10 Cities Offering the Best Gains on Vacation Rentals

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Those who enjoyed staying at a vacation rental this summer might be contemplating purchasing homes or properties to list as short-term rentals in 2024. But where might this investment really pay off?

To find out, Realtor.com examined the top U.S. markets where short-term vacation rentals have the greatest earning potential. While some of the cities mentioned are found in popular tourist-friendly destinations, others are cities where investors can utilize low home prices to earn a profit.

From the least to highest potential annual profit, these 10 cities offer hosts the best gains on vacation rentals.

10. State College, Pennsylvania

• Median home list price: $450,000
• Annual mortgage payment: $35,185
• Annual revenue potential: $95,778
• Potential annual profit: $60,593

9. Olean, New York

• Median home list price: $142,500
• Annual mortgage payment: $11,142
• Annual revenue potential: $72,371
• Potential annual profit: $61,229

8. Daphne, Alabama

• Median home list price: $525,000
• Annual mortgage payment: $41,049
• Annual revenue potential: $102,936
• Potential annual profit: $61,887

7. Cambridge, Maryland

• Median home list price: $275,000
• Annual mortgage payment: $21,502
• Annual revenue potential: $84,056
• Potential annual profit: $62,554

6. Kalamazoo, Michigan

• Median home list price: $325,000
• Annual mortgage payment: $25,411
• Annual revenue potential: $93,485
• Potential annual profit: $68,074

5. Georgetown, South Carolina

• Median home list price: $462,400
• Annual mortgage payment: $36,154
• Annual revenue potential: $106,438
• Potential annual profit: $70,284

4. Ellensburg, Washington

• Median home list price: $749,950
• Annual mortgage payment: $58,637
• Annual revenue potential: $139,070
• Potential annual profit: $80,433

3. Roanoke Rapids, North Carolina

• Median home list price: $214,000
• Annual mortgage payment: $16,732
• Annual revenue potential: $100,306
• Potential annual profit: $83,574

2. Kapaa, Hawaii

• Median home list price: $1,617,500
• Annual mortgage payment: $126,470
• Annual revenue potential: $214,023
• Potential annual profit: $87,553

1. Crestview, Florida

• Median home list price in August: $725,000
• Annual mortgage payment: $56,687
• Annual revenue potential: $147,997
• Potential annual profit: $91,310

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