Finding the best Airbnb locations for investing is essential to succeeding as a real estate investor.
If you understand the fundamentals, such as local regulations, neighborhood analysis, and income estimates on a property (plus manage it skillfully), then you can easily earn passive income as an Airbnb host. Investing in locations with excellent growth prospects yet remain affordable is key to success.
That’s why this post will focus on selecting the finest locations for investing based on the above criteria. Any investor looking into getting involved with Airbnb investments is set up correctly when choosing their dream vacation rental or home.
Short Summary
- The year 2025 will be a great time to invest in Airbnb properties with top US cities such as Artesia, California; Wainae, Hawaii; West New York, New Jersey; Bellingham, Washington; and Prairie Village, Kansas, which offer high rental demand and occupancy rates.
- When investing in an Airbnb property, one must consider factors such as rental income potential, local regulations and zoning ordinances, and neighborhood analysis.
- Property management tools can help optimize operations while providing exceptional guest experiences and 24/7 support will generate positive reviews for successful hosting.
Top 5 US Cities for Airbnb Investment
Location plays an essential role when it comes to Airbnb investing, and some cities perform better than others in terms of rental demand, occupancy rates, and returns.
According to Mashvisor’s data, the top locations ideal for an Airbnb business include Artesia (California), Wainae (Hawaii), West New York (New Jersey), Bellingham (Washington), and Prairie Village (Kansas). Such regions possess a high occupancy rate due not only to their tourist-based economy but also because they are sought-after short term rentals compared with the best or worst US cities concerning Airbnb business prospects.
We will now discuss each city’s key features that make them great areas for conducting successful Airbnb businesses, such as housing prices and rental return on investment opportunities. We hope it will help you decide more confidently which area would work out optimally when it comes to your own adventure into the world of property-related dealings.
1. Artesia, CA
- Median Property Price: $758,853
- Average Price per Square Foot: $626
- Days on Market: 39
- Number of Airbnb Comps: 184
- Monthly Airbnb Rental Income: $6,323
- Airbnb Cash on Cash Return: 5.31%
- Airbnb Cap Rate: 5.35%
- Airbnb Daily Rate: $195
- Airbnb Occupancy Rate: 87%
- Walk Score: 88
Artesia, CA, boasts a vibrant and diverse community that supports a variety of dining and entertaining options, enhancing its appeal as a tourist destination.
The city is also strategically located near major freeways (605 and 91), providing easy access to LA and other Southern Californian attractions. Plus, there’s a new light rail line being developed that connects Artesia to Downtown LA.
Artesia is the ideal choice for visitors looking for accommodations often prefer areas that offer both convenience and local charm.
2. Waianae, HI
- Median Property Price: $1,133,830
- Average Price per Square Foot: $668
- Days on Market: 125
- Number of Airbnb Comps: 121
- Monthly Airbnb Rental Income: $7,024
- Airbnb Cash on Cash Return: 5.44%
- Airbnb Cap Rate: 5.50%
- Airbnb Daily Rate: $395
- Airbnb Occupancy Rate: 82%
- Walk Score: 19
Waianae, HI, presents a compelling opportunity for Airbnb rental property investment in 2025 due to its unique blend of natural beauty, cultural richness, and growing tourism potential.
The area boasts beautiful beaches, such as Makaha Beach, known for its excellent surfing conditions and vibrant marine life. There is also the Waianae Mountain Range, which provides numerous hiking trails for all skill levels. Plus, the region is a hotspot for wildlife watching, including seasonal sightings of humpback whales and native birds.
As for culture, events like the Makahiki Festival celebrate Hawaiian traditions and draw in visitors. The community also offers insights into Hawaiian life through its markets and local cuisine.
Lastly, unlike the heavily commercialized areas of Honolulu, Waianae offers a more tranquil experience away from the crowds. This unique positioning can attract visitors who are looking for a more authentic Hawaiian getaway.
Waianae, HI, is a popular Airbnb location for its spectacular scenery and numerous outdoor activities.
3. West New York, NJ
- Median Property Price: $726,958
- Average Price per Square Foot: $550
- Days on Market: 47
- Number of Airbnb Comps: 152
- Monthly Airbnb Rental Income: $4,019
- Airbnb Cash on Cash Return: 3.85%
- Airbnb Cap Rate: 3.91%
- Airbnb Daily Rate: $184
- Airbnb Occupancy Rate: 78%
- Walk Score: 97
If you live in West New York, NJ, you might want to turn your home into an Airbnb rental in 2025 due to its strategic location and growing demand for vacation rentals.
