Hottest Airbnb Markets 2022: Where Should You Invest?

More people are itching to get away this year, and you can cash in on this travel boom by investing in one of the hottest Airbnb markets 2022.

In March 2021, the US Government announced its goal of making all adults in the country eligible for vaccination by May. When this happened, searches for Airbnbs in the US jumped to 75 million (from 50 million in January 2021). But instead of going back to pre-pandemic behaviors when people traveled around the same time to the same place, they started going anywhere and at any time. They were also booking longer stays.

Despite the COVID-19 Omicron variant disrupting the industry’s recovery, experts feel optimistic that this is only temporary, and that people will start traveling again this year. So if you have not yet invested in an Airbnb property, now is the time for you to do so.

In this article, we will list the 10 best short term rental markets for 2022. We will also discuss:

• Our key findings from researching these hot rental markets
• The legalities surrounding these top Airbnb markets
• How we came up with the list of the best cities for short term rentals

The Top 10 Hottest Airbnb Markets 2022

Using Mashvisor’s data as of mid-January, here are the 10 cities where you can buy a short term rental investment property with high-profit potential:

#1: Winslow, AZ

• Airbnb Rental Income: $2,134
• Airbnb Cash on Cash Return: 9.97%
• Airbnb Daily Rate: $111
• Airbnb Occupancy Rate: 54%
• Median Property Price: $204,250
• Average Price per Square Foot: $129
• Days on Market: 94
• Walk Score: 55

Why people visit: The city of Winslow is one of the hottest Airbnb markets 2022 for being the centralized vacation spot of Northern Arizona. It makes the perfect home base for multi-day trips. Winslow is also close to iconic attractions such as the Grand Canyon, Petrified Forest, and Homolovi Ruins State Park. Within the city is the Hubbell Building, which serves as the local Chamber of Commerce’s Visitor Center and is also a historic structure.

#2: Milan, IL

• Airbnb Rental Income: $1,732
• Airbnb Cash on Cash Return: 9.63%
• Airbnb Daily Rate: $87
• Airbnb Occupancy Rate: 66%
• Median Property Price: $113,838
• Average Price per Square Foot: $97
• Days on Market: 75
• Walk Score: 50

Why people visit: Ranking second in the hottest Airbnb markets 2022, the village of Milan is part of the Quad Cities. This bi-state region is composed of several communities located on the Mississippi River.

Located on the Rock River, Milan features The Hennepin Canal State Trail, an abandoned waterway between the Mississippi River and the Illinois River that is 104.5 miles long. Visitors can walk or bike this trail. This community also hosts the MPI Arts & Crafts Fair every 1st Sunday in May and October, which features over 200 vendors from around the world.

#3: Huntingdon Valley, PA

• Airbnb Rental Income: $9,740
• Airbnb Cash on Cash Return: 9.61%
• Airbnb Daily Rate: $299
• Airbnb Occupancy Rate: 65%
• Median Property Price: $428,580
• Average Price per Square Foot: $223
• Days on Market: 67
• Walk Score: 5

Why people visit: The village of Huntingdon Valley is considered one of the hottest Airbnb markets 2022 for its small-town charm. Because it offers a slower-paced way of life, you would forget it is only about 25 miles outside of Philadelphia. Visitors looking for unique souvenirs will have fun browsing the many independently owned shops in the area. Meanwhile, outdoor enthusiasts will enjoy the many parks that offer hiking trails, bird watching opportunities, and sledding paths.

#4: Salem, AL

• Airbnb Rental Income: $4,901
• Airbnb Cash on Cash Return: 9.56%
• Airbnb Daily Rate: $212
• Airbnb Occupancy Rate: 56%
• Median Property Price: $364,933
• Average Price per Square Foot: $151
• Days on Market: 61
• Walk Score: 6

Why people visit: The community of Salem was first settled in 1835 and is located in the Tuskegee & Phenix City area in the South Alabama Region. It is home to Phenix City Motocross, a full-on motocross track that is suitable for riders at any level. But the top Airbnb properties in the area mostly offer the peace and quiet that city dwellers seek in the countryside, making this area one of the hottest Airbnb markets 2022.

