20 Surprising Top Airbnb Locations for 2022

As travel starts returning to normal, take advantage of such an opportunity by finding lucrative Airbnb locations for your next rental investment.

A year after the world shut down, numerous industries, including travel and tourism, have started showing signs of recovery. In April 2021 alone, travel spending in the US amounted to $73.9 billion, which is only 24% lower than April 2019 levels. The next six months saw almost nine in 10 Americans making travel plans and pushing through with them.

Most families showed a preference for road trips instead of flights. However, the TSA airport screening levels may still come close to or even surpass 2019 levels as they process at least two million passengers per day. Outdoor destinations such as beaches, national parks, and theme parks welcomed bigger crowds. As for business travel, 74% of employers feel that their employees are now willing to travel for work.

While overseas inbound travel was 87% below pre-pandemic levels in April, you can expect the trend to rise sharply next year. In November, the US finally ended its international travel ban and opened the door to vaccinated tourists from abroad. As a result, the outlook for travel in 2022 looks promising, with more Americans planning trips to different destinations, which, in turn, is expected to boost Airbnb demand.

The near-term outlook is also favorable, but the growing concerns surrounding the newly discovered Omicron variant and rising prices might lead travelers to go somewhere less crowded. As a result, our team at Mashvisor put together a list of smaller, low-profile tourist destinations that would still turn high profits for Airbnb investors.

If you are looking for fresh ideas on where to start your short-term rental business, keep reading to find 20 top Airbnb locations in 2022 that are surprisingly lucrative.

Mashvisor’s 20 Top Airbnb Locations 2022

The following towns and cities earned a spot on our list of top Airbnb locations for 2022 because of the following criteria:

• High cash on cash returns
• At least 50% occupancy rate
• Walk score of at least 50, meaning the cities are at least somewhat walkable, which is perfect for tourists who may not own a car
• Airbnb-friendly; the municipal government allows real estate investors to operate non-owner-occupied Airbnbs
• Small towns that have a maximum population of 25,000 but have or are nearby popular but less-crowded tourist destinations

We based our top Airbnb locations list mostly on Mashvisor’s analytics, which collected data directly from MLS and Airbnb and was verified by active hosts. Also, some details were taken from external sources to supplement our analysis, making it superior to other online analytics tools such as AirDNA Rentalizer.

Disclaimer: As of this writing, the cities mentioned in this list allow and regulate short-term rentals. But we encourage you to contact the appropriate local government for their latest ordinance before searching for properties in that area.

#1: Hibbing, MN

• Airbnb Cash on Cash Return: 9.94%
• Airbnb Income: $1,226
• Airbnb Daily Rate: $106
• Airbnb Occupancy Rate: 60%
• Median Property Price: $148,465
• Average Price per Square Foot: $87
• Days on Market: 60
• Walk Score: 60

Hibbing Airbnbs have historically enjoyed an occupancy rate of 57% to 100% this year, which is why it is one of the great Airbnb locations. This city, which has an estimated population of over 15,000, provides recreation for all seasons. The Arrowhead Region, where Hibbing is located, has a lot of hiking, biking, cross-country skiing, and snowmobiling trails. There are also lakes and slow-moving rivers for fishing enthusiasts to cast a line.

The city also allows short-term rentals but requires owners to apply for a permit. You can learn more about this on the St. Louis County’s government website.

Analyzing Airbnb investments will not be complete without looking at the market trends. As of October 2021, the Minnesota real estate market recorded 8,428 new listings, down 10.2% compared to the same period last year. Demand was lower by 16.2%, with only 8,713 closed sales and 7,994 pending. The median sales price for the entire state was $308,500, and homes sold for 99.7% of their original listing price.

Hibbing’s local real estate market is currently in the seller’s market. It means more people are looking to buy than there are homes available. Its median home price is much lower than that of the state at $148,465. On average, homes in Hibbing sell just after 60 days on the market. The relatively low home prices make it one of the beginner-friendly Airbnb locations.

#2: Old Town, ME

• Airbnb Cash on Cash Return: 9.22%
• Airbnb Income: $3,992
• Airbnb Daily Rate: $191
• Airbnb Occupancy Rate: 64%
• Median Property Price: $237,783
• Average Price per Square Foot: $131
• Days on Market: 48
• Walk Score: 55

What makes Old Town one of the most profitable Airbnb locations is a combination of high cash on cash returns, high occupancy rate, and exciting attractions. This year, the occupancy rate of Old Town Airbnbs ranged from 46% to 96%. A small town of over 7,000 people, it is filled with historical attractions, good eats, and outdoor activities.

