What are the best cities for Airbnb investment in 2020? Where are real estate investors generating the highest monthly Airbnb rental income in the US housing market this year?
If you’ve kept a close eye on the situation with Airbnb vs COVID-19, you may have noticed reports are now surfacing that bookings are surging as coronavirus restrictions ease. And perhaps you want a piece of the action and that has led you to wonder where the best cities for Airbnb rental income are. Because more and more real estate investors are asking such questions, Mashvisor decided to help by putting together a list of the 50 best cities for Airbnb rental income.
Related: Is Owning an Airbnb Profitable in 2020?
Additional Airbnb Data from Mashvisor
Although it’s a great starting point, Airbnb rental income should not be the only metric you look at when trying to determine what the best cities for Airbnb investment are. You should be looking at numbers like listing price, average Airbnb daily rate, Airbnb return on investment (ROI), and Airbnb occupancy rate as well.
Not only have we included all of this Airbnb data, but we’ve also divided the list of the 50 best cities for Airbnb rental income by listing price. Listing price is a very important consideration when you’re trying to figure out what cities are best for Airbnb real estate investing. That’s because, a lot of the time, you can charge a very high rental rate, resulting in a high monthly income, if you paid more for the Airbnb investment property for sale. But if you can’t afford to invest in short-term rental properties in a city that boasts high Airbnb rental income to begin with, then it doesn’t do you much good to have such data. So Mashvisor worked to provide you with the complete picture to help you choose the best city for Airbnb investing for you.
Note that all of Mashvisor’s Airbnb data is pulled directly from Airbnb. We apply our own industry-leading algorithms and calculations to make that data make sense for you. But the results of all of our Airbnb calculations have been verified by numbers from real hosts in the US. So you know it’s Airbnb data you can rely on.
The 50 Best Cities for Airbnb Rental Income
What’s your budget for investing in Airbnb property this year? No matter, you’ll find a suitable city on this list.
Best Cities for Airbnb Rental Income with Median Listing Price: Above $1 Million
One of the best cities for Airbnb rental income is Manhattan Beach, CA – if you can afford it.
#1. Manhattan Beach, CA
Airbnb Rental Income: $10,782
- Median Property Price: $2,575,475
- Price per Square Foot: $1,155
- Average Airbnb Daily Rate: $359
- Airbnb Cash on Cash Return: 2.3%
- Airbnb Occupancy Rate: 62%
#2. Beverly Hills, CA
Airbnb Rental Income: $8,881
- Median Property Price: $2,470,841
- Price per Square Foot: $989
- Average Airbnb Daily Rate: $476
- Airbnb Cash on Cash Return: 1.2%
- Airbnb Occupancy Rate: 51%
#3. Malibu, CA
Airbnb Rental Income: $8,122
- Median Property Price: $2,271,796
- Price per Square Foot: $1,086
- Average Airbnb Daily Rate: $714
- Airbnb Cash on Cash Return: 1.9%
- Airbnb Occupancy Rate: 48%
#4. Napa, CA
Airbnb Rental Income: $7,870
- Median Property Price: $1,131,697
- Price per Square Foot: $622
- Average Airbnb Daily Rate: $379
- Airbnb Cash on Cash Return: 4.5%
- Airbnb Occupancy Rate: 65%
#5. Corona del Mar, CA
Airbnb Rental Income: $7,577
- Median Property Price: $2,874,807
- Price per Square Foot: $1,356
- Average Airbnb Daily Rate: $359
