Thinking of buying a vacation home as an investment property? Then you need to consider investing in the most profitable Airbnb cities in the US for 2019!
The Airbnb real estate investing business isn’t just growing – it’s changing. From how to find the perfect Airbnb rental for sale, to how to manage your property, to what to offer your guests, investing in short-term rentals is a lot of work. However, there is still a hefty profit to be made despite these challenges. After all, Airbnb’s success in making money is no secret to real estate investors. However, how much profit you can make largely depends on where your Airbnb is located.
When buying a vacation home as a short-term rental property, it’s important to take into account not just the appeal of the location, but also how profitable the real estate investment will be. To determine the best places to buy Airbnb rentals in summer 2019, Mashvisor looked at the top vacation destinations in the US and analyzed them using real estate data and predictive analytics. So let’s get straight into it – below is a list of the most profitable Airbnb cities this summer.
1) Gatlinburg, TN
Located on the Smokey Mountains of Tennessee, Gatlinburg is a top family vacation destination and one of the most profitable locations for vacation rental investors. Tourism is the biggest contributor to Airbnb’s success here, as the Smoky Mountains draw over 11 million visitors annually. This steady stream of tourists creates a strong demand for short-term rentals. Also due to the relatively low real estate costs, high Airbnb occupancy rate, and few restrictions on short-term rentals, this mountain getaway has turned into one of the most successful and profitable Airbnb locations in the US.
- Median Property Price: $336,149
- Price/Square Foot: $176
- Monthly Airbnb Rental Income: $3,960
- Airbnb Occupancy Rate: 73%
- Airbnb Cash on Cash Return: 8%
Note: These numbers are provided by Mashvisor’s Investment Property Calculator – the ultimate tool for analyzing and comparing properties in any city/neighborhood in the US housing market! To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
2) Big Pine Key, FL
Big Pine Key is the second largest (and the most diverse) of the nearly 300 small islands that make up the Florida Keys. The island is situated so that travel to the other Keys is easy and a visit to major cities like Miami is about a 2-hour car ride. This makes it a very attractive vacation spot in Florida not just in the summer, but all year round. So, you can expect strong demand for vacation rental properties here. Another bonus point for Big Pine Key is that home prices are much lower than what you’ll find in other Keys. In Key West, for example, the median property price is $967,108 according to Mashvisor’s data. This is why Big Pine Key is the one that made it on to this list of the most profitable Airbnb cities in 2019.
- Median Property Price: $564,180
- Price/Square Foot: $415
- Monthly Airbnb Rental Income: $5,372
- Airbnb Occupancy Rate: 52%
- Airbnb Cash on Cash Return: 7%
3) Joshua Tree, CA
Joshua Tree has been gaining popularity among tourists from all over the world. The area is known for its natural sights and attractions that draw tourists and outdoor enthusiasts. In addition, it’s only a 2-hour drive from Los Angeles, making it a perfect weekend gateway for millennials looking to escape the frantic city life. There is also the famous Joshua Tree Music Festival which is held twice every year, and it’s only 30 minutes away from Coachella Valley. All these reasons make Joshua Tree an international attraction luring 3 million visitors annually! Taking into account the lucrative rental income that Joshua Tree vacation rentals can yield, you can surely see why real estate investors consider it one of the most profitable Airbnb locations in 2019.
- Median Property Price: $318,433
- Price/Square Foot: $240
- Monthly Airbnb Rental Income: $3,033
- Airbnb Occupancy Rate: 59%
- Airbnb Cash on Cash Return: 7%
4) Savannah, GA
Art and history meet in this coastal city. With its charming historical districts, beach access, and recreation opportunities, tourism plays a very important part in the success of Airbnb rental properties in Savannah. Visitors come year-round to this city that offers them a wide variety of activities to explore, from architectural tours to the lively City Market entertainment hub. In addition, with Tybee Island providing a beach escape within 30 minutes of the city, Savannah is quickly becoming one of the hottest and most profitable Airbnb cities for vacation rental property investors to consider in 2019.
