Wondering how to start an Airbnb business? Then you’ve come to the right place. Here’s how to buy Airbnb property and rent it out in 10 steps.
Table of Contents
- What Is Airbnb?
- How Profitable Is It to Own an Airbnb in 2022?
- Pros of Buying an Airbnb Property
- Cons of Investing in an Airbnb Rental
- How to Start an Airbnb Business
- 10 Cities With the Highest Average Monthly Airbnb Income
With the relaxation of COVID-19 travel restrictions across the US, more and more people are going on vacation and traveling to popular tourist destinations. As tourists are trying to make up for the lost travel opportunities over the last two years, vacation rentals are becoming more popular than ever among travelers looking for accommodation.
From a traveler’s point of view, an Airbnb rental property provides a place to stay for the short or even the long term. Meanwhile, from an investor’s point of view, an Airbnb business offers a steady stream of income. It also gives an opportunity to expand and diversify their real estate investment portfolio and boost their profit.
In this article, we will provide you with 10 steps to buying a profitable vacation home rental property and becoming an Airbnb host. In addition, we will show you how to start an Airbnb business as a first-time investor. We will also provide you with a list of the 10 best Airbnb markets in the US in 2022.
Last but not least, we will demonstrate to you how Mashvisor can help you along the journey to maximize your return on investment.
For a quick intro to the exciting world of short term rental investments, make sure to watch our most recent real estate video to learn more on the subject of how to become an Airbnb host:
What Is Airbnb?
Before going deeper into how to buy your own vacation home rental, let’s talk about what is Airbnb first. Airbnb is an online property marketplace that helps connect homeowners offering a rental space with guests looking for a place to stay. The platform allows landlords to rent an entire property or spare rooms for profit.
The company started in 2007 when two young graduates—Brian Chesky and Joe Gebbia—decided to convert their living room into a bedroom by renting out air mattresses in order to earn additional income. Over the years, it kept growing in popularity, becoming what is now a global company with a market capitalization of almost $80 billion (as of August 2022).
The Airbnb platform allows owners to list their property, with the listing including a description of the property, available amenities, and photos. Hosts can also add information about the local area and tourist attractions, helping offer a complete experience for guests.
In recent years, the Airbnb industry has shifted away from simply supplying a place to stay to providing an experience for guests. Thus, many homeowners and investors listing on the platform have been putting additional effort into furnishing their property to offer a unique environment. Some go as far as organizing guided tours of the area to increase demand.
While becoming an Airbnb host is far from being a passive investment strategy—unless you hire a professional property manager—it is an excellent way to make money from real estate. We will discuss exactly how much money you can make from an Airbnb investment property in the following section.
How Profitable Is It to Own an Airbnb in 2022?
As a savvy investor, before you decide to buy a short term rental, you need to know how much profit you can expect to make from your investment. We leverage nationwide short term rental data analysis conducted by Mashvisor to show you what rental income and cash on cash return on investment you can expect in 2022 in the US market.
Note: Mashvisor’s vacation rental data comes directly from the Airbnb platform and reflects the historical and current performance of actual Airbnb listings.
Note: The locations mentioned in the rest of this article may face various short term rental regulations and restrictions. You should check out the websites of the local authorities and/or speak with a reputable local property manager before you buy an investment property to rent out on Airbnb in any of these markets.
Average Airbnb Rental Income in 2022
To understand how profitable it is to own an Airbnb property this year, let’s first look at what monthly income is generated by hosts when renting out entire properties. For the Airbnb rental market analysis below, we’ve focused on over 1,000 US cities and towns with a minimum of 100 active listings.
In markets meeting the above criterion, short term rental hosts are able to make anything from $1,530 per month in Homestead, Pennsylvania to $11,590 per month in Malibu, California. Keep in mind that even the minimum monthly Airbnb income is quite good, taking into consideration that the median property price in Homestead does not exceed $213,000.