- Airbnb Cash on Cash Return: 0.5%
- Airbnb Occupancy Rate: 52%
Best Cities for Airbnb Rental Income with Median Listing Price: $1 Million – $900,000
#1. Key West, FL
Airbnb Rental Income: $8,822
- Median Property Price: $996,594
- Price per Square Foot: $692
- Average Airbnb Daily Rate: $694
- Airbnb Cash on Cash Return: 5.5%
- Airbnb Occupancy Rate: 57%
#2. Northport, NY
Airbnb Rental Income: $6,393
- Median Property Price: $906,505
- Price per Square Foot: $322
- Average Airbnb Daily Rate: $290
- Airbnb Cash on Cash Return: 3.2%
- Airbnb Occupancy Rate: 51%
#3. Sedona, AZ
Airbnb Rental Income: $4,960
- Median Property Price: $922,910
- Price per Square Foot: $343
- Average Airbnb Daily Rate: $161
- Airbnb Cash on Cash Return: 3.4%
- Airbnb Occupancy Rate: 76%
#4. Yorba Linda, CA
Airbnb Rental Income: $4,493
- Median Property Price: $964,677
- Price per Square Foot: $416
- Average Airbnb Daily Rate: $301
- Airbnb Cash on Cash Return: 1.9%
- Airbnb Occupancy Rate: 65%
#5. Poway, CA
Airbnb Rental Income: $4,407
- Median Property Price: $922,204
- Price per Square Foot: $450
- Average Airbnb Daily Rate: $186
- Airbnb Cash on Cash Return: 2.4%
- Airbnb Occupancy Rate: 64%
Best Cities for Airbnb Rental Income with Median Listing Price: $900,000 – $800,000
#1. Southlake, TX
Airbnb Rental Income: $7,055
- Median Property Price: $832,493
- Price per Square Foot: $254
- Average Airbnb Daily Rate: $248
- Airbnb Cash on Cash Return: 4.2%
- Airbnb Occupancy Rate: 71%
#2. Newbury Park, CA
Airbnb Rental Income: $6,828
- Median Property Price: $884,844
- Price per Square Foot: $385
- Average Airbnb Daily Rate: $150
- Airbnb Cash on Cash Return: 4.9%
- Airbnb Occupancy Rate: 69%
#3. Indian Wells, CA
Airbnb Rental Income: $4,692
- Median Property Price: $837,729
- Price per Square Foot: $289
- Average Airbnb Daily Rate: $1,272
- Airbnb Cash on Cash Return: 2.2%
- Airbnb Occupancy Rate: 49%
#4. Long Beach, NY
Airbnb Rental Income: $4,670
- Median Property Price: $854,000
- Price per Square Foot: $529
- Average Airbnb Daily Rate: $258
- Airbnb Cash on Cash Return: 2.2%
- Airbnb Occupancy Rate: 51%
#5. Brea, CA
Airbnb Rental Income: $4,660
- Median Property Price: $812,781
- Price per Square Foot: $423
- Average Airbnb Daily Rate: $198
- Airbnb Cash on Cash Return: 2.4%
- Airbnb Occupancy Rate: 62%
Best Cities for Airbnb Rental Income with Median Listing Price: $800,000 – $700,000
#1. Brentwood, CA
Airbnb Rental Income: $5,818
- Median Property Price: $738,602
- Price per Square Foot: $342
- Average Airbnb Daily Rate: $179
- Airbnb Cash on Cash Return: 4.6%
- Airbnb Occupancy Rate: 69%
#2. Wailuku, HI
Airbnb Rental Income: $5,601
- Median Property Price: $752,317
- Price per Square Foot: $594
- Average Airbnb Daily Rate: $204
- Airbnb Cash on Cash Return: 5.7%
- Airbnb Occupancy Rate: 64%
#3. Valley Center, CA
Airbnb Rental Income: $5,111
- Median Property Price: $793,536
- Price per Square Foot: $326
- Average Airbnb Daily Rate: $312
- Airbnb Cash on Cash Return: 3.5%
- Airbnb Occupancy Rate: 49%
#4. Princeton, NJ
Airbnb Rental Income: $4,743
- Median Property Price: $706,106
- Price per Square Foot: $300
- Average Airbnb Daily Rate: $258
- Airbnb Cash on Cash Return: 2.8%
- Airbnb Occupancy Rate: 56%
#5. Ewa Beach, HI
Airbnb Rental Income: $4,646
- Median Property Price: $702,707
- Price per Square Foot: $480
- Average Airbnb Daily Rate: $224
- Airbnb Cash on Cash Return: 4.4%
- Airbnb Occupancy Rate: 66%
