AirDNA's latest rankings reveal the best US cities for investing in short-term rentals, highlighting that smaller cities often outperform larger tourist hotspots. Factors such as occupancy rates, revenue growth, and home prices were evaluated, indicating that markets thrive when regional tourism meets demand for temporary housing. Notable cities like Frankfort, Kentucky, known for its bourbon tourism, and Fairbanks, Alaska, exemplify this trend as they show significant potential for rental investments due to seasonal attractions and housing needs for workers.
The markets that do best have a mix of regional tourism and populations reliant on temporary housing, like traveling nurses or graduate students.
While it seems like a small city, Frankfort is in the middle of a massive tourism industry driven by the Kentucky Bourbon Trail.
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