The Sun Belt, spanning the southern portion of the United States, is known for its warm climate, diverse culture, and booming economic growth. This region, which includes 18 states like Alabama, Oklahoma, Florida, Tennessee, California, Louisiana, and Texas, offers a wealth of opportunities for short-term rental investors. With cities that boast unique attractions, historical landmarks, and vibrant communities, the Sun Belt is a hot spot for travelers seeking both leisure and adventure.
As we dive into the best Airbnb rental markets in the Sun Belt, we’ll explore data collected until March 2025 to highlight the top destinations sorted by gross yield. These markets combine strong investment potential with appealing tourist experiences. Our latest tool, Chalet Intel, provides comprehensive insights and strategies tailored to investors at all experience levels. It includes a calculator, regulation overview, and much more for each market discussed. Links will be provided for each market, allowing you to conduct a more detailed analysis on your own.
1. Birmingham, Alabama
Birmingham, AL, is rich in history and culture, with attractions like the Birmingham Civil Rights Institute and the Alabama Jazz Hall of Fame drawing numerous visitors each year.
Birmingham has experienced a slight decrease in home values by -4.90%, with the average home price now at $126,949. Despite this, the city maintains a competitive edge with an average daily rate (ADR) of $122.00 and an occupancy rate of 57%, leading to an annual revenue of $24,994 from 1,335 active listings. The average gross yield is an impressive 16.41%, complemented by a cap rate of 9.85%.
For further details on this market, explore the free Birmingham Airbnb Investor Guide and Birmingham Rental Regulations.
2. Broken Bow, Oklahoma
Known for its outdoor activities and beautiful landscapes, Broken Bow, OK, is a favorite among nature enthusiasts, offering attractions like Beavers Bend State Park and Broken Bow Lake.
Broken Bow has seen a modest decline in home values by -1.70%, with the average home price at $296,750. This market shows promise with an ADR of $315.00 and an occupancy rate of 42%, generating annual revenues of $55,324 from 3,423 active rentals. The gross yield here stands at 15.54%, with a cap rate of 9.32%.
Discover more about investing in Broken Bow through Chalet Intel. It includes a calculator, regulation overview, and much more.
3. Savannah, Georgia
Savannah, GA, boasts historic districts, beautiful parks, and a vibrant arts scene. Highlights include Forsyth Park, River Street, and numerous historic homes and museums.
Savannah has seen a notable increase in home values by 10.50%, with the average price reaching $307,925. With an ADR of $216.00 and an occupancy rate of 67%, the annual revenue is $57,045 from 3,217 active rentals. The gross yield is 15.44%, and the cap rate is 9.26%.
To delve deeper into Savannah’s investment potential, check out our free Savannah Chalet Intel.
4. Memphis, Tennessee
Memphis, TN, is renowned for its rich musical heritage, including landmarks like Graceland and Beale Street, attracting music lovers from around the world.
Memphis has experienced a slight drop in home values by -4.50%, with the average home price now at $144,347. The city’s ADR is $123.00, with an occupancy rate of 57%, resulting in an annual revenue of $26,176 from 1,755 active listings. The gross yield is 15.11%, and the cap rate is 9.07%.
For more comprehensive insights into Memphis as a rental market, explore our free investment and market analysis tool, Memphis Chalet Intel.