Another reason Old Town is one of the most popular Airbnb locations is that there is no short-term rental ordinance. However, the State of Maine requires short-term rentals to register for and collect a 7% Vacation (Casual) Rental Tax. It also applies to rentals that are not advertised on platforms like Airbnb, VRBO, or HomeAway. But there are exemptions:

• Rental arbitrages that booked fewer than 15 nights in one year;
• Occupancy for 28 days or more; or,
• If Airbnb has collected and remitted sales tax on behalf of the owner in the amount of 9% of the listed rent and other applicable fees.

In October 2021, the Maine real estate market saw a 10.94% decline in sales compared to October 2020. It is due to a combination of lower-than-normal inventory plus high demand for existing single-family homes. These factors also led to a 10% price increase over the same period. The median sales price in Maine was $308,000 in October 2021 compared to $280,000 a year ago.

Fortunately, homes in Old Town have a lower median sales price compared to the state’s, making it one of the good Airbnb locations for new investors with small capital.

#3: Boonsboro, MD

• Airbnb Cash on Cash Return: 8.86%
• Airbnb Income: $5,315
• Airbnb Daily Rate: $177
• Airbnb Occupancy Rate: 80%
• Median Property Price: $418,560
• Average Price per Square Foot: $245
• Days on Market: 63
• Walk Score: 52

Why is this 3,655-population town one of the best Airbnb investment locations for 2022? Boonsboro Airbnbs have earned an average monthly income ranging from $3,664 to $5,315, with an occupancy rate of 69% to 96%. This charming Washington county town is known throughout the East Coast for being the gateway to the Antietam National Battlefield. Those looking for a quiet weekend getaway or a creative escape would also love Boonsboro.

Aside from being a great tourist destination, Boonsboro allows non-owner-occupied short-term rentals. The only conditions are that each booking should be no longer than 30 consecutive days, and off-street parking must be provided. Also, installing signage that may require a zoning permit is prohibited.

In October 2021, the Maryland real estate market saw a 10.4% decrease in sales compared to the same month last year. It is also likely because of the increase in home prices by 7.2% and a lower inventory (9,631 in 2021 vs. 13,661 in 2020). While it takes a Boonsboro home an average of 63 days from listing to sell, other Maryland homes only take nine days. Because of this, investors may still have room to negotiate for a lower sale price when buying a property in town.

#4: Edgerton, WI

• Airbnb Cash on Cash Return: 8.79%
• Airbnb Income: $5,170
• Airbnb Daily Rate: $254
• Airbnb Occupancy Rate: 66.3%
• Median Property Price: $423,578
• Average Price per Square Foot: $196
• Days on Market: 64
• Walk Score: 51

What makes Edgerton, WI one of the best locations for Airbnb? First, the average Edgerton Airbnb rental income ranged from $2,576 to $8,498 this year. Second, the cash on cash return is 8.79%, which is above the average returns most Airbnb investors in other locations get. Third, the occupancy rate ranged from 48% to 88%, depending on the season. And given that there are only 26 active Airbnb listings in this 5,631-man town, there is certainly room for more rentals.

People who come to Edgerton experience a community filled with history and adventure. Whether they just want to relax or have an exciting vacation, the town has the attractions to meet their needs. The state of Wisconsin has a Short-Term Rental Law that prohibits municipalities from banning Airbnbs but allows them to enact other ordinances. Our Mashvisor team has not found such regulations for Edgerton, but make sure to call the local government for clarifications.

In October 2021, home sales in the Wisconsin real estate market dropped 12.3% compared to the same period last year, as median prices increased by 7.5% over the same period. The median sales price in the entire state is $245,000, making the home prices in Edgerton more expensive. While investors may have to shell out more capital to purchase a home here, the 8.79% cash on cash return means that they would start turning profits in the first year.

#5: Bradley, IL

• Airbnb Cash on Cash Return: 8.76%
• Airbnb Income: $2,579
• Airbnb Daily Rate: $148
• Airbnb Occupancy Rate: 73%
• Median Property Price: $176,314
• Average Price per Square Foot: $110
• Days on Market: 35
• Walk Score: 73

Bradley, IL, which contains 15,314 people, is one of the least expensive Airbnb locations on this list. The median property price is $176,314, and the average price per square foot is $110. Bradley Airbnb’s cash on cash return is high at almost 9%, and the average short-term rental can charge a daily rate of $148. With the numbers and an occupancy rate that ranged from 46% to 90%, you will soon be in the green even if you have a mortgage.