#5: Vinton, VA

• Airbnb Rental Income: $3,231
• Airbnb Cash on Cash Return: 9.44%
• Airbnb Daily Rate: $124
• Airbnb Occupancy Rate: 71%
• Median Property Price: $223,780
• Average Price per Square Foot: $119
• Days on Market: 40
• Walk Score: 68

Why people visit: Located in Roanoke County, the town of Vinton is located to the southeast of the city of Roanoke. It has a small-town charm while also providing modern amenities and services. Visitors will love navigating the Roanoke Valley Greenways, which are open-space corridors that connect nature with the neighborhoods and downtown. Meanwhile, those looking for some fun indoors can check out Rosie’s Gaming Emporium.

#6: Westover, WV

• Airbnb Rental Income: $2,792
• Airbnb Cash on Cash Return: 9.35%
• Airbnb Daily Rate: $133
• Airbnb Occupancy Rate: 60%
• Median Property Price: $182,580
• Average Price per Square Foot: $146
• Days on Market: 90
• Walk Score: 24

Why people visit: The city of Westover has experienced remarkable growth in the last 10 years. Visitors in this city can reach downtown by either walking or taking the bus. The Downtown campus of West Virginia University is also accessible by walking, while the Evansdale campus can be reached by riding the PRT. The city is also in proximity to numerous parks.

#7: Parkersburg, WV

• Airbnb Rental Income: $2,738
• Airbnb Cash on Cash Return: 9.33%
• Airbnb Daily Rate: $90
• Airbnb Occupancy Rate: 58%
• Median Property Price: $279,686
• Average Price per Square Foot: $115
• Days on Market: 120
• Walk Score: 65

Why people visit: The city of Parkersburg is home to many historical sites from the Civil War since it was used as a medical center during that period. One of them is Blennerhassett Historical State Park, which is a small island that sits on the Ohio River and can be accessed by riding a sternwheeler riverboat. It also holds several cultural festivals throughout the year, including an international marketplace and a music festival. 

#8: Feasterville-Trevose, PA

• Airbnb Rental Income: $5,221
• Airbnb Cash on Cash Return: 9.20%
• Airbnb Daily Rate: $107
• Airbnb Occupancy Rate: 76%
• Median Property Price: $436,657
• Average Price per Square Foot: $229
• Days on Market: 22
• Walk Score: 64

Why people visit: Feasterville and Trevose used to be one census-designated place but have since been separated into two towns, though they still share the same zip code. They border Bensalem, which is known as the gateway between urban Philadelphia and the Bucks County countryside. Visitors use this area as their home base after spending the day in Parx Casino, walking the trails of Neshaminy State Park, or taste-testing beers at the nearby breweries. 

#9: Plymouth, NH

• Airbnb Rental Income: $4,020
• Airbnb Cash on Cash Return: 9.19%
• Airbnb Daily Rate: $189
• Airbnb Occupancy Rate: 67%
• Median Property Price: $260,125
• Average Price per Square Foot: $177
• Days on Market: 200
• Walk Score: 77

Why people visit: Plymouth is one of those towns that have a unique appeal that draws in people who are looking for something different. It is home to Plymouth State University, a classic New England campus, and White Mountain National Forest. Visitors go there to see their loved ones who are studying in university, watch college football, or bask in nature. The town also features a century-old theater, a mountain ski resort, and several museums.

#10: Creve Coeur, IL

• Airbnb Rental Income: $2,297
• Airbnb Cash on Cash Return: 9.11%
• Airbnb Daily Rate: $103
• Airbnb Occupancy Rate: 47%
• Median Property Price: $119,944
• Average Price per Square Foot: $78
• Days on Market: 60
• Walk Score: 38

Why people visit: The village of Creve Coeur overlooks the Illinois River. A small community with a rich history, it is home to Fort Creve Coeur Park, which has hiking trails and stunning views of the river while telling a story about the town’s roots. It is also close to amenities in Peoria and has access to the I-74. People who book Airbnb properties in this area stay for the quiet and comfort of the community.

