For those lucky enough to own an Airbnb or Vrbo property, 2021 has been a banner year. According to new analysis from AirDNA, an unaffiliated company that collects and analyzes short-term rental listing data, 62% of these properties were occupied at some point in 2021, up 5% from 2020. and 10% from 2019. And thank you Thanks to increased demand, landlords were able to charge higher rates, earning them an average of 39% more per year than before the pandemic.

AirDNA used several metrics to find the most suitable areas for investing in short-term rentals. Demand was one, measured by occupancy rates and the rate at which new listings were added to the area. Next is revenue growth, which compares 2021 rental income to the previous two years. Finally, what the study called “investability” weighed the costs of buying and operating a property against the income it produced (and also included the number of other short-term rentals in the same postal code which would present competition).

Perhaps unsurprisingly, two coastal resort areas — Maui, Hawaii, and Alaska’s Kenai Peninsula — top the list. But overall, small towns and rural areas generated the highest incomes. This is followed by mountain and resort areas, followed by mid-sized cities, then coastal resort destinations like Maui. Large suburban towns and large urban cities showed the least investment potential.

That’s good news for current owners, but it doesn’t help much for those hoping to jump on the bandwagon. Because inventory is so tight, people looking to purchase a short-term rental can expect high prices and fierce competition from other potential owners, as well as those hoping to purchase a Principal residence.