Last updated is August 2026

Property tax is the silent drag on short-term rental returns, and the difference between a 0.4% and a 1.5% rate can mean thousands shaved off your net cash flow each year. The six markets that top the US for low property tax in 2026 all sit below 0.83%, with the spread running from just 0.40% in Broken Bow, Oklahoma up to 0.82% in New Orleans.

That range is a structural advantage. On a $350,000 property, the difference between the lowest and highest tax rates on this list is about $1,470 annually, money that stays in the operator’s pocket instead of going to the county.

Low property tax doesn’t guarantee a market is a winner on yield, but it does mean less overhead to eat into your gross revenue. The markets here are a mix, some with high yields and approachable prices, others with luxury price tags but still a lighter tax bite. What they share is a tax bill that won’t swamp your returns.

Gross yield, the ratio of annual revenue to median home value, is a useful first filter, but tax drag is where net returns are made or lost. That’s why the famous names with high price tags and high taxes are missing here. If you want to see which low-tax market fits your portfolio, start with a match to a top local agent a vetted STR agent.

US Airbnb Market Rankings 2026 (and the City-by-City Breakdown)

Source note: Data as of August 5, 2026. Each listing’s annual revenue is calculated from its own ADR × occupancy × 365 on trailing 12-month data (2025-08 to 2026-07), gross before expenses.

The table reports the median listing’s revenue, ADR, and occupancy, so multiplying ADR by occupancy will not reproduce the revenue figure. Gross yield divides the median revenue by the median home value (Zillow Home Value Index). Property tax rates are market medians. See the full data methodology for details.

Headline revenue averages every listing, but active-operator revenue filters for properties with real, sustained booking activity. For underwriting, the active-operator benchmark is the more reliable number, what a committed owner can expect to achieve in a typical year.

1. Broken Bow, OK: Cabin country with the nation’s lightest tax drag

Broken Bow’s 0.40% property tax rate is the lowest among major US Airbnb markets, and it pairs that with a 15.4% gross yield and a home price under $350,000. The area’s draw is clear. Beavers Bend State Park and Broken Bow Lake bring in about two million visitors a year, with summer accounting for 29% of annual revenue and occupancy peaking at 52% in July. The ADR holds steady at $407 even as occupancy dips to 27% in January.

Momentum is steady, with occupancy down 5% but ADR up 20% year-over-year, and the number of active listings contracting by 18%. The most common property is a 3-bedroom, but the real earners are the 7-bedrooms, pulling in nearly $99,000 a year.

Underwrite against the $52,604 active-operator benchmark, which puts payback at just 6.6 years for the median purchase price, a rare combination of high yield and low tax burden. For a full breakdown of revenue by bedroom and season, see Broken Bow’s analytics page.

Who it fits. Buyers seeking high cash flow with minimal tax drag and steady summer demand.

Regulation: Short-term rental rules vary by city, county, and HOA. Verify current requirements for the specific property before buying.

2. Vail, CO: Luxury pricing, minimal property tax

Vail’s 0.41% property tax rate is a rare find in a luxury ski market. The median home value here is a steep $1.76 million, but the tax bill remains modest by national standards. The market’s headline revenue is $103,692, with an active-operator benchmark of $101,287.

Winter is the main event. 37% of annual revenue lands in that season, and occupancy peaks at 50% in February with an ADR of $1,247. October is the trough, with occupancy dropping to zero as the ski lifts pause.

In Vail, even after a 28% drop in occupancy year-over-year, ADR has surged 43%, and listings are down 19%. While 2-bedrooms are prevalent, 5-bedrooms command the highest annual revenue at nearly $150,000. With a payback period of 17.4 years, this trophy-market play benefits from low property tax that helps offset a high entry price. For a granular look at revenue by property type, visit Vail’s analytics page.

Who it fits. Buyers seeking a blue-chip, low-tax asset in a world-class ski destination.

Regulation: Short-term rental rules vary by city, county, and HOA. Verify current requirements for the specific property before buying.

3. Birmingham, AL: High-yield, low-tax value play

Data from the past year shows Birmingham’s short-term rental market outpaces nearly all others nationwide, with its 21.8% gross yield ranking in the 98th percentile among 501 US markets. Occupancy reaches its highest point in July at 60%, while the slowest month, January, still brings in 39%, reflecting a steady, if seasonally influenced, demand pattern.

Summer and spring together contribute 55% of annual revenue, a sign that travel to the city is most popular during warmer months when events and local attractions draw larger crowds.

Active-operator revenue averages $28,891, and the payback period is just 4.8 years, one of the shortest timelines for recouping a median-priced home, thanks to the city’s accessible $137,701 median home value and robust rental performance. The 41% jump in full-time listings over the last year signals increasing investor confidence, likely fueled by ADR growth of 20% and an 8% occupancy gain, both of which point to rising guest demand and pricing power.

Birmingham’s bedroom mix reveals that while 1-bedroom units dominate the market, larger 4-bedroom properties deliver the highest annual returns, offering options for both entry-level and scale-focused investors. For a full market breakdown, see Birmingham’s analytics page.

