Where should I invest in vacation rentals?” If you’re looking for the best Airbnb markets for cabins, apartments and beach homes, look no further than Sedona and Flagstaff.

DEEPER DIVE: Economic impact of short-term rentals in Arizona hits $6.6B

This is the most common question we hear from investors—and for good reason. But when and why should I invest are just as important. Because markets and traveler trends are always changing, which can lead to lots of inaccurate guesswork.

That’s why we’re digging into our database to help you understand which American investment markets currently have the greatest revenue potential. No bias. No anecdotal evidence. Just cold, hard data pulled straight from our Property Performance Dashboard (PPD). (Want to make your own list based on unique search criteria? It’s easy to do with the PPD. Get started with this free demo.)

We’re highlighting property types in this first edition of our new Ranked by AirDNA series. The following lists—ranked strictly by annual revenue potential—will help you expand your portfolio with confidence whether you’re interested in cabins, urban apartments, or large beach homes.

Methodology: For this list, we filtered for cabins with 1 to 5 bedrooms (and excluded 6+), at least 1 guest review, and a minimum 4.5 average rating. We also filtered for markets with at least 50 listings.

When you picture an Airbnb or Vrbo property, the first image that pops into your mind is most likely a rustic A-frame cabin in the mountains. Cabins are not only quintessential vacation rental property types, but mountain locations (where cabins are most often found, particularly in the Mountain West) have seen up to 15% demand growth in recent months.

Based on annual revenue potential, our data shows the Provo/Orem area of Utah (40 miles south of Salt Lake City) is currently the hottest market for cabin investments. Not surprisingly, locations in Montana (2), Arizona (2), Washington (2), and Colorado (4) make multiple appearances on best Airbnb markets for cabins list.

Methodology: For the next list, we filtered for apartments with 1 to 2 bedrooms (including studio units), at least 1 guest review, and a minimum 4.5 average rating. We also only considered mid-sized city, large urban, and large suburban properties in markets with at least 50 listings.

Urban locations were hit hardest by the COVID-19 pandemic but have been steadily recovering over the last two years. For example, YOY urban listing growth was approximately 10% in early 2022 compared to 30% in early 2023.

Urban apartments are also flexible investments and can often be used as short-term or long-term rentals. They’re often less expensive to clean and maintain, too.