It’s no secret that Airbnb investments are a great source of added income. But where should you invest? In recent years, Airbnb regulations have been popping up in major cities across the US housing market. These regulations either restrict property investors from renting out their homes or limit the number of days the property can be rented. If you want to make money from Airbnb, you should avoid investing in these cities.
That said, there are still real estate markets that are Airbnb-friendly. These are the cities you should consider when thinking of buying an Airbnb investment property. If you’re wondering where is Airbnb legal, keep reading our list of the best cities in the US housing market with friendly Airbnb laws.
Airbnb Regulations in Dallas, TX
Most major cities in the state of Texas side with Airbnb rentals, one of which is Dallas. At this time, Dallas has not made any official Airbnb regulations. Moreover, according to the Dallas Business Journal, booked Airbnb listings grew by 34% in the last year alone. This increasing demand for Airbnb rentals can be contributed to the large number of tourists flowing into the city every year. Furthermore, the Airbnb rental income property investors can make from investing in Airbnb Dallas is the highest on our list, allowing you to make positive cash flow! Here is more data regarding Airbnb rentals in the Dallas real estate market, as estimated using Mashvisor’s Investment Property Calculator:
- Median Property Price: $447,539
- Price Per Sq/Ft: $211.48
- Airbnb Rental Income: $2,811
- Cash on Cash Return: 1.48%
- Airbnb Occupancy Rate: 51.97%
Although the cash on cash return may not be very high, you can use our Property Finder to find properties with better returns in different neighborhoods in the city. Wondering where exactly to invest in Dallas? Read this “Top 5 Areas for Dallas Investment Properties.”
Airbnb Regulations in El Paso, TX
El Paso is another city in Texas where real estate investors enjoy friendly Airbnb laws. In fact, according to AirDNA, it’s one of the 11 silent cities who has yet to set a legal framework regarding short-term rental properties. The short-term rental market in El Paso has been stable for years and, unlike cities like Fort Worth and Austin, you can rent out your home on short-term listing sites like Airbnb without fear of penalties. What’s even more encouraging to invest in El Paso is that investment properties are more affordable than other cities in the Texas state and can make a good return on investment.
- Median Property Price: $195,393
- Price Per Sq/Ft: $97.32
- Airbnb Rental Income: $1,772
- Cash on Cash Return: 2.14%
- Airbnb Occupancy Rate: 53.4%
Want to find the best rental properties for sale in El Paso? Click here to start looking for and analyzing properties in your neighborhood of choice.
Airbnb Regulations in Mesa, AZ
Investing in Airbnb rentals became fully legal in Mesa at the beginning of this year when Arizona removed all restrictions on short-term rental properties. The city of Mesa, in particular, has never banned short-term rentals and doesn’t impose strict Airbnb regulations “simply because the property is not classified as a hotel.” Furthermore, based on state law, Airbnb hosts and property investors can rent out room, homes, or other real estate properties on Airbnb for as many days of the year as they like! According to AirDNA, Mesa has a whopping 68% annual growth of Airbnb rental properties. This is what real estate investors need to know about Airbnb rentals in Mesa, based on our Investment Property Calculator:
- Median Property Price: $303,039
- Price Per Sq/Ft: $282.58
- Airbnb Rental Income: $1,657
- Cash on Cash Return: 1.55%
- Airbnb Occupancy Rate: 41.28%
Check out this property for sale in Mesa; it has a cash on cash return of 12.34% and its listing price is only $264,900!
Click here to use Mashvisor’s Property Finder Tool and find the best rental properties with higher cash on cash returns in Mesa, AZ (or in any other city) in a matter of minutes!
Airbnb Regulations in Milwaukee, WI
Milwaukee is a popular destination for tourists in Wisconsin. For a long time, homeowners and real estate investors have been listing their properties for short-term rent. Such short-term investment properties have an increasing demand seeing as tourists are turning to them more frequently. The state of Wisconsin had previously imposed Airbnb laws. However, thanks to a new change in the law (which took effect on January 2018), local governments can no longer prohibit short-term rental properties. At the moment, there are no Airbnb regulations for property investors who want to become hosts and make money from investing in Airbnb.
Related: The Expert Guide on How to Invest in Airbnb
- Median Property Price: $202,362
- Price Per Sq/Ft: $126.02
- Airbnb Rental Income: $1,854
- Cash on Cash Return: 2.83%
- Airbnb Occupancy Rate: 50.67%
Airbnb Regulations in San Antonio, TX
Yet another city in the Texas real estate market that welcomes Airbnb real estate investors with open arms is San Antonio. Since 2015, the city keeps ranking with the best places for Airbnb investments and the main reason for that is its lack of Airbnb laws. Like most of the cities on our list, San Antonio is a “Silent City” meaning it neither prohibits nor allows Airbnb rentals. Affordability is another reason to consider buying a rental property in this city. However, we encourage you to buy now before prices go up. According to data from Mashvisor, Airbnb rental properties in San Antonio have a:
- Median Property Price: $289,257
- Price Per Sq/Ft: $130.09
- Airbnb Rental Income: $2,479
- Cash on Cash Return: 3.52%
- Airbnb Occupancy Rate: 50.19%
Click here to find, analyze, and compare the best investment properties in the neighborhood of your choice in San Antonio real estate market.
Airbnb Regulations in Indianapolis, IN
Indianapolis may not be your first option when thinking about investing in short-term rental property. However, the city is currently ranking in as Airbnb’s number one trending city! Indianapolis real estate is affordable compared to hot real estate markets like Atlanta ($433,992), Chicago ($446,566), and Seattle ($805,932). If you’re asking “where is Airbnb legal in the Midwest?” Indianapolis is your answer. In addition, given the increasing demand for short-term rentals and lack of strict Airbnb laws, buying an investment property and renting it out on Airbnb will bring about a high return on investment, as you can see below:
- Median Property Price: $228,292
- Price Per Sq/Ft: $103.64
- Airbnb Rental Income: $2,162
- Cash on Cash Return: 4.75%
- Airbnb Occupancy Rate: 48%
Related: Indianapolis Investment Properties: Why and Where to Find Them in 2018
The Bottom Line
Before you go ahead and list your property on short-term rental sites like Airbnb, you must check whether or not it’s legal to do so in your city. Want to buy a short-term rental property in one of these cities with friendly Airbnb regulations? Let us help you out! Our tools are designed to help real estate investors efficiently find the best and most profitable properties (both traditional and Airbnb) in any city across the US housing market. Sign up for Mashvisor to start or click here to learn more about our product.
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