Here is the average monthly Airbnb revenue in a few more popular markets:
- Jacksonville, Florida: $2,100
- Joshua Tree, California: $2,550
- Chicago, Illinois: $3,190
- Virginia Beach, Virginia: $4,100
- Goodland, Florida: $4,760
To give you a better idea of what Airbnb revenue you can generate on average, the median value across the US is $3,380. At the same time, the average income reported by hosts amounts to $3,360. For comparison, the corresponding numbers for traditional, long term rentals are $2,080 and $1,850, respectively.
It means that Airbnb investment properties are significantly more profitable than their traditional counterparts in terms of monthly income. After the initial shock of the pandemic, the short term rental industry has been able to recover and take back its position as the more money-generating real estate strategy.
Average Airbnb Cash on Cash Return in 2022
Next, let’s look at the typical return on investment that you can expect on a vacation rental in the US this year.
Mashvisor Airbnb data shows that the cash on cash return ranges from 1.0% in Breckenridge, Colorado to 8.5% in Brighton Heights, Pennsylvania.
Here is what return you can generate in a few more best Airbnb markets:
- Boca Raton, Florida: 2.80%
- Flagstaff, Arizona: 3.20%
- Memphis, Tennessee: 5.20%
- Sweetwater, Florida: 7.40%
- Rio Grande, New Jersey: 8.00%
The median and average values for cash on cash return in the US market in 2022 are 3.50% and 4%, respectively. Meanwhile, the median and average cash on cash return from long term rentals in the US market amounts to 2% for both.
In conclusion, Airbnb properties provide a higher return on investment than traditional ones. Thus, it is worth considering the idea of investing in Airbnb.
But before you get ready to buy an Airbnb property, it’s smart to consider the advantages and disadvantages of this rental strategy. It will help you get a realistic idea of what it means to start and run a short-term rental business.
Pros of Buying an Airbnb Property
Following is a list of the most important benefits of owning a vacation rental property as a first-time investor:
First and foremost, short term rental properties provide a significantly higher income and return on investment than traditional ones, as demonstrated above. It is a major reason to spark your interest in how to buy a house to rent out on Airbnb.
When first getting started, you can simply rent out a room in your primary home to test the Airbnb strategy. If you like it, you can purchase an investment property for the sole purpose of renting it out on a short term basis. It means you can get into Airbnb with no money.
The sky’s the limit with Airbnb investments. When you buy a property, you can choose from thousands of markets and millions of listings. You can go for a beach house in Florida, a cabin in Colorado, or a condo in New York. You can rent out a room, a housing unit, or an entire property.
When you buy an Airbnb property, you also buy a second home that you can use with friends and family. You can choose which days to rent out and which days to reserve for yourself. You can’t do this with a long term rental.
If you invest out of state or work full-time, you can hire an Airbnb property management company. It will turn your investment into a passive strategy and a source of passive income – the ultimate dream of any investor.
Easy Investment Portfolio Growth
Because of the high revenue and return, you can easily save up for a second, a third, etc., investment property. After you buy your first short term rental, you can add more and more houses to your portfolio every couple of years.
Cons of Investing in an Airbnb Rental
While an Airbnb property comes with a lot of pluses, you should know the minuses as well in order to make an informed decision:
- Endless host tasks: If you decide to be an Airbnb host yourself and not hire a manager, you will have a never-ending list of things to do. Check in guests, check them out, clean between stays, restock, repair furniture, communicate with renters, ask for reviews, write guest reviews, etc. The higher your Airbnb occupancy rate, the more work you’ll have.
- Higher startup expenses: To rent out a vacation home, you must fully furnish it. It means you must be prepared to put in a larger initial investment than with a traditional rental.
- High operating costs: Running an Airbnb property business is more costly than renting out traditionally. You have to cover the utilities, provide coffee and tea at a minimum, replace towels and sheets, clean the property, etc. Make sure to factor in these expenses in your analysis before you buy a property.
- A lot of maintenance work: Since guests only stay for a few nights, they are less attached to your property than tenants and thus are more likely to cause wear and tear. As a result, you will need to spend time and money fixing the property and the furniture to continue generating demand and 5-star reviews.