Just like many small towns, Bradley is a great weekend destination, especially for travelers looking for cheap Airbnb locations. Rich in history and the American “can do” spirit, tourists usually fill their days with shopping, dining at unique restaurants, or riding on bike trails. As of this writing, we did not find any ordinances on short-term rentals for the town or Kankakee County, so be sure to check with the municipality or local agent before house hunting.

Meanwhile, the Illinois real estate market sold 11% fewer homes in October 2021 compared to the same month last year, and the median price increased by 5.4%. According to the Illinois Realtors, buyers became more focused, resulting in homes selling quickly, taking about 28 days on average to close. It may not be the case with Bradley, however. Houses in this town take 35 days from listing to sell, so investors may be able to negotiate.

#6: Ravenna, OH

• Airbnb Cash on Cash Return: 8.70%
• Airbnb Income: $4,713
• Airbnb Daily Rate: $180
• Airbnb Occupancy Rate: 64%
• Median Property Price: $309,339
• Average Price per Square Foot: $155
• Days on Market: 91
• Walk Score: 68

If you are looking for the best Airbnb locations in the USA, the small town of Ravenna, Ohio would be one of them. While Ravenna Airbnbs only earned about $1,488 in January of this year due to low occupancy, their monthly income shot up to $4,044 in March and stayed high for the rest of the year. As more people become more comfortable traveling, we expect the occupancy rate to increase to 89% or even higher.

What makes Ravenna popular is its centralized location. Because it is surrounded by major transportation routes, tourists and business travelers can book a lodge here and go to neighboring locations easily. The town also prides itself on its rich history and heritage. Much of its downtown architecture, which was developed in the 1800s, remains today. There are also no short-term rental ordinances here at the moment.

Like the others, Ohio real estate market saw a slight dip in home sales, about 1.4%, in October 2021 as compared to October 2020. The average sales price rose to $240,509, an 8% increase from last year. While the housing market in this state remains strong, it is also starting to show signs of stabilization.

Though the median property price in Ravenna is higher, the 8.7% cash on cash returns and a small number of active Airbnb listings in this area prove that there is money to be made here.

#7: Ridgeland, SC

• Airbnb Cash on Cash Return: 8.54%
• Airbnb Income: $4,061
• Airbnb Daily Rate: $153
• Airbnb Occupancy Rate: 65%
• Median Property Price: $312,715
• Average Price per Square Foot: $173
• Days on Market: 111
• Walk Score: 61

The 3,811-populated town of Ridgeland, South Carolina is the seventh of 20 best locations for Airbnb investment. In this town, visitors can visit microbreweries, bask in nature, or go on a fishing adventure. With a variety of things to offer, it is no wonder why Ridgeland Airbnbs earned an average of $4,061 every month this year and had an occupancy rate of 65%. The 8.54% cash on cash return means that investors with mortgages can turn profits after year 3.

South Carolina does not prohibit non-owner-occupied residences to be listed as Airbnbs. However, they require the owners to provide the name of a person or firm located within a 50-mile radius of the said property responsible for hosting. Owners also have to apply for a permit and pay an annual fee of $250 per dwelling unit. You can learn more by reading the state’s ordinance.

As of October 2021, year-to-date sales in the South Carolina real estate market were up by 12.3% compared to last year. The median price across the state also increased by 13.6%, from $242,000 in 2020 to $275,000 this year. As for the average days on the market, the number lowered by 35.5% or from 76 to 49. Ridgeland’s local market, however, sells slow. Homes for sale stay on the market for an average of 111 days.

Investors who want to start an Airbnb in this town may be able to negotiate for a lower price or better contingencies.

#8: Overland, MO

• Airbnb Cash on Cash Return: 8.49%
• Airbnb Income: $1,789
• Airbnb Daily Rate: $72
• Airbnb Occupancy Rate: 78%
• Median Property Price: $160,500
• Average Price per Square Foot: $123
• Days on Market: 26
• Walk Score: 60

Why is Overland, MO included in the hot Airbnb locations list? First, this small town has an estimated population of 15,551. The low-density population attracts tourists who are looking for a destination that is not as crowded. The town is well-known for the iconic Gateway Arch and the many trails, parks, and waterways. While the average Overland Airbnb rental income is at $1,789, many have earned as much as $4,251 in one month this year alone.

