2022’s Best Cities to Own a Vacation Rental
Have a spare room, mother-in-law suite, or entire home you’re not using? With short-term rental marketplaces like Airbnb and Vrbo, you could earn an average of $44,235 per year as a host.
But as with all real estate investments, your income potential depends heavily on where you buy your vacation property.
To help you find the right location for your future BnB, LawnStarter ranked 2022’s Best Cities to Own a Vacation Rental.
They compared nearly 190 of the biggest U.S. cities based on revenue potential, initial investment costs, and average expenses. They also factored in entertainment options for guests, public safety, and climate.
Check out the top 10 (and worst 10) cities to invest in a vacation rental below, followed by key insights from our report. (Click here to see where your city ranks.)
| Best Cities to Own a Vacation Rental | |
| Rank | City |
| 1 | Miami, FL |
| 2 | New York, NY |
| 3 | New Orleans, LA |
| 4 | Cincinnati, OH |
| 5 | Las Vegas, NV |
| 6 | Dayton, OH |
| 7 | Tampa, FL |
| 8 | Knoxville, TN |
| 9 | Orlando, FL |
| 10 | Augusta, GA |
| Worst Cities to Own a Vacation Rental | |
| Rank | City |
| 1 | Fremont, CA |
| 2 | Sunnyvale, CA |
| 3 | San Jose, CA |
| 4 | Santa Clarita, CA |
| 5 | Naperville, IL |
| 6 | Huntington Beach, CA |
| 7 | Irvine, CA |
| 8 | Hayward, CA |
| 9 | Bellevue, WA |
| 10 | Frisco, TX |
Highlights and Lowlights:
- Southern Hospitality: The South isn’t just welcoming toward visitors — it’s also inviting to real estate investors. Miami tops our list, eclipsing New York by a mere 0.2 points, while New Orleans (No. 3) and Orlando, Florida (No. 9), fill the other two prime spots. Miami and New Orleans promise the highest ROI, but Orlando requires significantly lower upfront capital.
Tampa, Florida (No. 7), Knoxville, Tennessee (No. 8), and Augusta, Georgia (No. 10), are the other top finishers from the South. Although they aren’t your typical vacation hotspots, nightly rates are competitive here.
- California in the Red: The Golden State dominates the bottom 10 of their ranking, claiming seven out of the 10 worst spots. Surprisingly, they’re all suburbs, such as Fremont in last place, Huntington Beach at No. 6, and Hayward in the eighth.
Skyscraping property price tags and monthly expenses, combined with generally low average revenue, means little to no actual income. Further dragging down these fringe cities are the lack of amusement options. If you want to host a rental in California, stay in Los Angeles (No. 24).
- Coastal Cha-Ching: Their data shows a strong correlation between high revenue potential and a coastal — or, in Honolulu’s case, island — location. Invest in a property within Miami, Boston, New Orleans, and Los Angeles, and you’ll be guaranteed to see the money roll in.
A few inland exceptions stand out in Revenue Potential: Country music capital Nashville, Tennessee, Cincinnati, and Dayton, Ohio. However, look toward smaller cities if you want to maximize bookings. Occupancy rates are highest in cities like Garland, Texas; Vancouver, Washington; Pembroke Pines, Florida; and Overland Park, Kansas.
