Top 10 Types of Locations for Airbnb Properties in 2025

Kara Mangalisan • April 28, 2025

Investing in Airbnb properties remains a lucrative opportunity for real estate investors seeking passive income through short-term rentals. However, success in this market heavily depends on one critical factor: location. Not all areas offer the same potential for consistent rental income and high occupancy rates.
In this comprehensive guide, we'll explore the top 10 types of locations that consistently deliver strong returns for Airbnb investors in 2025. Whether you're a first-time investor or looking to expand your short-term rental portfolio, understanding these high-performing location types will help you make informed investment decisions that maximize your rental income potential and minimize seasonal fluctuations.

How We Selected the Top Airbnb Location Types
Identifying the most profitable locations for Airbnb investments involves analyzing several key factors that directly impact rental performance and return on investment:
Year-round demand: Locations with consistent booking demand across all seasons.

Average Daily Rate (ADR): Areas commanding higher nightly rates relative to property values.
Occupancy rates: Markets with consistently high occupancy percentages (65%+).
Regulatory environment: Areas with stable and favorable short-term rental regulations
Growth potential: Markets showing positive trends in tourism and visitor numbers.
Operational costs: Consideration of property management fees, taxes, and maintenance costs.
Capitalization rate (Cap rate) potential: Locations offering attractive cap rates for investors.

Our analysis draws on comprehensive market data, including AirDNA and Mashvisor analytics, industry reports, investor experiences, and tourism trend forecasts for 2025. Rather than focusing on specific cities—which can quickly change in desirability—we've identified types of locations that consistently demonstrate strong Airbnb performance regardless of geographic region.

1. University and College Towns

University towns offer Airbnb investors a unique combination of consistent demand drivers and strong rental performance.

  • Primary demand sources: Visiting parents, prospective students, alumni attending events, and graduation ceremonies.

  • Peak seasons: Academic year commencements and conclusions, homecoming weekends, and commencement ceremonies.

  • Target demographics: Parents, alumni, visiting professors, and conference attendees.

These markets benefit from predictable, calendar-driven demand that creates reliable booking patterns throughout the academic year. Properties located within walking distance to campus command premium rates during key university events, while still maintaining solid occupancy during summer months from visiting faculty and conference attendees.

Investors should focus on properties with multiple bedrooms to accommodate families during peak visitation periods. Look for established universities with substantial student populations and strong athletic programs, as these tend to generate more consistent visitor traffic. While purchase prices may be higher near prestigious institutions, the premium rates and consistent occupancy typically justify the investment.


2. Medical Hubs and Hospital Districts

Areas surrounding major medical centers provide Airbnb investors with remarkably stable demand regardless of broader economic conditions or tourism trends.

  • Primary demand sources: Patients seeking specialized treatment, family members of patients, and medical professionals attending conferences or on temporary assignments.

  • Key property features: Accessibility, proximity to hospitals, and comfortable amenities suitable for extended stays.

  • Competitive advantage: Clean, quiet accommodations specifically marketed to medical visitors.

Medical tourism continues to grow, with patients traveling domestically and internationally for specialized care. Families often require nearby lodging for extended periods, creating a steady stream of potential guests. Additionally, medical conferences and training programs attract healthcare professionals who prefer the comfort and convenience of short-term rentals over traditional hotels.

Investors should prioritize properties that offer a serene environment, easy accessibility, and amenities that cater to guests who may be dealing with health-related stress. Proximity to public transportation and hospital facilities is crucial. It's also important to understand local regulations regarding short-term rentals near medical districts, as some areas may have specific zoning laws.


3. Convention Centers and Business Districts

Properties located near convention centers and central business districts (CBDs) tap into the lucrative market of business travelers and event attendees.

  • Primary demand sources: Conference attendees, corporate travelers, and exhibitors.

  • Peak seasons: Major industry conferences, trade shows, and corporate events.

  • Target demographics: Business professionals, entrepreneurs, and corporate teams.

Business travelers often seek accommodations that offer the comforts of home, such as full kitchens and living spaces, providing a more relaxed environment than standard hotel rooms. Properties that cater to this demographic can achieve higher occupancy rates and command premium pricing during large events.

Investors should consider properties with dedicated workspaces, high-speed internet, and proximity to dining and entertainment options suitable for business travelers. Understanding the event calendar of nearby convention centers can help anticipate demand surges. Additionally, maintaining flexible check-in and check-out policies can accommodate the varied schedules of business guests.


4. National Parks and Natural Attractions

Proximity to national parks and natural attractions offers Airbnb investors access to a market driven by eco-tourism and outdoor enthusiasts.

  • Primary demand sources: Hikers, campers, nature lovers, and adventure seekers.

  • Peak seasons: Spring through fall, with variations depending on the specific climate and activities available.

  • Target demographics: Families, solo travelers, and groups seeking outdoor experiences.

Properties near natural attractions benefit from travelers looking to immerse themselves in nature without sacrificing comfort. Offering amenities like outdoor fire pits, gear storage, and information on local trails can enhance guest experiences.

Investors should be mindful of environmental regulations and conservation efforts that may impact property development and operations. Collaborating with local eco-tourism initiatives can also boost property appeal.


5. Wedding Destinations

Popular wedding destinations present a unique opportunity for Airbnb investors to cater to wedding parties, guests, and honeymooners.

  • Primary demand sources: Wedding parties, guests, and couples on honeymoons.

  • Peak seasons: Varies by location but often aligns with favorable weather conditions and popular wedding months.

  • Target demographics: Families, friends, and couples attending or hosting weddings.

These locations often experience consistent demand due to the year-round nature of wedding events. Properties that can accommodate larger groups or offer romantic settings are particularly desirable.

