AirDNA ranks South Bend and Syracuse as 2026's best college towns for Airbnb investors

Short-term rental investors tend to chase the obvious markets. Campus towns rarely top that list — which is precisely why they deserve a second look.

Universities are a demand engine with a built-in calendar: Move-in weekends, graduation ceremonies, alumni reunions, and game days recur with the reliability of the academic year itself. A beach town can lose its season to a bad summer, but a college town doesn't lose its football schedule.

The economics are different here, too. In most vacation markets, guests care about pools, ocean views, and proximity to restaurants. In a university market, the premium is almost entirely about location. Parents want to be close to their student's dorm. Alumni want to walk to the stadium. Visiting faculty want a short commute to campus. A modest, well-located property near a major university can outperform a luxury listing two miles away. The guest pool is also unusually loyal: Families return multiple times across a student's four-year stay, and alumni come back for reunions and homecoming year after year.

None of this guarantees strong returns, of course. High home prices, oversupply, and restrictive local regulations can all erode the income-to-cost equation that makes campus-area STRs attractive in the first place. The key is to target markets where campus-driven demand is strong enough and acquisition costs are low enough to produce a meaningful yield.

Short-term rental analytics platform AirDNA ranked U.S. college markets by yield using data on properties currently listed for sale in December 2025. The results reveal five markets — spread across the Midwest, Northeast, and South — where the numbers align most cleanly for investors.

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Average home price: $247,000 | Yield: 16.7%

Notre Dame drives South Bend's short-term rental market with a demand calendar that barely pauses between semesters. Athletics, campus visits, graduations, alumni events, and a growing downtown entertainment district together keep occupancy levels high across the year. Even in January — the market's slowest month, with occupancy around 35% — the average guest stay stretches to seven days. That limits the turnover costs that eat into margins during quiet periods.

The most compelling number here is the average gross yield: At 16.7%, it's almost double the U.S. average of 8.2%. Average home prices in South Bend sit at $247,000 — well below the national average of $530,000 — while revenue potential reaches $41,000 annually. For investors looking for a high-yield entry point into campus-area short-term rentals, South Bend's price-to-income ratio stands apart from every other market on this list. Regulatory clarity is the one caveat. The city appears to require licensing for STRs, but the specifics around zoning and operational limits are unclear.

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Average home price: $271,000 | Yield: 14.8%

Lansing and its neighboring city East Lansing offer something rare in Midwest short-term rental markets: a diversified demand base that doesn't depend entirely on a single university's schedule. Michigan State athletics, graduations, and campus conferences supply predictable booking windows, but so does the state capital. Legislative sessions and government-related business travel keep demand steady in the off-peak periods that drain occupancy in purely academic markets. With year-round occupancy rates of 54% to 76%, the market has enough consistency to eliminate feast-or-famine performance.

Average stays run long — from five days in October to more than eight days in January — reducing turnover friction. Average home prices of $271,000 and revenue potential just above $40,000 combine for a 14.8% gross yield. That's nearly twice the national benchmark. But the regulatory environment warrants attention. Non-owner-occupied rentals in Lansing require registration with the city's Code Enforcement Division, and the East Lansing licensing process can run two to five months. Investors should verify licensing feasibility at the property level, not just the zip code level, before committing.

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Average home price: $259,000 | Yield: 14.2%

High home prices across the Northeast squeeze most short-term rentals here. But Syracuse is the exception. With an average purchase price around $259,000 — a fraction of what comparable Northeastern markets charge — the city gives investors more financial cushion for furnishings, reserves, and the operational costs that accompany any new rental. Revenue potential of $37,000 annually supports a 14.2% gross yield, a figure that remains strong even if demand softens or expenses climb. 

What distinguishes Syracuse from single-engine college markets is the layering of demand drivers. Syracuse University provides the campus calendar, but the city also draws healthcare visitors, convention attendees, and travelers using it as a base for Finger Lakes exploration. Operators can build a booking calendar around multiple audiences, not just a handful of big university weekends. Regulatory compliance is the one thing to watch. New York State recently introduced a state-level short-term rental registration requirement on top of Syracuse's existing local permit and inspection rules. Investors entering this market should budget time and resources for a two-tier compliance process.

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Average home price: $298,000 | Yield: 13.6%

Columbia, South Carolina, carries a reputation as a college football market. The University of South Carolina's Gamecock athletics draw large crowds and produce some of the market's sharpest nightly rate spikes. But the demand picture extends well beyond game day. State government activity, family travel, and a growing local event calendar all generate occupancy across the full year, spreading revenue more evenly than a purely sports-dependent market can sustain. Average home prices just under $300,000 position the market within reach of first-time short-term rental investors, while average revenue potential of $40,000 produces a 13.6% gross yield.

The risk worth tracking is competition. With nearly 1,700 active short-term rental listings, Columbia compels new investors to devise a strategy — through location, design, or amenities — to avoid getting lost in a crowded supply base. The regulatory framework is specific but manageable. Investors must secure both a short-term rental permit and a business license before accepting guests.

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Average home price: $270,000 | Yield: 13.3%

Most university markets hit an occupancy wall in summer, when students leave and campus activity slows. Champaign–Urbana inverts the pattern. The market's peak occupancy, which tops around 77%, falls in July and August, well outside the traditional academic calendar. A robust local arts and entertainment scene draws visitors for concerts, theatrical performances, and cultural programming throughout the summer, keeping short-term rental calendars active during the stretch that hampers other college towns. The University of Illinois Urbana-Champaign provides the demand baseline — campus weekends, graduation events, and sports produce reliable spikes — but the city's broader programming depth is what makes the market durable across all 12 months. 

Average home prices around $270,000 and revenue potential of approximately $36,000 deliver a 13.3% gross yield, alongside a lower entry cost than most comparable university markets. Hosts appear to need a short-term rental license prior to listing, with operating rules tied to guest limits, parking, and local tax obligations. It's a structured environment, but one that professional operators generally navigate without significant obstacles.