Best US Locations for Vacation Rentals in 2025: Market Trends and Top Picks

Unlocking the Top Vacation Rental Markets for 2025

As vacation rental investing matures in the United States, 2025 is shaping up to be a year of both opportunity and transformation. Travelers are seeking unique experiences, greater flexibility, and destinations that offer year-round appeal, while investors want locations with strong occupancy, steady returns, and manageable regulations. At Vodyssey, we guide you through the evolving landscape, revealing the best US locations for vacation rentals in 2025—places that excel not only as investments, but as lifestyle assets you’ll love to own.

What Makes a Market Stand Out in 2025?

The best vacation rental markets share several key characteristics:

Diversified Demand: Year-round travel driven by multiple attractions (nature, culture, events, colleges, etc.)
Regulatory Stability: Predictable, investor-friendly short-term rental (STR) rules
Experience-First Culture: Destinations that offer more than just a place to stay—think outdoor adventure, wine trails, or historic charm
Strong Projected Revenue: Healthy occupancy rates and consistent annual net revenue (ANR) potential

Let’s explore some of 2025’s most promising markets, drawing on fresh data, real case studies, and real-world performance.

Flagstaff, Arizona: Gateway to Outdoor Adventure

Flagstaff is emerging as a premier mountain destination with proximity to the Grand Canyon, vibrant historic downtown, and year-round outdoor activities. Investors are drawn to its:

Consistent occupancy rates above 52%
Projected upscale gross revenue averaging $78,000 annually on four-bedroom homes
Appeal to families, adventure seekers, and bleisure travelers

This market is ideal for those targeting outdoor enthusiasts and families seeking memorable experiences in every season.

Gatlinburg, Tennessee: Nature and Family-Friendly Attractions

Gatlinburg, the gateway to Great Smoky Mountains National Park, continues to thrive with:

Strong occupancy (over 56%) and high ANR—5-bed properties can reach $163,000–$218,000 projected gross revenue
Major draws: hiking, mountain coasters, family-friendly attractions
Resilient demand from multigenerational and international travelers

With rustic and larger homes performing well, Gatlinburg is a blueprint for sustainable, family-focused vacation rental investing in 2025.

Traverse City, Michigan: Lakeside Living and Vibrant Culture

The Traverse City area balances natural beauty and lively urban amenities. Highlights include:

Lake Michigan access, cherry orchards, and the iconic Sleeping Bear Dunes
Strong annual returns, with projected upscale gross revenue around $77,000 for three-bedroom homes
Seasonal demand peaks, but steady year-round occupancy due to events and wine tourism

For investors seeking a mix of summer peak and shoulder season attraction, Traverse City offers both stability and charm.

Fredericksburg, Texas: Wineries and Hill Country Appeal

Fredericksburg is a standout for those seeking a niche destination with:

Renowned wine trails and German heritage
A vibrant arts scene and Enchanted Rock State Natural Area drawing hikers and climbers
Projected annual gross revenues over $77,000 for well-managed properties

This town excels with properties that capture the local culture and cater to couples, foodies, and outdoor adventurers.

Beech Mountain, North Carolina: Four-Season Adventure

The highest town in eastern America, Beech Mountain offers:

Winter sports (skiing, snowboarding, tubing), plus summer hiking and festivals
Appeal to families, sports enthusiasts, and festival goers
Projected gross revenues for three-bedroom homes over $54,000 annually

If you’re excited by year-round demand and a small-town, mountain vibe, Beech Mountain checks all the boxes for 2025 vacation rental investors.

Gainesville, Florida: College Town Energy and Cultural Hotspots

Gainesville isn’t just about the University of Florida—its museums, gardens, and access to natural preserves make it a magnet for students, families, and bleisure travelers. With:

Affordable entry points (average home prices around $350,000)
Strong performance with occupancy near 50% and projected annual returns over $50,000
Year-round rental potential and regulatory clarity

College towns like Gainesville are gaining momentum for investors seeking affordable, high-demand inventory with diversified guest profiles.

How to Choose Your Market for 2025

While the best US locations for vacation rentals in 2025 share strong fundamentals, your success starts with your own goals—whether that’s maximizing ROI, creating family memories, or securing a future retirement spot. The Vodyssey approach emphasizes:

Start Where You Love: Pick markets where you personally would enjoy owning a vacation home. This ensures you connect with the guest experience, making it easier to create standout properties.
Analyze Profit Drivers: Know why travelers visit—outdoor activities, events, culture, or relaxation? Tailor your property features and marketing accordingly.
Check Local Regulations: Dive deep into city, county, and HOA rules before you buy. Ensure your chosen market has legal clarity and long-term rental stability.
Leverage Data: Use tools like AirDNA and major OTAs to study occupancy, rates, and guest preferences for your market and property type.

Trends to Watch in 2025

Rise of Off-the-Beaten-Path Destinations: Travelers are seeking unique, less crowded locales for privacy and authenticity.
Urban, College, and Nature Markets Blend: Destinations that combine outdoor adventure, cultural events, and urban appeal are drawing diverse guest profiles year-round.
Flexibility and Multi-Generational Appeal: Larger homes and properties designed for groups are performing exceptionally well.

Conclusion: Take Action to Build Your Lifestyle Asset Portfolio

2025 is set to be a dynamic year for vacation rentals, with opportunities across mountain towns, lakeside gems, cultural hubs, and emerging markets. Use our insights on the best US locations for vacation rentals in 2025 as a foundation, but tailor your choices to your aspirations and target guest.

The next step? Schedule a free strategy call with Vodyssey to map out your custom vacation rental investment plan for 2025. Our proven process helps you define your property goals, research the right markets, and build a portfolio that achieves both financial freedom and the lifestyle you desire.

Schedule your call now and start your journey to vacation home investing success!