Top Locations The Best Places to Buy a Rental Property for Short-Term Rental Strategy by Hamza Abdul-Samad January 2, 2018February 11, 2019 by Hamza Abdul-Samad January 2, 2018February 11, 2019 Airbnb has risen, both in the US housing market and on an international scale, as a supreme and lucrative rental strategy. Like with any rental strategy, some locations are better suited for Airbnb rentals than others. The four factors that we can use to analyze the best real estate markets for Airbnb rentals are rental income, affordability, return on investment, and legality. We’ve covered the legality aspect many times, so let’s move on to the other three. This blog is about the best places to buy a rental property, specifically for short-term rentals. Airbnb Rentals and Rental Income Airbnb short-term rentals are like any other property type; they require rental income to become successful. The fate of income of short-term rentals is not limited to their location. It is very possible to boost an Airbnb property’s income through good reviews, renovations, and more. Still, starting Airbnb short-term rentals in the top locations can give real estate investors an edge in rental income. Here are the best places to buy a rental property for Airbnb rental income. The data is from Mashvisor’s investment property calculator, which serves as a tool for investment property analysis and real estate market analysis. Related: Increasing Airbnb Income Using New Innovative Airbnb Services Best Places to Buy a Rental Property for Airbnb Rental Income 1.) Mill Valley, CA – $5,121 2.) Sonoma, CA – $4,795 3.) Key West, FL – 3,921 4.) Boston, MA – $3,870 5.) Melrose, MA – $3,702 6.) Santa Barbara, CA – $3,679 7.) Anaheim, CA – $3,641 8.) Belmont, CA – $3,627 9.) Brookline, MA – $3,408 10.) Honolulu, HI – $3,376 11.) Corvallis, OR – $3,211 12.) San Mateo, CA – $3,155 13.) Santa Rosa, CA – $3,115 14.) San Francisco, CA – $3,009 15.) Newton, CA – $2,920 16.) Traverse City, MI – $2,918 17.) Waianae, HI – $2,827 18.) Nashville, TN – $2,814 19.) Mashpee, MA – $2,798 20.) Wareham, MA – $2,790 21.) Scottsdale, AZ – $2,647 22.) Miami, FL – $2,559 23.) Oakland Park, FL – $2,510 24.) Flagstaff, AZ – $2,485 25.) Quincy, MA – $2,481 Airbnb Rentals and Affordability What’s just as important, for both Airbnb rentals and traditional rentals, as profitability is their affordability. A real estate investor can increase both Airbnb and traditional rental income by enhancing an investment property. An investor can’t change a property’s price to what may better suit him/her, though. Instead, the real estate investor will have to look for worthwhile deals. Some of the top locations for affordability, however, have low property prices across the board. Here are the 25 top locations for affordability. Once again, the data is compiled by Mashvisor’s investment property calculator, through the uses of real estate market analysis and investment market analysis. It’s worth noting that of these best places to buy a rental property, not one is near the US housing market average price of $350,000. Related: How do I price my Airbnb property? Best Places to Buy a Rental Property for Affordability 1.) South Bend, IN – $139,000 2.) Troy, NY – $153,639 3.) Milwaukee, WI – $160,630 4.) Bridgeport, CT – $185,000 5.) Memphis, TN – $185,952 6.) Harrisburg, PA – $187,450 7.) Ypsilanti, MI – $187,949 8.) Indianapolis, IN – $188,687 9.) Louis, MO – $189,749 10.) Tuscaloosa, AL – $202,985 11.) Columbia, SC – $203,753 12.) Las Cruces, NM – $204,255 13.) Columbus, OH – $207,216 14.) Dubuque, IA – $208,000 15.) Baltimore, MD – $218,531 16.) Green Bay, WI – $231,925 17.) Avondale, AZ – $233,021 18.) Louisville, KY – $233,685 19.) Cleveland, OH – $236,112 20.) North Miami, FL – $242,531 21.) Lake Worth, FL – $243,933 22.) Gainesville, FL – $244,971 23.) Oakland Park, FL – $247,707 