Top Locations6 Great Cities for Airbnb Investing Right Now by Charles Mburugu September 19, 2020September 16, 2020 by Charles Mburugu September 19, 2020September 16, 2020Buying a house for Airbnb has become increasingly popular over the past few years. According to Airbnb.com, there are over 7 million listings globally and over 100,000 cities with Airbnb listings. On any given night, there are 2 million people residing in Airbnb rentals all over the world.So, why have so many people turned to Airbnb for generating an income? Why is Airbnb real estate investing worth considering in 2020? Here are some of the benefits of investing in Airbnb:High demand for short-term rentals – Vacation rentals have become a more affordable alternative for business travelers or tourists looking for accommodation. In the right location, this can mean high occupancy rates for an Airbnb owner and steady cash flow.Potentially higher returns – A fully-booked Airbnb investment property could be more lucrative than renting the same home to a long-term, single tenant. Airbnb investing means that you can charge more on a nightly basis. In Riverside, California for example, the average rent for a traditional rental property is $2,078, while the average Airbnb rental income is $4,263. This data from Mashvisor shows that it would be more profitable to go for an Airbnb real estate investing strategy in this city. You’ll find similar trends across most cities in the US housing market.Flexibility – In Airbnb investing, you can choose to rent out part of the house or the whole house. You also have the freedom to block off dates when you want to make repairs or use the property for a vacation.Adjustable pricing – Flexible pricing is another major advantage of Airbnb investing. Airbnb hosts can adjust the nightly rates for their rentals as they see fit. When there is high demand, you can quickly and easily increase your rental rates, thus maximizing your Airbnb investing profits. This is unlike traditional rentals where you cannot charge more before the lease expires and even then, there may be rent control laws limiting your ability to increase rents.Related: Airbnb Investing: Will It Be Worth It in 2020? However, before rushing into buying Airbnb property, there are several things you need to do. First, conduct some research to discover if Airbnb is legal in the city or town you are targeting. Secondly, find out if non-owner occupied properties can operate as Airbnb rentals. According to Mashvisor, non-owner occupied rentals are banned in the following cities:San Francisco, CALos Angeles, CAWashington, D.C.Boston, MAChicago, ILLas Vegas, NV6 Great Cities for Airbnb Investing in 2020Looking for locations that offer the best Airbnb investing returns and have friendly Airbnb investing laws? Here are a few of the best cities for Airbnb investment:#1. Bakersfield, CAMedian Property Price: $370,390Price/Square Foot: $178Average Airbnb Daily Rate: $119 Airbnb Rental Income: $2,712Airbnb Cash on Cash Return: 5.6%Airbnb Occupancy Rate: 71%Once known for agriculture and oil, the city has evolved to include a mixture of sports arenas, arts, and culture, making it a popular tourist destination. Some of the main attractions include Colonel Allensworth State Historic Park, Buck Owens’ Crystal Palace, and Kern County Museum. Annual events such as the Basque Festival, March Meet, Kern County Fair, and the Lowrider National also attract a lot of visitors.When it comes to Airbnb investing laws, Bakersfield has no restrictions concerning non-owner occupied properties.#2. Columbus, OHMedian Property Price: $264,772Price/Square Foot: $156Average Airbnb Daily Rate: $104 Airbnb Rental Income: $2,108Airbnb Cash on Cash Return: 3.3%Airbnb Occupancy Rate: 65%According to the city’s code of ordinances, non-owner occupied properties can operate as Airbnb rentals as long as the host can prove ownership. Key attractions in the city include the Franklin Park Conservatory and Botanical Gardens, Center of Science and Industry, Huntington Park, and the Topiary Park. A recent article on bizjournals.com revealed that 41.9 million people visited the city in 2018 alone, which is good news for Airbnb investing.Related: Columbus Real Estate Market 2020: Traditional vs Airbnb Investments#3. Indianapolis, INThe Indianapolis real estate market is a great place to