Investor BlogsWhat Airbnb Rental Income Can You Expect? by Victoria Daibes March 16, 2018February 12, 2019 by Victoria Daibes March 16, 2018February 12, 2019It is no secret Airbnb aka the short term rental business is booming and will continue to grow for many years.According to Fortune, it is estimated the company will generate close to $3.5 billion a year by 2020. This positive trajectory is incentivizing many people to start (if you haven’t already started) their own Airbnb business and list their homes and/or rental properties on the site to make big bucks. But to make Airbnb rental income is no passive work if you plan on beating the competition and achieving high occupancy throughout the year. Related: When Is Investing in Rental Property as Airbnb a Smart Investment Decision?Location: A Key Success Factor for Airbnb Rental Income In real estate, Airbnb rental income is contingent on the location of your rental property because it determines the scope of your rental demand. If located in a prime and booming city, expect to achieve a high occupancy throughout the year and a good sizeable income. If the contrary holds, you won’t be able to maximize your Airbnb rental income consistently throughout the year. With this in mind, real estate investors make sure to capitalize on the best real estate locations for an Airbnb business to reap the biggest financial rewards and grow the business long term. The facade and interior design of the house are important for Airbnb guests, but it is not as important as location. It is safe to say that location is a primary determinant of whether or not a guest will choose your Airbnb rental property over the others, all else equal. Airbnb guests are mostly tourists who want to get the full authentic experience of living in a new city. And being in the hustle and bustle of the city is the crux of getting the most out of the city. The Highest and Lowest Airbnb Rental Incomes in The USAccording to Business Insider, Airbnb business owners made nearly 3x as much as other workers in the gig economy (i.e. Uber) last year. In 2017, the average monthly income for a part-time Airbnb host in the US was around $924. Full-time Airbnb hosts pocketed a minimum of $2000 per month from their rental property business. The Best Cities for Airbnb Rental Income Palm Springs, CaliforniaThis city does not need a further explanation on why it is the first choice for an Airbnb rental income! It is a hot destination for the Airbnb business and reaps the best rental income. Mind you, this city operates on seasons and peak periods, but the income investors reap during these specific times can be enough to cover their overall expenses and still make them very profitable.Cash on Cash Return for Airbnb Rental Properties: 4.28%Rental Income for Airbnb Rental Properties: $2,946Airbnb Occupancy Rate: 34% Davenport, FloridaThis is the perfect destination for tourists traveling on a budget! The city’s average cost of living is 11% lower than the state’s average. Airbnb business owners reap big profit margins because of the lower expenses they incur compared to Palm Springs for example.Cash on Cash Return for Airbnb Rental Properties: 4.25%Rental Income for Airbnb Rental Properties: $1,626Airbnb Occupancy Rate: 53% Bend, OregonMoving away from the tropical Florida scene, Bend is the perfect place for outdoor adventures and a picturesque mountaintop. From hiking to skiing, Bend becomes another top Airbnb destination for real estate investors looking to make quick bucks.Cash on Cash Return for Airbnb Rental Properties: 2.41%Rental Income for Airbnb Rental Properties: $1,461Airbnb Occupancy Rate: 42% Nashville, TennesseeAffordable home prices, ZERO income tax obligations, high employment rate, and the low cost of living make Nashville another good option for Airbnb rental income. Cash on Cash Return for Airbnb Rental Properties: 6.14%Rental Income for Airbnb Rental Properties: $2,936Airbnb Occupancy Rate: 49%Related: Here Are the Most Profitable Airbnb Cities at the Beginning of 2018The Worst Cities for Airbnb Rental Income Miami Beach, FloridaThis goes against logic because Miami Beach is a hot vacation destination by definition. But for an Airbnb business owner, it is not a worthy investment due to the strict laws and regulations concerning the Airbnb rental business in the region. Cash on Cash Return for Airbnb Rental Properties: 0.66%Rental Income for Airbnb Rental Properties: $1,860Airbnb Occupancy Rate: 42% Oakland, CaliforniaThe increase in the cost of living and the rise of home prices have deterred many real estate investors from investing in short term rentals in the city. Airbnb rental properties in Oakland are struggling to break even, causing some Airbnb business owners to lose money on their investments.Cash on Cash Return for Airbnb Rental Properties: 0.11%Rental Income for Airbnb Rental Properties: $455Airbnb Occupancy Rate: 35% Houston, TexasSimilar to Oakland, Houston has unfavorable economic conditions to boost the Airbnb rental business in the region. Cash on Cash Return for Airbnb Rental Properties: 0.14%Rental Income for Airbnb Rental Properties: $448Airbnb Occupancy Rate: 30%Best 5 tactics to Maximize Airbnb Rental Income Choose states with lenient tax policies. Be proactive in learning about the tax policy and laws concerning your Airbnb business before you choose the location for your Airbnb rental property. Choose touristic locations for an Airbnb business. This is crucial to achieve high occupancy throughout the year and maximize your Airbnb rental income. Cultivate positive Airbnb reviews. Reviews determine the fate of your Airbnb business. Maximize your pricing strategy. Do not stick to one price, try to set your Airbnb rental income according to special events and peak times during the year. Invest in multiple Airbnb listings for bigger cash flow returns. Related: Best 10 Tips to Boost Your Airbnb Income With Little EffortConclusionIt goes without saying that Airbnb is a profitable real estate investment strategy with many perks and rewards. Study your prospects and capitalize on the best location for reaping the biggest rewards and gaining the competitive advantage to sustain an Airbnb business long term.If you liked this post, subscribe to the Mashvisor blog for more real-time tips and tricks to grow your returns.To sign up for Mashvisor to receive our blogs and offers, click here. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb HostLocationRental IncomeShort-Term Strategy 0FacebookTwitterGoogle +PinterestLinkedin Victoria DaibesVictoria is an experienced content writer who enjoys writing about all aspects of the real estate market and industry. Previous Post Do You Need to Find a Real Estate Agent to Sell Investment Property? 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