- Strict legal regulations: Many previous top locations for Airbnb investment are no longer an option due to newly imposed short term rental laws. Many more are likely to introduce further regulations to protect local citizens. Thus, it’s best to choose a location where traditional rentals are also profitable if you need to switch strategies.
Next, it’s time to learn how to buy an Airbnb property step by step.
How to Start an Airbnb Business
No matter the size of the property or the room that you rent out, the Airbnb business model can be profitable for anyone looking to make extra money. You can pick the guests and set the price for your rental property. If you already own the property and some basic furniture, you won’t need a large amount of money to get your Airbnb hosting business plan running.
There are many resources online that will teach you how to start an Airbnb business with no money. Still, you must consider a few things before taking the plunge, especially if you’re planning to buy a rental property to get into Airbnb hosting.
For more information on how to start an Airbnb business, here are ten steps to keep in mind:
Step #1: Decide on a Budget
Whether you plan to invest in a traditional rental property or an Airbnb rental, the first step is to calculate how much money you can afford to spend on an investment property. To do so, you must look at your savings, as well as how much money you expect to make in the coming years.
If you plan to use a conventional mortgage, keep in mind that the minimum down payment required is 20% of the purchase price. In addition, you have to factor in closing costs (2%-6% of the loan amount), first-year property tax and insurance, and repairs.
Because you will rent out to short term guests, you also need to buy furniture, which averages $2,000-$20,000 in the US market. Considering a median property value of $354,000, you can expect your initial investment to add up to around $100,000. It is a substantial amount for someone just getting started.
Moreover, as a beginner real estate investor, it is important not to leave yourself with zero cash reserves, as anything can happen in real estate investing.
For instance, you can face an unexpected repair issue with your Airbnb income property. You might also experience a below-average Airbnb occupancy rate for a few months, similar to the situation caused by the Coronavirus pandemic.
That’s why when you buy a property to start an Airbnb business, you should plan ahead. You need to make sure not only that you can purchase an investment property now but also take proper care of it and continue covering the monthly mortgage payments in the future.
How Do I Buy an Airbnb Property With No Money?
If you cannot allocate $100,000 to buy a short term rental, you should not get discouraged. There are ways to get into the Airbnb rental business with no money down. Let’s take a look at the most popular ones:
Rental arbitrage is an old concept that has been gaining more popularity in the US market in recent years, especially in light of the expanding short term rental industry. Airbnb rental arbitrage allows hosts to run an Airbnb without buying a property. It means that you can make money with Airbnb with no money down.
What you do is you rent a traditional property from a landlord and then rent it out to guests on a short term basis. Before that, you should make sure that your rental lease agreement and the applicable HOA rules—if any—do not prohibit this. After all, you don’t want to get in unnecessary trouble with your landlord or HOA.
To optimize your return on investment, you should aim for a market and a property where traditional rental rates are relatively low while Airbnb daily rates are high. The bigger the difference between what you make on Airbnb and what you pay to the landlord, the higher your monthly income and rate of return.
You can use the Mashvisor platform to identify neighborhoods and properties that meet these criteria. Specifically, our heatmap will help you search for areas with low traditional rental income and high Airbnb income. The property search engine, on the other hand, will allow you to zoom in on properties with such qualities.
House hacking is yet another way to start making money on Airbnb with no money down, or at least with very little money.
It refers to buying a small multifamily home, usually a duplex or triplex, with the purpose of living in one unit while renting out the others. You can easily apply this concept to a vacation rental and rent out the extra unit(s) on Airbnb.
The advantage to a first-time investor here is that you need a smaller down payment (starting at 3% of the property price) when applying for a conventional mortgage because you buy a home, not an investment property. Moreover, this gives you access to an FHA loan which offers a low down payment, lower interest rates, and less strict credit score requirements.
Hard Money Loans and Private Money Loans
Although the first thing that comes to mind when thinking about financing an investment property is a mortgage, there are other feasible loan types.