Who it fits. Investors looking for cash flow and low acquisition costs in a growing metro.

Regulation: Short-term rental rules vary by city, county, and HOA. Verify current requirements for the specific property before buying.

4. Yucca Valley, CA: Desert access with a light tax load

Recent pricing momentum has driven Yucca Valley’s average daily rate up 22% year-over-year to $286, placing it well above the US median of $235 and helping the market achieve a 10.5% gross yield (68th percentile of US markets).

Occupancy fluctuates strongly throughout the year, with rates peaking at 60% in March and dropping to 33% by September, reflecting the area’s appeal as a spring and winter destination. These seasonal swings are mirrored in revenue, with nearly 30% of annual income earned in winter and only 22% in the fall and summer months.

Active full-time listings have remained stable, increasing just 2% over the last year, which has helped support pricing power even as occupancy dipped slightly by 1%. Investors underwriting here should note the typical payback period of 9.8 years, a figure that balances the area’s moderate home values (median $360,731, down 3.9% YoY) against its strong yield and low 0.70% property tax rate.

The two-bedroom segment dominates the inventory, but four-bedroom homes command the highest annual revenue at $40,128, suggesting larger properties can outperform if well positioned for group stays. For more on seasonality and property mix, check Yucca Valley’s analytics page.

Who it fits. Buyers seeking a desert STR with accessible price points and manageable tax costs.

Regulation: Short-term rental rules vary by city, county, and HOA. Verify current requirements for the specific property before buying.

5. Joshua Tree, CA: National park demand, investor-friendly taxes

National park proximity shapes Joshua Tree’s rental calendar, with occupancy peaking at 65% in March as spring visitors flood in, then dropping to just 30% by September’s heat. Winter and spring together account for 59% of annual revenue, underscoring how crucial these seasons are for maximizing returns. This pattern rewards operators who can market effectively to off-peak travelers or optimize pricing when demand surges each spring.

Joshua Tree’s gross yield of 11.4% places it comfortably in the 74th percentile among 501 US markets, while its average daily rate of $273 sits well above the national median. The typical payback period of 8.9 years is competitive for a national park gateway, reflecting both the area’s solid pricing power and its moderate home values.

In Joshua Tree, 2-bedroom listings are prevalent, but investors targeting higher returns may focus on 4-bedrooms, which earn $54,678 annually at a $480 ADR. For more on revenue and seasonality, see Joshua Tree’s analytics page.

Who it fits. Buyers seeking steady demand and manageable taxes in a national park gateway.

Regulation: Short-term rental rules vary by city, county, and HOA. Verify current requirements for the specific property before buying.

6. New Orleans, LA: Urban bookings, still below-average tax

Pricing power has surged in New Orleans, as the average daily rate climbed 26% year-over-year to $220, even while occupancy slipped 15% and active listings shrank by 23%.

This ADR growth, paired with a pronounced winter peak, 29% of annual revenue lands in the colder months and occupancy hits 56% in March, shows that demand remains concentrated around major events and holiday periods, while the market softens outside those spikes. January occupancy dips to just 33%, underscoring the city’s reliance on its signature festivals and gatherings to drive bookings.

With a gross yield of 13.3%, New Orleans stands in the 86th percentile among 501 US markets, well above the national median of 8.8%. The median home value is $246,374, and buyers can expect a payback period of roughly 7.7 years based on active-operator revenue.

For New Orleans, 1-bedroom listings are the most prevalent, but 6-bedrooms can command much higher annual earnings, averaging $60,061 at an ADR of $727 and appealing to groups seeking premium accommodations. For a deeper dive into the numbers, see New Orleans’ analytics page.

Who it fits. Buyers looking for urban bookings and a tax bill that won’t swamp returns.

Regulation: Short-term rental rules vary by city, county, and HOA. Verify current requirements for the specific property before buying.

Why the famous markets don’t make the low-tax cut

Markets like Austin, Nashville, and Miami are absent from this ranking not because of weak demand or low revenue, but because their property tax rates are simply too high. In high-profile metros, tax rates often exceed 1.5%, and that overhead can erase much of the yield advantage, especially as home values climb.

Even if a trophy market commands a strong ADR, the annual tax bill can easily reach $10,000 or more, making it hard for net returns to keep pace with lower-tax alternatives.

How to read these rankings before you buy

Gross yield is a starting point, showing how much annual revenue a median property generates relative to its price. But it doesn’t account for expenses, and property tax is one of the largest fixed costs an operator faces.

The headline revenue figure averages all listings, while the active-operator benchmark filters for properties with consistent bookings, a more realistic underwriting target. Even in a low-tax market, returns can vary by property size, location, and seasonality. Always verify local rules and costs at the property level before making a purchase.

Ready to find your fit? Start by matching with a top local agent a vetted STR agent. For a full data drilldown or to compare markets side by side, explore the analytics for each city above. When you’re ready to act, connect with an agent who knows the local tax and regulatory landscape a vetted STR agent.