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

The best places to buy vacation rental property in 2026 are markets where AirDNA's trailing-twelve-month listing revenue is high relative to the current median home price and where local rules are settled rather than tightening: Gulf Shores, Destin, the Smoky Mountains, the Poconos, Savannah, Nashville, and Abilene lead this year's list. This guide ranks 15 U.S. markets across beach, mountain and lake, and urban and drive-to categories using only figures published in 2026.

Awning manages 20,000+ properties across all 50 states, so we see how these markets perform after cleaning, management, and platform fees. The rankings are built from third-party data anyone can check: AirDNA market pages (trailing twelve months through August 2026), Redfin and Zillow prices (June and July 2026), Key Data pacing reports, and Freddie Mac's September 3, 2026 rate survey. Where a 2026 figure could not be sourced, we left it out rather than estimating.

How we ranked the best places to buy vacation rental property in 2026

We ranked markets by gross revenue-to-price ratio (AirDNA's average annual listing revenue divided by the local median home price), then checked each against AirDNA's market score and current regulation. Markets with unverifiable 2026 data were excluded regardless of reputation.

• Revenue, occupancy, ADR, and RevPAR: AirDNA market overview pages, trailing twelve months through August 2026. ADR is the average booked nightly rate; RevPAR is ADR multiplied by occupancy.
• Median home price: Redfin three-month median sale price for June or July 2026. Where Redfin's city data was stale, we used Zillow's typical home value (ZHVI) and labeled it.
• Market score: AirDNA's 0–100 composite of rental demand, seasonality, revenue growth, investability, and regulation.
• Revenue-to-price ratio: Computed by Awning from the two sourced figures. It is a screening metric, not a cap rate: AirDNA's revenue averages all listing sizes, and the median price covers all homes sold.

AirDNA's 2026 Best Places to Invest report (January 27, 2026) found its top 10 markets averaged a $296,000 home price, $40,500 in annual revenue potential, and roughly 14% yields, with affordability driving returns more than headline revenue. To pull the same metrics for any ZIP code, use Awning's free Airbnb calculator.

What does the 2026 vacation rental market look like for buyers?

2026 is a stable-demand, slow-supply year: AirDNA's midyear outlook (July 8, 2026) projects 57.4% national occupancy, 2.7% demand growth, 2.7% listing growth, and 2.9% RevPAR growth, and calls 2026 "a better year to own than to buy."

• Pricing power is real in leisure markets. Key Data's summer index (July 13, 2026) showed July RevPAR pacing +8% and August +4% year over year for professionally managed rentals. Its July 4th report found 22 of 25 tracked markets with positive RevPAR growth.
• Financing is the headwind. Freddie Mac's September 3, 2026 survey put the 30-year fixed at 6.71%, a 13-month high and up from 6.50% a year earlier; investor and DSCR loans price above that.
• Platform economics are shifting. Airbnb is moving all hosts to a single 15.5% host-only service fee by year-end 2026 (Skift, August 2026), and Key Data's Q2 2026 channel report shows Airbnb at 51% of professionally managed U.S. reservations, Vrbo 20%, direct 21%.

Falling prices in several Gulf Coast and mountain markets (Gulf Shores -9.2%, Breckenridge -14.1%, Panama City Beach -3.9% year over year per Redfin) give buyers more negotiating room in 2026 than at any point since 2021.

Best places to buy vacation rental property in 2026: the master table

AirDNA figures are trailing twelve months through August 2026; prices are Redfin medians for June or July 2026 unless marked ZHVI. Markets are numbered by category, then by ratio.

Sources: AirDNA market overview pages (data through August 2026); Redfin housing market pages (three months ending June or July 2026); Zillow ZHVI for Blue Ridge 30513 (June 30, 2026) and Fredericksburg (July 31, 2026).

Which beach markets are the best places to buy a vacation rental in 2026?

Gulf Shores, Alabama is the strongest beach buy in 2026: $68,800 average listing revenue against a $437,762 median price, with Florida-level rates and lower insurance costs. Destin and Panama City Beach follow; the Outer Banks and Port Aransas earn well but cost far more to enter.

1. Gulf Shores, Alabama

AirDNA reports 11,600 active listings earning $68,800 per year at 60% occupancy and a $402 ADR (RevPAR $240), with a market score of 79. Redfin's median fell 9.2% year over year to $437,762 (June 2026), which is why the 15.7% ratio leads the beach category.

Regulation is zoned rather than capped: Gulf Shores allows STRs in tourist and mixed-use districts but not in R-1 through R-5 residential zones, requires business and rental licenses, added triennial fire inspections in 2025, and adopted a signage permit rule in February 2026, per The Short Term Shop's 2026 guide. Neighboring Orange Beach applies a 180-day minimum stay outside Gulf-front and PUD properties, so check the parcel, not the ZIP code.

