If you’re looking for an accurate Airbnb revenue estimate for your next potential investment plan, you can rely on Mashvisor’s calculator.
As an investor, making a profit on your investments is obviously your ultimate goal. On that note, measuring revenue can give you actionable—and accurate—information in terms of potential profitability.
Table of Contents
- 3 Reasons Airbnb Will Still Be Profitable
- Things Airbnb Investors Should Be Aware of
- Mashvisor 101: How Do We Assist Investors?
- How to Estimate Your Potential Airbnb Revenue Using Mashvisor
- 5 Cities With the Highest Airbnb Revenue Estimate
Even though it may not have occurred to you until now, measuring the revenue of your next investment opportunity carries enormous importance.
By understanding the revenue estimates, you can reap the most benefits out of the pile of information about the short term rentals that you encounter on a daily basis.
Want an accurate Airbnb revenue estimate? Use Mashvisor.
Filtering important Airbnb data and getting an insight into the numbers that will give you a realistic picture of the profitability of your next investment is of the utmost importance for an investor.
To learn more about how Mashvisor’s Airbnb revenue estimator could assist investors in calculating the revenue of their short term rentals, scroll down.
3 Reasons Airbnb Will Still Be Profitable
Will Airbnb still be a profitable investment venture?
To be able to answer your question, we first need to take a step back into Airbnb’s past and see how it has progressed over time.
Before the COVID-19 pandemic stopped the entire world in 2020, Airbnb hosts were earning $924 per month (on average) from hosting, according to Earnest.com. We can agree that that’s a more-than-decent income.
Now, when things are slowly but surely returning to “normal” and businesses are recovering from the COVID-19 consequences, the question is:
Will Airbnb pull through and continue to bring investors benefits this year, as well?
The prognosis for now is positive. In the third quarter of 2022, Airbnb revenue rose by 29% from a year earlier to $2.88 billion—which was slightly higher than analysts’ forecast of $2.85 billion.
With 2022 slowly coming to an end and the forecast promising, investors should certainly turn their attention to this investment strategy in the upcoming year. Before deciding on a location, though, make sure that you don’t skip any important steps or blindly trust the predictions.
While the future seems bright for Airbnb, you should still take some time to estimate Airbnb income of your favorite locations.
If you’re already interested in investing in this type of property, you may find this next section useful. We’ve outlined the top three reasons why Airbnb is considered a profitable business venture.
1. Property Control
One of the most obvious advantages of going down the Airbnb route is that hosts exert more control over their properties.
What Airbnb offers is easier cleaning, maintenance, and taking care of any major issues tied to your investment property. Airbnb, by its very nature, implies short stays, so you’ll be able to visit (and inspect) your property more often.
It will allow you to keep up with what is happening much better than if you’re catering to long-term tenants. And even though more time on the field may seem like a challenge at the moment, it is actually a huge benefit for investors and hosts.
2. Diverse Guest Portfolio
What will pretty much guarantee a high Airbnb revenue is a diverse lineup of guests.
With long-term rentals, you are used to catering to the same tenants for six months at a time, for example. It means that you won’t be able to generate as much profit as you envisioned.
With Airbnb, however, there is a greater possibility for more revenue. Renters will be coming and going constantly. The influx of money you’ll be earning from a well-positioned and equipped Airbnb can easily exceed your expectations.
With Airbnb, you can expect anything from students, people looking for career opportunities in the city, and families on vacation, to seniors enjoying their retirement years.
3. Greater Revenue
Finally, the reason you’ve been hoping for:
Yes, Airbnb holds more opportunities for a higher income than traditional rentals.
Why is that?
Depending on factors like location, seasonality, and amenities, you are entitled to adjust the rental rates as you see fit. That said, you should still stick to certain standards and make your short-term rental affordable—and, thus, attractive—for your future guests.
Things Airbnb Investors Should Be Aware of
As with any other type of investment, simply investing in Airbnb and expecting high revenue is not the most likely scenario. Do keep in mind that investing consists of the good—and the not-so-good—things.
