Airbnb Florida and Airbnb Miami in particular never fail to be top tourist destinations in the country, contributing to the success of the Airbnb industry in this area. With its great weather all year long, countless beaches, and touristic sites, Miami is a refuge for those escaping harsh winters or looking to spend a family vacation in a nice place. Consequently, Airbnb Miami continues to prove its success ever since the establishment of Airbnb in 2008.
However, not every neighborhood in Miami has the potential for high rental income with Airbnb listings. There are many factors that play a role in this regard. But first, let us check on the Miami real estate market 2018 and then delve into Airbnb Miami and the best neighborhoods for high rental income.
Do you want to know all the steps related to investing in Airbnb? Make sure to check out The Expert Guide on How to Invest in Airbnb.
Miami Real Estate Market 2018
Located on the Atlantic coast side of Florida, Miami attracts a countless number of visitors and tourists every year which directly leads to the success of Airbnb Miami. Miami’s great and warm weather is another factor contributing to the growth of Airbnb Miami. These lead to the high demand and occupancy rate for Airbnb Miami. Indicators such as cash on cash return and cap rate for rental properties in the Miami real estate market for the year 2018 proves this point.
Mashvisor gives us the following figures and analysis for the Miami real estate market:
- Airbnb Occupancy Rate: 54.7%
- Median House Price: $641,540
- Airbnb Rental Income: $3,161
- Airbnb Cash on Cash Return: 0.89%
- Airbnb Cap Rate: 0.89%
- Traditional Rental Income: $2,567
- Traditional Cash on Cash Return: 0.46%
- Traditional Cap Rate: 0.46%
Although you might feel that the median house price in the Miami real estate market is a bit high, you can easily find more affordable properties in neighborhoods like Little Havana and Downtown Miami. Also, as you can see from the above-mentioned figures, the rental income from Miami Airbnb listings is also high which makes it overall a great location to invest in Airbnb short term rentals. The average ROI figures may be low but click here to see investment properties in Miami with an ROI close to 14%.
Do you want to know more about market analysis? Raed: What Are The Best Market Analysis Tools in Real Estate Investing?
Top Neighborhoods for Airbnb Miami
As a host of the city’s financial and trade centers and representing the second largest banking center in the United States, Brickell boasts some of the highest business traveler traffic in all of Miami. This is mainly due to the fact that the corporate travel continues to be one of the fastest growing segments within the short term rental market. Condos and one-bedroom apartments do well in this Airbnb market as they attract business travelers. To attract corporate visitors and tourists, it is advisable to design your Airbnb rental with a simple and executive environment to attract corporate visitors who represent a big part of the tenants in this neighborhood. Let us take a look at Mashvisor’s figures related to Brickell’s Airbnb industry:
Airbnb occupancy rate: 56.7%
Median house price: $732,635
Airbnb rental income: $3,774
Airbnb cash on cash return: 1.28%
Airbnb cap rate: 1.28%
The above-mentioned figures show a high occupancy rate. This, by all means, contributes to the success of Airbnb rentals in this neighborhood and makes it one of the top areas for Airbnb Miami.
This neighborhood is a center spot for fashion, arts, and nightlife which makes it a cultural hub that attracts visitors. Moreover, Wynwood has a low hotel inventory which contributes to making it one of the areas with the highest demand in all of Airbnb Miami. As long as there is a demand over Airbnb properties in Wynwood, supply will always be needed.
Most Airbnb hosts in Wynwood provide modern spaces with good hospitality, thus providing a unique look with some sort of an artistic flair is recommended to stand out of the crowd within the industry of Airbnb in Wynwood. Furthermore, Wynwood does not have a lot of large accommodations, thus two-bedroom properties or bigger are expected to generate interests. The real estate market in relation to Airbnb looks like the following in Wynwood:
Airbnb occupancy rate: 58.9%
Median house price: $673,893
Airbnb rental income: $2,948
Airbnb cash on cash return: 0.17%
Airbnb cap rate: 0.7%
With its high occupancy rate and high Airbnb rental income, Wynwood makes a great location for investing in Airbnb listings.
Downtown Miami borders the Brickell area, so it has similar characteristics with its short term rental market in terms of demand and home type. Downtown Miami has less seasonality compared to most other short term rental markets in the city due to it being a vacation destination and an area with strong business activity. The peak times, on the other hand, can be a little less strong than areas such as Wynwood which is in high demand among tourists. The real estate market in Downtown Miami looks like the following according to Mashvisor’s investment property calculator:
Airbnb occupancy rate: 61.2%
Median house price: $421,890
Airbnb rental income: $2,785
Airbnb cash on cash return: 0.64%
Airbnb cap rate: 0.64%
Downtown Miami has the highest occupancy rate out of all other neighborhoods in the Airbnb Miami market and an affordable median house price. Investing in Downtown Miami is an opportunity that interested real estate investors should definitely consider.
It is crystal clear that Miami is home to one of the largest Cuban populations with its proximity to Cuba. Little Havana is considered to be a cultural hub that is a center for social and political activities. This neighborhood has regular festivals and countless Latin landmarks which increases the demand over short term rentals. These characteristics leave a big opportunity open for hosts to excel in the Airbnb market and develop strong listings, get positive reviews and generate positive cash flow. Let us take a look at the real estate market in this neighborhood:
Airbnb occupancy rate: 49.3%
Median house price: $389,785
Airbnb rental income: $1,943
Airbnb cash on cash return: 0.65%
Airbnb cap rate: 0.65%
Little Havana, as you can see, has an extremely affordable median property price giving it great potential for investing in short term rentals.
These neighborhoods are also among the best areas for increasing property value in Miami, according to research from RentOwn.net.
Are you curious to know why you should invest in Airbnb Miami? Read Why You Should Consider Investing in Miami Airbnb Properties.
Airbnb Miami: Bottom Line
Airbnb Miami is actually a great place for vacation rentals and it is getting better on a daily basis with the increasing global demand for the homestyle accommodation of short term rentals. The previously mentioned neighborhoods are some of the top places to invest in Airbnb in Miami.
However, keep in mind that location is only one factor playing a role in the success of your investment. Some of the most successful listings in all of Miami are in places such as Buena Vista, for example. Always pay attention to Airbnb regulations and laws in the location you want to invest in. To make sure you get all the knowledge and experience you need in order to succeed in Airbnb Miami and real estate investing in general, make sure to sign up for Mashvisor.
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