Airbnb Rentals 50 Cities with the Highest Average Airbnb Daily Rate in 2022 by Amanda Rodriguez February 15, 2022February 22, 2022 by Amanda Rodriguez February 15, 2022February 22, 2022 IIf you are planning to invest in vacation rentals, one of the most important factors that you should consider when deciding which areas to invest in is the Airbnb daily rate. The average Airbnb daily rate shows the average earnings a short-term rental property generates in a given time period. Why Is Airbnb Daily Rate Important? As investors, knowing and charging the right Airbnb daily rate in your chosen location can help you can attract potential guests and maximize your profits. Before you decide on a place for a short-term rental investment, it’s necessary to analyze the Airbnb data in some cities that you are interested in. The average Airbnb daily rate can tell how profitable a short-term rental property is. The figure can also help you make comparisons with other vacation rental competitors nearby. If you charge way too much compared to the average daily rate of Airbnb properties in your area, you’ll risk not getting your property occupied. On the other hand, if you charge way too little, you may not maximize your earnings and won’t be able to generate sufficient Airbnb rental income to cover your costs. Before investing in a vacation rental, it’s essential to do your research and make an Airbnb analysis so you’ll know how much you should charge for a short-term rental property. This way, you can set your own competitive short-term rental price and ensure that your vacation property will be rented while maximizing your income potential. Related: When Is Investing in Rental Property as Airbnb a Smart Investment Decision? Cities with the Highest Airbnb Daily Rate for 2022 If you want to know which cities are best for investing in vacation rentals, you have to take a look at the average Airbnb daily rate by city. To help you find the best cities for vacation rental investment in 2022, we have listed the top 50 cities with the highest average daily rate figures, ranging from above $400 to over $800. It’s important to note that we only included those areas that have an average Airbnb occupancy rate of 60% and above. The figures below are based on Mashvisor data as of January 2022. The estimates included in the list were calculated using Mashvisor’s Airbnb calculator, which runs a comprehensive Airbnb data analysis to help investors make the right decision when it comes to their investments. Here are the top 50 cities with the highest average daily rate for short-term rentals in 2022: City and State Airbnb Daily Rate Airbnb Occupancy Rate Monthly Airbnb Rental Income Airbnb Cash on Cash Return 1. Malibu, CA $895 65% $12,745 3.38% 2. Matamoras, PA $861 64% $5,606 8.20% 3. Owings, MD $761 66% $6,895 8.97% 4. McCordsville, IN $729 60% $3,186 5.88% 5. Kamuela, HI $711 64% $8,973 2.09% 6. Clifton Heights, PA $681 69% $2,700 6.34% 7. Rancho Santa Fe, CA $676 63% $13,109 2.68% 8. Hanalei, HI $610 68% $11,954 3.04% 9. Fairfield, CA $598 60% $5,871 5.06% 10. Broomall, PA $594 62% $4,869 6.93% 11. Chester, MD $594 60% $4,570 5.11% 12. Bridgeton, NJ $590 63% $9,208 2.20% 13. Thousand Palms, CA $587 63% $1,794 3.2% 14. Santa Ynez, CA $584 66% $15,225 6.38% 15. Lower Matecumbe, FL $558 62% $4,995 1.08% 16. Lemont, IL $549 65% $3,631 3.61% 17. Carmel, CA $546 60% $9,477 1.08% 18. Northbrook, IL $541 61% $4,461 3.43% 19. Buellton, CA $521 65% $7,316 3.37% 20. Kailua, HI $520 65% $9,979 4.68% 21. Queenstown, MD $516 62% $5,005 3.54% 22. Brookfield, CT $515 63% $6,586 6.03% 23. Danville, CA $512 69% $9,834 2.98% 24. Moorpark, CA $503 66% $6,536 4.47% 25. Easton, MD $497 67% $7,711 4.57% 26. Napa, CA $488 67% $9,217 4.36% 27. La Grange, NY $483 63% $6,460 6.80% 28. Kihei, HI $483 76% $7,902 4.86% 29. Pinecrest, FL $480 72% $5,562 2.96% 30. Oxnard, CA $480 61% $6,986 2.54% 31. Shady Side, MD $475 70% $6,889 7.19% 32. Great Barrington, MA $474 60% $5,707 6.76% 33. Ojai, CA $469 65% $7,929 4.18% 34. Putnam Valley, NY $468 62% $2,735 2.17% 35. Mound, MN $465 68% $8,828 7.15% 36. Sonoma, CA $464 62% $10,889 5.08% 37. New Berlin, WI $457 78% $2,214 4.35% 38. Bumpass, VA $452 61% $5,969 5.51% 