What defines a luxury short-term rental market isn’t just the address or the amenities, it’s the nightly rate guests are willing to pay. The highest ADRs in the US cluster in a small set of trophy destinations, where scarcity, affluence, and natural or cultural cachet combine to create true pricing power.

In these enclaves, from the ski towns of Colorado to the coasts of Florida and California, the median nightly rate ranges from $308 at the entry point to an astonishing $798 at the top. That spread is the story. Luxury is a function of what guests will pay, not just what a home costs.

Investors chasing these rates are buying into markets where exclusivity and demand are non-negotiable. But the trade-off is real. Home values in these destinations routinely top $1 million, and gross yields often lag far behind the national median. The luxury segment is about maximizing nightly revenue, not necessarily cash-on-cash returns.

Gross yield measures annual revenue as a share of the home’s value, and in these markets, it’s the price of entry for access to the highest-paying guests. Famous names that don’t command top ADRs, no matter their reputation, don’t make this list. The numbers here are a reality check for anyone aiming for the upper tier of the short-term rental market.

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

Data as of August 5, 2026. Annual revenue is calculated as median ADR × median occupancy × 365, using trailing 12-month data for each market. The table reports the median listing’s annual revenue, ADR, and occupancy, which are calculated independently and may not multiply exactly. Gross yield is median annual revenue divided by the median home value (Zillow Home Value Index). For the full data methodology, see full data methodology.

The headline revenue figures above average every listing, but the active-operator benchmark, filtering for properties with sustained booking activity, gives a more realistic underwriting target for committed buyers. In these luxury markets, the gap between the two is often small, but always check the active-operator number before projecting returns.

1. Aspen, CO: The US Peak for Nightly Rate

At $798 per night, Aspen claims the highest median ADR of any US luxury market. The town’s cachet is built on exclusivity, world-class skiing, and a calendar packed with high-profile events. Occupancy is low at 28%, but rates remain high even in shoulder seasons, August peaks at 49% occupancy and $662 ADR, while May sees occupancy drop to zero. Winter alone accounts for 42% of annual revenue, with spring and summer each at 23%.

Gross yield is just 3.9%, putting Aspen in the 5th percentile nationally, a direct result of its $3.43M median home value. The active-operator revenue benchmark sits at $129,663, and it takes roughly 26.5 years of gross revenue to recoup the median purchase price. Four-bedroom homes command the highest annual revenue at $76,616 and an eye-popping $1,669 ADR.

Who it fits. Buyers seeking trophy assets in a market where prestige and event-driven demand outweigh yield.

Regulation: Operating a short-term rental in Aspen requires an STR permit and business license from the City of Aspen, with all applicable sales and lodging taxes collected and remitted. Permitting is managed through the city’s Localgov platform.

2. Vail, CO: Ski Luxury with Spiking Winter Rates

Winter’s surge in nightly pricing shapes Vail’s investment profile, with February occupancy hitting 50% and ADR reaching $1,247, more than five times the US median. October, by contrast, marks a complete lull with occupancy dropping to zero, underscoring the heavy reliance on peak ski season. This pronounced seasonality is reflected in the annual revenue mix. Winter alone delivers 37% of income, while summer, spring, and fall trail behind, contributing 23%, 22%, and 18% respectively.

Compared to other US markets, Vail’s 5.9% gross yield lands in the 19th percentile, weighed down by its $1.76 million median home value and modest 27% occupancy rate. The market’s ~17.4-year payback period signals a long-term hold strategy, best suited for buyers leveraging high winter rates rather than consistent bookings.

The dominance of two-bedroom listings (656 active) offers lower annual revenue than larger homes, while five-bedroom properties command the highest returns at $149,734 per year with a $1,915 ADR. These dynamics are driven by luxury demand during ski season and a sharp drop-off in off-peak months, shaping both pricing power and risk for investors.

Who it fits. Investors prioritizing winter ADR spikes and blue-chip ski demand over year-round occupancy.

Regulation: A short-term rental license is required before advertising or operating in Vail. Properties must comply with safety, signage, and tax collection requirements as set by the Town of Vail.

3. Key West, FL: High ADR with Year-Round Demand

Pricing power shapes Key West’s short-term rental landscape, where a $522 median nightly rate is more than double the US median and winter months command the lion’s share of annual revenue. February’s occupancy surges to 67% with ADR peaking at $776, while September’s 33% occupancy signals a pronounced off-season. This pronounced seasonality means nearly 40% of yearly revenue arrives in winter, with spring and summer contributing 24% and 22% respectively, making winter bookings essential for annual performance.

Against the national field, Key West’s 7.7% gross yield sits in the 38th percentile, reflecting a premium price environment but also high entry costs, as median home values hover around $1.03 million. The active-operator revenue benchmark of $77,918 closely tracks the overall median, suggesting that experienced hosts can reliably hit market averages.