Investors should consider properties with multiple bedrooms, ample communal spaces, and picturesque surroundings. Proximity to popular wedding venues and local attractions can further enhance appeal. Collaborating with local wedding planners and venues can also provide a steady stream of referrals.


6. Lakefront Locations

Lakefront properties attract guests seeking relaxation, water activities, and scenic views.

  • Primary demand sources: Vacationing families, couples, and groups of friends.

  • Peak seasons: Summer months and holiday weekends.

  • Target demographics: Water sports enthusiasts, nature lovers, and those seeking a peaceful retreat.

The allure of staying by the water draws consistent interest, especially during warmer months. Properties offering private docks, boats, or equipment for water activities can command higher rental rates.

Investors should focus on properties with unobstructed lake views, easy water access, and outdoor amenities like decks or fire pits. Understanding local regulations regarding water usage and property modifications is essential.


7. Ski Resort Towns

Ski resort towns offer seasonal demand during winter months, attracting snow sports enthusiasts.

  • Primary demand sources: Skiers, snowboarders, and winter vacationers.

  • Peak seasons: Winter months, typically December through March.

  • Target demographics: Families, groups of friends, and solo travelers seeking winter sports experiences.

While demand is seasonal, the high nightly rates during peak season can result in substantial annual income. Off-season opportunities may exist for hiking and mountain biking enthusiasts.

Investors should consider properties with amenities like fireplaces, hot tubs, and proximity to ski lifts. Understanding the seasonality and planning for off-

8. Technology and Innovation Hubs

Cities and regions with concentrated technology sectors generate strong Airbnb demand from a mix of business travelers, contractors, and relocating professionals.

  • Demand drivers: Corporate travel, tech conferences, relocation exploration trips
  • Guest demographics: Technology professionals, entrepreneurs, venture capitalists
  • Property preferences: Modern, tech-friendly spaces with excellent connectivity

Tech hubs benefit from multiple demand sources throughout the year, including contract workers on extended assignments, professionals visiting for conferences or meetings, and potential residents exploring the area before relocating. These markets typically command higher nightly rates and attract guests who frequently travel for business.

Properties in these markets perform best when designed with the tech-savvy traveler in mind – offering high-speed internet, smart home features, convenient workspaces, and modern aesthetic. Locations within reasonable commuting distance to major tech campuses or innovation districts are ideal. While purchase prices in established tech hubs can be high, the premium rates these properties command, combined with more consistent year-round demand, create attractive returns for investors who can manage higher initial acquisition costs.


9. Cultural and Historical Centers

Areas with rich cultural heritage and historical significance attract a diverse mix of travelers seeking authentic experiences throughout the year.

  • Appeal factors: Historical architecture, cultural institutions, authentic local experiences
  • Target demographics: Cultural travelers, international tourists, educational groups
  • Competitive edge: Properties with historical features or cultural significance

Cultural and historical centers benefit from diverse visitor profiles and motivations, creating more balanced demand across seasons and economic cycles. International tourism to these areas tends to be less affected by domestic economic fluctuations, providing additional stability.

Properties in historic districts or with architectural significance typically command premium rates, particularly when period details are preserved and highlighted. While renovation and maintenance costs can be higher for historic properties, these investments are typically offset by the ability to charge higher nightly rates. Success in these markets often comes from storytelling – sharing the history of the property or neighborhood as part of the marketing approach. Investors should research local historic preservation requirements and incentives, as these can significantly impact renovation costs and timelines.


10. Transportation Hubs and Gateway Cities

Strategic locations that serve as entry points or connection nodes to broader regions offer Airbnb investors steady demand from travelers in transit.

  • Key locations: Major airport cities, cruise ports, train hubs, regional entry points
  • Demand patterns: Consistent need for short stays before/after longer trips
  • Ideal property types: Efficient units with easy transportation access

These areas benefit from consistent demand for 1-2 night stays from travelers arriving late, departing early, or breaking up longer journeys. Unlike pure vacation destinations, transportation hubs see relatively steady booking patterns throughout the year, with slight increases during peak travel seasons.

Properties performing best in these markets are typically smaller units (studios, 1-bedrooms) located within 15-20 minutes of major transportation centers, offering convenient and comfortable accommodations for brief stays. While nightly rates may be lower than in prime tourist areas, the consistent occupancy and shorter average stays (requiring less intensive cleaning and preparation) often result in strong overall returns. Investors should prioritize locations with easy access to transportation centers while avoiding immediate airport surroundings that may suffer from noise or safety concerns.










The Bottom Line



The most successful Airbnb investors in 2025 are diversifying their portfolios across different location types to create more resilient income streams. Rather than concentrating entirely in one market category, consider building a portfolio that includes properties from complementary location types – perhaps combining a university town property with one in a four-season recreational area to balance out seasonal fluctuations.

When evaluating specific properties within these high-performing location categories, prioritize:

  • Proximity to primary demand drivers (within walking distance when possible)
  • Unique selling points that distinguish your property from local competition
  • Potential for year-round appeal rather than single-season performance
  • Favorable local regulations with stable short-term rental policies
  • Growth indicators such as infrastructure development and increasing visitor numbers

Remember that successful Airbnb investing requires both selecting the right location type and executing effectively on property management, pricing strategy, and guest experience. The highest returns typically come from properties that not only benefit from strong location fundamentals but also deliver exceptional guest experiences that generate positive reviews and repeat bookings.


Here at The STR Report, we break down complex data and trends into actionable advice for short-term rental hosts, operators, and investors. Whether you're trying to optimize your first listing or scale a portfolio, we've got your back.

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