Top Locations 50 Best Cities for Airbnb Rental Income in 2020 by Sylvia Shalhout July 4, 2020July 2, 2020 by Sylvia Shalhout July 4, 2020July 2, 2020 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% Find a Profitable Airbnb Investment Property 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. Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsInvestment Property AnalysisNeighborhood AnalysisRental Income 0 FacebookTwitterGoogle +PinterestLinkedin Sylvia Shalhout Sylvia was the Content Marketing Manager at Mashvisor. As a real estate writer, she has been covering topics for the beginner and advanced real estate investor, helping them make smarter decisions as well as real estate agents looking to take their business to the next level. 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