With a payback period of about 13.2 years, underwriting here demands careful attention to both seasonality and property mix. Two-bedroom homes dominate the market, but five-bedroom properties are clear outliers with $252,464 in annual revenue. This revenue concentration at the top end is largely due to group travel and luxury demand, especially during peak months when rates and occupancy align.

Who it fits. Buyers seeking a luxury coastal market with strong year-round bookings and high top-end revenue potential.

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

4. Jackson, WY: Scarcity and Summer Peaks

Market fundamentals in Jackson are shaped by extreme seasonality, with occupancy soaring to 86% in August (ADR $421) before plunging to just 12% in November. Revenue concentration is highest in summer, which delivers 42% of annual income, while fall follows at 25%, underscoring the short window for maximizing returns. This pronounced seasonality means investors must account for long off-peak stretches, as winter and spring together make up just a third of yearly revenue.

Jackson’s gross yield of 2.6% lands it in the 2nd percentile nationwide, a direct result of its $1.97 million median home price and limited inventory. The active-operator annual revenue of $48,390, while strong in absolute terms, translates to a lengthy payback period of over 40 years, an underwriting challenge that reflects both high acquisition costs and the area’s supply constraints.

The dominance of three-bedroom homes (98 listings) offers stable performance, but four-bedrooms command the highest annual earnings at $63,346 and $851 ADR, rewarding those able to secure larger properties. Recent momentum shows softening demand, with occupancy down 10% year-over-year even as ADR surged 84% and listings climbed 54%, signaling that supply is catching up to demand and pricing power alone cannot offset the slow season’s impact.

Who it fits. Buyers seeking a rare asset in a supply-constrained, tourism-driven market where appreciation is as important as income.

Regulation: Jackson requires both a Business License and a Basic Use Permit (BUP) for STRs, with specific rules depending on whether the property is inside or outside the Lodging Overlay.

5. Folly Beach, SC: Summer-Heavy Luxury on the Atlantic

Summer’s dominance shapes Folly Beach’s short-term rental returns, with July occupancy peaking at 75% and ADR hitting $656. Spring and summer together generate over 60% of annual revenue, while winter’s share falls to just 17%, making this market especially reliant on warm-weather demand. That pronounced seasonality means investors must plan for leaner months, but the upside is strong pricing power during peak periods, as seen in the 26% year-over-year ADR jump for July 2026 even as occupancy slipped 8%.

Folly Beach’s median gross yield of 6.8% places it in the 29th percentile nationally, well below the US median of 8.8%, but it compensates with a 57% occupancy rate versus the US median of 45% and a median ADR nearly double the US figure.

The payback period sits at 15.1 years on active-operator revenue, reflecting high acquisition costs and a luxury profile. Five-bedroom homes command the highest annual revenue at $111,896, indicating that larger properties can help offset the market’s moderate yield and seasonality by targeting high-earning group bookings. For a deeper dive into performance metrics, visit the Folly Beach analytics page.

Who it fits. Buyers who want strong summer revenue and a luxury beach profile with moderate yield.

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

6. Bradenton Beach, FL: High Yield at a Lower Entry Price

Spring’s strong performance shapes Bradenton Beach’s short-term rental returns, with March occupancy peaking at 79% and nightly rates climbing to $510. Annual occupancy sits well above the US median at 58%, while the average daily rate of $425 nearly doubles the national benchmark. This robust pricing, paired with a median home value of $635,867, makes the market accessible compared to other luxury coastal destinations.

Momentum has remained steady despite a 4% dip in occupancy and a 21% drop in listings over the past year, as ADR surged by 26% to offset the softer demand. The 9.9% gross yield places Bradenton Beach in the 63rd percentile among 501 US markets, and a payback period of about 10.5 years signals a balanced risk-return profile for investors.

With most listings being two-bedroom homes, but the highest annual revenue coming from seven-bedroom properties, buyers can underwrite a range of strategies depending on their capital and risk appetite. The Bradenton Beach analytics page has the full breakdown.

Who it fits. Investors looking for a luxury beach market with a high yield and lower capital outlay.

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

7. Park City, UT: Event-Driven ADR with Deep Winter Swings

Market performance in Park City is sharply defined by winter’s dominance, with February occupancy soaring to 50% and ADR hitting $757, while October occupancy plunges to just 10%. Winter alone accounts for 40% of yearly revenue, outpacing summer’s 22% and spring’s 21%, as ski season and major events drive both demand and pricing power. The pronounced seasonality means operators must bank on strong winter months to offset a quiet fall, which brings only 16% of annual revenue.

Park City’s 4.4% gross yield ranks in just the 7th percentile, reflecting high home values ($1.58M median) and a payback period of 23.3 years, well above the US median yield of 8.8%. The average revenue for active operators is $68,052, while the most lucrative properties are six-bedroom homes, earning $154,029 per year at a $1,460 ADR.

The low 25% occupancy rate underscores the importance of underwriting with conservative off-season projections, especially as recent momentum shows occupancy down 45% year-over-year despite a 31% jump in ADR. This volatility is rooted in Park City’s reliance on event-driven tourism and a limited booking window outside the peak winter period.

