With short-let rules tightening at home and the furnished holiday let regime now consigned to history, British investors looking for genuinely high yields are increasingly casting their eye across the Atlantic. New research suggests they may be right to do so.
A fresh analysis of fifty American cities has crowned the Hawaiian island of Maui as the most profitable place in the United States to own a short-term let in 2026, with owners pocketing an average of $61,200 (around £48,500) a year, roughly three times what comparable hosts make in a typical American city.
The study, published in April by Maui Elite Property, ranked each market on annual revenue, achievable nightly rates, occupancy levels, active listings and online search demand, before producing an overall index score out of 100. Maui scored 90.1, comfortably ahead of Charleston in South Carolina (81.6) and a second Hawaiian entry, Honolulu (61.4).
For British investors weighing up where to deploy capital after the abolition of the furnished holiday let tax regime in April 2025, which stripped away mortgage interest relief, capital allowances and pension-eligible earnings — the numbers underline how stark the gap has become between the most productive American markets and a softening UK holiday-let sector.
The top ten American holiday-let markets
| Rank | City | Occupancy | Market score | Annual revenue | Active listings | Index |
|---|---|---|---|---|---|---|
| 1 | Maui | 64% | 94 | $61,200 | 6,100 | 90.10 |
| 2 | Charleston | 63% | 90 | $56,500 | 3,400 | 81.60 |
| 3 | Honolulu | 64% | 88 | $38,500 | 10,600 | 61.40 |
| 4 | Portland (Maine) | 58% | 78 | $38,200 | 1,200 | 61.30 |
| 5 | Nashville | 54% | 81 | $41,600 | 13,400 | 61.10 |
| 6 | New York City | 70% | 77 | $27,300 | 27,100 | 53.70 |
| 7 | Virginia Beach | 54% | 71 | $33,000 | 2,600 | 53.60 |
| 8 | Boston | 61% | 51 | $34,500 | 3,300 | 52.10 |
| 9 | Chicago | 60% | 79 | $27,200 | 11,600 | 45.10 |
| 10 | Louisville | 51% | 87 | $24,900 | 3,800 | 44.20 |
Maui: paradise with a supply squeeze
Maui’s pole position is built on premium nightly rates of $430, among the highest in the country, and a 64 per cent occupancy rate that holds up across the calendar. With roughly 6,100 active listings on an island of finite footprint, supply is tight, regulation is tightening tighter still, and pricing power sits firmly with owners. The trade-off is well known: Bill 9, the Maui County proposal to phase out thousands of apartment-zoned short-term rentals, hangs over the market and has already prompted independent economists to warn of substantial value falls if it proceeds.
For buyers, that creates a clear two-track picture. Hotel-zoned and fully compliant properties look more defensible than ever; apartment-zoned stock, by contrast, carries genuine regulatory risk.
Charleston and the southern boom
Charleston, the genteel Carolina port city, is the surprise of the rankings for British readers who tend to think of Florida or California when they think American property. Hosts there charge an average $370 a night, some $160 above the national average, and generate $56,500 in annual revenue, while competition remains modest with only 3,400 active listings. As an example of how to spot a market before it peaks, Charleston is a textbook case; readers may find our guide to identifying the next property investment hotspot a useful companion piece.
Honolulu, Portland and Nashville
Honolulu offers a more accessible Hawaiian entry point, with nightly rates of around $290 and per-square-foot pricing that, while still eye-watering by mainland standards, undercuts Maui. Occupancy holds at 64 per cent in spite of more than 10,000 competing listings.
Portland in Maine, not to be confused with its better-known Oregon namesake, punches above its weight. With just 1,190 listings city-wide, owners enjoy an unusually clean run at demand, achieving nightly rates of $357 and $38,200 in annual takings despite a brutal winter season.
Nashville, the country-music capital, rounds out the top five. Year-round visitor demand, conferences, bachelorette weekends, the music industry circuit, sustains a 54 per cent occupancy rate even with more than 13,000 listings on the market. The clincher for first-time investors is entry price: at roughly $3,598 per square foot, it is the cheapest of the top five.
The view from an analyst
A spokesperson for Maui Elite Property put the case for chasing the upper tier of occupancy plainly:
“The difference between a 64 per cent occupancy rate and a 50 per cent occupancy rate is huge when you’re paying a mortgage. That extra 14 per cent means an additional 51 nights booked per year. At $350 per night, that’s nearly $18,000 in revenue you’re missing. Most investors don’t realise how thin the margins are. If your property stays empty seven extra weeks compared to other top markets, your mortgage payments and property taxes eat up your profits.”
It is a point UK landlords would do well to internalise. As CNBC reported in February, the wider US short-term rental sector is benefiting from softer mortgage rates and resilient leisure demand, with industry data house AirDNA estimating gross yields close to 14 per cent across its top ten markets — a figure that puts British coastal lets, post-FHL, firmly in the shade.
What this means for British investors
The case for a transatlantic foray is not without caveats. Currency risk cuts both ways, US state taxes and federal reporting obligations are onerous for non-resident landlords, and rules on short-term rentals are tightening from Honolulu to New York. Yet with British property markets digesting both the FHL abolition and the prospect of a national short-term let register coming into force later in 2026, the calculus for diversification has rarely looked more compelling. Our recent survey of growing international diversity in property investment suggests the smarter end of the market is already on the move.
For now, Maui’s combination of premium pricing, stubbornly high occupancy and a finite footprint marks it out, though investors should pay as close attention to the planning commission as they do to the bookings calendar.