39. Temecula, CA $446 64% $7,118 6.88% 40. Palmetto Bay, FL $438 70% $6,875 4.33% 41. Lehighton, PA $433 66% $4,083 7.91% 42. Williamstown, NJ $432 63% $6,442 4.98% 43. Cambria, CA $431 66% $5,052 2.07% 44. Trumansburg, NY $429 63% $4,502 5.89% 45. Half Moon Bay, CA $429 67% $8,652 3.09% 46. Koloa, HI $417 64% $5,342 1.94% 47. Lahaina, HI $416 84% $7,963 4.25% 48. Carmel Valley, CA $416 67% $9,421 3.29% 49. South Salem, NY $415 63% $6,916 7.17% 50. Haleiwa, HI $413 68% $10,238 2.93% Analysis of the 2022 Airbnb Daily Rate by City The highest average daily rate on Airbnb ranges from $413 (Haleiwa, HI) to $895 (Malibu, CA). Based on the data presented above, the city with the highest Airbnb daily rate is Malibu, CA. Its occupancy rate is 65%. The list only includes Airbnb cities with Airbnb occupancy rates of 60% and higher. Among the cities included here, Lahaina, HI recorded the highest Airbnb occupancy rate of 84%. The states with the highest average daily rate for short-term rentals are California, Hawaii, Maryland, and New York. According to the above figures, the city with the highest monthly Airbnb rental income is Santa Ynez, CA, which is estimated at $15,225 (with an average Airbnb daily rate of $584 and an occupancy rate of 66%). The city with the lowest Airbnb monthly rental income is Thousand Palms, CA, estimated at $1,794 (with an average daily rate of $587 and an occupancy rate of 63%). The city with the highest Airbnb cash on cash return is Owings, MD, estimated at 8.97%. It recorded an average daily rate of $761 and an occupancy rate of 66%. From the list, there were two cities with the lowest cash on cash return of 1.08%: Lower Matecumbe, FL, with an average daily rate of $558 and an occupancy rate of 62%; and Carmel, CA, with an average daily rate of $546 and an occupancy rate of 60%. Related: Best Cities for Airbnb Investment 2022: Where Should You Invest? Malibu, CA ranked first in Mashvisor’s list of Airbnb daily rate by city in 2022 How to Set the Right Airbnb Rental Rate There are several key factors that you should consider when deciding how much to charge daily for a vacation rental. While it’s important to consider the average daily rate of Airbnb rentals in your chosen location, a good Airbnb daily rate should not solely be based on this factor. You should also take into account other components that can help drive your income, such as the following: Average Occupancy Rate To know how much to charge daily for your vacation rental so you’ll have sufficient monthly income, it’s important to analyze how often your Airbnb property will be occupied. The best cities for Airbnb are those that are more attractive to tourists and usually see higher occupancy rates all year round. Investing in areas with higher occupancy allows you to charge higher rent without worrying that your property will not get occupied because there is a demand for vacation rentals. Airbnb Cash on Cash Return The cash on cash return is a metric used to measure the income generated from a short-term rental property in relation to the amount the investor initially spent to purchase it and make it operational. High cash on cash return means the property generates a high net operating income in ratio to the total cash investment. If you want to see a return on investment on your vacation rental, this is an important factor to consider when setting your Airbnb daily rental rate. Consider investing in one of the top locations for Airbnb cash on cash return to maximize your ROI. Related: Top 30 Locations for Airbnb Cash on Cash Return in 2022 Overall Costs and Expenses To determine the right price to charge for your vacation rental, you also need to consider your overall costs—including the Airbnb fees and other operational expenses—so you can generate a positive cash flow. Include one-time expenses such as the cost of the permit and licenses that you need to secure for running a short-term rental, as well as recurring expenses like maintenance and property management fees, if applicable. Seasonality Trends The right Airbnb daily rate fluctuates depending on the seasonality trends in your location; your rental price should not be a fixed rate all year round. It’s important to be updated