2. Destin, Florida

Destin posts the highest beach revenue on this list: $75,300 per listing at 61% occupancy and a $450 ADR (AirDNA, 6,026 listings). The catch is price ($556,197 median, up 1.7% per Redfin) and an AirDNA score of 60, dragged down by seasonality.

Destin permits STRs only in eight designated mixed-use and resort districts, requires annual registration with renewals due January 1 to March 1 (late fees escalate to $500 after June 1), and caps occupancy at two adults per bedroom plus four, per the 2026 Destin regulations guide. Key Data showed Okaloosa County RevPAR up roughly 13.5% over July 4th 2026. Awning's Destin investment guide covers neighborhoods and property types.

3. Panama City Beach, Florida

Panama City Beach is the value entry on the Emerald Coast: $50,100 average revenue at 61% occupancy and a $289 ADR (AirDNA score 73) against a $369,815 median (Redfin, July 2026, down 3.9%). Its 13.5% ratio matches Destin at two-thirds the purchase price.

The city requires a Vacation Rental Certificate under Ordinance 1632 ($250 registration plus $75 inspection for new applicants; $150 plus $75 on renewal), a DBPR license, and Bay County tourist tax registration, per the City of Panama City Beach. Key Data showed Bay County RevPAR up 19.3% over July 4th 2026. Get a bound insurance quote before you go under contract.

4. Outer Banks (Nags Head), North Carolina

Nags Head listings earned $68,100 at 60% occupancy with a $484 ADR, the highest beach ADR here (AirDNA, 1,565 listings). Redfin's $746,294 median (up 5.1%) pulls the ratio to 9.1%, so the Outer Banks is an appreciation play more than a cash-flow one. North Carolina's Vacation Rental Act protects legally operating rentals, and Dare County requires registration and safety compliance without density caps, per Awning's North Carolina STR laws guide (updated March 2026). Key Data recorded Dare County at 59.1% occupancy over July 4th, the highest of its 25 tracked markets. See the Outer Banks investment guide for the weekly-rental economics.

5. Port Aransas, Texas

Port Aransas earns $58,600 per listing at a $419 ADR but only 48% occupancy (AirDNA score 71). With a $684,627 median (Redfin, June 2026), the 8.6% ratio is the lowest in the beach group. The city requires annual STR registration that expires December 31 and is not prorated, and updated its fee schedule in 2025, per the City of Port Aransas. No state income tax and a 12-month fishing calendar keep it on the list.

Which mountain and lake markets rank highest for vacation rentals in 2026?

The Poconos (East Stroudsburg, PA) is the highest revenue-to-price market in this entire ranking at 22.9%, and the Smoky Mountains remain the most liquid cabin market in the country. Blue Ridge and Breckenridge round out the category with very different risk profiles.

6. Poconos (East Stroudsburg), Pennsylvania

AirDNA shows East Stroudsburg listings earning $64,000 on average at a $413 ADR and 46% occupancy, with an investability subscore of 99 and an 81 market score. Redfin's median was $279,848 (June 2026), producing a 22.9% ratio. AirDNA's 2026 mountain-town ranking, reported by Quartz in April 2026, put East Stroudsburg first with a 15.1% average yield, though occupancy swings from 79% in August to 32% in March.

Rules are set township by township. A June 2026 municipal scorecard shows Tobyhanna and Coolbaugh townships permitting STRs in residential zones (Tobyhanna removed its license cap), while Smithfield restricts STRs to resort zoning, Pocono Township bans them in R-1 and R-2, and East Stroudsburg Borough limits permits to commercial and industrial zones. Buy the township, not the town name.

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

Pigeon Forge listings earn $64,800 at 56% occupancy and a $338 ADR (score 83); Gatlinburg listings earn $66,500 at 57% and $340 (score 82), across 3,130 and 7,339 listings respectively (AirDNA). Redfin's Pigeon Forge median was $464,767 in July 2026, down 1.1%, for a 13.9% ratio.

Sevier County and its cities each require an STR permit with a life-safety inspection ($250 in the county, $200 in Gatlinburg, $300 in Pigeon Forge) and a business license; non-primary residences are assessed at the 40% commercial property-tax rate, and three nuisance violations can revoke a permit, per SkyRun's 2026 Sevier County guide. The framework is mature and predictable, which is why the Smokies remain a common first purchase among Awning owners. See our Smoky Mountains investment guide.

8. Blue Ridge, Georgia

Blue Ridge carries a 95 AirDNA market score, with $57,400 average revenue, a $357 ADR, and 47% occupancy across 1,627 listings. Zillow's typical home value for the 30513 ZIP was $526,530 as of June 30, 2026, for a 10.9% ratio. Fannin County posted a Short-Term Vacation Rental Ordinance in August 2025, so verify current permit requirements with the county before closing; HOA covenants are the most common deal-killer here.

9. Breckenridge, Colorado

Breckenridge earns the most per listing in this ranking ($82,300 at a $581 ADR and 51% occupancy) but scores only 46 with AirDNA, and Redfin's $949,483 median (down 14.1% year over year) yields an 8.7% ratio. The town caps STR licenses at roughly 2,200 across three zones (1,680 in the tourism zone, 305 downtown, 390 in single-family residential) with a waitlist, plus a per-bedroom accommodation fee, per a 2026 summary of the rules. Only buy a unit that already holds a transferable license in a zone with headroom.

Which urban and drive-to markets are the best places to buy a vacation rental in 2026?

Savannah leads the urban group with a 17.7% revenue-to-price ratio, while Abilene, Texas is the surprise: 79% occupancy and AirDNA's highest market score (99) on a $284,857 median home. The rest work under specific permit conditions.

10. Savannah, Georgia

Savannah's 5,163 active listings average $60,000 in revenue at 59% occupancy and a $309 ADR (AirDNA score 79). Redfin's median was $338,830 in July 2026. Non-owner-occupied STVRs are allowed only inside the city's STVR Overlay District, and the Downtown and Victorian historic districts cap non-owner-occupied parcels at 20% per ward, with "virtually all wards" at the cap and a first-come waiting list, per the City of Savannah. Target a property that already holds a certificate, or one outside the capped wards but inside the overlay.

11. Abilene, Texas

Abilene was AirDNA's number two market nationally in January 2026, and the current data backs it up: 79% occupancy, $178 ADR, $43,800 average revenue, RevPAR up 24.3% year over year, and a 99 market score. Redfin's median rose 20.2% to $284,857 (July 2026). Demand is workforce-driven: a 2026 regulatory guide notes the city has no STR permit or STR-specific zoning, only a 15% combined hotel occupancy tax with monthly filings, and attributes recent demand to the Stargate AI data center project under construction since September 2025. Underwrite for a concentrated demand base.

12. San Antonio, Texas

San Antonio pairs the lowest entry price on the list ($267,866 median, Redfin July 2026) with $35,100 average revenue at 55% occupancy and a $188 ADR (AirDNA, 10,369 listings, score 70). Non-owner-occupied rentals need a Type 2 permit ($450 for three years) and are limited to 12.5% of units per block face or building, with a 17% hotel occupancy tax, per a July 2026 permit guide. Check block-face capacity before you make an offer.

13. Nashville, Tennessee

Nashville's 11,313 active listings average $57,200 at 58% occupancy and a $296 ADR, with an 85 market score (AirDNA). Redfin's median was $479,760 in July 2026, flat year over year. Non-owner-occupied permits are issued only in commercial, mixed-use, and certain higher-density zones, not single-family residential districts, and Metro launched a new online permit application on March 11, 2026, per Nashville.gov. Buy zoning first, then the house. Our Nashville investment guide maps the eligible corridors.

14. Orlando and Kissimmee, Florida

The Orlando market area shows $48,600 average revenue at 61% occupancy and a $244 ADR with a 95 market score (AirDNA); Redfin's Orlando median was $416,292 in July 2026 (down 4.3%). The City of Orlando does not permit whole-home rentals under 30 days in residential zones (owner-occupied home sharing only), unincorporated Orange County restricts them similarly, and Osceola County and Kissimmee allow whole-home STRs only inside designated Short-Term Rental Overlay districts and STR planned developments near Disney and US-192, with a 13.5% lodging tax that owners partly self-remit, per a July 2026 rules summary. Key Data showed Osceola County with the highest ADR growth (+18.6%) of any tracked market over July 4th 2026; the investable inventory is the resort-zoned Kissimmee corridor.

15. Fredericksburg, Texas

Hill Country wine tourism gives Fredericksburg a 96 seasonality subscore (AirDNA), with $46,800 average revenue at a $330 ADR and 42% occupancy. Zillow's typical home value was $521,138 as of July 31, 2026 (down 5.0%), for a 9.0% ratio. Occupancy and RevPAR both declined year over year, so underwrite conservatively.

Which popular vacation rental markets did not make the 2026 list?

Four markets from earlier versions of this list were cut because 2026 data shows saturation or weak occupancy, and one metro is tightening rules.

