Top 8 Hottest Markets for Investment Properties in the U.S.

Short-term rental investment has matured considerably over the past decade. The markets that performed best in the early years of the Airbnb era are now expensive and competitive. The opportunity today is in markets that combine strong demand, reasonable acquisition costs, and a regulatory environment that has not yet closed the door on short-term rentals. Here are eight U.S. markets that meet those criteria as of 2025.

1. Scottsdale, Arizona

Scottsdale has been a reliable short-term rental market for years, driven by golf tourism, spring training, and a year-round conference calendar. The market is mature but not saturated, and properties near Old Town and the resort corridor continue to perform well. Arizona's state-level preemption of local short-term rental bans provides regulatory stability that many other markets lack.

2. Gatlinburg and Pigeon Forge, Tennessee

The Smoky Mountains corridor is one of the most visited domestic tourism destinations in the country, drawing around 14 million visitors a year to Great Smoky Mountains National Park. Cabin rentals dominate the market and occupancy rates are high year-round. Entry prices are lower than comparable coastal markets.

3. Gulf Shores, Alabama

Gulf Shores and Orange Beach have seen sustained demand growth as travelers from the Southeast look for beach alternatives to Florida. The market is less expensive than comparable Florida Gulf Coast destinations, and the beaches are genuinely good. Hurricane risk is a factor to price into any investment here.

4. Bozeman, Montana

Bozeman has become one of the fastest-growing cities in the country, driven by remote workers, outdoor recreation, and proximity to Yellowstone. Short-term rental demand is strong in both summer and winter. Property prices have risen sharply, but so have nightly rates.

5. Asheville, North Carolina

Asheville draws visitors for its arts scene, craft breweries, and Blue Ridge Parkway access. The city has imposed some short-term rental regulations, so due diligence on zoning is essential before purchasing. Properties in unincorporated Buncombe County face fewer restrictions.

6. Joshua Tree, California

Joshua Tree National Park draws around three million visitors a year, and the surrounding desert communities have developed a strong short-term rental market. The aesthetic of the area, mid-century modern and desert minimalist, photographs well and commands premium nightly rates. Water availability and desert maintenance costs are factors to understand before buying.

7. Destin, Florida

Destin remains one of the top-performing beach markets in the country. The Emerald Coast's white sand and clear water drive consistent demand, and the market has a well-developed infrastructure of property management companies and rental platforms. Competition is high, so property quality and professional management matter more here than in less developed markets.

8. Branson, Missouri

Branson is an underrated short-term rental market. It draws around eight million visitors a year for its entertainment venues, Table Rock Lake, and family-oriented attractions. Property prices are low relative to comparable tourism markets, and the year-round demand calendar reduces the seasonal risk that affects many leisure destinations.

Any investment decision should be preceded by thorough market research, including a review of local regulations, an analysis of comparable property performance, and an honest assessment of management costs. A professional property management company with local market knowledge is one of the most reliable ways to protect the performance of a short-term rental investment.