Best Places to Buy Rental Property in 2026
The 10 US markets we'd put first-time short-term-rental capital into right now — ranked by average daily rate (ADR), occupancy, cash-on-cash return, and how friendly each market is to STR operators in 2026.
The best places to buy rental property in 2026 combine year-round demand, STR-friendly regulation, and entry prices under $550K. Our top three are Gatlinburg / Pigeon Forge, TN, Panama City Beach, FL, and Broken Bow, OK. Each delivers 10%+ cash-on-cash returns on a properly positioned property.
The 10 best STR markets for 2026
Revenue, ADR, and occupancy figures below reflect a well-furnished 3-bed property in the top 30% of its market — not the market average. Numbers are our internal estimates blended from AirDNA, Rabbu, and on-the-ground operators.
| # | Market | ADR | Occupancy | Annual Revenue | Median Price | CoC Return | Regulation |
|---|---|---|---|---|---|---|---|
| 1 | Gatlinburg / Pigeon Forge, TN | $285 | 62% | $64K | $510K | 11–14% | Friendly |
| 2 | Panama City Beach, FL | $245 | 58% | $52K | $420K | 10–13% | Friendly |
| 3 | Broken Bow, OK | $310 | 55% | $58K | $365K | 12–15% | Friendly |
| 4 | Scottsdale, AZ | $395 | 60% | $86K | $830K | 7–10% | Moderate |
| 5 | Myrtle Beach, SC | $215 | 57% | $45K | $310K | 10–12% | Friendly |
| 6 | Hot Springs, AR | $195 | 54% | $38K | $280K | 11–13% | Friendly |
| 7 | Asheville, NC | $255 | 61% | $57K | $520K | 8–11% | Strict |
| 8 | San Antonio, TX | $180 | 63% | $41K | $295K | 10–12% | Moderate |
| 9 | Joshua Tree, CA | $295 | 53% | $55K | $465K | 8–10% | Moderate |
| 10 | Wisconsin Dells, WI | $240 | 52% | $43K | $340K | 10–12% | Friendly |
Why each market made the list
01.Gatlinburg / Pigeon Forge, TN
Year-round Smoky Mountains demand, no state income tax, and a mature cabin-rental market with reliable cleaning and management infrastructure.
02.Panama City Beach, FL
Beachfront condo inventory at lower entry prices than most FL coasts, strong spring/summer ADR, and broadly STR-friendly county rules.
03.Broken Bow, OK
Cabin-driven leisure market within a 3-hour drive of DFW and OKC. Low cost of entry and underbuilt for current demand.
04.Scottsdale, AZ
Premier winter market, strong corporate + golf demand, state-preempted STR rules. Higher entry price but premium ADRs.
05.Myrtle Beach, SC
Lowest entry price on this list with proven beach demand. Good for first-time STR investors looking for a turnkey condo.
06.Hot Springs, AR
Lake + spa-town demand, very low acquisition cost, and limited new STR supply.
07.Asheville, NC
Strong year-round demand but city-limit STRs are capped — buy in unincorporated Buncombe or surrounding counties.
08.San Antonio, TX
Best Texas metro for STR + MTR. Strong corporate and medical demand makes mid-term rental a natural Plan B.
09.Joshua Tree, CA
Design-forward desert market with strong LA weekend demand. Permit caps make existing permitted homes more valuable.
10.Wisconsin Dells, WI
Family-trip waterpark market with very seasonal but high-margin summer demand. Low competition from institutional buyers.
How we scored each market
- Demand durability — markets with at least two distinct demand drivers (e.g. leisure + corporate, beach + events) so a single off-season doesn't wipe out the year.
- Yield — projected cash-on-cash return at 25% down on a furnished 3-bed property, after management, cleaning, and platform fees.
- Regulation — current STR rules at the city/county level and the political stability of those rules.
- Entry price — all-in capital under ~$150K on a $400–$500K property. Markets requiring $1M+ to play were excluded even when the yield was strong.
- Operating maturity — availability of cleaners, handymen, photographers, and co-hosts. Underserved operating markets are riskier even when ADRs look great.
FAQ
What makes a city a good place to buy a rental property?
Four things, in order: (1) demand that isn't tied to a single event or season, (2) ADR and occupancy that produce gross yields above your debt service, (3) STR-friendly or at least stable regulations, and (4) acquisition prices that leave room for cashflow, not just appreciation.
Short-term rental vs long-term rental — which is more profitable?
Short-term rentals typically gross 2–3x the revenue of a comparable long-term rental, but with higher operating costs (cleaning, supplies, software, management). Net cash-on-cash returns on a well-positioned STR usually land between 8–15% versus 4–7% for long-term rentals.
How much money do I need to buy a rental property?
Plan for 20–25% down on an investment loan, plus 8–15% of purchase price for furnishing, setup, photography, and reserves. On a $400K property that's roughly $110–$150K all-in before listing.
Are STR regulations a deal-breaker?
Not always. Regulation usually limits supply, which protects ADRs for owners who hold permitted properties. The risk is buying somewhere a ban is actively being debated. Verify rules at the city, county, and HOA level before closing.
Ready to skip the research?
We pre-vet properties in these exact markets and list them in the SheBNB Collective marketplace — turnkey, arbitrage-approved, and new-market opportunities, ready to launch.