Best Cities for Airbnb Rental Income with Median Listing Price: $700,000 – $600,000
#1. Valencia, CA
Airbnb Rental Income: $6,249
- Median Property Price: $622,501
- Price per Square Foot: $354
- Average Airbnb Daily Rate: $230
- Airbnb Cash on Cash Return: 5.5%
- Airbnb Occupancy Rate: 73%
#2. Temecula, CA
Airbnb Rental Income: $5,050
- Median Property Price: $647,436
- Price per Square Foot: $278
- Average Airbnb Daily Rate: $353
- Airbnb Cash on Cash Return: 5.1%
- Airbnb Occupancy Rate: 54%
#3. San Marcos, CA
Airbnb Rental Income: $4,936
- Median Property Price: $660,707
- Price per Square Foot: $352
- Average Airbnb Daily Rate: $148
- Airbnb Cash on Cash Return: 3.9%
- Airbnb Occupancy Rate: 59%
#4. Santa Clarita, CA
Airbnb Rental Income: $4,477
- Median Property Price: $627,792
- Price per Square Foot: $332
- Average Airbnb Daily Rate: $202
- Airbnb Cash on Cash Return: 3.4%
- Airbnb Occupancy Rate: 62%
#5. Doylestown, PA
Airbnb Rental Income: $4,320
- Median Property Price: $637,936
- Price per Square Foot: $224
- Average Airbnb Daily Rate: $183
- Airbnb Cash on Cash Return: 3.7%
- Airbnb Occupancy Rate: 50%
Best Cities for Airbnb Rental Income with Median Listing Price: $600,000 – $500,000
#1. Carmel, NY
Airbnb Rental Income: $5,749
- Median Property Price: $504,126
- Price per Square Foot: $216
- Average Airbnb Daily Rate: $157
- Airbnb Cash on Cash Return: 5.6%
- Airbnb Occupancy Rate: 70%
#2. Herndon, VA
Airbnb Rental Income: $4,818
- Median Property Price: $586,842
- Price per Square Foot: $274
- Average Airbnb Daily Rate: $177
- Airbnb Cash on Cash Return: 4.0%
- Airbnb Occupancy Rate: 60%
#3. Argyle, TX
Airbnb Rental Income: $4,519
- Median Property Price: $554,093
- Price per Square Foot: $183
- Average Airbnb Daily Rate: $320
- Airbnb Cash on Cash Return: 4.4%
- Airbnb Occupancy Rate: 46%
#4. Springfield, VA
Airbnb Rental Income: $4,391
- Median Property Price: $545,695
- Price per Square Foot: $287
- Average Airbnb Daily Rate: $176
- Airbnb Cash on Cash Return: 4.1%
- Airbnb Occupancy Rate: 60%
#5. Fairfield, CA
Airbnb Rental Income: $4,308
- Median Property Price: $567,210
- Price per Square Foot: $286
- Average Airbnb Daily Rate: $565
- Airbnb Cash on Cash Return: 4.7%
- Airbnb Occupancy Rate: 48%
Best Cities for Airbnb Rental Income with Median Listing Price: $500,000 – $400,000
#1. Plymouth, MI
Airbnb Rental Income: $4,894
- Median Property Price: $443,902
- Price per Square Foot: $199
- Average Airbnb Daily Rate: $142
- Airbnb Cash on Cash Return: 5.6%
- Airbnb Occupancy Rate: 47%
#2. Grapevine, TX
Airbnb Rental Income: $4,576
- Median Property Price: $474,404
- Price per Square Foot: $193
- Average Airbnb Daily Rate: $173
- Airbnb Cash on Cash Return: 5.3%
- Airbnb Occupancy Rate: 60%
#3. Saline, MI
Airbnb Rental Income: $4,491
- Median Property Price: $451,361
- Price per Square Foot: $203
- Average Airbnb Daily Rate: $209
- Airbnb Cash on Cash Return: 5.1%
- Airbnb Occupancy Rate: 49%
#4. Parkville, MO
Airbnb Rental Income: $4,484
- Median Property Price: $476,840
- Price per Square Foot: $151
- Average Airbnb Daily Rate: $104
- Airbnb Cash on Cash Return: 5.4%
- Airbnb Occupancy Rate: 58%
#5. Thomasville, GA
Airbnb Rental Income: $4,435
- Median Property Price: $495,922
- Price per Square Foot: $165
- Average Airbnb Daily Rate: $146
- Airbnb Cash on Cash Return: 6.2%
- Airbnb Occupancy Rate: 60%
Best Cities for Airbnb Rental Income with Median Listing Price: $400,000 – $300,000
#1. Arlington Heights, IL
