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Discover the Best Hidden Gem Airbnb Locations for Your Next Investment

When it comes to Airbnb investments, some U.S. cities are no-brainers—think Phoenix, Nashville, Denver, or Tampa. But what about the lesser-known markets? Hidden gem Airbnb locations offer a golden opportunity for vacation rental investors seeking affordable, less competitive, yet highly profitable markets.

At Marbella Lane, we’ve analyzed Airbnb and Vrbo data across the U.S. to uncover the top under-the-radar locations ideal for savvy investors. These small submarkets, each with 400 to 1,000 listings, boast impressive yields and show positive growth in both revenue and listings. Even better, fewer than 25% of properties in these areas are professionally managed, meaning there’s room for growth and a distinct advantage for new investors.

Top 10 Hidden Gem Airbnb Locations for Investors

Here are the best hidden gem Airbnb locations, ranked by yield:

  1. Peoria, Illinois

Peoria, located along the Illinois River, is becoming a Midwest hotspot for Airbnb investors. With home values well below the national average, this affordable market offers consistent demand from families and business travelers. Peoria’s stable occupancy and impressive yield of 22.6% make it an excellent choice for vacation rental investment.

  1. Castle Rock Lake, Wisconsin

Nestled in the heart of Wisconsin, Castle Rock Lake’s stunning lakeside views and outdoor activities attract families and nature lovers. With high average daily rates and rising revenues, this hidden gem promises strong returns for investors looking to capitalize on its scenic charm.

  1. Shreveport, Louisiana

Shreveport is known for its rich cultural heritage, music scene, and riverboat casinos. This northern Louisiana city combines affordable home prices with steady occupancy, creating a lucrative market for short-term rentals. Its diverse tourist attractions ensure consistent demand throughout the year.

  1. Binghamton, New York

Binghamton, known for its historical charm and natural beauty, offers affordable investment opportunities. Its occupancy rates reflect a healthy mix of leisure and family travelers, while its yield of 16.7% makes it a standout in the Northeast.

  1. Harrisburg / Hershey, Pennsylvania

Harrisburg’s blend of government and tourism and its proximity to Hersheypark make this submarket a prime destination for families and professionals. With high nightly rates and year-round demand, Harrisburg/Hershey is an ideal market for investors seeking steady returns.

  1. Lansing / East Lansing, Michigan

The twin cities of Lansing and East Lansing offer a stable rental market, driven by Michigan State University and state government activity. With affordable home prices and a consistent stream of university and government visitors, properties here enjoy reliable occupancy and solid returns.

  1. Toledo, Ohio

Toledo, with its rich industrial history and cultural offerings, is an emerging market for short-term rentals. Its attractive home values and stable demand make it a solid choice for investors looking to tap into Ohio’s hidden potential.

  1. Harpers Ferry, West Virginia

Steeped in history and surrounded by natural beauty, Harpers Ferry attracts history buffs and outdoor enthusiasts. Its scenic landscape and rich heritage ensure a steady flow of visitors, making it an ideal investment destination for those seeking a unique location.

  1. Port Clinton, Ohio

With its picturesque waterfront and proximity to islands like Put-in-Bay, Port Clinton thrives during the summer months. Its high average daily rate and strong annual revenue make this lakeside gem a fantastic opportunity for vacation rental investors.

  1. Juneau, Alaska

As Alaska’s capital, Juneau draws adventurers and cruise ship travelers from around the world. Its unmatched natural beauty and high occupancy rates make it a profitable market, especially during the busy summer tourist season.

Opportunities Beyond the Top 10

While these hidden gems represent the best yields, other growing markets also deserve attention. Locations like Stillwater, Oklahoma, and Possum Kingdom Lake, Texas, are seeing rapid growth in listings, signaling increasing interest from travelers and investors alike.

Why Invest in Hidden Gem Airbnb Markets?

These emerging markets provide a lower barrier to entry, less competition, and the potential for strong returns. With affordable home values and growing demand, investors have a unique opportunity to tap into rising markets before they become saturated.

At Marbella Lane, we’re here to help investors discover the best Airbnb markets and make smart investment choices. Ready to explore these hidden gem opportunities? Contact us today to learn more about how we can help you succeed in the short-term rental market.

Seize the Opportunity!

The growth in Airbnb listings in these hidden gems is accelerating, but they won’t remain hidden for long. Whether you’re a seasoned investor or just getting started, now is the time to act and secure your spot in these up-and-coming markets.

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