Investor Blogs Here Are the Most Profitable Airbnb Cities at the Beginning of 2018 by Yoana Leusin March 11, 2018February 8, 2019 by Yoana Leusin March 11, 2018February 8, 2019 Investing in real estate is a hard task, especially if you wish to be one of the successful real estate investors. When it comes to rental properties, many real estate investors measure their success by the profit generated from rental income. There are many factors which are influential to the profitability of rental properties. For instance, before investing in real estate, it is advisable to consider variables such as the cap rate and cash on cash return as well as occupancy rate. The most important factor, however, is the location of your rental properties. If you have chosen short term rentals as the optimal rental strategy for you, the city in which you operate your business is of key importance. Are you willing to manage the Airbnb rentals with the highest rental income? Here are the most profitable Airbnb cities for investing in real estate. #1 The Most Profitable Airbnb Cities at the Beginning of 2018 As previously mentioned, financing and managing successful Airbnb rentals is quite a complicated thing to do. In order to find the best short term rentals, investors perform real estate analysis. However, the location is vital when it comes to Airbnb rentals. It is important to note that the most profitable Airbnb cities are not necessary the most popular ones on the market. According to Smartassets, these are the ten top of the most profitable Airbnb cities on the current US market: 1. San Diego, California Expected annual profit of $31,481 2. Miami, Florida Expected annual profit of $28,696 3. Chicago, Illinois Expected annual profit of $24,175 4. Boston, Massachusetts Expected annual profit of $22,931 5. San Jose, California Expected annual profit of $21,085 6. Philadelphia, Pennsylvania Expected annual profit of $19,626 7. New York, New York Expected annual profit of $19,313 8. San Francisco, California Expected annual profit of $19,279 9. Oakland, California Expected annual profit of $18,891 10. Houston, Texas Expected annual profit of $18,470 *The expected annual profit has been calculated by computing the expected annual rental income and subtracting the expected annual expenses. The most profitable Airbnb cities are based on unshared two-bedroom listings. It is interesting to observe that the top two of the most profitable Airbnb cities are destinations associated with warm weather as well as affordable accommodation. However, far more popular cities, such as New York, for instance, take a lower position. This might be due to the specific expenses related to the city. As we are discussing profitability, the latter plays an important role. #2 The Top Three Most Profitable Airbnb Cities In order to provide you with in-depth information about the most profitable places for short term rentals, we will discuss the top three cities in which Airbnb is most likely the optimal rental strategy. San Diego, California San Diego is a city in the State of California known for its mild and sunny weather during the whole year. The city attracts many Airbnb guests with its beautiful beaches and parks. In addition, there are various leisure activities to join as well as various destinations to visit. The biggest problem associated with Airbnb San Diego however, is the controversy surrounding the Airbnb laws. There is not official set of requirements to guide the short term rentals in the area yet. This is an important factor to consider if you decide to invest in the city. Related: Why Investors Should Be Looking Into Airbnb San Diego Miami, Florida Miami is another of the most profitable Airbnb cities. Its warm weather almost eliminates the seasonality, and the city strikes high occupancy rate all year long. Miami is a popular vacation destination, but also a place full of culture, offering diverse leisure practices. The place is associated with strict Airbnb laws. The set of requirements for Airbnb rentals varies for the different zones of Miami. That is why it is crucial to make an in-depth research and check why legal terms apply to your property type and the zone in which it is situated. Related: Why You Should Consider Investing in Miami Airbnb Properties Chicago, Illinois The third of the most profitable Airbnb cities is Chicago in the State of Illinois. The city has four distinctive seasons. The latter certainly plays a role in the variation of the Chicago’s Airbnb occupancy rate throughout the year. Nevertheless, the city is a great tourists spot as it is the home town of numerous historic sights and great architectural buildings. Moreover, Chicago hosts many cultural events such as concerts and different shows. The most important thing to know about the destination, though, is that short term rentals in the area should be consistent with strictly specified Airbnb laws and regulations. Related: 5 Reasons Why Chicago is a Top Airbnb City #3 Beyond the Most Profitable Airbnb Cities It is necessary to pay attention to other details besides the location if you truly want to make money from real estate investing. Computing various real estate metrics such as cap rate and cash on cash return is an important indicator of the potential success of your future investment. Using a rental property calculator might help you in finding not only the best place but also the best property. Mashvisor’s rental property calculator is a tool which quickly and accurately provides you with insightful investment analysis online. Mashvisor’s rental property calculator computes much more than cap rate, cash on cash return, and potential rental income. The tool also shows you the optimal rental strategy and gives you in-depth information about the property and its surrounding area. These are the most profitable Airbnb cities on the US market at the moment. Nevertheless, you need to make an effort and conduct some research before investing in any of them. Go ahead and subscribe to Mashvisor for more useful tips on various real estate topics. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Chicago ILHouston TXMiami FLSan Diego CASan Francisco CASan Jose CA 0 FacebookTwitterGoogle +PinterestLinkedin Yoana Leusin Yoana is an experienced content writer with a BA in leisure studies who enjoys giving tips to beginner real estate investors. Previous Post 10 Habits for Becoming a Successful Real Estate Investor Next Post Investing in Property or Investing in Land: Which Is Better? Related Posts How Is the NJ Housing Market 2020 Doing? Condos Near Me: Should You Invest in 2022? Airbnb Palm Springs: A Good Real Estate Investment in 2019? Is the Split Level House Making a Comeback? What Real Estate Investors Should Know Is a US Housing Bubble Coming in 2020? How Mashvisor Revolutionized Cap Rate and Investment Property Analysis Rent to Own Homes: A Win-Win Real Estate Investment Strategy How to Engage More Clients on Social Media for Your Small Business What Are Corporate Rentals and Should You Invest in Them? Should You Get into Wholesaling Real Estate? 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