St. Louis County has a zoning ordinance allowing short-term rentals in most parts of the county, including Overland. Owners must apply for a permit and adhere to the standards; otherwise, the county may revoke their permit.

The Missouri real estate market saw stable demand this October, with the number of residential properties sold only 0.2% lower than the same month last year. However, the median property price was up by 7.5%, so it might be hard for investors to haggle for a lower purchase price. But even if you pay the asking price and use financing, you are likely to turn profits with your Airbnb in the first year.

#9: Farmville, NC

• Airbnb Cash on Cash Return: 8.32%
• Airbnb Income: $2,361
• Airbnb Daily Rate: $84
• Airbnb Occupancy Rate: 78%
• Median Property Price: $185,800
• Average Price per Square Foot: $112
• Days on Market: 29
• Walk Score: 69

The small town of Farmville, NC is one of the 20 surprising Airbnb locations this year because of a few factors. Aside from the small population of 4,764, it is a creative community that attracts other creative types of people. Tourists can shop in antique stores, dine in delicious restaurants, and stroll in the largest outdoor gallery.

Despite Farmville Airbnbs’ lower rental income compared to other towns in this list, the low property price and high return and occupancy rates signal strong profitability in the area. It also helps that the city allows short-term rentals.

The North Carolina real estate market is in a similar position as other markets. Demand is low, with 42% fewer sales compared to last year. There are also 6.9% fewer listings. Meanwhile, the median sales price across the state is $328,168, which is 19.6% higher than in 2020. The median property price in Farmville is much lower, however. And with only a few active Airbnb listings, investors may want to get a share of the tourist spending here.

#10: Colonial Heights, VA

• Airbnb Cash on Cash Return: 8.29%
• Airbnb Income: $3,077
• Airbnb Daily Rate: $117
• Airbnb Occupancy Rate: 90%
• Median Property Price: $284,926
• Average Price per Square Foot: $143
• Days on Market: 67
• Walk Score: 52

In 2021, Colonial Heights Airbnbs earned an average of $3,077 per month this year and maintained an occupancy rate between 85% to 98%. With the high cash on cash return found in Airbnb locations like this, you can expect a positive Airbnb cash flow at the end of the month. However, if you have a mortgage, you might not be in the green until year seven.

Why would tourists visit Colonial Heights? This independent city seems to be a popular tourist destination year-round, with historical attractions such as Fort Clifton, the Old Brick House, and Violet Bank. Our team did not find any past or recent ordinances surrounding short-term rentals for Colonial Heights. Still, it is best to double-check with the municipal government before committing to your purchase in the area.

In October 2021, the Virginia real estate market saw a 6.4% dip in home sales compared to the same period last year. The median home price for the entire state increased by 5.1% to $350,000. Inventory dropped 16.4% across Virginia as well.

While this is the situation for the entire state, Colonial Heights seems to be more stable. Its median property price is lower at $284,926. Also, a home for sale in town spends an average of 67 days on the market before selling.

#11: Hamtramck, MI

• Airbnb Cash on Cash Return: 8.28%
• Airbnb Income: $2,047
• Airbnb Daily Rate: $98
• Airbnb Occupancy Rate: 52%
• Median Property Price: $152,633
• Average Price per Square Foot: $121
• Days on Market: 49
• Walk Score: 61

Known as the “hidden gem of Detroit,” Hamtramck may look like it is part of Detroit because it is surrounded by the said city. However, it is its own municipality. Boasting its diverse culture, the city draws in crowds at the Banglatown Farmers Market during the summer. There are also about six festivals that take place each year. Thrifters and foodies love coming back here to discover new things and new eats.

Using our Airbnb analytics, Hamtramck Airbnbs earned between $1,047 to $2,027 each month and had an occupancy rate of 38% to 73% this year. While these are lower compared to other cities, we expect next year to be more profitable for this area as more travelers become comfortable being in crowds.

The state of Michigan is set on prohibiting cities from banning short-term rentals, so investors should be able to buy and set up an Airbnb property in this city without a problem.

As of September 2021, residential sales in the Michigan real estate market were 10.11% lower than the same period last year. Meanwhile, the average sales price increased by 13.71% to $257,986. The median property price in Hamtramck is lower at $152,633, however, making this area attainable for beginner investors.