Airbnb Rental Income: $4,581
- Median Property Price: $340,819
- Price per Square Foot: $188
- Average Airbnb Daily Rate: $100
- Airbnb Cash on Cash Return: 5.8%
- Airbnb Occupancy Rate: 78%
#2. Milford, PA
Airbnb Rental Income: $4,360
- Median Property Price: $373,892
- Price per Square Foot: $116
- Average Airbnb Daily Rate: $227
- Airbnb Cash on Cash Return: 6.9%
- Airbnb Occupancy Rate: 65%
#3. Voorhees, NJ
Airbnb Rental Income: $4,187
- Median Property Price: $364,947
- Price per Square Foot: $141
- Average Airbnb Daily Rate: $112
- Airbnb Cash on Cash Return: 4.0%
- Airbnb Occupancy Rate: 55%
#4. Lake Zurich, IL
Airbnb Rental Income: $4,179
- Median Property Price: $338,434
- Price per Square Foot: $167
- Average Airbnb Daily Rate: $125
- Airbnb Cash on Cash Return: 8.6%
- Airbnb Occupancy Rate: 58%
#5. Pike Road, AL
Airbnb Rental Income: $4,115
- Median Property Price: $378,356
- Price per Square Foot: $156
- Average Airbnb Daily Rate: $199
- Airbnb Cash on Cash Return: 6.4%
- Airbnb Occupancy Rate: 49%
Best Cities for Airbnb Rental Income with Median Listing Price: $300,000 – $200,000
#1. Benton, AR
Airbnb Rental Income: $4,836
- Median Property Price: $283,989
- Price per Square Foot: $125
- Average Airbnb Daily Rate: $139
- Airbnb Cash on Cash Return: 7.3%
- Airbnb Occupancy Rate: 58%
#2. Levittown, PA
Airbnb Rental Income: $4,417
- Median Property Price: $267,307
- Price per Square Foot: $178
- Average Airbnb Daily Rate: $120
- Airbnb Cash on Cash Return: 7.1%
- Airbnb Occupancy Rate: 56%
#3. Bridgeport, CT
Airbnb Rental Income: $4,327
- Median Property Price: $255,297
- Price per Square Foot: $156
- Average Airbnb Daily Rate: $155
- Airbnb Cash on Cash Return: 3.6%
- Airbnb Occupancy Rate: 48%
#4. Martinsburg, WV
Airbnb Rental Income: $4,040
- Median Property Price: $247,491
- Average Airbnb Daily Rate: $133
- Airbnb Cash on Cash Return: 5.8%
- Airbnb Occupancy Rate: 66%
#5. North Canton, OH
Airbnb Rental Income: $3,808
- Median Property Price: $270,889
- Price per Square Foot: $125
- Average Airbnb Daily Rate: $83
- Airbnb Cash on Cash Return: 5.3%
- Airbnb Occupancy Rate: 75%
Best Cities for Airbnb Rental Income with Median Listing Price: $200,000 – $100,000
#1. Orangeburg, SC
Airbnb Rental Income: $2,940
- Median Property Price: $199,958
- Average Airbnb Daily Rate: $145
- Airbnb Cash on Cash Return: 5.4%
- Airbnb Occupancy Rate: 46%
#2. Cuyahoga Falls, OH
Airbnb Rental Income: $2,660
- Median Property Price: $193,177
- Price per Square Foot: $119
- Average Airbnb Daily Rate: $79
- Airbnb Cash on Cash Return: 6.7%
- Airbnb Occupancy Rate: 41%
#3. Belleville, IL
Airbnb Rental Income: $2,618
- Median Property Price: $172,890
- Price per Square Foot: $89
- Average Airbnb Daily Rate: $117
- Airbnb Cash on Cash Return: 6.8%
- Airbnb Occupancy Rate: 65%
#4. Warren, OH
Airbnb Rental Income: $2,390
- Median Property Price: $176,387
- Price per Square Foot: $96
- Average Airbnb Daily Rate: $96
- Airbnb Cash on Cash Return: 6.1%
- Airbnb Occupancy Rate: 50%
#5. Florissant, MO
Airbnb Rental Income: $2,368
- Median Property Price: $167,721
- Price per Square Foot: $89
- Average Airbnb Daily Rate: $89
- Airbnb Cash on Cash Return: 6.8%
- Airbnb Occupancy Rate: 68%
Related: How to Choose a Real Estate Market to Invest In
What’s Next?
Whatever your budget is, you now have a choice between 5 different cities for buying Airbnb property. Looking at the Airbnb cash on cash return, you can narrow down your options even further.