Hottest Airbnb Markets 2022: Key Findings

While gathering information about these cities, we discovered the following facts and figures:

• The average Airbnb income in the top 10 markets is $3,881 per month or $46,572 per year. This is slightly higher than the 10 biggest cities in the US, where the average Airbnb rental income is $3,578 per month or $42,935 per year.
• All 10 cities have a cash on cash return above 9%. This measures how much you made on the property in relation to how much you paid toward the property in a year, whether it be full payment or mortgage.
• None of the median property prices went over $500,000. This makes these markets friendly to beginner investors who may not have a lot of capital and would need to use financing to buy their first Airbnb rental.

Legal Issues Surrounding the Short-Term Rental Industry

Some of the hottest Airbnb markets 2022 have very stringent regulations surrounding Airbnb and other short term rentals. For example, Vinton, VA, and Creve Coeur, IL only allow owner-occupied short term rental homes.

This may be a deterrent for investors from out of state who are simply looking to expand their portfolios. But for beginner investors who have never owned a home before, this is the perfect opportunity for them to live in a place they can call their own while making money off of it on Airbnb.

But even if the city allows these types of property, neighborhoods that are controlled by an HOA might have their own set of rules. So before you commit to buying an Airbnb investment property, you should ask yourself the following questions:

• Will your short term rental strategy bother the neighbors? If so, you could disallow overnight bookings and limit the maximum occupancy to prevent parties or groups that may make a lot of noise.
• Do you need to apply for a license to legally operate in the area? Will your estimated income be able to cover this cost along with the other expenses?
• Are there taxes you need to pay for running an Airbnb? How will this affect your profitability?

It is also important to contact the appropriate municipality and read the HOA bylaws to confirm that you can host an Airbnb in the area.

How Did We Get These Short Term Rental Market Data?

All of the data shown on our list of the hottest Airbnb markets 2022 were provided by Mashvisor’s analytics, which in turn got them from active and verified Airbnb listings. Unlike other Airbnb analytics tools that collect data from all listings on the platform, we filter them and choose active properties that have at least three reviews on their pages.

After selecting the listings that meet our criteria, we then calculate the average daily rates of each area based on the rental income-to-bedroom ratio. As for the Airbnb demand, we check the number of bookings every month and project the occupancy rate based on the daily rate and property type. We then estimate the monthly rental income by multiplying the average daily rate by the occupancy rate.

As for the 2022 housing market data, we sourced them from MLS. We also filtered these by selecting common investment property types (apartment, condo, townhouse, single-family house) with one to four bedrooms. After gathering data of properties that match our criteria, we then calculated the median property price, average price per square foot, and days on market. Meanwhile, the Walk Score is sourced from WalkScore.com.

Lastly, we calculate the cash on cash return based on the estimated annual rental income divided by the property price.

What Else Can You Get on Mashvisor?

• Understand a neighborhood or city’s average performance right away with the help of our heatmap
• See and compare investment properties from up to five cities on one page, without having to open multiple tabs, using our Property Finder
• Estimate your Airbnb profit and ensure that you will get a positive cash flow using our Airbnb calculator

These are just some of the benefits you can expect from using our platform. To learn more about how we will help you make faster and smarter real estate investment decisions, click here.

Find Your Next Investment Property in One of the Hottest Airbnb Markets 2022 Using Mashvisor

The 10 best short term rental markets affirm Airbnb’s latest report on travel and living:

• More people are traveling to and booking short term rentals in natural settings
• Many travelers are getting away from the big city and flocking towards smaller destinations
• Every short term rental market on the list has easy access to natural features

While this analysis is helpful for investors who are on the lookout for a new investment property now, it may not be as accurate after a month or so. And as a savvy investor, you would want to get up-to-date information whenever you want. Mashvisor can help you with that.

To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.