Top Up-and-Coming Airbnb Markets for High ROI

Are you tired of competing in oversaturated Airbnb hotspots where property prices have skyrocketed and returns have diminished? The most strategic Short-Term Rental (STR) investors are looking beyond obvious destinations to identify the next wave of high-performing markets before everyone else.

STR Search uses advanced data-driven market analysis to identify high-potential STR investments across the U.S. Their proprietary methodology analyzes dozens of economic, tourism, and regulatory indicators to pinpoint growth markets before peak saturation. This approach has helped our clients deploy over $90 million in capital with strong returns.

This article explores the criteria for identifying the best up-and-coming Airbnb markets and reveals promising locations based on our analysis. Whether you're a high-income professional looking to diversify your portfolio or an experienced real estate investor seeking new STR opportunities, these insights will guide your next investment.

Up and Coming Airbnb Markets to Watch

Based on our analysis, we identified several promising markets for investors. These areas have strong fundamentals, successful investing requires property-specific due diligence and careful financial modeling.

Greenville, SC

Greenville has transformed from an overlooked Southern city to a thriving destination with exceptional STR potential. Its revitalized downtown, culinary scene, and proximity to the Blue Ridge Mountains create year-round appeal for various visitors.

• Tourism Growth: According to local tourism board data, visitor numbers have increased by 15% year over year.
• Economic Momentum: The area has attracted major employers in manufacturing, technology, and healthcare, creating a strong base of business travelers.
• RevPAR Performance: Average RevPAR has increased 12% over the past year, significantly outperforming the national average.
• Sweet Spot Timing: STR inventory is limited compared to demand, creating opportunities for early investors.

Investment Angle: Focus on properties within walking distance of downtown's Main Street corridor. Three-bedroom homes for families or small groups perform best. Modern renovations with Instagram-worthy design features command premium rates.

Regulatory Note: Currently STR-friendly with a straightforward permit process. Local officials recognize the positive economic impact of STRs, though investors should monitor for potential changes.

Boise, Idaho

Boise still offers strong STR fundamentals with growth potential, although it is no longer the ground-floor opportunity it was five years ago. Its blend of outdoor recreation, growing tech sector, and quality of life drives relocation and tourism.

• Destination Appeal: Four-season outdoor activities (skiing, hiking, river sports) and a sophisticated urban core.
• Economic Strength: According to BLS figures, job growth exceeding 4% annually across diverse sectors is creating a healthy mix of business and leisure travel.
• Occupancy Performance: Average STR occupancy rates exceed 70% year-round, indicating strong demand.
• Expanded Air Service: Increased direct flights from major markets have improved accessibility.

Investment Angle: Properties in the North End and Downtown command premium rates. Homes with outdoor spaces, mountain views, and proximity to the Greenbelt trail system are desirable for leisure travelers.

Regulatory Note: Permit requirements exist but are navigable. In most areas, non-owner-occupied rentals are allowed, but investors should be aware of ongoing discussions about potential adjustments.

Asheville, NC

Asheville is a premium tourism destination, but surrounding areas offer better value for STR investors. This market combines natural beauty, cultural attractions, and a thriving craft beverage scene that drives year-round visitation.

• Visitor Demographic Expansion: Dominated by retirees, now attracts younger, higher-spending travelers seeking outdoor experiences and culinary tourism.
• Seasonal Balance: Peak seasons are summer and fall, while winter and spring occupancy has strengthened recently.
• Supply Constraints: Strict city regulations have limited STR growth. This has pushed demand to surrounding areas.
• Premium Rates: According to tourism authority data, average daily rates in the broader market have increased 18% year-over-year.

Investment Angle: Areas like Black Mountain, Weaverville, and Hendersonville offer better value with fewer restrictions than Asheville. The highest nightly rates command properties with mountain views, outdoor entertaining spaces, and rustic-luxe design elements.

Regulatory Note: Varies by jurisdiction. Some surrounding towns embrace STRs while others have restrictions. Careful location selection is essential.

Traverse City, Michigan

This four-season destination offers exceptional seasonality balance for the Midwest. Known for summer tourism, its growing wine region, winter sports, and fall colors have extended the operating period.

• Extended Season: Once a summer destination, it now generates strong occupancy across more than 9 months of the year.
• Culinary Tourism: The area's 40+ wineries, craft breweries, and farm-to-table restaurants drive foodie tourism year-round.
• Limited Supply: Restrictive zoning in prime areas has constrained STR inventory growth despite increasing demand.
• Premium Positioning: The market attracts high-income visitors from Chicago, Detroit, and other Midwest urban centers.

Investment Angle: Waterfront properties command premium rates but require substantial investment. Better value may be found in vineyard-adjacent properties within 15 minutes of downtown. Homes accommodating 8+ guests perform well for family reunions and wine tour groups.

Regulatory Note: Regulations vary by township. Some water-adjacent areas have caps on STR density, while others remain open. Due diligence on specific locations is essential.

Chattanooga, TN

Chattanooga often gets overshadowed by Nashville, but it offers compelling STR fundamentals without the saturation issues of its larger neighbor. Its outdoor recreation, revitalized riverfront, and growing tech scene create multi-dimensional appeal.

• Revitalization Impact: Major investments in the downtown and riverfront areas have transformed the city's appeal to visitors.
• Accessibility: Ideal for weekend trips, within a 2-hour drive of major metropolitan areas.
• Value Proposition: Property acquisition costs remain reasonable relative to revenue potential compared to other Southeast destinations.
• Diverse Demand Drivers: Year-round demand is created by outdoor recreation, family attractions, sporting events, and a growing business scene.

