New York has always been a place that combines culture, charm, and opportunity. Beyond the bright lights of Manhattan and Brooklyn, there are many small towns and mid-sized communities where the short-term rental market continues to grow. Investors looking for Airbnb properties are attracted to New York not only for tourism but also for its year-round appeal, natural beauty, and steady visitor demand. The best towns for Airbnb ownership have favorable regulations, strong tourist appeal, and an authentic local experience that travelers want. Five towns stand out as great options for buying Airbnb properties: Saugerties, Saratoga Springs, Alexandria Bay, Buffalo, and East Hampton. Each town offers a unique market that suits different investor strategies and guest types, ranging from luxury coastal stays to affordable getaways in upstate New York.

Saugerties, located in the heart of the Hudson Valley, has become one of the most appealing Airbnb markets in New York. It's just about two hours north of New York City, making it a favored weekend spot for urban professionals seeking a nature escape without a long trip. This charming riverside town, close to the Catskill Mountains, attracts visitors year-round with hiking, art festivals, and local dining options. The average Airbnb in Saugerties generates good returns, with occupancy rates around 45% to 50% and average daily rates between $300 and $400 during peak months. The market thrives on couples’ retreats, family trips, and artists seeking inspiration. Saugerties also benefits from visitors from nearby tourist towns like Woodstock and Kingston, giving it a strong regional advantage. The town’s walkable downtown features boutique shops and cozy restaurants that add to its charm. Like many Hudson Valley towns, Saugerties has local short-term rental regulations to manage growth. Investors must register their properties, meet safety standards, and, in some cases, maintain owner occupancy or permit status. Despite these regulations, Saugerties remains a friendly community for investors, attracting year-round visitors. With relatively affordable home prices compared to the Hamptons or Saratoga Springs, it's an appealing entry point for mid-level investors seeking steady returns and lifestyle flexibility.

Saratoga Springs represents the high end of upstate New York’s short-term rental market. This historic city is known for its mineral springs, vibrant downtown, and the famous Saratoga Race Course. It has long attracted tourists and seasonal residents who enjoy its cultural and recreational offerings. For Airbnb hosts, the draw is the city’s ability to attract guests throughout the year—summer racing, fall festivals, winter events, and spring retreats. The average daily rate in Saratoga Springs is among the highest in upstate New York, often exceeding $500 per night during peak season, while monthly revenues average over $3,000. Demand peaks during racing season, when hotels fill up and short-term rentals charge top dollar. Saratoga Springs offers both short-term and mid-term rental potential, appealing to tourists and professionals attending conferences or long-term visitors looking for a resort experience. However, investors need to pay attention to changing local regulations, as the city has been tightening rules on short-term rentals. New permit requirements, inspection processes, and rental day limits have been introduced to balance tourism with local residential needs. For those who comply, Saratoga Springs offers excellent potential, especially for properties near downtown or within walking distance to the racecourse. The combination of steady appreciation, luxury tourism, and limited inventory creates a competitive but rewarding market for Airbnb buyers.

Further north, Alexandria Bay presents a different opportunity—one grounded in natural beauty and seasonal tourism. Situated along the St. Lawrence River in the Thousand Islands region, this village has become a popular summer spot for boaters, anglers, and families exploring one of New York’s most scenic areas. Airbnb performance here is seasonal but profitable, with nightly rates often exceeding $300 during peak summer months. Properties with waterfront access or views of Boldt Castle are particularly sought after and can book out months ahead. Investors who know the seasonal market can achieve good annual yields, even in quieter winters. The small size of the town limits inventory, with demand driven by repeat visitors who return yearly for the unique river experience. For investors, this means focusing on high-quality properties with standout features like private docks, decks overlooking the water, or easy access to boat rentals. Unlike urban markets, Alexandria Bay relies on a concentrated revenue model, where most profits come during key months. With smart pricing and professional management, an Airbnb in Alexandria Bay can offer solid returns while keeping management low-maintenance and lifestyle-friendly. Additionally, home prices remain relatively affordable compared to downstate New York, making it a strong option for those seeking vacation-style rental income without entering luxury markets.