Hard money lenders, for example, are individuals or companies that specialize in providing beginner investors with the financial resources to purchase a property. The terms can be quite flexible, thus sometimes allowing investors to buy an Airbnb property with no money down. However, most hard money loans come with short terms and higher interest rates.
Similarly, private money lenders are individuals, frequently acquaintances of the investors, who lend them money to start a rental business. Such loans are even less formal than hard money loans, and the two parties can negotiate the specific terms. It means that Airbnb hosts might be able to get access to a new property for virtually free.
Real Estate Partnership
Last but not least, if you are looking for a way to buy an Airbnb property with no money down, consider a partnership. Real estate partnerships can take many different legal and structural forms, depending on the experiences, expertise, and means of the parties involved.
For instance, if you have a good understanding of the real estate market and lots of free time, you can be the mind and the legs of the Airbnb rental business and find another investor to provide the financing. While it will mean a lot of active work for you, it will provide you with an opportunity to start an Airbnb business with minimal or no initial investment.
Step #2: Choose the Best Real Estate Market for Starting an Airbnb Business
The next step in how to start an Airbnb business is to select a location. As you already know, as a real estate investor, location is one of the most important factors for the success—or failure—of your rental business endeavor.
When deciding on the best places to invest in real estate properties to rent out on a short term basis, you should look for the following indicators:
The top Airbnb locations are home to numerous tourist attractions and activities. It means that there will be a large number of visitors year-round. The constant tourist arrivals will ensure high Airbnb daily rates and excellent Airbnb occupancy rates. They are the two most important factors for determining the rate of return on short term rental properties.
Economy and Business
The best US housing market for buying an Airbnb investment property is characterized by a strong economy and by constituting a business hub. It means that the location will attract numerous domestic and foreign business travelers, many of whom prefer the comfort of vacation rentals over hotels.
Airbnb Laws and Regulations
Profitable Airbnb cities face only minimal regulations and no major restrictions on vacation rentals. After all, you can’t optimize your return on investment if you can’t rent out a non-owner occupied property or can only list it for a certain number of days per year.
Don’t limit your real estate market analysis in search of the top location to start an Airbnb business to large cities only. Check out small towns, too, since, sometimes, they emerge as more profitable destinations for real estate investors. For example, Airbnb Joshua Tree has been one of the best places to invest in a short term rental property for years.
Later in this article, we will provide you with a list of the 10 cities with the highest Airbnb income in 2022.
Step #3: Study the Local Airbnb Laws and Regulations
After conducting a rental market analysis and choosing a few top locations for vacation home rentals, you should familiarize yourself with the local short term rental rules.
In response to the rapid growth of the home-sharing industry in the past decade, many US cities and towns have adopted restrictive legislation to limit the further spread of short term rentals and protect the local population. As a result, vacation home rentals have become illegal in many locations, while they are strictly regulated in others.
That’s why the next step in the process of how to start an Airbnb business is to check out the rules and regulations governing the local short term rental industry.
You need to choose a place where renting out an entire property in the absence of the owner is allowed for the entire year. They are known as non-owner occupied short term rentals, meaning that you can buy an investment property for the sole purpose of renting it out on Airbnb.
If you are not certain where to start, you’ll be happy to hear that the State of Florida has relatively less severe Airbnb laws and regulations than other top tourist destinations like California.
Step #4: Search for Appropriate Investment Properties for Sale
As soon as you’ve chosen the best location for investing in an Airbnb rental property in the US housing market, you should get into investment property search.
Savvy real estate investors use multiple sources of real estate listings when searching for the best properties to buy. They should include MLS listings (which you can traditionally access only through a real estate agent or broker), real estate investor websites, online marketplaces, “For Sale” signs in the neighborhood, and your own network.