24.) Philadelphia, PA – $250,629 25.) Fort Myers, FL – $254,245 Airbnb Rentals and Return on Investment When rental income is compared to property price, the return on investment is measured. The top three ROI metrics include cash flow, cap rate, and cash on cash return. Cash on cash return and cap rate are easily displayed because they are not as subjective as cash flow. ROI can be changed, just as rental income. Still sometimes it’s best to invest in the best real estate markets for a certain metric, just to get an edge in investing. Here are the best places to buy a rental property for Airbnb return on investment. You’ll notice that these best places to buy a rental property do not include cash flow. Because cash flow is a more subjective metric, it requires some mandatory input from an investor to estimate. To do that, hop on to Mashvisor’s investment property calculator for an investment property analysis. Related: What are the Best Performing Cash on Cash Return Markets in the US? Best Places to Buy a Rental Property for Airbnb Return on Investment 1.) Dubuque, IA – Airbnb Cap Rate / Cash on Cash Return: 10.7% 2.) South Bend, IN – Airbnb Cap Rate / Cash on Cash Return: 8.68% 3.) Traverse City, MI – Airbnb Cap Rate / Cash on Cash Return: 8.62% 4.) Wareham, MA -Airbnb Cap Rate / Cash on Cash Return: 8.38% 5.) Oakland Park, FL – Airbnb Cap Rate / Cash on Cash Return: 8.35% 6.) Waianae, HI – Airbnb Cap Rate / Cash on Cash Return: 7.96% 7.) Green Bay, WI – Airbnb Cap Rate / Cash on Cash Return: 7.91% 8.) Tuscaloosa, AL – Airbnb Cap Rate / Cash on Cash Return: 7.41% 9.) Bloomington, IN – Airbnb Cap Rate / Cash on Cash Return: 6.56% 10.) Colorado Springs, CO – Airbnb Cap Rate / Cash on Cash Return: 6.38% 11.) Anaheim, CA – Airbnb Cap Rate / Cash on Cash Return: 6.25% 12.) Nashville, TN – Airbnb Cap Rate / Cash on Cash Return: 5.79% 13.) Ypsilanti, MI – Airbnb Cap Rate / Cash on Cash Return: 5.71% 14.) Bryan, TX – Airbnb Cap Rate / Cash on Cash Return: 5.55% 15.) Corvallis, OR – Airbnb Cap Rate / Cash on Cash Return: 5.44% 16.) Bridgeport, CT – Airbnb Cap Rate / Cash on Cash Return: 5.36% 17.) Silver Spring, MD – Airbnb Cap Rate / Cash on Cash Return: 5.22% 18.) Blacksburg, VA – Airbnb Cap Rate / Cash on Cash Return: 5.16% 19.) Fort Myers, FL – Airbnb Cap Rate / Cash on Cash Return: 5.1% 20.) Sonoma, CA – Airbnb Cap Rate / Cash on Cash Return: 5.06% 21.) Las Vegas, NV – Airbnb Cap Rate / Cash on Cash Return: 5.05% 22.) Ithaca, NY – Airbnb Cap Rate / Cash on Cash Return: 4.9% 23.) Key West, FL – Airbnb Cap Rate / Cash on Cash Return: 4.77% 24.) Gainesville, FL – Airbnb Cap Rate / Cash on Cash Return: 4.75% 25.) Troy, NY – Airbnb Cap Rate / Cash on Cash Return: 4.69% There you have it, the best places to buy a rental property for Airbnb rental income, affordability, and return on investment. These are some of the best real estate markets for both Airbnb rentals and traditional rentals and Airbnb and traditional rental income. So, also consider buying traditional rentals in these best places to buy a rental property. To analyze more of the US housing market, to find the best rental strategy for you, and to find the best places to buy a rental property for Airbnb and traditional rental income and Airbnb rentals and traditional rentals, start your trial with Mashvisor’s investment property calculator. Its real estate market analysis and investment property analysis will help you find the best places to buy a rental property in no time. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Affordable MarketsAirbnbDubuque IAMill Valley CARental IncomeReturn on Investment 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post This Is How Not to Do Real Estate Market Analysis Next Post What’s the Value Added of Learning from Real Estate Blogs as a New Investor? 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