Investment Angle: Properties in North Shore and Southside neighborhoods offer the strongest performance. Character homes with walkability to dining and attractions command premium rates.

Regulatory Note: Chattanooga requires permits for non-owner-occupied STRs and has density limitations. The process remains straightforward compared to many similar markets.

Why Emerging STR Markets

Traditional STR hotspots like Miami, Nashville, and Scottsdale are appealing but have significant downsides for new investors. Property acquisition costs in these markets have risen dramatically, often pushing cap rates below 5%. Meanwhile, increasing competition has pressured nightly rates while local regulations have become restrictive in response to market saturation.

Emerging STR markets offer compelling advantages: lower entry points, less competition, and better regulatory environments. These markets are on the verge of significant tourism growth but lack the corresponding supply surge. This creates a window of opportunity for strategic investors to establish a foothold before valuations climb.

Finding short-term rental investment opportunities requires looking beyond popular destinations and focusing on underlying data trends. Most individual investors struggle with this, and this is where STR Search's analytical approach creates an advantage.

Identifying High-Potential STR Markets

Identifying the best up-and-coming Airbnb markets is based on data analysis. Our STR market analysis methodology at STR Search relies on analyzing specific, quantifiable data points across multiple categories to identify markets with genuine growth potential.

Strong Demand Growth Indicators

The foundation of any successful STR investment is sustained traveler demand. We analyze:

• Increasing Tourism: Year-over-year growth in visitor numbers based on tourism board data, focusing on consistent upward trends rather than seasonal spikes.
• Positive RevPAR Trends: Revenue Per Available Room (RevPAR) growth indicates strengthening pricing power and demand. Markets with it exceeding 10% annually deserve attention.
• High Occupancy Rates: Current occupancy rates above 60% and increasing trends suggest demand is outpacing supply.
• Local Events & Attractions: New or expanding attractions, convention centers, sports venues, or recurring events driving consistent visitor traffic.

Favorable Supply Dynamics

The balance between supply and demand is crucial for long-term STR success. Our analysis includes:

• Limited (but growing) Supply: Markets where demand growth outpaces new STR listings, creating sustainable pricing power.
• Housing Affordability: Property acquisition costs vs. potential revenue. Areas with price-to-revenue ratios below 15x present better long-term ROI opportunities.
• Development Pipeline: Awareness of major construction projects impacting future supply/demand balance, including new hotels, residential developments, and infrastructure.

Positive Economic & Demographic Trends

Local economic factors are critical for predicting long-term STR viability:

• Job Growth: Particularly in sectors attracting business travelers or indicating economic expansion. BLS data shows markets with over 3% annual employment growth correlate with strengthening STR demand.
• Population Growth: Markets with migration inflows, especially of younger demographics, show growth in visitor demand.
• Infrastructure Investment: Major projects like airport expansions, improved highway access, or downtown revitalization efforts signal future growth.

Understanding the Regulatory Landscape

Even promising market fundamentals can be undermined by restrictive regulations:

• Current STR Ordinances: Clarity and favorability of local STR laws, including permitting requirements, operational restrictions, and taxation.
• Community Sentiment: Local political climate regarding STRs, including recent public hearings or council discussions signaling future regulatory changes.
• Tax Environment: Local property and lodging tax rates impacting investment returns and operational costs.

How STR Search Helps You Invest Smarter in Emerging Markets

Identifying promising markets is the first step toward successful STR investing. The next step, translating market potential into property performance, requires deeper analysis and expert guidance exactly what STR Search provides.

Data-Driven Decisions, Not Guesswork

STR Search uses advanced data analytics and a proven 4-step process to pinpoint properties with the highest ROI potential. Our methodology has delivered a 100% success rate across $90M+ in transactions, enabling clients to invest confidently in unfamiliar markets.

While many investors rely on outdated rules or emotional reactions to properties, we validate every potential acquisition against comprehensive performance data. This approach is valuable in emerging markets with limited comparable sales and traditional analysis.

Your Partner Through the Process

Our support guides investors through every stage of the STR investment journey:

• In-depth STR market analysis to validate opportunities and identify promising sub-markets.
• Free live property analysis sessions to assess specific deals before you commit.
• Matching investors with vetted, high-performing properties that meet their goals.
• Providing educational resources and training for informed decision-making.
• Comprehensive support from property identification through acquisition and beyond.

Tailored Support for High W-2 Earners

We understand the unique needs of high-income professionals seeking to diversify beyond traditional investments. Our expertise helps these investors offset taxes through STR while building wealth through strategic real estate acquisitions.

Our concierge-level service streamlines the process for busy professionals, requiring minimal time commitment while maximizing financial benefits. We identify opportunities that align with your tax situation, income goals, and risk tolerance then handle the analysis so you can focus on decision-making rather than research.

Conclusion: Finding Your Next Profitable STR Investment

The short-term rental investing landscape is evolving rapidly. Established markets become saturated, and the best up-and-coming Airbnb destinations offer opportunities for investors willing to look beyond obvious ones. Success requires a data-driven approach rather than following headlines, along with careful analysis of property-specific factors.

STR Search provides the expertise, market intelligence, and analytical rigor needed to navigate this complex landscape confidently. Our proven methodology identifies missed opportunities and helps investors avoid costly mistakes in a competitive environment.