If you want to streamline your rental property search process, you can take out a subscription with Mashvisor. Our real estate app gives you access to hundreds of thousands of potential Airbnb properties for sale in the entire US real estate market. The listed properties include:
- MLS listings
- Short sales
- Bank-owned homes
- Off market properties listed by other users
Importantly, each property listing is accompanied by readily available Airbnb investment property analysis showing you how good of an investment opportunity a certain property is. Our real estate investment tools make out-of-state real estate investing easy and feasible even for beginners.
With a Mashvisor subscription, you can search for profitable Airbnb rental properties for sale in any market without visiting the location. Moreover, you don’t need to conduct tedious comparative market analysis and rental market analysis by hand.
Step #5: Analyze the Return on Investment on Airbnb Rentals
The next step in how to start an Airbnb business is to analyze the rate of return on the rental property that you are planning to buy. You should conduct rental property analysis on a few of the most promising listings that you found during your investment property search.
Typically, using an Airbnb spreadsheet for analysis requires months of collecting, entering, and analyzing Airbnb data. By the time you’re done with the investment property analysis and ready to move forward with the purchase, all profitable opportunities will be gone.
Since the emergence of the Mashvisor real estate investment software platform, things have changed. Now, you can quickly and efficiently analyze any residential property in the US housing market with our investment property calculator. You can now see what Airbnb occupancy rate, Airbnb income, Airbnb cash on cash return, and Airbnb cap rate you can expect.
Related: What Is a Good Cash on Cash Return?
The properties listed on the Mashvisor real estate investor website come with readily available analysis. For off market properties that are not listed on our platform, you can simply enter the street address, and you will get access to the rental property analysis.
For experienced and beginner real estate investors, it is essential to know that all numbers and figures are based on rental market analysis and Airbnb rental comps. They are active Airbnb listings that are very similar to the property under investigation and are located in the same area.
Step #6: Buy an Investment Property
By now, you’ve done everything to be ready to buy a rental property with confidence that it will bring you a positive cash flow and a high return on investment. If you’re an experienced real estate investor who is now switching to starting an Airbnb business, you can purchase the property on your own.
However, if you are just getting into real estate investing, you might want to consider hiring a real estate agent to help you out. Buying an investment property is a somewhat complicated process for someone with zero previous experience. An agent will be able to negotiate the best possible price for you and close the deal quickly.
Meanwhile, you don’t need to worry about an increase in the closing fees as agent fees in the US real estate market are paid for by the property seller, not the property buyer. However, if you decide to buy an Airbnb property with an agent, make sure to choose a professional who specializes in rental properties. It will make the process smoother and more profitable.
Step #7: Fix Up the Airbnb Property
After learning how to buy a property, the next step in the process of how to start an Airbnb business is to make sure that your short term rental property is in an excellent rentable state. You cannot list your house before getting it in top-notch condition and furnishing it well enough for a comfortable stay.
During the home inspection before the purchase, you should’ve gained a clear understanding of the current state of the property and the required repairs before you can rent it out on Airbnb.
Now is the time to implement those fixes. Don’t overdo it, though. Remember that it is not your home but an investment property. At the same time, you should ensure that it is in as good shape as other Airbnb rental listings in the neighborhood. It will allow you to ask for a decent Airbnb daily rate and achieve a high Airbnb occupancy rate.
Remember that you will need to upload photos of your property when creating a listing on the Airbnb platform. The state of your property will clearly show on these pictures and will become the element pulling in or pushing away guests. Make sure that your final listing looks homey, comfortable, and clean.
Step #8: Choose the Best Short Term Rental Platform
Although short term rentals are commonly referred to as Airbnb rental properties, Airbnb is not the only website where you can list and market your vacation home rental. There are dozens of other home-sharing platforms, such as Vrbo, Booking.com, Vacasa, and many others.
As a first-time Airbnb host, you should explore a few different websites and choose the best one for your particular case. Check out whether they charge a listing fee or you only pay a percent of your bookings. Make sure you know exactly how much you will be expected to pay and what you will get in return for the listing fee.
In other words, starting an Airbnb business does not end when you buy a property. You must ensure that your property is advertised in the best possible way in order to optimize your return on investment.
