The Trending “One-Night Warrior or Longer” Stay Service
The famed Lisa St. Aubin de Teran once said, “Traveling is like flirting with life. It’s like saying, ‘I would stay and love you, but I have to go; this is my station.’”
The wildly popular American startup known as AirBnB saw its roots in 2008 and provides a home to anyone passing through for a short or longer-stay duration and was a single tourist or entire family on the road’s dream come true waiting to happen!
It operates by receiving a commission each time a room is booked and has challenged the hotel industry head-on with its similar model featuring independent operation and greater ease of getting into the business.
Even though some have had harsh criticism for AirBnB under the guise of claiming that its existence had driven up housing costs, many of the top cities for rentals report an uptick in very satisfied clientele that appreciate a homey location with extra space to sprawl out and enjoy the city of their choice.
Travelers who use AirBnb are attracted to its modest cost, amenities that you’d find at your own home, and enjoying a local experience that boasts authenticity.
61% of users who chose AirBnb in 2021 used it as a substitute for a budget hotel, and 70% preferred to take up temporary residence in an entire home instead of hearing the phone calls, hairdryer, and dinner-prep noises of shared accommodations.
While the AirBnB model provides a bit of a challenge for the homeowners regarding cleanliness and upkeep, residents love staying somewhere where they can do laundry, spread out and prepare a meal, and not feel confined during this leg of their journey.
Things to Consider When Finding Best Cities for AirBnB Investment
While there are always exceptions to the rule, the largest cities, as well as the smallest towns in the nation, provide extremes that aren’t as favorable for the AirBnb rental culture.
The length of the tourist season has a huge effect on your selection criteria: some areas that have a short peak season because they are by the ocean or other summer attractions can result in your property costing you in the long run because it is sitting unused for much of the year.
The best cities for AirBnB Arbitrage have been carefully vetted by the property owners for competition. It’s vital to look at the amount of competing Airbnb listings in the immediate area, as well as the quality and number of hotels that are already established.
Proximity to tourist attractions is another way to assure success in the city you choose to rent out in. It’s important to keep in mind that more visiting families like to walk now than ever, and being close to museums, galleries, and other points of interest will greatly boost your occupancy rate.
Public Transportation is a perk that guests nationwide have claimed at the top of their list because it is always more convenient than having to navigate a foreign location on their own. Guests don’t want to spend extra time traveling, because they have already put in the hours and are ready to hit the town!
Here are some of the best cities for AirBnB Investment that our team compiled after looking at the positives, negatives, and “overnight livability” of some lively and very appealing locations to offer this as your vested venture in the US.
Malibu, California
The standard price of a home here is $2,270,000, which reflects upon the very high quality of life and ocean culture that many seeking an overnight stay are after.
Situated about 30 miles from downtown Los Angeles, this beach city in the scenic Santa Monica Mountains offers the world-famous “21 miles of scenic beauty”, and the characteristic ridges of the area have been the subject of many paintings.
Favorable to the AirBnB investor is that Malibu’s average per-day rate is quite high at $715. As it is home to many celebrities and has a summer Mediterranean climate with an average high of around 71 degrees, most visitors know why the cost can range quite above the nation’s average.
The Getty Villa is one of the cool things people love to do here, as a museum designed by famous oil magnate John Paul Getty shows off many captivating works that he had collected from the Mediterranean.
Zuma Beach is the largest stretch of sand in Malibu and offers many lifeguards on duty, thousands of spots to park, dolphin and seal watching, and a ridge to hike for a pristine and very unforgettable view.
Carmel, New York
Carmel is an ideal place to provide AirBnB hosting due to its occupancy rate, which hovers around a very positive 70%.
The standard price for a home here is $504,100, and the per-day rate is on the leaner side of things at $160. The percentage of returns here in Carmel remains at around 5.6%, and the town’s population was 33,737 in 2021.
Many young professionals live and thrive here, and residents claim it has a very sparse suburban feel, while many people who have found success in the Big Apple have relocated here to enjoy a quieter form of life.