Who it fits. Buyers who want a luxury ski address and are comfortable with pronounced seasonality and longer payback.

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

8. Santa Barbara, CA: High ADR in a Tight Regulatory Climate

Market fundamentals in Santa Barbara reflect a premium destination, with a $347 average daily rate and a 57% occupancy rate that stands well above the US median of 45%.

High demand is most evident in July, when occupancy climbs to 69% and ADR reaches $382, while January dips to 45%, showing the pronounced impact of seasonal travel patterns. Investors will note that fall drives 29% of annual revenue, outpacing other seasons and offering a longer booking runway than the brief summer peak.

Santa Barbara’s gross yield of 6.4% places it in the 23rd percentile nationally, trailing the US median of 8.8% due to elevated median home values of $1.87M. The payback period of nearly 16 years signals a blue-chip but capital-intensive market, where underwriting must account for significant upfront costs and a regulatory landscape that restricts supply.

The most common listings are 1-bedrooms, but the highest returns are found in 3-bedroom homes, which command $814 nightly and $59,814 annually, highlighting the premium attached to larger properties in a supply-constrained environment.

Who it fits. Investors seeking a blue-chip California address with high nightly rates and a steady booking calendar.

Regulation: Short-term rentals are not permitted in most areas of Santa Barbara. The city enforces strict zoning and permitting rules. Confirm if a specific property is eligible before proceeding.

9. Miramar Beach, FL: Volume and Flexibility at a Lower Price Point

Market performance in Miramar Beach is shaped by pronounced summer demand, with July occupancy soaring to 81% at a $450 ADR, while January sees occupancy drop to just 6%.

This sharp seasonal swing means that 36% of annual revenue is concentrated in summer, with spring contributing another 31%, and the remaining months trailing far behind. Investors must plan for a highly cyclical income stream, capitalizing on peak months to offset the quieter winter period, which delivers only 14% of yearly revenue.

Miramar Beach’s gross yield of 9.0% lands at the 54th percentile, with its $313 ADR and 50% occupancy rate both outpacing national medians. Active-operator annual revenue stands at $56,900, highlighting a robust market for those able to manage seasonality, and the payback period of 11.5 years is competitive for a coastal destination with a median home value of $656,222.

The large number of full-time listings (4,084) signals strong operator activity and flexibility in property type, with 2-bedrooms most common but 8-bedroom homes leading in annual revenue. These dynamics are driven by the area’s appeal to both families and large groups seeking premium beachfront experiences at a lower price point than other luxury coastal markets.

Who it fits. Buyers seeking a luxury-feel beach market with high occupancy and a more accessible entry price.

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

10. Naples, FL: Lower ADR, Accessible Luxury

Market performance in Naples is defined by pronounced winter and spring peaks, with occupancy surging to 64% in March at an ADR of $332, then plunging to just 6% in October.

This heavy seasonal swing means winter alone delivers 38% of annual revenue, while spring adds another 28%, leaving summer and fall with more modest returns. The pronounced seasonality reflects Naples’ appeal as a snowbird and spring getaway destination, driving high rates and bookings in cooler months but yielding lengthy vacancies during the off-season.

The season shapes Naples’ returns, as its 7.7% gross yield lands in the 37th percentile and occupancy trails the national benchmark at 29% versus 45%. A payback period of 13.4 years signals moderate returns relative to the median home value of $548,747, which has declined by 7.6% year-over-year.

The active-operator revenue of $41,000 suggests that most hosts are achieving close to median potential, while the wide bedroom mix, topped by six-bedroom properties earning $77,939 at an $841 ADR, offers flexibility for investors targeting larger groups. These numbers are shaped by both the area’s luxury positioning and its influx of seasonal visitors, which boost rates but limit year-round occupancy.

Who it fits. Investors looking for a luxury market with a lower buy-in and a mix of seasonal and year-round demand.

Regulation: Collier County requires short-term vacation rental registration. Rules differ by location. Confirm requirements for the specific property before buying.

Why Famous Names Miss This Ranking

Not every well-known luxury destination appears here. Markets like Malibu, Martha’s Vineyard, or the Hamptons may be household names, but their average nightly rates don’t clear the top tier set by the markets above. In many cases, sky-high home prices outpace what guests will pay per night, pushing gross yields even lower and keeping these destinations off a ranking that’s strictly about ADR. Trophy status alone isn’t enough, pricing power is what counts.

How to Read These Rankings Before You Buy

This ranking is built on median nightly rate (ADR), the best measure of what guests actually pay for luxury stays. Gross yield gives the ratio of annual revenue to home value, but in these high-end markets, yield is often secondary to nightly pricing power and asset appreciation.

The headline revenue figures average all listings, but serious investors should always underwrite against the active-operator benchmark, which reflects properties with real, sustained bookings. Seasonality, regulatory risk, and property-level factors can swing returns dramatically. Always verify local rules and run property-specific numbers before making a move.

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