Top three short-term rental markets expected in 2024: Report

The short-term rental market has come into focus following Airbnb's (ABNB) latest earnings results highlighting growth opportunities beyond homeowners just listing properties. According to data from AirDNA, the top markets for short-term rentals in 2024 are: Columbus, Georgia; Ellsworth, Maine; and Logan, Ohio.

Yahoo Finance Housing Reporter Dani Romero breaks down the details.

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Editor's note: This article was written by Angel Smith

Video transcript

AKIKO FUJITA: While Airbnb's recent earnings reports indicates a moderation in demand, the opportunity to jump into the short-term rental market hasn't necessarily run its course.

To take a look at the top best places to invest in short-term rentals, let's bring in our very own Dani Romero, who has a breakdown. Dani, we should point out Airbnb likes to say that it isn't always about users on their platform who are just trying to cash in on homes that they buy just to rent out, but there is still a lot of opportunity for additional income here.

DANI ROMERO: Yeah. Most of these investors that are on the Airbnb platform are also investors that have multiple listings. They're looking for other forms of income, whether that's for their retirement.

But back to this study from AirDNA, this is the year of the short-term rentals. And what's really interesting from this AirDNA report is that it doesn't list the popular pandemic boomtowns like Austin, Texas, Boise, Idaho, or even Phoenix, Arizona, which is a really telling sign that there's opportunity elsewhere.

Well, let's take a look at the top three areas. At number one, we have Columbus, Georgia. A town known for the longest whitewater course. AirDNA estimates a robust demand. The average daily rate is $178. And investors could gain about $29,000 in revenue.

Now, the city does require permits for short-term rentals and certificate of occupancy. Second on the list is Ellsworth, Maine. The biggest advantage here is how close it is to Acadia National Park.

It's a park that has scenic hikes and views-- views, excuse me. AirDNA estimates the average daily rate for this area to be $335. And investors could gain $41,000 in revenue.

Lastly is Logan, Ohio. And the case there is to be made is that visitors can come and visit the area for the rugged valleys that it offers AirDNA estimates that the average daily rate is $343. And investors could earn up to $57,000 in revenue.

But it's important to note that Logan has strict zoning regulations and requires registration and licensing fees. Bottom line, as an investor and a visitor, do your research before going out to that area. Akiko?

AKIKO FUJITA: $57,000 in revenue. It's not bad. Not a bad return there. Dani Romero, thanks so much for breaking that down.