Carmel is not as well-known as some of the nearby small cities that people can temporarily escape Manhattan from, and that’s why it is ideal for AirBnB investors: there is room for much growth.
Fahnestock State Park is one of the best ways to spend the weekend, which offers up hiking trails that give you sweeping views of the woods and top-notch hunting and fishing as well as birdwatching.
The Mt. Ninham State Forest is one of the picturesque and most memorable reasons why this is such an ideal AirBnB location. There are awesome hiking and biking trails, and views of the stars that may make your guest decide to stick around for another night!
The Kenai Peninsula, AK
The home values here in this very northernmost location aren’t astronomically high, as $237,000 is reasonable compared to many other US areas.
The occupancy rate is 67%, which is a very favorable constant for investors, and the average daily rate is $260. The rising popularity of wildlife viewing in the area and wayfaring individuals wanting to get out and enjoy the open spaces even more after the pandemic.
Even with the onset of a bit lower visitation during the winter months, the summer sees travelers from all over the world migrate much like salmon themselves to try their rods and reels at some of the best fishing spots on the planet.
The population of Kenai City in 2022 was 7,488, and the area is growing at a rate of .43% annually.
An average household income here in Kenai is $82,662, and the median one-bedroom apartment here costs $1,023 a month.
Tonsina Point and North Head are beautiful hikes that take you through the forest and along the coastline, gaining 2400 feet of elevation along the way. Beginning at Lowell Point and ending in Seward, it is the main draw that renders this one of the best cities for AirBnb arbitrage.
Homer, Alaska is one of the most unique towns here on the peninsula, with talented artists’ works on display, quaint shops, and amazing eats. World-class kayakers and fishing pros have long loved coming here for their unspoiled and diverse landscape.
The Kenai Fjords National Park is one very memorable trip that is accessible by boat or plane. This point of interest offers astounding views of some of the most intense glacier scenery there is and offers both short and long tours for viewing wildlife that inhabit the area in and around the park’s tidewater glaciers.
Gulfport/Biloxi, MS
This location may escape the minds of many who are thinking about fantastic areas to have an AirBnB business, but many tourists flock here every year to experience the Gulf of Mexico and try their luck at the nationally renowned casinos.
With the average home price situated at around $160,000 and a yearly potential for high revenue, it grosses one of the highest investability scores in the nation.
Ocean Springs and Long Beach are two predominantly favored areas here, and the area robustly enjoys an occupancy rate of over 68%.
The population of Gulfport in 2022 was 73,900 and is currently growing at a pace of around .7% annually.
The average household income here is $54,998, with rental costs low compared to the rest of the nation at $887 per month.
The Institute for Marine Mammal Studies is an animal lover’s hotspot here in the Gulfport/Biloxi area that works hard every day to care for sick and injured creatures, and you can get up close and personal with dolphins, birds, and sea lions.
Gulf Islands Water Park is the largest in the area, featuring miles of thrilling slides and a very “chilled out” island theme. This is an attraction that has most definitely helped many AirBnB investors achieve success, as it is one of the places the whole family can enjoy and may even spot a celebrity or two!
The Mississippi Coast Model Railroad Museum is where visitors can take in nearly two centuries of railroad history and offers a gigantic and very engrossing Lego display. There are full-on old-school train layouts, Jurassic Park themes, and even the zany and humorous Futurama!
Wisconsin Dells, WI
This is known as the “Waterpark Capital of the World”, and you can also enjoy some of the best and most exciting skiing to exist in the Midwest.
The Wisconsin Dells occupancy rate is a steady 45%, and even though there are plenty of hotels in the area, this example of top cities to have AirBnB property attracts many families who want to sprawl out and stay temporarily with the many comforts of home.
The population in Wisconsin Dells in 2022 was 2,994, with an average household income of $74,679 annually.
The median rental costs in recent years come to $852 per month, and an average home’s value here is $160,700.