In contrast to these small tourist towns, Buffalo is one of the most underrated opportunities for Airbnb investors in New York. As the state’s second-largest city, Buffalo has seen significant revitalization over the past decade, changing from a post-industrial center to a vibrant cultural and food hub. Its proximity to Niagara Falls provides global tourism appeal that consistently fuels visitor demand. Unlike strictly seasonal markets, Buffalo enjoys year-round activity thanks to its universities, sports teams, and expanding tech and healthcare sectors. The average daily rate for short-term rentals is around $180, with monthly revenues close to $1,900, according to market data. While these figures are modest compared to high-end destinations, Buffalo’s main advantage is affordability and long-term stability. Entry prices for properties are significantly lower than the state average, allowing investors to achieve higher cash-on-cash returns. Many hosts in Buffalo use a hybrid strategy—combining short-term vacation rentals with mid-term rentals for traveling professionals or visiting families. This approach lowers vacancy rates and balances income throughout the year. Regulations are more relaxed compared to other New York markets, but investors should still confirm zoning and registration rules with the city. For those seeking a blend of value, growth potential, and steady occupancy, Buffalo offers one of the best urban Airbnb investment markets in the state. Its revitalized downtown, diverse attractions, and closeness to natural wonders make it a popular choice for both domestic and international travelers.

Finally, East Hampton stands out as one of the most iconic luxury markets in the country, where Airbnb investing takes on an entirely different approach. Located on Long Island's eastern tip, East Hampton attracts celebrities, executives, and wealthy travelers seeking privacy, beaches, and upscale coastal living. The average daily rate for short-term rentals in East Hampton exceeds $1,000 per night, making it one of the most profitable Airbnb markets in New York based on per-stay earnings. Monthly revenues average over $5,500, but many hosts earn much more during peak summer months when demand spikes. The Hamptons appeal comes not only from their natural beauty and exclusivity but also from their strong brand recognition. Owning a property here can serve as both a lucrative investment and a prestigious asset. However, this market comes with significant barriers to entry. Property prices rank among the highest in the state, often reaching millions for even modest homes. Moreover, East Hampton has some of the strictest short-term rental regulations in New York. Hosts must register properties, meet strict safety standards, and comply with limits on rental days per year. Enforcement has become increasingly sophisticated, with local authorities using advanced tools to identify unlicensed rentals. Despite these challenges, East Hampton attracts high-net-worth investors willing to navigate complex regulations for exceptional returns and property appreciation. A well-located, well-designed Airbnb in East Hampton can easily outperform most other markets if professionally managed and targeted toward luxury travelers.

Looking at these five towns, it’s clear that New York's short-term rental market has something for every type of investor. Saugerties and Alexandria Bay appeal to those who value charm, affordability, and lifestyle. These markets allow smaller, well-managed properties to generate strong seasonal cash flow. Saratoga Springs and East Hampton represent the high-end market, ideal for investors seeking luxury earnings and long-term appreciation, though with higher entry costs and more regulation. Buffalo, on the other hand, offers a practical middle ground—urban stability, affordability, and steady demand without heavy competition. Each town has its strengths, and success depends on matching your investment strategy with the market's characteristics.

For investors new to short-term rentals, Saugerties or Buffalo may be good starting points because of their affordability and manageable regulations. These markets provide opportunities for learning, experimentation, and scaling without the strict oversight found in more established luxury areas. For experienced investors with more capital and familiarity with navigating complex rules, East Hampton or Saratoga Springs can offer outstanding returns and asset appreciation. Alexandria Bay is an attractive option for those interested in owning a vacation-style property in a place that mixes scenic beauty with strong peak-season performance.

As with any Airbnb investment, thorough research is essential. Before buying, investors should look into local short-term rental regulations, zoning laws, and permit requirements. New York municipalities vary significantly in their approaches, and compliance can determine whether a business thrives or a property sits idle. Understanding seasonality, occupancy trends, and guest demographics is also crucial for pricing and marketing strategies. Partnering with a local property manager or Realtor experienced in short-term rentals can be beneficial, especially for managing turnover, guest communication, and local compliance.

Ultimately, New York’s diversity makes it an appealing state for Airbnb investors. From the river towns of the Hudson Valley to the lakeside villages of the Thousand Islands, from the revitalized neighborhoods of Buffalo to the famous beaches of the Hamptons, the state offers a range of opportunities across various price points and guest experiences. Each of these top five towns—Saugerties, Saratoga Springs, Alexandria Bay, Buffalo, and East Hampton—highlights a different aspect of what makes New York’s short-term rental market so dynamic. Whether you seek steady year-round income, seasonal high-yield opportunities, or long-term property appreciation, there is a town in New York that matches your vision. The key is to align your investment strategy with local realities and understand the nuances of each community. When done correctly, investing in Airbnb properties in New York can provide both financial rewards and a real connection to some of the state’s most beautiful and unique places.