on current trends and know the demand for short-term rentals in your area. You should also have a dynamic pricing strategy based on these trends so you can maximize your bookings and income. During peak season, when the demand for vacation rentals is high, you can charge more on rentals to take advantage of the higher demand and maximize your earnings. On the other hand, you must be flexible and adjust your rate during the low season to attract guests and fill vacancies. Other Comparables Within the Area Research similar Airbnb investment properties nearby and compare the average Airbnb daily rate charged by your competitors. By doing comparable neighborhood analysis, you’ll know how much others currently charge for similar properties in the area and this will give you a general idea of how much to charge for your own property too. Know the Airbnb Laws and Regulations in Your Chosen City Before investing in short-term rentals, it’s crucial to research the Airbnb laws and regulations in your chosen state and/or city. Find out the restrictions per state and/or city as this is essential in helping you make the right investment strategy. Most importantly, make sure to choose a location that has no Airbnb legal issues. While Airbnb laws and regulations typically don’t tell you how much you can charge for your short-term rental, some may outline certain restrictions that may affect the average Airbnb daily rate you need to charge to ensure you’ll get a positive cash flow from your vacation property. Here are some of the important restrictions you need to find out: Whether the property should be owner-occupied or non-owner occupied How many days per year you can rent out your Airbnb How many guests you can have for each stay How much you should pay for taxes, as well as the cost of securing a permit Whether or not you can rent your property for under 30 days Invest in Airbnb Rental Properties with the Help of Mashvisor Do you want to invest in short-term rental properties but do not know how to begin? Mashvisor can help you decide which areas to invest in based on our comprehensive real estate market analysis. You can search our database, which contains hundreds of thousands of investment properties, to help you get started with your Airbnb investment. Just type in a city or neighborhood of your choice and we’ll provide you with a quick overview of the houses for sale in that area. Once you find a property that interests you, click on that property, and we’ll provide you with a detailed analysis of the average monthly rental income, Airbnb cap rate, median home price, cash flow, Airbnb daily rate, occupancy rate, and more. All of the said data are crucial in making an informed investment decision. Mashvisor also provides tools that can help you find the right property for your investment goals. Using our Mashvisor tools, you can get comparable rental listings, as well as neighborhood analysis and data insights. You can also use Mashvisor’s Airbnb profit calculator to get a profit analysis of comparable properties nearby. We can also help you determine which real estate investment strategy would work best in a particular location. Click here to start searching for the best Airbnb rental properties in your preferred city or neighborhood. Sign up for a 7-day free trial of Mashvisor followed by a 15% discount on your quarterly or annual subscription! Start Your Investment Property Search! START FREE TRIAL CaliforniaFloridaIllinoisLocationReal Estate DataRental Income 0 FacebookTwitterGoogle +PinterestLinkedin Amanda Rodriguez Amanda is passionate about everything real estate and takes pride in her ability to help investors navigate the market with detailed and comprehensive guides. Previous Post Flipping Houses in Houston: The Complete Guide Next Post What Is AirDNA? Is It the Best Source of Airbnb Data Analytics in 2022? Related Posts Las Vegas Real Estate Market 2018 – A Good Place to Invest? Key Aspects of Short Term Rental Property Management How to find a property manager that will maximize your vacation rental profit 9 Airbnb Pros and Cons for Real Estate Investors Airbnb Houston: Is It Worth Investing in 2022? 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