#12: Corydon, IN

• Airbnb Cash on Cash Return: 8.20%
• Airbnb Income: $2,619
• Airbnb Daily Rate: $108
• Airbnb Occupancy Rate: 70%
• Median Property Price: $286,150
• Average Price per Square Foot: $143
• Days on Market: 66
• Walk Score: 60

Known as a wine lovers’ destination, the historic city of Corydon in Harrison County is home to five wineries. Expect to be booked for long weekends as tourists flock to the area for wine tasting and tours. The city is also known for its historic streets and sites from the state’s only Civil War battle.

This year, Corydon Airbnbs had a monthly income ranging from $1,542 to $3,149 and an occupancy rate of 62% to 94%. As the travel industry recovers, the short-term rentals in this area should also make record profits, so this is the right time to start your Airbnb business in Indiana.

As for regulations, the state government of Indiana generally allows short-term rentals of an owner’s primary residence. But they leave it to the counties and cities to regulate non-owner-occupied Airbnbs. Our team did not find any short-term rental ordinance from Corydon, but you may encounter regulations at the HOA where you are planning to buy.

Home sales in the Indiana real estate market lag by 4.2% in October 2021 versus the same period last year but remain high year-to-date. Meanwhile, the median sales price across the state increased by 13% to $217,000. The inventory lowered by 17.2%, keeping Indiana in the seller’s market. Corydon has a higher median property price than the state but provides high cash on cash returns than most Indiana cities.

#13: Lake Dallas, TX

• Airbnb Cash on Cash Return: 8.09%
• Airbnb Income: $5,160
• Airbnb Daily Rate: $238
• Airbnb Occupancy Rate: 71%
• Median Property Price: $370,271
• Average Price per Square Foot: $184
• Days on Market: 42
• Walk Score: 52

The small town of Lake Dallas only has about 8,000 people, but it aims to attract tourists with its unique charm and fun recreational activities. Using our Airbnb profit calculator, investing in a Lake Dallas Airbnb can pay back your investment within five years if you buy using a mortgage. Short-term rentals in this area earn higher than in most other cities mentioned in this article.

The lowest income in one month this year was $2,689 in February, while the highest was $8,971 in May. Their occupancy rates also stayed high from 58% to 88%. As of this writing, neither Lake Dallas nor Denton County has regulated Airbnbs in their area, so investors from out of town can own a short-term rental property here.

During the third quarter of this year, the median sale price in the Texas real estate market was up by 16.9% at $310,000 compared to the same period last year. Closed sales were down by 3.5%. Lastly, the statewide inventory is about 1.6 months, keeping the Lone Star State in a seller’s market. Focusing on Lake Dallas, the median property price is higher than the state’s, but investors may start seeing their money back within five years.

#14: Marysville, CA

• Airbnb Cash on Cash Return: 8.07%
• Airbnb Income: $4,266
• Airbnb Daily Rate: $127
• Airbnb Occupancy Rate: 74%
• Median Property Price: $396,467
• Average Price per Square Foot: $228
• Days on Market: 46
• Walk Score: 89

Marysville was a Gold Rush town in the Central Valley of California. Now, it houses over 12,000 residents, which is about the same population as in the 19th-century boom times. Also known as “California’s Oldest Little City,” Marysville has retained its unique historic character and even managed to preserve a number of Gold Rush-era landmarks downtown. Aside from remembering history, tourists can go to the Marysville Raceway for competitions.

These attractions are proof of why Marysville Airbnbs earn between $3,000 to over $4,000 a month. The desert climate, interesting history, and annual events keep people coming back, ensuring these lodgings have a consistent occupancy rate of 67% to 83%. So even if the home prices in this city are in the mid-range compared to other areas, investing in an Airbnb for sale in Marysville can spell big gains as early as year one.

Neither Marysville nor Yuba County has enacted ordinances to regulate Airbnbs so that out-of-town investors can make money in this area without restrictions.

The California real estate market remains strong even as competition among homebuyers eases. As of October 2021, home sales were down by 10.4% compared to the same period last year. But the median sales price increased by 12.3% to $798,440. Meanwhile, the inventory is lower by 10% at 1.8 months. Airbnb investors who would want to include California in their portfolio should consider Marysville given its lower median property price.