It has been known to draw visitors that return here frequently because the theme and water parks are big, but not as vastly sprawled out and populated as they are in places such as Orlando.
This is an example of a “steady” area that may have its ups and downs from time to time as an AirBnB investor but has seen many generations of families come here repeatedly for decades.
The Kalahari Indoor Waterpark takes up 125,000 square feet and is a thrilling vacation spot where you can right the twisting elephant’s trunk slides, test your bodyboarding ability on the Flow Rider, or lounge away the stress from the cubicle on the 920-foot lazy river.
Mt Olympus was the sight of America’s first rotating waterslide and is also home to five high-octane and very thrilling roller coasters. There are 7 go-cart tracks, steep and slippery slides, and the famous Poseidon’s Rage Wave Pool with swells up to 9 feet tall!
Noah’s Ark Waterpark has long been recognized as the Dells’ biggest, and offers 3 mild slides in Monkey Rapids, 5 Toucan Twister slides, and The Kahuna Wave Pool, along with the heart-pumping twists and turns of the “Black Thunder”.
Big Chief Go Karts is a famed attraction here for gearheads young and old, where you can get ready, set, and go on the uphill and downhill course that keeps families coming back to let out some sibling rivalry and angst where the parents like it best: on the track!
The Poconos, Pennsylvania
The Poconos is a treasured getaway and a very popular destination for residents of New York, New Jersey, and Pennsylvania, and is known for its high number of family-friendly resorts.
The region is made up of numerous small towns that all possess a unique feel and staying in an Airbnb here allows you to connect with nature and enjoy a truly rustic vibe.
The average daily rate here for an AirBnB is around $300, with an occupancy rate of 54%. This is an excellent, living and breathing example of a popular destination that is still not completely saturated with AirBnB investors and has a unique charm much like the Adirondacks that is not found in other areas of the nation.
The current population of Mount Pocono, PA was 3,073 in 2022, and the average household income is $63,581.
The average rental cost here is around $903 a month, and the median home value is $155,600.
The Delaware Water Gap has long been considered one of the natural wonders of the world, where you can gaze upon 40 miles of the Delaware River, and 67,000 acres of scenic mountains. The area is home to bears, deer, and many various bird species, and you’ll get to snap pics for your Instagram of many of the nation’s prettiest waterfalls.
The No. 9 Coal Mine and Museum is an educational opportunity to check out the longest continuously running anthracite coal mine in Lansford, PA, which began operations in 1855. Here your very educated guide will tell you about the grave difficulties these brave workers faced while etching out the riches of this mountain landmark.
The Great Wolf Lodge is a very family-friendly indoor waterpark in Scotrun, which features the world-famous water-made Hydro Plunge roller coaster. You can also enter Fort Mackenzie to endure endless amounts of the soaking stuff before you make your break for it on the Totem Tower slide!
The F.M. Center for the Performing Arts boasts amazing architecture, five large lobbies, and seating for more than 2,000. Here you’ll see musicals, comedies, and classic plays in an atmosphere that is a bit like “Branson, MO meets Catskill”.
Traverse City, MI
This beautiful northern Michigan vacation town hosts the yearly week-long National Cherry Festival, as well as the privilege of being named the #2 small town travel destination in the U.S. by the ranking gurus at Tripadvisor.
This artistic and very scenic town on the shores of Lake Michigan boasts an average daily AirBnB rate of $297 and a very favorable occupancy rate of 69%.
The population of Traverse City in 2022 was 15,878, and the average household income is $83,657.
Median home prices here are situated at $282,900, and an average monthly apartment rental costs $932.
Front Street here in Traverse City is where you’ll get to enjoy the Winter Comedy Festival, Cherry Festival, and a unique assortment of galleries, markets, and excellent antique shops.
The Fairy Trails is your chance to walk through a scenic location that will make you feel as if you were an extra in “The Hobbit” or “Lord of the Rings!” Here you’ll walk past 40 little houses, with an in-person chance to enjoy this project that was begun by Eagle Scouts and has become a resounding Traverse City tradition ever since.
