17 of the Best Cities to Consider if You Want to Invest in Vacation Rentals

TIM THOMAS TIM THOMAS Learn more

Vacation rentals have never been stronger – last month, they rose a record 26% from the same time in 2019.

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While reports show that supply is continuing to grow to the demand, there is still plenty of room for more investors to move into the short-term rental space, especially if they take a creative approach to their property.

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However, these short-term rentals are very different from long-term rentals like apartments or single-family homes.

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According to data gathered by AirDNA, here are the 18 best cities to invest in vacation rentals to start your search.

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Invest in Vacation Rentals: 18 of the Best

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Castroville is a small agricultural town located a few miles west of Monterey Bay in southern California. This small city provides many attractions, such as the scenic view along the Monterey Peninsula or watching workers unload the day’s catch at Old Fisherman’s Wharf. The annual revenue potential is $133,934.

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Families interested in caverns and rock formations visit Lakehead, which is located in northern California. One of the main attractions is the Lake Shasta Caverns. Vacationers can also choose to do a boat ride or a bus tour. The annual revenue potential is $66,359.

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Manchester is located on the coast of northern California. Tourists can do various outdoor activities, like visiting Coast Lighthouse, whale watching outlooks, and Fort Ross State Historic Park. The annual revenue potential is $62,403.

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17 of the Best Cities to Consider if You Want to Invest in Vacation Rentals

Vacation rentals have never been stronger – last month, they rose a record 26% from the same time in 2019.

While reports show that supply is continuing to grow to the demand, there is still plenty of room for more investors to move into the short-term rental space, especially if they take a creative approach to their property.

However, these short-term rentals are very different from long-term rentals like apartments or single-family homes.

According to data gathered by AirDNA, here are the 18 best cities to invest in vacation rentals to start your search.

Invest in Vacation Rentals: 18 of the Best

1. Castroville, CA

Families interested in caverns and rock formations visit Lakehead, which is located in northern California. One of the main attractions is the Lake Shasta Caverns. Vacationers can also choose to do a boat ride or a bus tour. The annual revenue potential is $66,359.

2. Lakehead, CA

Manchester is located on the coast of northern California. Tourists can do various outdoor activities, like visiting Coast Lighthouse, whale watching outlooks, and Fort Ross State Historic Park. The annual revenue potential is $62,403.

3. Manchester, CA

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