#15: Perry, GA

• Airbnb Cash on Cash Return: 8.07%
• Airbnb Income: $2,573
• Airbnb Daily Rate: $131
• Airbnb Occupancy Rate: 64%
• Median Property Price: $261,667
• Average Price per Square Foot: $136
• Days on Market: 90
• Walk Score: 62

The small city of Perry, Georgia offers no traffic jams, easy access to amenities, and a relaxing retreat. It sounds like the perfect place for residents in big cities looking for a quiet escape. Perry has a tradition of welcoming tourists with its famous Southern hospitality dating back to over a century ago. Tourists would also go to the Georgia National Fairgrounds and Agricenter, which holds meetings, trade shows, livestock events, and more.

Using Mashvisor’s Airbnb income calculator, Perry Airbnb properties earn as much as $5,091 per month and have an occupancy rate of up to 88%. And this may go higher next year as the event industry recovers and the town draws more tourists for its many activities.

As of October 2021, new listings in the Atlanta real estate market were down slightly by 5%. Its median sales price increased by 17% to $310,000 compared to the same period last year. And its inventory levels shrank to 1.4 months, meaning Atlanta will remain a seller’s market. As of this writing, Perry does not have any regulations for short-term rentals, but the city council is considering requiring owners to register their properties.

#16: Coolidge, AZ

• Airbnb Cash on Cash Return: 8.05%
• Airbnb Income: $3,779
• Airbnb Daily Rate: $108
• Airbnb Occupancy Rate: 63%
• Median Property Price: $292,744
• Average Price per Square Foot: $175
• Days on Market: 36
• Walk Score: 66

Coolidge is a small city with over 13,000 people. It offers several parks and a rugged desert landscape. Most of the tourists who come here have an inclination for outdoor activities such as hiking. Many have also enjoyed the Mexican cuisine that is widespread in Arizona. The Casa Grande Ruins, Arizona Railway Museum, and the McFarland State Historic Park are just some of the attractions worth visiting.

Over the past 12 months, Coolidge Airbnbs made a monthly income of $871 to $4,126 with an occupancy rate of 51% to 85%. Because the city does not have any regulations on short-term rentals like Airbnbs, investors from other states can buy an Airbnb investment property in this area.

As of September 2021, the number of active listings in the Arizona real estate market was down 14.4% versus the same month last year. Monthly sales were also slightly lower by 1.8%. And the median sales price statewide was up 23.4% to $401,000. With the number of new listings starting to fall, you might face tougher competition in buying properties in the state. But because Coolidge has a lower median property price, you may not have to shell out a lot of money.

#17: Phoenix, OR

• Airbnb Cash on Cash Return: 8.03%
• Airbnb Income: $4,157
• Airbnb Daily Rate: $106
• Airbnb Occupancy Rate: 84%
• Median Property Price: $427,467
• Average Price per Square Foot: $239
• Days on Market: 68
• Walk Score: 70

Phoenix, Oregon is home to over 4,000 people and boasts a small-town atmosphere coupled with the beauty of Southern Oregon. Visitors can take a stroll downtown or try delicious wines while taking in outstanding views. Those who love the outdoors can always find a trail nearby or venture to the Rogue River. Tourists who are looking for an exciting experience or a relaxing retreat would love this town.

Phoenix Airbnbs have earned an average of $2,613 as short-term rental income in the last 12 months. Their occupancy rates ranged from 42% to 98%. While the town allows Airbnbs in the area, the state of Oregon requires short-term rental owners to collect and submit lodging taxes by filing revenue returns every quarter. The funds collected through this tax go toward the state’s tourism programs.

While there is no centralized data about the entire Oregon real estate market, looking at the Jackson County market tells investors what they need to know about Phoenix. As of September 2021, the median sale price in the county was $499,000, a 10.22% increase from the same period last year. Sales were the same as last year, and the number of active listings rose by 10.8%.

With the increase in price but stagnating demand, homes in this area might start lowering their prices soon or eventually enter a buyer’s market.

#18: McPherson, KS

• Airbnb Cash on Cash Return: 7.99%
• Airbnb Income: $1,940
• Airbnb Daily Rate: $100
• Airbnb Occupancy Rate: 60%
• Median Property Price: $141,280
• Average Price per Square Foot: $92
• Days on Market: 55
• Walk Score: 79

Located in the heart of Kansas, McPherson is a small city containing over 14,000 residents. It is known to welcome tourists visiting for one day, the entire weekend, or an extended stay. The town also hosts a number of statewide meetings and conventions.