Clinch Park is located on the waterfront of Traverse City and is the most popular beach area in town. Here you can enjoy a picnic with friends and family, try your hand (and both arms!) at kayaking, and watch the frequently lit-up performances that dazzle audiences here during summer nights.
The Chateau Grand Traverse Winery is situated on a sprawling estate north of Grand Traverse, on the beautiful Old Mission Peninsula. Here you’ll sample world-class wines such as the 2021 Pinot Noir Rose Vin Gris, 2020 Late Harvest Riesling, and the notably oaky and delicious 2018 Silhouette Red Wine.
The State Theater is run by activist and documentary-producing Flint native Michael Moore and is also where the world-famous Traverse City Film Festival of Michigan takes place. The State is a historical building that opened in 1916, and there is no shortage of quality entertainment as it has been known to show over 400 films a year!
Chandler, Arizona
Chandler is situated in the Sun Belt where many love to come to escape the winter and has an incredibly favorable AirBnB occupancy rate of 70%.
The average daily rate here is $194, and the city’s population in 2022 was 283,959. The average household income here is $106,398, and the median age is 36.3 years.
Chandler is a suburb of the Phoenix-Mesa-Chandler metro area, and the population here in 2022 was 275,987.
Artists have flocked here for years, and this is part of the lucrative draw for an AirBnB investor.
The official announcement by an advocacy organization in D.C. that Chandler was a “Playful USA Community” in 2016, was recognized nationally for its innovative approach to making stress relief and outdoor activity a priority.
Here you can spend an enjoyable afternoon at the Chandler Fashion Center, which is the state’s second-largest mall and host of seasonal concerts, special events, entertainment, and great places for a bite to eat.
The Chandler Center for the Arts is a place where you can catch Rock and Roll Hall of fame inductees, Grammy award winners, comedians such as Weird Al Yankovic, and star performers such as Grace Kelly all have their splendid and star-studded moments to take the stage here.
The San Marcos Golf Course is where the amazing and very rewarding Phoenix golf scene saw its origins, with 18 holes of challenging play on the first Arizona course to feature grass. There are more than 250 courses in the Phoenix area, but this one holds a special place in many lovers of tee time’s hearts.
The Arizona Railway Museum is Chandler’s best place for model and railroad enthusiasts to get a close-up view of 12 passenger cars and holds very fun and family-oriented events such as the “Chuck Wag-on Cook Off” each November.
Veteran’s Oasis Park offers 113 acres to fish, hike, ride horses, or take in a show at the fantastic outdoor amphitheater. Here you can also enjoy the fun with the entire family on a self-guided Solar System Walk, where you can navigate your way around a series of monuments and signs where each step physically represents 1.5 million miles of distance!
Wild Horse Pass Motorsports Park has been here in Chandler for nearly 4 decades of high-octane excitement, and legends such as Andretti, Senna, Muldowney, and Garlits are just a few of the superstars who have made the facility a true diehard’s destination for competition.
The Koli Equestrian Center offers the magic of sun-kissed horseback riding excursions for all different levels of experience. While you’re enjoying the ride, you’ll be enjoying breathtaking views and a very wild, picturesque, and untamed landscape.
Is AirBnB Investment a Good Choice For Me?
If you’re looking for a great source of steady income, a real estate investment such as this is a great option to consider in depth.
Since AirBnB rentals are short-term, it allows you to have many different guests over time, instead of the traditional model that stays rented to long-term tenants.
The reason our team wanted to make this guide extra useful is that this type of investment doesn’t always follow traditional rules of thumb: some locations that have a huge tourist industry may not necessarily be the best for this venture.
Add-ons such as maintenance fees can help with monthly costs, but keep in mind that your unit may not be occupied during the entire year.
Many investors have been very successful with AirBnB stay units that are well-equipped, cozy, and the ultimate chance to enjoy the pride of seeing short-stay residents’ comfort and accommodation!