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Why 2026 Will Be the Best Year to Invest in Short-Term Rentals Since 2021

A new report from AirDNA, a company that analyzes data from platforms like Airbnb, Vrbo, and Booking.com, highlights that the U.S. STR occupancy is expected to ease by 1% in 2026, a modest adjustment that reflects a market moving toward better alignment between supply and demand. Available listings are projected to grow by 4.6%, well below the 20% peak expansion recorded in 2021-2022, while Big Beautiful tax incentives are expected to support new listing growth as supply reaccelerates in 2026. 

tax incentives

Average daily rates (ADR) are forecast to strengthen, with expected gains of 1.5% in 2026 and further acceleration in 2027.

“Investors want clarity on whether STRs remain a strong opportunity. The data points to a clear yes…the STR Premium (how STR earnings stack against investment costs) has climbed to its highest level since 2022, and revenue indicators return to more stable growth. Coastal, mountain/lake destinations, and suburban areas of major U.S. cities show some of the most favorable conditions for investors heading into 2026.”
– Jamie Lane, AirDNA’s Chief Economist

Lunabase Expands Its Short-Term Rental Portfolio Across the U.S.

As the short-term rental market moves toward a more balanced supply-and-demand cycle, Lunabase continues to expand into destinations that reflect the strongest investment fundamentals.

Our portfolio spans coastal, mountain, and major-city adjacent markets—the exact categories where short-term rental performance is expected to remain resilient heading into 2026.

Miami, Florida, remains one of the most dynamic urban destinations in the U.S., attracting international travelers, business visitors, and year-round tourism.

Lake Tahoe, Lunabase manages properties in one of America’s most iconic mountain destinations, where demand remains strong across both the winter ski season and summer outdoor travel.

Nashville, Tennessee, known for its music scene, vibrant nightlife, and major events, attracts millions of visitors each year, creating consistent demand for high-quality short-term rentals.

Cincinnati, Ohio, is emerging as an underrated urban destination in the Midwest. With a revitalized downtown, major sports events, and a growing business and cultural scene, the city has become an attractive market for both travelers and STR investors.

As Lunabase expands across these markets, our focus remains the same: professionally managed properties, seamless guest experiences, and strong performance for property owners.

Interested in partnering with Lunabase or exploring our managed properties?
learn more about our property management services, browse our locations, or start a conversation about maximizing your short-term rental investment.


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