Visitors can learn more about McPherson’s heritage at the McPherson Museum & Arts Foundation. Lovers of the arts could see performances at the McPherson Opera House. Meanwhile, the outdoorsy types will cherish their time at Maxwell Wildlife Refuge.

Over the past 12 months, McPherson Airbnbs made as much as $3,042 in one month. The occupancy rate ranged from 16% (due to COVID-19) to 80%. As of this writing, the city nor the county does not have any ordinance surrounding short-term rentals. Beginner investors who do not have a lot of capital can start their Airbnb business in a town like McPherson.

Home sales in the Kansas real estate market fell by 12.3% in October 2021 compared to the same month last year. Meanwhile, home prices continued to increase across the state. The average sale price in October was $265,700, a 9.9% increase from 2020. The median property price in McPherson is lower than this, so investors can afford to buy in cash to maximize their returns.

#19: Sapulpa, OK

• Airbnb Cash on Cash Return: 7.90%
• Airbnb Income: $2,266
• Airbnb Daily Rate: $122
• Airbnb Occupancy Rate: 71%
• Median Property Price: $494,528
• Average Price per Square Foot: $176
• Days on Market: 34
• Walk Score: 63

Known as the “Heart of the Historic Route 66,” Sapulpa has long been a host of tourists from around the world. Auto enthusiasts can visit the 1922 Waite Phillips Filling Station Museum to see vehicles from the 1920s. Nature lovers would want to head to the Pretty Water Lake for trout fishing and trekking the nearby Pretty Trail.

Over the past 12 months, Sapulpa Airbnbs have earned as much as $6,560 in one month and had a maximum occupancy rate of 95%. Because this town features a number of outdoor attractions and activities, more travelers will feel comfortable coming here for a quick getaway.

However, Sapulpa has enacted an ordinance wherein short-term rentals are only allowed in heavy residential districts. Putting up an Airbnb in light residential and agricultural areas will require approval from the city council.

The local real estate market of Sapulpa has homes for sale ranging from $64,900 to $2.5 million. The most often booked Airbnbs in the area are two-bedroom dwellings, which have an occupancy rate of 88%. Sapulpa homes have a median property price of $494,528, so you may have to put out a bigger down payment than you would in other cities on this list. Properties here were also sold for approximately the asking price as of October.

#20: Lambertville, NJ

• Airbnb Cash on Cash Return: 7.86%
• Airbnb Income: $8,047
• Airbnb Daily Rate: $304
• Airbnb Occupancy Rate: 75%
• Median Property Price: $618,700
• Average Price per Square Foot: $254
• Days on Market: 75
• Walk Score: 86

Lambertville is a quaint town that is home to over 3,000 residents. It features stunning views, historic architecture, boutiques, antique shops, delicious food, and more. Tourists can try being in two states at once by walking on the bridge that connects New Hope, PA to Lambertville. The Delaware Canal Towpath features a hiking and biking trail with gorgeous views. History buffs would love to visit James Wilson Marshall’s childhood home.

Over the past 12 months, Lambertville Airbnbs earned as much as $28,054 rental income in one month, with occupancy rates ranging from 40% to 98%. While this rental income is way higher than Airbnbs in other cities, note that only 5% of active listings earned this much. The average monthly income is $8,047. Since May 2021, New Jersey is once again allowing Airbnbs in the state.

Looking closely at the New Jersey real estate market, closed sales were down by 22.1% last October. It may be because of the 7.3% increase in sales prices and 30.3% lower inventory. Because of the high median property price, experienced investors who’ve saved up a lot of capital will be able to take on this expensive market and reap the high returns.

Conclusion

As you can see from our comprehensive analysis of the top Airbnb locations, the money is not just found in the big cities. The COVID-19 pandemic changed a lot about travel, such as the preferred destinations of travelers, and it includes where they will be booking Airbnbs. Nowadays, people are flocking to areas that are smaller and less crowded. It is why we focused our list on small cities. We think that the trend will continue into 2022.

If you want to do your own research without spending too much time in one city creating spreadsheets and calling agents, you can use Mashvisor for your analysis. Our platform lets you compare rental strategies between traditional and Airbnb, so you do not need to go elsewhere in case you find that Airbnb is not optimal in your preferred location. We also provide an Investment Property Calculator that lets you calculate your potential earnings based on certain variables.

To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.