However, being aware of any potential obstacles before they come up can help you navigate the problems better and prevent unnecessary complications.
So, if you are sure that investing in Airbnb is the best investment path for you, here are a few things to consider:
The Airbnb business is now slowly getting back on its feet and generating revenue that’s similar to that before the pandemic. The first thing that investors should pay attention to is the strong competition in the industry.
Certainly, other investors have already researched potential hotspots for Airbnb investments, so you should bring your A-game to the market, too.
Among other things, it means you need to be willing to spend time researching potential locations and getting to know your competition. Studying the advantages and disadvantages it brings will be beneficial as well.
Airbnb Rules & Regulations
Another thing that will be a potential obstacle for some investors is the strict Airbnb rules and regulations.
Bear in mind that you must know the rules of the community where your Airbnb is located.
Although some areas have moderately restrictive rules and regulations, others will not be so lenient. Some may even limit the number of guests you can have or how many days you can rent your property at a time.
Generating revenue is your goal. However, you need to consider the factors that are beyond your wants and wishes as an investor in order to succeed in this business.
Mashvisor 101: How Do We Assist Investors?
If you’re planning to enter the investing business in the upcoming months, chances are you’ll need a reliable source of information that can assist you in all areas of this business.
How does Mashvisor fit into this picture, though—and what is the secret of its usefulness for investors?
Mashvisor is an investment website designed to help investors in their day-to-day, as well as major, career moves. In its essence, it provides investors with the necessary information and analytics to estimate the expected performance of their desired investment properties.
Mashvisor holds data for cities across the entire US housing market. And since the analytics are predictive, investors can actually assess future trends and outcomes based on historical and comparative data.
What you are currently interested in, though, is whether Mashvisor can help you estimate the potential success of your Airbnb investment property.
It sure can.
More specifically, Mashvisor’s Airbnb calculator is the tool you’ll need when estimating your potential Airbnb revenue.
How to Estimate Your Potential Airbnb Revenue Using Mashvisor
Our Airbnb calculator is of great importance to investors.
It not only provides them with accurate data that will help them estimate potential revenue for their short-term rental but simplifies the investing process as a whole—and helps them reach a well-thought-out decision, too.
Now that you are well aware of the importance and benefits of Mashvisor’s Airbnb calculator, let’s look at some precise figures that this tool will generate for you:
Property Listing Price
The first metric that will help you estimate your Airbnb revenue is the property listing price. While it is not always the final sale price, it’s still a reliable indicator of just how much an investor can expect to pay when they buy short term rental property.
Startup Costs & Monthly Expenses
In order to estimate potential revenue, the investor should be familiar with the startup costs, as well as the monthly rental property expenses, of their potential Airbnb rental property.
Both metrics are crucial because they can help you decide whether a specific property will be profitable in the long run.
- Property taxes
- Cleaning fees
- Property maintenance
- Property management
- HOA fees
In addition to the metrics we’ve mentioned so far, we place special importance on calculating the cash flow for your Airbnb investment property.
The figure you get here is absolutely crucial to your profit estimates, as it essentially shows how much money is coming in and out of your investment property.
While it should go without saying, a positive cash flow is your key to running a successful Airbnb investment.
Want to calculate your potential Airbnb revenue using Mashvisor? Click here to start your 7-day free trial.
5 Cities With the Highest Airbnb Revenue Estimate
Identifying the best short term rental markets for investing in an Airbnb and picking a location that meets all your criteria is the most important item on your to-do list and, at the same time, the one with which you should start this kind of venture.
We’re always one step ahead—and we’ve taken the time to list down the five most profitable locations for your next Airbnb investment. The following locations are arranged from the highest to the lowest cash on cash return, according to Mashvisor’s end-October 2022 location report.
1. Schiller Park, IL
- Median Property Price: $280,389
- Average Price per Square Foot: $208
- Days on Market: 54
- Number of Airbnb Listings: 110
- Monthly Airbnb Rental Income: $3,853
- Airbnb Cash on Cash Return: 7.85%
- Airbnb Cap Rate: 8.10%
- Airbnb Daily Rate: $155
- Airbnb Occupancy Rate: 59%
- Walk Score: 71
Schiller Park, located in Illinois, is the top-rated location for investing in Airbnb. It offers many different tourist attractions—including tours and day trips, fashion outlets, and more—and it’s bound to attract guests.
