Where to Invest in Vacation Rentals in 2026: High Returns & Year-Round Demand

The Vacation Rental Market Shift: 2025–2026 Trends

The vacation rental landscape is changing. While glamorous, coastal hotspots dominated past years, 2025–2026 is all about high-yield mid-sized cities and consistent regional hubs. Investors are finding that lower entry prices paired with steady demand often outperform flashy, saturated destinations.

 

Whether you’re looking for strong annual income, year-round occupancy, or emerging markets with growth potential, knowing where to invest can make all the difference. Here’s a breakdown of the hottest vacation rental markets heading into 2026.

1. Top High-Yield Investment Markets (2026 Projections)

Data from AirDNA’s 2026 Outlook highlights cities offering yields of 12%+, driven by low property prices and consistent demand from business travelers, military personnel, and regional tourism:

  • Port Arthur & Abilene, TX – Yields as high as 14–16%. Demand comes from major energy projects, Dyess AFB, and “bleisure” travel.

  • Charleston, WV – Low buy-in price (~$228,000) with a 14.1% yield, making it an attractive option for investors.

  • Springfield, IL – Recognized by Lodgify for its 8.02% cap rate and stable government-related rental demand.

  • Akron, OH & Peoria, IL – High occupancy thanks to healthcare and university travel, with low entry costs for new investors.

For those seeking strong ROI without the premium price tag, these high-yield markets are worth exploring.

2. Top “Traditional” Vacation Markets (2025 Rankings)

If your goal is established vacation rental destinations, Vacasa’s 2025 report ranks markets based on capitalization rate (net income vs. home price):

  • North Myrtle Beach, SC – #1 for 2025 due to strong annual revenue and irresistible beach appeal.

  • Dauphin Island, AL – A small-town coastal gem with strong seasonal performance.

  • Gatlinburg/Pigeon Forge, TN – Year-round mountain market near the Great Smoky Mountains.

  • Hatteras Island & North Topsail Beach, NC – Emerging coastal options offering higher ROI than Florida’s crowded markets.

These destinations provide a balance of predictable revenue and lifestyle appeal.

3. Year-Round & Emerging “Goldilocks” Markets

Some investors prioritize steady occupancy over seasonal peaks, seeking consistent cash flow without the winter slump:

  • Year-Round Stability: Oahu, HI and Lafayette, LA maintain nearly flat occupancy curves, ensuring steady rental income throughout the year.

  • Emerging Hubs: Winter Haven, FL (near Legoland) and Davenport, FL (near Disney) are “goldilocks” markets with strong demand growth and affordable housing.

Investor Tip: Steer clear of markets with heavy regulations like New York, San Francisco, and Nashville. Higher entry prices and stricter short-term rental laws can reduce overall ROI.

Why Partner with Local Experts Matters

Investing in vacation rentals, especially in the Lakes and Mountains region of Upstate South Carolina, requires a trusted local partner. That’s where Robert Whitesides with Agent Group Realty and The Go-To Group (Emma, Matt, Courtney) come in.

We specialize in:

  • Lakefront and mountain properties ideal for vacation rentals

  • Market analysis to maximize ROI

  • Handling the complexities of property management and local regulations

  • Guiding buyers through the purchase process from start to finish

Whether you’re looking for a high-yield city investment or a charming mountain retreat, we can help you find the property that fits your goals.

Ready to Invest in Your Next Vacation Rental?

The 2025–2026 markets present a range of opportunities—from high-yield mid-sized cities to traditional beach towns and year-round “goldilocks” hubs.

If you’re considering real estate investment in South Carolina or beyond, connect with Robert Whitesides and The Go-To Group. We’ll help you identify the best properties, analyze projected returns, and navigate local regulations so your vacation rental investment is profitable and stress-free.

📞 Contact us today to explore vacation rental opportunities in the Lakes & Mountains region of Upstate SC. Your next investment is waiting.