In 2026, places like Myrtle Beach, Florida, and Gatlinburg are emerging as strong short-term rental markets. The trend is moving away from expensive beach destinations and toward more affordable, mid-sized cities where buyers can still find better value.
The best STR market isn't always the one with the highest nightly rate. Often, it is the market where the purchase price. It is also where occupancy and local demand work well together.
Myrtle Beach, South Carolina
Myrtle Beach is already a crowded vacation-rental market, but the numbers explain why investors still look here.
In August 2026, Myrtle Beach homes for sale averaged roughly $262,000, down 6.3% from a year earlier. So investors aren't necessarily paying luxury beach-town prices to enter a market with an established flow of vacationers.
There is plenty of competition, of course. But buyers who find the right property at the right price can still get a reasonable balance. Mainly, this place is between purchase cost and rental potential in Myrtle Beach.
Orlando, Florida
Orlando welcomed a record 76.7 million visitors in 2025, and that constant flow of tourists gives short-term rentals a much steadier demand base than many seasonal destinations.
By August 2026, Orlando STRs were averaging about 61% occupancy and roughly $48,600 in annual revenue. Those numbers are more meaningful when you put them next to the cost of buying.
So the appeal is not just that Orlando gets a lot of visitors. It is that buyers can still enter a major tourism market at a more manageable price than many high-end vacation.
Gatlinburg, Tennessee
Gatlinburg costs more to enter than many smaller STR markets. But the rental income can also be much stronger.
The average short-term rental was earning about $66,500 a year, with 57% occupancy and an average nightly rate of $342. Against a median home price of roughly $475,000, that starts to explain why investors are still willing to pay more here.
You are buying into one of the country’s best-known mountain tourism markets. So while the upfront cost is higher, the income potential can help justify it.
What to Check Before Buying a Short-Term Rental?
A property can look perfect on Airbnb and still be a poor investment. Before buying, I would look at the numbers first, then the location.
Local STR rules
Real occupancy
Seasonality
Operating costs
Guest demand
Choose the Market Based on Your Investment Strategy
Not every strong STR market is right for every investor. Some buyers want higher cash flow, even if the market is seasonal. Others care more about lower purchase prices, long-term appreciation or year-round occupancy.
A simple way to think about it:
For stronger tourism demand: look at places like Gatlinburg or Orlando.
For a lower entry price: focus on smaller or mid-sized markets.
For steadier bookings: choose cities with business travel, hospitals, universities or major attractions.
For appreciation: look at markets where population and job growth are still strong.
The best market matches your goal, budget and risk level. A property that works well for one investor may not make sense for another.
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