Property
Peak yield is 2-3 bedrooms, not 5
Stop chasing the 5-bedroom trophy.
2BR peaks at 14.8%
Based on
380K US listings + Zillow
Key finding: Across 380,000 US listings, gross yield peaks at 2-bedroom homes at 14.8 percent, not at the big 5-bedroom trophy properties.
The short version
Bigger homes bring in more total revenue, but that is not the same as the best return on your money. When you measure gross yield, meaning revenue divided by home value, the winners are 2 to 3 bedroom homes. If you are buying to earn, size for yield instead of chasing the largest house you can afford.
The data
The pattern holds across 380,000 US listings matched to Zillow home values.
Gross yield follows an inverted-U shape by bedroom count.
2-bedroom homes peak at 14.8 percent gross yield.
The peak sits in the 2 to 3 bedroom range, not at 5 bedrooms.
Those are the only figures this study measured. We are not publishing a yield number for every bedroom tier, because the finding is about the shape of the curve and where it peaks.
Why it works
Gross yield is a ratio, so both revenue and price matter. One-bedroom condos often cost too much per usable room, which drags the ratio down. On the other end, 5-bedroom homes carry a high purchase price and tend to fill fewer nights, so the revenue does not keep pace with the money invested. The 2 to 3 bedroom home is the workhorse. It stays affordable to buy, appeals to a wide pool of guests, and earns strong revenue per dollar you put in.
What to actually do
When underwriting a purchase, calculate expected revenue divided by home value, not just total revenue.
Give 2 and 3 bedroom homes a serious look before stretching your budget for a larger property.
Be honest about a 5-bedroom’s cost to fill it, since a high price and softer occupancy can quietly sink your yield.
The honest caveats
This is a correlational finding. It shows that yield tends to peak at 2 to 3 bedrooms across a large sample, but it does not prove that any single home you buy will hit 14.8 percent. Local demand, seasonality, financing, and operating costs all shape your real return. Gross yield also ignores expenses, so it is a screening tool, not a full pro forma. Use it to compare candidates, then run the full numbers on the ones that pass.
Methodology
The analysis covers 380,000 US short-term rental listings from IntelliHost and Key Data, matched to Zillow home values, for 2026. Gross yield was measured as annual revenue divided by estimated home value, then grouped by bedroom count to trace the shape of the curve. The 2-bedroom tier came out on top at 14.8 percent, with the broader peak sitting across the 2 to 3 bedroom range.
Frequently asked questions
What bedroom count gives the best short-term rental yield?
2-bedroom homes lead at 14.8 percent gross yield, with the peak spanning the 2 to 3 bedroom range across 380,000 US listings.
Do 5-bedroom vacation rentals make more money?
They usually earn more total revenue, but not more per dollar invested. Their high purchase price and lower fill rate push gross yield below the 2 to 3 bedroom peak.
Why is a 1-bedroom not the best yield?
One-bedroom condos often cost too much per room, which pulls the revenue-to-value ratio down and keeps them below the 2 to 3 bedroom peak.