- Median Property Price: $338,656
- Price/Square Foot: $157
- Monthly Airbnb Rental Income: $3,354
- Airbnb Occupancy Rate: 60%
- Airbnb Cash on Cash Return: 6%
5) Kissimmee, FL
The short-term vacation rental market is thriving in Kissimmee. The city is situated along the northwest shore of Lake Toho and less than 90 minutes away from the Gulf of Mexico and the Atlantic Ocean. Also, it’s just minutes away from Walt Disney World and the other Orlando theme parks. Kissimmee itself has its own attractions as well, including outdoor adventures, museums, outlet shopping, and golf courses. Is it any surprise that vacation rentals in Kissimmee are in high demand? The thriving tourism, as well as the affordable property prices, make Kissimmee a hidden gem for real estate investors looking for the most profitable Airbnb cities.
- Median Property Price: $252,297
- Price/Square Foot: $136
- Monthly Airbnb Rental Income: $2,840
- Airbnb Occupancy Rate: 75%
- Airbnb Cash on Cash Return: 5%
6) Nashville, TN
Next up on our list of the most profitable Airbnb locations in 2019 in the US is none other than Music City. Nashville offers really good investment opportunities when it comes to vacation rentals. The city attracts millions of tourists each year for its 24/7 music scene as well as its cultural downtown scene. In addition, the tight supply of hotels and the demand for short-term accommodation is driving the growth in the vacation rental industry in Nashville. This only proves that there’s a great potential for real estate investors to make money in Nashville as one of the most profitable Airbnb cities in the summer of 2019. Here is Mashvisor’s data for investing in short-term rentals in Nashville:
- Median Property Price: $414,462
- Price/Square Foot: $203
- Monthly Airbnb Rental Income: $3,531
- Airbnb Occupancy Rate: 57%
- Airbnb Cash on Cash Return: 5%
You can find the most profitable investment properties in Nashville in a matter of minutes with the help of our Property Finder Tool. Get started now for free!
7) Virginia Beach, VA
A recent study by Homes.com looking at the difference between daily rental prices and the daily average cost of a mortgage in 75 cities in the US housing market found that Virginia Beach is the most profitable Airbnb city in the nation! According to the study, vacation rentals in Virginia Beach produce profits on a daily basis. While the average Airbnb host can bring in a profit of $99 per night, an Airbnb host in Virginia Beach has the potential to make a whopping $183 in profit per night! Why is Virginia Beach so profitable for Airbnb real estate investing? It all goes back to the strong demand for short-term rentals in the city from a combination of military visitors and vacationers who flock to its sandy beaches, rich history, arts, and other family attractions.
- Median Property Price: $361,562
- Price/Square Foot: $184
- Monthly Airbnb Rental Income: $3,095
- Airbnb Occupancy Rate: 47%
- Airbnb Cash on Cash Return: 5%
8) Myrtle Beach, SC
The last on our list of the most profitable Airbnb cities in the US for 2019, Myrtle Beach continues to prove its value to real estate investors. Every summer, the city’s population grows from 30,000 residents to millions as the annual wave of tourists take up residence. With miles of beach and numerous attractions, Myrtle Beach is a hot family vacation destination. This strong demand for short-term rental properties is combined with low investment costs and the large inventory of vacation rentals. These factors not only make Myrtle Beach an easy market to enter, but it’s also easy for real estate investors to fill their vacation rentals and generate a healthy income!
- Median Property Price: $218,010
- Price/Square Foot: $196
- Monthly Airbnb Rental Income: $2,371
- Airbnb Occupancy Rate: 57%
- Airbnb Cash on Cash Return: 4%
While deciding in which of these most profitable Airbnb locations to invest, learn how to become an Airbnb host in order to be prepared when the time comes to list your property.
The Bottom Line
The real estate saying “location, location, location” applies to successful Airbnb real estate investing. If you’re looking for an opportunity to invest in a vacation rental in the US housing market, start searching in one of these 8 most profitable Airbnb cities for summer 2019! Keep in mind that there’s more to being a successful Airbnb host than choosing the right location – you also need to find the right property. You can easily achieve both using the right tools that Mashvisor provides.
Start with Mashvisor now to find the next investment property that’ll bring you profits.