Mountains investment guide.

8. Blue Ridge, Georgia

Blue Ridge averages $57.6K at 48% occupancy and a $358 ADR on a median near $526,530 (10.9%). Occupancy slipped 4.3% year over year while active listings fell 32.1%. It is a cabin market where views and creek or lake access drive performance.

9. Breckenridge, Colorado

Breckenridge averages $82.5K at 51% occupancy and a $575 ADR on a median near $949,483 (8.7%). Occupancy was down 11.5% and RevPAR down 18.7% year over year. The town uses a zone-based license system with caps, non-transferable licenses, and per-bedroom fees (about $2,418 a year for a 3-bedroom), so verify license availability before you offer. We cover Colorado in depth in our Colorado investment guide.

Which Urban and Drive-to Markets Are the Best Places to Buy a Vacation Rental in 2026?

Savannah, Abilene, and Nashville offer the best mix of year-round demand and entry price among urban and drive-to markets. Each has local rules that can change the math.

10. Savannah, Georgia

Savannah averages $60.0K at 59% occupancy and $309 ADR on a median near $338,830, a 17.7% ratio. Revenue per listing rose 46.5% and occupancy 3.1% year over year. The catch is regulation: the city restricts short-term rentals in historic districts (reported as a cap per ward), so the best-performing locations are also the hardest to license.

11. Abilene, Texas

Abilene posts the highest occupancy in our group (78%) with a $179 ADR and $43.8K in revenue on a median near $284,857 (15.4%). Active listings jumped 43.5% and AirDNA gives the market a score of 99 out of 100. Demand is tied to local projects and employers, so it is both the most dynamic market on the list and the most concentrated risk.

12. San Antonio, Texas

San Antonio averages $35.1K at 56% occupancy and $188 ADR on a median near $267,866 (13.1%). That is low revenue per listing but low entry cost, and the city has a density limit on short-term rentals per block that you need to check for each address. See the Texas short-term rental laws guide under Related Resources.

13. Nashville, Tennessee

Nashville averages $57.3K at 58% occupancy and a $297 ADR on a median near $479,760 (11.9%). Active listings fell 22% and occupancy rose 8.1% year over year, while ADR dropped 20.8%. Permits are required (fee $313) and non-owner-occupied rentals need a responsible party within 25 miles. Read the Nashville investment guide.

14. Orlando / Kissimmee, Florida

Kissimmee shows $37.8K at 60% occupancy and a $191 ADR in AirDNA's data, but the active-listing count is only 285 after a 99.4% drop, so the sample is not reliable. Orlando-area medians are around $416,292. Large resort-community homes can still do well; use a local comp set, not this average.

15. Fredericksburg, Texas

Fredericksburg averages $46.9K at 41% occupancy and $330 ADR on a median near $521,138 (9.0%). Occupancy and RevPAR are both softening, with ADR down 9.7%. It is the weakest ratio of the urban group.

What Does a Realistic Return Look Like in These Markets?

A realistic return is far below the revenue-to-price ratio, because management, operating costs, and debt service come out first. Here are two illustrations using AirDNA's average revenue and the 7.03% Freddie Mac benchmark rate (second-home and investment loans may price higher). These are examples, not forecasts.

What is still to come out of that last line: cleaning, supplies, utilities, insurance, property tax, HOA, repairs, lodging-tax filing costs, and a reserve for slow months. In practice, many owners keep well under half of what is left. The Poconos looks better on paper, but it has lower occupancy (46%), a small sample size (680 listings), and a strong seasonal swing, so test it with conservative occupancy before you trust it.

Which Popular Vacation Rental Markets Did Not Make the 2026 List?

Several well-known markets fell off because of regulation, saturation, or weak data. The Tampa Bay area is the main example: Hillsborough County approved a registry in early September 2026 with a $200 annual fee, effective January 1, 2027, covering about 3,000 properties in unincorporated areas; Tampa, Temple Terrace, and Plant City may adopt the same rules. Registry rules are not a ban, but they add cost and inspection risk. We also left out markets where we could not verify current data.

How Should You Evaluate Any Vacation Rental Market Before You Buy?

Evaluate a market by checking license rules, comparing three years of seasonality, and stress-testing returns at 10 points lower occupancy. Follow these steps:

1. Check the rules first. Confirm that your exact address can be licensed, whether the license transfers on sale, and what HOA rules say.
2. Pull comps for your bedroom count. Averages hide the spread between a 2-bedroom condo and a 6-bedroom house.
3. Underwrite conservatively. Use occupancy 10 points below the market average and an ADR 5% lower.
4. Run the financing at today's rate. At 7.03%, each $100,000 borrowed costs roughly $667 a month in principal and interest on a 30-year loan.
5. Price in insurance. STR-specific policies matter; see the Airbnb insurance page under Related Resources.
6. Plan the operating model. Decide whether you will self-manage or hire a manager before you buy, not after.

Use the Airbnb market data page to compare specific cities and the Airbnb calculator to model your numbers (both linked under Related Resources).

Frequently Asked Questions

What is the best place to buy a vacation rental property in 2026?

There is no single best place, but Gulf Shores, Destin, Pigeon Forge, Savannah, and the Poconos rank well on revenue-to-price and demand in our data. Choose by your budget, risk tolerance, and how much regulation you can accept.

What are the best cities for vacation rentals in 2026?

Among the cities we reviewed, Abilene (78% occupancy) leads, followed by Destin and Panama City Beach (61% each) and Gulf Shores and Nags Head (60%). Revenue per listing is highest in Breckenridge ($82.5K) and Destin ($75.5K).

What are the best places to own a vacation home that also rents well?

Beach and mountain-lake areas with long seasons suit owners who want personal use: Destin, Gulf Shores, the Smoky Mountains, and the Outer Banks. Expect to block personal weeks in peak season, which lowers rental income.

What are the best Airbnb markets in 2026 according to AirDNA?

AirDNA's midyear 2026 report showed the strongest RevPAR growth so far in San Francisco (+12.1%), Anaheim (+11%), and Philadelphia (+10.1%), and its earlier outlook highlighted World Cup host cities. Coastal, mountain, and lake destinations remain popular with investors.

How much do I need to buy a vacation rental property in 2026?

Plan for a down payment of 20% or more on a second-home or investment loan, plus closing costs and furnishing, and a cash reserve for slow months. At 7.03% interest, financing costs are high, so compare cash and financed scenarios.

Where are vacation rental regulations tightening in 2026?

Hillsborough County in Florida approved a registry (effective January 1, 2027), Breckenridge and Estes Park keep license limits, and Savannah and San Antonio limit density in some areas. Always verify your address with the local authority.

Let Awning Handle Your Vacation Rental

Awning manages 20,000+ vacation rental properties across all 50 states, with dynamic pricing, 50+ distribution channels, and local support. Tell us where you are buying and we will estimate what it can earn.

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Related Resources

• Airbnb Calculator: estimate revenue for any address
• Airbnb Market Data: city-level benchmarks
• Airbnb Insurance for short-term rentals
• Texas short-term rental laws