2. Reading, OH
- Median Property Price: $225,180
- Average Price per Square Foot: $139
- Days on Market: 40
- Number of Airbnb Listings: 171
- Monthly Airbnb Rental Income: $2,874
- Airbnb Cash on Cash Return: 7.85%
- Airbnb Cap Rate: 8.14%
- Airbnb Daily Rate: $117
- Airbnb Occupancy Rate: 53%
- Walk Score: 80
Although the city of Reading is dominated by residents who own their homes, it’s got serious Airbnb revenue potential. The city is blooming with interesting and enjoyable spots, including coffee shops and lots of parks.
3. Shaler, PA
- Median Property Price: $268,354
- Days on Market: 35
- Number of Airbnb Listings: 187
- Monthly Airbnb Rental Income: $3,304
- Airbnb Cash on Cash Return: 7.71%
- Airbnb Cap Rate: 7.98%
- Airbnb Daily Rate: $156
- Airbnb Occupancy Rate: 61%
- Walk Score: 24
Shaler in Pennsylvania makes its way onto our list of Airbnb hotspots this year. The PA city offers excellent revenue potential simply because it is filled with fun activities for tourists who decide to spend their vacation here. The local zoo, Fall Run Park, and beautiful nature are definitely worth visiting.
4. West Saint Paul, MN
- Median Property Price: $268,376
- Average Price per Square Foot: $169
- Days on Market: 35
- Number of Airbnb Listings: 320
- Monthly Airbnb Rental Income: $3,367
- Airbnb Cash on Cash Return: 7.70%
- Airbnb Cap Rate: 7.86%
- Airbnb Daily Rate: $151
- Airbnb Occupancy Rate: 62%
- Walk Score: 75
West Saint Paul is full of potential as an investor’s primary choice for Airbnb investments. The city is known for its diversity, big shopping centers, and welcoming residents. Even more so, hockey lovers are especially welcome here since West Saint Paul is home to the world’s largest hockey mural.
5. Bellwood, IL
- Median Property Price: $257,900
- Average Price per Square Foot: $198
- Days on Market: 54
- Number of Airbnb Listings: 152
- Monthly Airbnb Rental Income: $3,677
- Airbnb Cash on Cash Return: 7.45%
- Airbnb Cap Rate: 7.69%
- Airbnb Daily Rate: $161
- Airbnb Occupancy Rate: 64%
- Walk Score: 82
Bellwood, located just outside of Chicago, concludes our list of the top five places with Airbnb revenue potential. It is an attractive location because of the overall safety, the Art Institute of Chicago, spa resorts—and many more attractions waiting for tourists.
The list does not end here, though.
If you would like to expand your list of potential investment properties and search for more profitable Airbnb properties for sale, click here.
So, we’ve managed to cover an important topic, which concerns the profitability of Airbnbs.
Will they remain a tempting opportunity for investors—and, if so, how can they calculate the potential Airbnb revenue estimate?
Let’s just go through a quick overview of what we’ve learned so far:
Airbnbs will definitely remain a popular investment opportunity, and their popularity among travelers is not diminishing in the slightest. People are happily choosing to stay in a cozy Airbnb rather than an expensive hotel room.
Additionally, Airbnb properties bring with them many advantages, mainly affordability, practicality, and seasonality.
All the revenue potential is more than evident to investors—which is why they should focus on finding a tool that’ll help them estimate just how much profit they could generate. Mashvisor’s Airbnb calculator is one of them.
This investment tool is designed for real estate investors looking for an accurate estimate, up-to-date information, and a variety of metrics that will help them make a well-calculated decision.
With the help of Mashvisor, investing in Airbnb will be a straightforward experience. We have eyes on the entire US housing market—and the information you need is only one click away.
To start using Mashvisor, sign up for a 7-day free trial today.