invest in Airbnb today.Median Property Price: $263,986Price/Square Foot: $123Average Airbnb Daily Rate: $146 Airbnb Rental Income: $1,954Airbnb Cash on Cash Return: 3.2%Airbnb Occupancy Rate: 49%According to Visit Indy, 29.2 million people visit Indianapolis annually, with 16% coming for business and 84% for leisure. The money generated from tourism amounts to over 5.5 billion annually. With its Airbnb friendly laws, vibrant culture, and numerous attractions, this city is an ideal location for Airbnb investing. Find a Profitable Airbnb Investment Property#4. Memphis, TNMedian Property Price: $293,009 Price/Square Foot: $89 Airbnb Rental Income: $2,207 Average Airbnb Daily Rate: $116 Airbnb Cash on Cash Return: 2.7%Airbnb Occupancy Rate: 59%In 2018, the Tennessee General Assembly passed a bill that limits the city’s power over short-term rentals. The new legislation allows properties that are not occupied by owners to operate as Airbnb rentals. However, hosts are required to pay a 5% Airbnb tax. The main attractions in the city include Graceland (former home of Elvis Presley), Beale Street, National Civil Rights Museum, and the annual World Championship Barbecue Cooking Contest.#5. El Paso, TXMedian Property Price: $234,464Price/Square Foot: $117Average Airbnb Daily Rate: $72 Airbnb Rental Income: $2,210Airbnb Cash on Cash Return: 3.3%Airbnb Occupancy Rate: 65%In 2018, meetingsource.com listed El Paso among the 25 best cities in the US for holding a convention. The previous year, El Paso got recognition as the best-run city in the Texas real estate market. From safe neighborhoods to museums, grocery stores, and family entertainment options, El Paso has everything vacationers need. Millions of visitors flock to the city every year for events such as KLAQ Great River Raft Race, the Southwestern International PRCA Rodeo, La Fiesta de las Flores, and the Sun City Music Festival. Airbnb investors can therefore be assured of high occupancy rates all year round.#6. Eugene, ORMedian Property Price: $456,274Price/Square Foot: $231Average Airbnb Daily Rate: $156 Airbnb Rental Income: $2,892Airbnb Cash on Cash Return: 2.8%Airbnb Occupancy Rate: 51%Short-term rental laws in Eugene do not prohibit the use of non-owner occupied properties as Airbnb rentals. However, a transient room tax of 4.5% is charged on all overnight stays. In addition, there is an occupancy limit of 5 people per home. The city boasts a wide range of attractions including Alton Baker Park, Cascades Raptor Center, Hendricks Park, and Eugene Science Center.Related: Oregon Real Estate Market 2020: 5 Best CitiesThe Next StepOnce you’ve conducted Airbnb market research and confirmed short-term rentals are legal in a city, use Mashvisor’s Airbnb investment calculator to find the best-performing properties. This tool will help you conduct Airbnb analytics on all kinds of properties including off-market homes. The Airbnb calculator will generate Airbnb data such as property listing price, startup costs and monthly expenses, Airbnb occupancy rate, Airbnb rental income, cash on cash return, and cash flow. Such Airbnb investment metrics will help you make the right decision when looking for an Airbnb for sale.To get access to our real estate investment tools, click here to sign up for Mashvisor today and enjoy 15% off. Start Your Investment Property Search! START FREE TRIAL AirbnbBakersfield CAColumbus OHEl Paso TXEugene ORIndianapolis INMemphis TN 0FacebookTwitterGoogle +PinterestLinkedin Charles MburuguCharles Mburugu is a HubSpot-certified content writer/marketer for B2B, B2C and SaaS companies. He loves writing on topics that help real estate investors and agents make better choices. Previous Post What’s the Best Path to Private Real Estate Investing? Next Post 6 Reasons Virtual Leasing and Home Buying Is the Future Related Posts The Best States to Buy Real Estate at the Moment Is Early 2018 the Right Time to Buy House in Florida to Invest in Real Estate? US Housing Market Predictions: What’s to Come in 2019 Seattle Housing Market 2019: 5 Best Places to Invest Should You Go for Austin Real Estate Investing Now? Where to Invest in Real Estate in the Texas Housing Market 2018 Where to Invest in the New Orleans Housing Market 2019 Austin Real Estate Market 2018: Is Now a Good Time to Invest? 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