Step #9: Create a Listing
The next step in how to start an Airbnb business is to list your property on the platform or platforms that you’ve chosen. Remember to use high-quality – preferably professional – photos that show your Airbnb rental in an optimal way and highlight its advantages over other similar short term rental properties.
In addition, write a truthful description that emphasizes the experience – not only the property—that you offer. Talk about the area and local attractions—mention public transportation options. Don’t exaggerate anything because the last thing you want as a new real estate investor in the Airbnb business is to disappoint a guest and receive a negative review.
Regarding listing price, choose an Airbnb daily rate comparable to the average rates in the area or even a bit below. It’s important to get the first few reservations and Airbnb guests as quickly as possible. Then, make sure your guests are happy so that they give you positive reviews and ratings.
Your reviews and overall ranking will help you achieve an above-average Airbnb occupancy rate, which is one of the most important factors for good Airbnb rental income, cash on cash return, and cap rate.
Moreover, implement dynamic Airbnb pricing to maximize your return on investment. Airbnb and other platforms give you the option to set a unique nightly rate for each day when your property is available for booking. By charging more in peak season and less in low season, you can optimize your results as an Airbnb host.
Step #10: Communicate With Airbnb Guests
Running a successful and profitable Airbnb business does not end with buying a house and listing it for rent. In addition to knowing how to buy an Airbnb property, you also need to know how to attract potential guests to your listing.
An important part of this process is establishing and maintaining effective and timely communication with renters interested in your property. As an Airbnb host, especially at first, you cannot afford to be sluggish or incomplete in responding to guests’ inquiries.
If you keep a 9-to-5 job and can’t always be online, you can look into ways to automate your short term rental management process, including chats with renters. Regardless of whether you choose a more personal or an automated approach, the key is to show potential guests that you’re available and that you’re devoted to making their stay as pleasant as possible.
Initially, it will help bring in the first few customers of your Airbnb business when you still don’t have a solid profile as a host. Later on, it will help continue attracting guests to your investment property.
10 Cities With the Highest Average Monthly Airbnb Income
Now that you know the steps of how to buy an Airbnb property and start a vacation rental business, it’s time to take a look at the top Airbnb locations in 2022.
We’ve selected the 10 markets with the highest average Airbnb rental income and at least 100 active Airbnb listings. The data analysis has been conducted by Mashvisor.
1. Malibu, California
- Average Airbnb Income: $11,590
- Average Airbnb Daily Rate: $1,010
- Average Airbnb Occupancy Rate: 49%
- Average Airbnb Cash on Cash Return: 3.10%
- Average Airbnb Cap Rate: 3.10%
- Median Property Price: $2,523,200
- Average Property Price per Square Foot: $1,370
- Average Days on Market: 72
- Walk Score: 21
2. Haiku, Hawaii
- Average Airbnb Income: $9,500
- Average Airbnb Daily Rate: $290
- Average Airbnb Occupancy Rate: 74%
- Average Airbnb Cash on Cash Return: 5%
- Average Airbnb Cap Rate: 5%
- Median Property Price: $1,595,400
- Average Property Price per Square Foot: $1,130
- Average Days on Market: 55
- Walk Score: 40
3. Aspen, Colorado
- Average Airbnb Income: $8,430
- Average Airbnb Daily Rate: $790
- Average Airbnb Occupancy Rate: 42%
- Average Airbnb Cash on Cash Return: 1.70%
- Average Airbnb Cap Rate: 1.70%
- Median Property Price: $2,951,700
- Average Property Price per Square Foot: $3,090
- Average Days on Market: 63
- Walk Score: 84
4. Key West, Florida
- Average Airbnb Income: $8,100
- Average Airbnb Daily Rate: $520
