Abilene, Texas is named the top small city for Airbnb returns in AirDNA's 2026 rankings

Forget beach towns. The top short-term rental markets run on oil rigs and government offices, according to AirDNA's latest data

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The short-term rental market is turning a corner. After years of uneven returns and investor uncertainty, conditions in 2026 are shaping up to reward buyers who move early.

While borrowing costs remain near 6%, home values in some markets have softened and rental revenues have grown. The short-term rental premium, or the amount a short-term rental earns above a typical mortgage payment, reached $989 in early 2026, the highest since late 2022.

But the best opportunities are not where most investors are looking. The cities generating the strongest returns are smaller, more affordable, and largely off the tourist trail. Think state capitals, oil hubs, and military towns. They are mid-size and small metros anchored by industry, health care systems, government institutions, and universities. These drivers produce steady, year-round demand from workers, patients, and officials — in other words, guests who often stay longer and book more predictably than vacationers.

What unites the leaders of this year's ranking is that they "fly under the radar of short-term rental investors," according to data and analytics firm AirDNA, which analyzed Airbnb $ABNB and Vrbo listings to produce the findings. Limited competition and reasonable entry prices make them attractive for investors who get in early. 

Realtor.com published the full breakdown of AirDNA's top 10 markets. The list below is ranked by yield, the ratio of annual returns to home value.

1. Abilene turns military and tech into top returns

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Average home price: $336,000 | Yield: 16.4% | Occupancy rate: 77.2%

Abilene claims the top yield on AirDNA's list at 16.4%, and the demand behind that number comes from a workforce, not a tourist board. With nearly 9,000 workers on its staff, Dyess Air Force Base, the city's largest employer, provides a constant flow of military personnel, contractors, and visiting officials who need short-term accommodations. Several universities, including Abilene Christian University, bring in students, faculty, and families throughout the academic year. The Hendrick health system adds medical travel to the mix. 

What makes Abilene's outlook especially strong heading into 2026 is the Oracle $ORCL Stargate Project, a $500 billion artificial intelligence data center being developed in the city. Infrastructure projects of that scale bring construction workers, engineers, and technology professionals to a market for years. Lane says these projects are already influencing local lodging demand. The city of 127,000 also has cultural draws that attract daytrippers and families. But the economic fundamentals drive the investment case. Revenue potential of $55,000 annually at an average home price of $336,000 is a strong equation, and the data center development suggests it will only strengthen.

2. Lebanon benefits from being everyone's neighbor

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Average home price: $265,000 | Yield: 15.7% | Occupancy rate: 59.2%

Lebanon's position between Hershey and Lancaster is a strategic asset. Families, weekend travelers, and outdoor visitors who want to explore Central Pennsylvania's attractions — theme parks, Amish country, state parks, trails — find that Lebanon offers lower accommodation prices than either of those better-known destinations. 

The military also plays a significant role. Fort Indiantown Gap $GPS,........

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