(The Center Square) – A new study shows promising opportunities for short-term rental investors, and Illinois dominates the list.
AirDNA, a provider of short-term rental analytics, analyzed over 540,000 U.S. properties currently listed for sale, highlighting markets where investors can secure strong returns on short-term rental investments. It also introduces rankings by property price range, offering insights for investors across all budgets.
AirDNA Chief Economist Jaime Lane said Peoria grabbed the overall No. 1 spot in the country for its 15.3% gross yield.
“In general we see that hosts are doing better today than they were during the prior year and they are trending up, so that for us is a good indication that this is a market that could support further investment,” said Lane.
Airbnb listings in Peoria jumped 21% in 2024 compared to the prior year, and properties maintain a healthy 59% occupancy rate.
After Peoria, the top five cities for short-term rental investments are Fairbanks Alaska; Akron, Ohio; Columbus, Georgia; and Crescent City, California. Other Illinois cities to make the Top-25 include Rockford, which is ranked eighth overall, and Springfield, which came in at No. 14.
Rockford is making waves as one of the best short-term rental markets for strong returns and rapid growth. On top of a gross yield of 14%, Airbnb listings in Rockford have grown by 27.2% over the past year, indicating increasing demand and plenty of room for new investors to join this expanding market.
After seeing promising growth in previous years, the market hit a wall last year as new listings slowed significantly.
“As interest rates have really elevated and home values have increased over the few years, we have seen investments slow for short-term rentals in 2023 and 2024,” said Lane.
According to the company’s outlook, both occupancy rates and average daily rates are expected to rise in 2025, building on the stabilized performance seen in 2024.
“Investing in short-term rentals requires understanding not just market trends but where the strongest opportunities lie, and there are many” said Lane.