The city is situated just across the Hudson River from Manhattan, making it an attractive destination for tourists and business travelers who are looking for more affordable accommodations compared to New York City. It’s also close to major transportation links, such as the PATH train and ferry services.
Additionally, the demand for vacation rental properties in areas surrounding New York City continues to rise. As remote work becomes more common, many travelers are opting for longer stays in suburban areas like West New York.
Unfortunately, West New York has implemented strict regulations on vacation rentals. Only rentals where the host is present are permitted. While this location is no longer viable for Airbnb investors who live outside of town, residents could see this as an opportunity to earn income from their property.
4. Bellingham, WA
- Median Property Price: $871,500
- Average Price per Square Foot: $463
- Days on Market: 52
- Number of Airbnb Comps: 154
- Monthly Airbnb Rental Income: $4,667
- Airbnb Cash on Cash Return: 4.83%
- Airbnb Cap Rate: 4.87%
- Airbnb Daily Rate: $146
- Airbnb Occupancy Rate: 75%
- Walk Score: 48
Bellingham, WA, emerges as a lucrative destination for vacation rental investors because of its investment performance, demographic shifts, and tourism potential.
The city has seen a notable influx of remote workers from larger metropolitan areas like Seattle and San Francisco. Families and large groups looking for short-term stays make up a significant percentage of the demographic, as well.
As for tourist attractions, the western part of Bellingham is near numerous outdoor recreational opportunities such as hiking trails, parks, and waterfront activities. The city also hosts various events throughout the year that draws visitors, including art festivals and local markets.
5. Prairie Village, KS
- Median Property Price: $900,014
- Average Price per Square Foot: $310
- Days on Market: 71
- Number of Airbnb Comps: 149
- Monthly Airbnb Rental Income: $4,434
- Airbnb Cash on Cash Return: 3.37%
- Airbnb Cap Rate: 3.41%
- Airbnb Daily Rate: $169
- Airbnb Occupancy Rate: 74%
- Walk Score: 36
Airbnb investors will find significant opportunities in Prairie Village, KS, next year, mainly due to its strategic location, amenities, and attractions.
Because it’s located near Kansas City, Prairie Village offers easy access to urban amenities while maintaining a suburban feel. It also boasts numerous parks, community activities, and cultural events, such as the annual Prairie Village Art Show, which draws significant crowds.
Factors to Consider When Investing in Airbnb Properties
Researching the most profitable US cities for investing in an Airbnb property is essential, but it’s not all there is to consider. Before committing any money, you must also be aware of important factors such as rental income, local regulations, and neighborhood analysis.
Taking the said factors into account and conducting due diligence will allow you to make more confident decisions while exploring the best places for Airbnb investment opportunities.
Examining how each area lines up with your goals regarding financial gains will give you greater insight than solely relying upon which ones are supposedly “the top” when making major investments like those related to Airbnbs.
1. Rental Income Potential
Rental income is a fundamental element to consider when investing in Airbnb. On average, Airbnb hosts can earn around $1,910 each month through their investments. The figure may vary depending on the location of the investment property and market demand for that specific area. Monitoring the Airbnb occupancy rates and the average daily rate is vital when evaluating potential rental property investments.
Trying to determine the rental income potential of a particular location can be tedious, even for the seasoned investor. Fortunately, real estate platforms like Mashvisor exist to help with complex calculations.
With RentoCalculator, Mashvisor’s Airbnb investment calculator, you can find the best short-term rental investment and assess a property’s potential Airbnb rental income based on several metrics. You can assess a property’s profitability in terms of cash flow, cap rate, cash-on-cash return, and occupancy rate.
Mashvisor’s RentoCalculator helps real estate investors search for the best Airbnb investment and determine its potential rental income based on several metrics.
It’s also essential to consider passive income associated with your Airbnb business. By finding spots where there is strong rental activity along with profitable returns, you’ll be able to optimize the revenue potential significantly from your Airbnb’s investment opportunities!
2. Local Regulations and Zoning Ordinances
When looking to buy property for Airbnb, it’s important to explore local regulations and zoning laws that can affect your ability to offer a short-term rental service.
It’s wise to research each city or municipality for particular ordinances related specifically to hosting guests through Airbnb. Make sure to consult relevant legislation regarding land use and obtain necessary permits from respective authorities. You can also check Mashvisor’s short term rental regulations page for the most up-to-date information.
Speaking with other Airbnb hosts and owners in the location would help you understand more about what is expected of any investor intending to use their space in this manner.
Doing all of the above things will help ensure compliance and prevent potential legal issues. Down the line, one should always adhere strictly to these rules before renting out Airbnb spaces.
Mashvisor’s short-term regulations page provides real estate investors with the latest legislation and regulations governing short-term rentals in a particular city.
3. Neighborhood and Market Analysis
When making decisions about potential Airbnb investments, conducting a detailed neighborhood and market analysis is essential. Important indicators such as income generation potential, affordability of the area in question, rental earnings, occupancy rate, and return on investment should all be taken into consideration when selecting an Airbnb property to invest in.
It’s very important to look at existing data to make sure you don’t choose an over-populated zone with too many vacation rentals already present there. Examining local conditions comprehensively will help guarantee your venture’s success even among various competitors within the Airbnb sector.
To help you search for the most profitable neighborhoods and markets, you can use Mashvisor’s Market Finder tool. The tool gives you a bird’s eye view of the US housing market and helps you identify the hottest Airbnb investment opportunities in and out of your state.
Mashvisor’s Market Finder allows investors to identify the hottest short-term investment opportunities in and out of their state.
Tips for Becoming a Successful Airbnb Host
Now that you’ve got the info to pinpoint which cities are the best for starting an Airbnb business, it’s time to become a successful host. Here, we’ll look at tricks and techniques on how hosting can be efficient while giving guests an unforgettable stay—key ingredients of any lucrative Airbnb venture.
Don’t choose the best cities for Airbnb just by chance when buying an investment property. Your choice of city will affect your success as an Airbnb host and owner of a profitable business on this platform.
1. High-Quality Photography
Hiring a professional photographer can significantly enhance the visual appeal of your vacation rental properties. Make sure to only post high-quality images that showcase your property in the best light to attract more potential guests.
Ask your photographer to capture images of standout features, such as floor to ceiling windows, the hot tub, and all the amenities that your rental offers. This helps create a memorable impression.
2. Property Management Tools
Airbnb hosts can vastly improve their business operations and guest experiences by using property management tools. Mashvisor now provides streamlined ways to sync calendars with guests for easier communication.
By integrating the said features into your Airbnb strategy, you will be able to better manage listings while having more time available to create a top-notch experience for customers.
Property management software is invaluable to Airbnb hosts’ success. From optimizing reservations processes in real time to making sure all maintenance needs are being attended to, there’s no denying how much smoother things become when utilizing this type of technology!
3. Guest Experience and 24/7 Support
For any Airbnb host, providing excellent customer service and continuous support is necessary for securing positive ratings and recurrent bookings. Your chief purpose should be to create a lasting stay for your guests by being kind, accommodating, and prompt with answers.
Make sure that your Airbnb property remains neat and tidy, explain clearly how one can access the place of accommodation, and have yourself available in case there are queries or issues during their trip.
Concentrating on providing unforgettable experiences to visitors and offering nonstop help will allow you to achieve high commendations. This, in turn, could lead to more people booking with you, helping grow income from rentals.
Summary
Finally, investing in the right Airbnb markets and properties has the potential to offer huge returns and provide a regular source of passive income.
One should target the most profitable cities for Airbnb investments, such as Artesia, Waianae, West New York, Bellingham, or Prairie Village, while also watching out for emerging locations.
It’s important to look into factors such as possible rental incomes along with local laws and evaluate neighborhoods before choosing any investment property. Additionally, strive to provide superior hospitality experiences coupled with 24/7 support if you choose to be a short-term rental host.
With careful planning, research, AND mindfulness, you can feel assured about venturing into worlds that involve Airbnb investment chances!
Frequently Asked Questions
What Is the Most Profitable Airbnb Location?
Hosts looking for the most profitable Airbnb locations can turn to Artesia in California. The city offers a vacation rental income of approximately $6,000 per month, with daily rates typically around $200.
Other cities ideal for Airbnb arbitrage include Waianae (HI), West New York (NJ), Bellingham (WA), and Prairie Village (KS). All offer excellent returns on investment compared to traditional renting methods.
What Is the Best Place on Airbnb?
Research conducted by Airbnb identified Bangkok as the leading city for booking accommodation on its site. Other worthwhile Airbnb locations are Madrid, Sydney, and Melbourne.
All of these cities offer plenty of options when it comes to using Airbnb data as a guide toward creating memorable experiences whilst traveling around the world.
Where Are the Most Beautiful Airbnbs?
Head to Tulum, Mexico, for the majestic Ikal Chit, Rome, Italy, for a luxurious apartment experience, or Marfa, Texas, to stay in a solar home. Stockholm, Sweden’s capital city, and its gorgeous Sauna Sea Cottage are also calling your name.
Check out an architectural masterpiece nestled within nature’s beauty just outside of Rio de Janeiro, Brazil. Last but not least, