Rental Analysis Identified Top Short-Term Markets
New data highlights 17 submarkets where investors can find high yields and affordable entry costs.
Updated on Sept. 21, 2026 in Apartments
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AirDNA has identified 17 top submarkets for short-term rental investment, with Rockford, Illinois, taking the top spot. These markets are selected for their high annual yields and limited professional management competition.
Why it matters
Investors are increasingly targeting affordable housing markets to offset the financial pressure of high mortgage rates. These locations often attract travelers seeking respite from major urban centers or proximity to military installations.
Rockford, Illinois, leads the list with a 14 percent yield on an average home value of $300,442 and annual revenue potential of $40,024. Akron, Ohio, and Warner Robins, Georgia, follow with yields of 13 percent and 12 percent, respectively.
The players
AirDNA
A data analytics firm that tracks short-term rental performance metrics and market trends.
National Association of Realtors
A national trade association for real estate professionals that tracks housing affordability and market data.
The details
AirDNA selects these submarkets by filtering for areas with 400 to 1,000 listings and an annual yield exceeding 10 percent. To remain viable for individual hosts, selected markets must feature less than 20 percent professional management, ensuring smaller owners do not face direct competition from large-scale rental companies.
Timeline
September 21, 2026, AirDNA published the report on top short-term rental submarkets.
August 2026, the National Association of Realtors released its Housing Affordability Index.
The Home Front
This trend highlights the ongoing search for high-yield, low-entry-cost investments as buyers pivot away from overheated metropolitan hubs. It follows the pattern set by the National Association of Realtors' August Housing Affordability Index, which spotlights the relative strength of the Midwest.
If you are considering property investment, look for markets where professional management maintains a footprint of less than 20 percent to ensure lower competition. Evaluate the local annual revenue potential against your target yield to determine if a market aligns with your budget.
The takeaway
The rise of secondary rental markets offers a potential avenue for higher yields if you can secure property in areas with minimal corporate competition. Track your target market's year-over-year revenue per available room to ensure the rental demand is sustaining growth.
Further reading
For more on managing residential property investments, visit Apartments.
Live Poll
Do you believe the growth of short-term rentals in your area harms local housing affordability?