• Broken Bow / Hochatown, Oklahoma. Supply grew from roughly 400 cabins before 2020 to 2,400+ by late 2023, and the newly incorporated town of Hochatown now licenses rentals, per a 2026 market review. AirDNA's Broken Bow page shows 41% occupancy and RevPAR down 23.1% year over year.
• Big Bear Lake, California. 36% occupancy, ADR down 15.0%, market score 50 (AirDNA).
• Lake of the Ozarks (Osage Beach), Missouri. 43% occupancy, RevPAR down 7.4%, market score 42 (AirDNA).
• Myrtle Beach, South Carolina. 20,607 active listings, a 44 market score, and $42,800 revenue per listing at 55% occupancy (AirDNA).

Also watch the Tampa Bay area: Hillsborough County commissioners voted unanimously on September 2, 2026 to create a vacation rental registry effective January 1, 2027, with a $200 annual fee, inspections, and a required local contact for roughly 3,000 rentals; Tampa may opt in, per WUSF.

How should you evaluate any vacation rental market before you buy?

Run every candidate market through the same seven checks in order; a market that fails step two or three is out no matter how good the revenue looks.

1. Pull the trailing-twelve-month numbers for comparable bedroom counts, not the market average. Awning's top Airbnb markets tool and the Airbnb calculator filter by property size.
2. Confirm the parcel is legal for non-owner-occupied STR. Check zoning, overlay districts, permit caps, and waitlists at the city and county level, then the HOA covenants. Get it in writing.
3. Check the direction of regulation. A registry today (Hillsborough) becomes a cap tomorrow (Breckenridge, Savannah). Read the last twelve months of council agendas.
4. Price the financing at today's rate. Model the deal at 6.71% or higher for a 30-year fixed and at DSCR pricing above that; compare options in our DSCR loan lender guide.
5. Build the full expense stack: management (Awning's tiers are 10%, 15%, and 18% of revenue), platform fees (Airbnb's 15.5% host-only fee by year-end 2026), lodging taxes (12.75% in Sevier County, 17% in San Antonio), insurance, investor-rate property tax, utilities, and a furnishing reserve.
6. Stress-test occupancy at 80% of AirDNA's market figure. If the deal no longer covers debt service, it depends on above-average operation from day one.
7. Convert to a cap rate. A 13% gross revenue-to-price ratio nets out far lower once the expense stack is applied; compare the result to long-term rental cap rates in the same market before you commit.

Owners who want pricing and compliance handled for them can compare Awning's Airbnb management tiers before they buy.

Frequently Asked Questions

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

On revenue relative to price, the Poconos (East Stroudsburg, PA) leads at 22.9%, followed by Savannah (17.7%), Gulf Shores (15.7%), and Abilene (15.4%), using AirDNA trailing-twelve-month revenue and Redfin June and July 2026 prices. For a first purchase with predictable rules, the Smoky Mountains remain the safest choice.

What are the best cities for vacation rentals in 2026?

Savannah, Nashville, San Antonio, and Abilene rank highest among cities in this analysis, with AirDNA market scores of 79, 85, 70, and 99. Each requires a permit or specific zoning for non-owner-occupied rentals except Abilene, which has no STR permit and only a hotel occupancy tax filing.

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

Gulf Shores, Destin, the Outer Banks, and Blue Ridge fit owners who want personal use plus income: all four show AirDNA revenue above $57,000 per listing and zoning-based rules rather than caps. Breckenridge earns the most per listing ($82,300) but requires an existing license in a capped zone.

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

AirDNA's January 2026 report ranked Port Arthur, TX; Abilene, TX; Downtown Saint Paul, MN; Charleston, WV; Springfield, IL; Lake Charles, LA; Montgomery, AL; Akron, OH; Lebanon, PA; and Jackson, MS as its top 10, averaging a $296,000 home price and roughly 14% yields. Only Abilene has enough leisure demand and listing depth to make our list.

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

Investment-property lenders typically require 20% to 25% down, so a $284,857 Abilene median home needs roughly $57,000 to $71,000 down plus furnishing and reserves, and a $556,197 Destin median needs $111,000 to $139,000. Model payments at Freddie Mac's 6.71% 30-year rate (September 3, 2026) or higher.

Where are vacation rental regulations tightening in 2026?

Hillsborough County, FL (registry and $200 annual fee effective January 1, 2027), Savannah (historic wards at the 20% cap with a waitlist), Breckenridge (license caps by zone), and parts of the Poconos (township bans in residential zones) are the tightening markets in this ranking. The City of Orlando and unincorporated Orange County already prohibit whole-home rentals under 30 days in residential zones.

Related Resources

• Top Airbnb Markets in the U.S.
• How to Do Airbnb Market Research
• A Comprehensive Guide to Purchasing a Short-Term Rental Investment Property
• Airbnb Loans: How to Finance a Vacation Rental
• The Hidden Costs of STR Investing
• Florida Short-Term Rental Laws