- Average Airbnb Occupancy Rate: 45%
- Average Airbnb Cash on Cash Return: 3.90%
- Average Airbnb Cap Rate: 3.90%
- Median Property Price: $1,390,000
- Average Property Price per Square Foot: $1,260
- Average Days on Market: 70
- Walk Score: 73
5. Pinecrest, Florida
- Average Airbnb Income: $7,790
- Average Airbnb Daily Rate: $280
- Average Airbnb Occupancy Rate: 58%
- Average Airbnb Cash on Cash Return: 2.60%
- Average Airbnb Cap Rate: 2.60%
- Median Property Price: $1,659,500
- Average Property Price per Square Foot: $680
- Average Days on Market: 57
- Walk Score: 4
6. Charleston, South Carolina
- Average Airbnb Income: $6,720
- Average Airbnb Daily Rate: $353
- Average Airbnb Occupancy Rate: 60%
- Average Airbnb Cash on Cash Return: 4.20%
- Average Airbnb Cap Rate: 4.30%
- Median Property Price: $1,382,600
- Average Property Price per Square Foot: $610
- Average Days on Market: 90
- Walk Score: 39
7. Allenwood, New Jersey
- Average Airbnb Income: $6,360
- Average Airbnb Daily Rate: $280
- Average Airbnb Occupancy Rate: 55%
- Average Airbnb Cash on Cash Return: 6.00%
- Average Airbnb Cap Rate: 6.10%
- Median Property Price: $678,200
- Average Property Price per Square Foot: $350
- Average Days on Market: 141
- Walk Score: 19
8. Captiva, Florida
- Average Airbnb Income: $6,280
- Average Airbnb Daily Rate: $530
- Average Airbnb Occupancy Rate: 48%
- Average Airbnb Cash on Cash Return: 2.60%
- Average Airbnb Cap Rate: 2.70%
- Median Property Price: $1,636,800
- Average Property Price per Square Foot: $1,030
- Average Days on Market: 93
- Walk Score: 35
9. Sedona, Arizona
- Average Airbnb Income: $6,110
- Average Airbnb Daily Rate: $270
- Average Airbnb Occupancy Rate: 62%
- Average Airbnb Cash on Cash Return: 3.90%
- Average Airbnb Cap Rate: 4.00%
- Median Property Price: $1,162,600
- Average Property Price per Square Foot: $530
- Average Days on Market: 68
- Walk Score: 43
10. Tavernier, Florida
- Average Airbnb Income: $6,000
- Average Airbnb Daily Rate: $280
- Average Airbnb Occupancy Rate: 50%
- Average Airbnb Cash on Cash Return: 2.30%
- Average Airbnb Cap Rate: 2.30%
- Median Property Price: $1,555,000
- Average Property Price per Square Foot: $790
- Average Days on Market: 32
- Walk Score: 47
As the short term rental data shows, you can make thousands of dollars with the Airbnb rental strategy. However, it’s worth noting that all the listed top Airbnb locations are rather pricey, with home values well above the $1 million mark. This is only natural, though, considering that they are some of the most popular tourist destinations across the US.
Interestingly, almost half of the said best markets are located in Florida. This trend indicates that the Sunshine State has largely restored its pre-COVID-19 position as a top place for vacation rental investments after a major initial dip.
If you’d like to search for a profitable Airbnb investment property in the above locations or other more affordable areas, Mashvisor can help you.
In this article, we’ve provided you with a list of 10 steps on how to start an Airbnb business. We’ve covered everything you need to know, from how to budget, through how to buy Airbnb property fitting your requirements and expectations, all the way to how to optimize your listing and bookings.
As shown above, according to Mashvisor’s nationwide real estate market data analysis, Airbnb rental properties offer a significantly higher return on investment than traditional investment properties across the US. Thus, buying an Airbnb property and getting into Airbnb hosting is totally worth it. That is, as long as you follow our guide.
Mashvisor will help you identify the top areas to buy a short term rental in any US city or town. We’ll also provide you with a list of the best opportunities available for sale in each market.
Last but not least, we’ll help you conduct a comprehensive investment property analysis with a few clicks of a button. All in all, Mashvisor will turn three months of Airbnb research and analysis into just 15 minutes.
To get started with Mashvisor, sign up for a 7-day free trial now, followed by 15% off for life.