Cities like Boise, Idaho, and Fort Wayne, Indiana, are delivering top-tier short-term rental returns, defying expectations. Investors are shifting focus from coastal hubs to mid-sized urban centers with strong tourism demand and favorable pricing dynamics.
- Boise, Idaho, posted a 27.3% annualized return on short-term rentals in early 2026
- Fort Wayne, Indiana, ranked second with a 25.1% return, driven by low entry costs and high occupancy
- Average nightly rates in Boise reached $287 in January 2026, above national average
- Property acquisition costs in Boise were 32% below the national average
- Occupancy rates in Boise and Fort Wayne averaged 78% and 75%, respectively
- Investor migration toward mid-sized markets is reducing reliance on coastal hubs
Boise, Idaho, has emerged as the top-performing city for short-term rentals, generating an annualized return of 27.3% in early 2026, according to updated property performance data. This surpasses established markets like Miami and Austin, which posted returns of 19.8% and 18.4%, respectively. Fort Wayne, Indiana, ranked second with a 25.1% return, driven by low property acquisition costs and consistent demand from regional travelers and business visitors. The data reflects a broader trend in real estate investment: rising operating costs and supply constraints in traditional high-demand hubs are pushing investors toward secondary markets with lower entry barriers and strong occupancy rates. In Boise, average nightly rates reached $287 in January 2026, while property acquisition costs remained 32% below the national average. Similarly, Fort Wayne saw a 14% year-over-year increase in bookings, supported by corporate retreats and nearby convention centers. These returns are being further amplified by inflation-adjusted rent growth and stable occupancy levels—averaging 78% in Boise and 75% in Fort Wayne—significantly outpacing the national average of 70%. The resilience of these markets is partly attributed to their diversified tourism base, including outdoor recreation, medical tourism, and business travel, which buffer against seasonal fluctuations. The shift is influencing investment strategies across the real estate sector, with private equity funds and REITs increasingly allocating capital to mid-tier markets. While major tech hubs like San Francisco and Seattle continue to draw attention, their returns have stagnated due to high competition and regulatory scrutiny. In contrast, cities like Boise and Fort Wayne offer more predictable cash flow and faster capital appreciation.