For example, if your budget falls in the range of $400,000 to $500,000, the best city for an Airbnb investment would be Thomasville, GA.
But what’s the next step? Currently, there are 195 investment properties for sale in Thomasville and there may be even more in the city of your choice. You may even still have a few cities on your list that you’re considering. So, let’s take a look at the next steps you need to take before you invest in an Airbnb for sale.
#1. Research Airbnb Regulations
We here at Mashvisor love to focus on the numbers when we’re conducting Airbnb market research. But we can’t emphasize enough how important it is to research the Airbnb regulations of any city before you buy a rental property to rent out to guests. In many cities (even some of the most profitable listed above), non-owner occupied Airbnb rentals may be outlawed. Airbnb all together may be an illegal practice in some cities.
So the next crucial step is to research the Airbnb laws in any real estate market on your list. Start by visiting the website of the local government of the city. There, it should be outlined if Airbnbs are regulated and what rules apply. You may also want to try to get in touch with either a local real estate agent or the office of local officials who deal with such ordinances.
Remember, you don’t only want to inquire about whether or not it’s illegal to rent out on Airbnb. You also need to know the following:
- Are there any taxes that will apply to your Airbnb rental property (state or city)?
- What licenses or permits do you need to run your Airbnb? How much will they cost?
- Are there any limitations on how many days out of the year you can host guests?
- Is Airbnb not allowed in certain zones? If so, which ones?
- How many guests can you host at one time?
- What kind of investment properties can be rented out on Airbnb?
- What other requirements and restrictions might apply to your short-term rental property?
Related: 20 Cities with No Airbnb Legal Issues in 2020
#2. Conduct a Neighborhood Analysis
Once you have found a city with no Airbnb legal issues, you have to continue your Airbnb market research with neighborhood analysis. Where in the city will you be able to enjoy the highest rental income and Airbnb occupancy rate, for instance? This kind of Airbnb data can be hard to come by online unless you know exactly where to look. Mashvisor actually has all of the neighborhood data you need – from income to Airbnb occupancy rate data.
Here’s how it works:
Start by entering the name of the city where you want to invest in Airbnb property into Mashvisor’s real estate search engine and hit “Start Analyzing”. You’ll be taken to a map of all the neighborhoods in the city. On this map, you will see a menu called “Heat Map Data Set” (pictured below). If you click on it, the menu will reveal all the filters you can use to conduct your Airbnb neighborhood analysis:
- Traditional Cash on Cash Return
- Airbnb Cash on Cash Return
- Airbnb Rental Income
- Traditional Rental Income
- Listing Price
- Airbnb Occupancy Rate
Mashvisor’s Real Estate Heatmap
To find the best places to invest in Airbnb for rental income, select the Airbnb rental income filter. All the neighborhoods that show up in green will be the ones with Airbnbs for sale that have the potential to generate high income on a monthly basis.
As mentioned, your real estate analysis should never focus on one metric. So, it’s best to play around with the other filters relevant to Airbnb investments. Aim for neighborhoods that fit your budget and show up in green for the Airbnb rental income, Airbnb cash on cash return, and Airbnb occupancy rate filters.
#3. Find and Analyze an Airbnb for Sale
Knowing where Airbnb is most profitable in the city, it’s time to start your investment property search. You will probably be looking at a dozen or more properties for sale, depending on the location. How do you choose the best one? The answer is Airbnb investment analysis.
Airbnb investment analysis is the process of evaluating a potential rental property to see how it will perform. You’ll want to find out the following about each of your options:
- Potential Airbnb income
- Monthly Airbnb costs
- Airbnb cash flow
- Airbnb cap rate
- Airbnb cash on cash return
- Airbnb occupancy rate
The idea of gathering all of this Airbnb rental data for every property that fits your budget in the neighborhood might make eeny, meeny, miny, moe sound super appealing right now. But, we all know that is not how you find great real estate deals.
Instead, turn to an Airbnb investment calculator. A powerful Airbnb investment calculator (like Mashvisor’s) should be able to instantly show you all the short-term rental data and analysis you need on any property for sale that interests you. With Mashvisor, you’ll get access to Airbnb analytics that will help you easily find a top-performing property.
No more estimating Airbnb income or ROI on your own only to find out you entered the wrong number in an investment analysis spreadsheet after making a purchase.
Get access to all of Mashvisor’s Airbnb investment tools and data today by signing up for a 7-day free trial now.
