Top LocationsBuying a short-term rental property? Invest in the most Airbnb friendly cities by Hamza Abdul-Samad January 10, 2018February 12, 2019 by Hamza Abdul-Samad January 10, 2018February 12, 2019Airbnb real estate investing is packed with opportunities to have properties with positive cash flow. Still, there is an issue that looms around when investing through the platform: Airbnb legal issues. Some cities, like San Francisco, slap Airbnb hosts with high occupancy taxes. Other cities, like New York, ban the platform altogether. Most cities, however, are much more accepting of Airbnb. There are way more Airbnb friendly cities than Airbnb opposing ones.Related: Four Things to Consider Before Purchasing an Airbnb Investment PropertyHaving little Airbnb legal issues and reasonable regulation is a balancing act many cities manage well. Still, even among Airbnb friendly cities, some place more lenient and reasonable legislation than others. So, where are the most Airbnb friendly cities? The most Airbnb friendly cities, according to R Street Institute’s Roomscore Report, which grades large US cities based on their short-term rental regulations, are Cleveland, OH, Columbus, OH, Dallas, TX, Indianapolis, IN, Louisville, KY, and San Diego, CA. Related: Cities with the least Airbnb legal issuesWhen buying a property for Airbnb, these cities may not be the best in terms of Airbnb rental income or affordability. Still, these Airbnb friendly cities check out pretty well in these two aspects. This will make Airbnb hosts doubly happy for sure.All the data for the Airbnb friendly cities provided are from Mashvisor’s real estate market and investment property analysis. The data presented are merely averages. Data for an actual Airbnb property will likely be higher. Be sure to find the best place to buy Airbnb property in any city through Mashvisor! Without further ado, here are the most Airbnb friendly cities and their top two neighborhoods!Cleveland, OhioMedian Property Price: $248,182Airbnb Rental Income: $565Airbnb Cash on Cash Return: 1.71%Airbnb Cap Rate: 1.71%Kicking off the list of Airbnb friendly cities is Cleveland. The city requires Airbnb hosts to register for a business license. A small 3% transient occupancy tax may also apply to Airbnb properties, as well as a 5.5% bed tax. These requirements do not derail buying a property for Airbnb in the city. Investment properties in the city are affordable, yet another plus for Airbnb hosts. As a whole, Cleveland may not have the highest Airbnb rental income. Many parts of the city, however, break this rule. The Downtown neighborhood, for instance, is the best place to buy Airbnb property in Cleveland.DowntownMedian Property Price: $397,450Airbnb Rental Income: $2,658Airbnb Cash on Cash Return: 3.55%Airbnb Cap Rate: 3.55%Average Airbnb Occupancy Rates: 35%Ohio City Median Property Price: $294,450Airbnb Rental Income: $1,565Airbnb Cash on Cash Return: 2.24%Airbnb Cap Rate: 2.24%Average Airbnb Occupancy Rates: 36%Columbus, OhioMedian Property Price: $204,220Airbnb Rental Income: $471Airbnb Cash on Cash Return: 1.72%Airbnb Cap Rate: 1.72%Next on the list of the most Airbnb friendly cities is another Ohioan city: Columbus. Like Cleveland, Columbus is one of the best when buying a property for Airbnb based off affordability. The average Airbnb rental income for the city may be low, but many of its neighborhoods provide many opportunities for Airbnb positive cash flow. The best place to buy Airbnb property in Columbus is Indianola Terrace.Indianola TerraceMedian Property Price: $149,900Airbnb Rental Income: $1,995Airbnb Cash on Cash Return: 10.81%Airbnb Cap Rate: 10.81%Average Airbnb Occupancy Rates: 48%Schumacher PlaceMedian Property Price: $313,400Airbnb Rental Income: $2,231Airbnb Cash on Cash Return: 5.54%Airbnb Cap Rate: 5.54%Average Airbnb Occupancy Rates: 44%Dallas, TexasMedian Property Price: $322,898Airbnb Rental Income: $623Airbnb Cash on Cash Return: 0.97%Airbnb Cap Rate: 0.97%Dallas has had quite a year for Airbnb investing that some may claim that it was the best city for Airbnb investment for 2017. A huge reason for this is that it is among the most Airbnb friendly cities. Without a doubt, the best place to buy Airbnb property in Dallas is Northwest Dallas.Northwest DallasMedian Property Price: $199,000Airbnb Rental Income: $1,551Airbnb Cash on Cash Return: 4.24%Airbnb Cap Rate: 4.24%Average Airbnb Occupancy Rates: 23%Oak CliffMedian Property Price: $350,000Airbnb Rental Income: $1,623Airbnb Cash on Cash Return: 2.52%Airbnb Cap Rate: 2.52%Average Airbnb Occupancy Rates: 41%Indianapolis, IndianaMedian Property Price: $188,374Airbnb Rental Income: $758Airbnb Cash on Cash Return: 3.56%Airbnb Cap Rate: 3.56%Indianapolis is the best city for Airbnb investment on this list based on affordability. Its low property prices and high rental income make way for positive cash flow Airbnb properties. You can’t go wrong investing in either of the two following neighborhoods in Indianapolis.Near SouthsideMedian Property Price: $254,900Airbnb Rental Income: $2,619Airbnb Cash on Cash Return: 14.51%Airbnb Cap Rate: 14.51%Average Airbnb Occupancy Rates: 42%Fountain SquareMedian Property Price: $290,000Airbnb Rental Income: $2,949Airbnb Cash on Cash Return: 11.48%Airbnb Cap Rate: 11.48%Average Airbnb Occupancy Rates: 43%Louisville, KentuckyMedian Property Price: $241,684Airbnb Rental Income: $546Airbnb Cash on Cash Return: 1.98%Airbnb Cap Rate: 1.98%Like many Airbnb friendly cities, Louisville requires Airbnb hosts to obtain a business license. What may be unusual is that hosts cannot have the property fully occupied and that hosts must be 25 miles within the property when rented to Airbnb guests. Nonetheless, Louisville is one of most Airbnb friendly cities, and one of the more lucrative ones, too. In fact, it is the best city for Airbnb investment based on income on this list.ButchertownMedian Property Price: $230,000Airbnb Rental Income: $3,750Airbnb Cash on Cash Return: 15.28%Airbnb Cap Rate: 15.28%Average Airbnb Occupancy Rates: 43%CliftonMedian Property Price: $242,200Airbnb Rental Income: $4,393Airbnb Cash on Cash Return: 17.1%Airbnb Cap Rate: 17.1%Average Airbnb Occupancy Rates: 35.6%San Diego, CaliforniaMedian Property Price: $686,790Airbnb Rental Income: $1,374Airbnb Cash on Cash Return: 1.14%Airbnb Cap Rate: 1.14%San Diego is in no shortage of Airbnb guests. The city is one of the most popular tourist destinations, both on a national and global scale. Luckily, it is also one of the most Airbnb friendly cities, making Airbnb properties a profitable form of investment. Aside from a couple of business licenses requirements, San Diego’s Airbnb regulation is very smooth.North ParkMedian Property Price: $345,000Airbnb Rental Income: $1,762Airbnb Cash on Cash Return: 2.13%Airbnb Cap Rate: 2.13%Average Airbnb Occupancy Rates: 44%Golden HillMedian Property Price: $451,950Airbnb Rental Income: $2,141Airbnb Cash on Cash Return: 3.22%Airbnb Cap Rate: 3.22%Average Airbnb Occupancy Rates: 43%Related: Don’t Invest in Short-Term Rentals Here: The Places with the Worst Airbnb Legal IssuesFor more on everything related to Airbnb real estate investing, like how to increase Airbnb rental income or how to attract more Airbnb guests, visit Mashvisor! Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsCleveland OHColumbus OHDallas TXIndianapolis IN 0FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-SamadHamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post Why Are Income Properties a Great Way to Make Money in Real Estate? Next Post Buying a Foreclosed Home at House Auctions: What Real Estate Investors Should Know Related Posts 4 Top Housing Markets 2018 – US Housing Market Is 2020 a Good Time to Invest in the Portland Housing Market? Sacramento Housing Market 2020: Why and Where to Invest US Housing Market Predictions: Salt Lake City Real Estate Market Is Looking Hot for 2018! What’s the Deal with the Detroit Housing Market in 2020? The 10 Best Places for Buying a Vacation Home in the US in 2019 The Colorado Real Estate Market 2018: Interview with Agent Joe Mivshek Where to Invest in the Tempe Real Estate Market in 2020 Michigan Real Estate Market 2018: Can You Make Money Investing Here? What’s investing in Houston real estate in 2017 going to be like? Should I Invest in the Tennessee Real Estate Market 2019? Where? Aspen Real Estate: Are the High Prices Worth It?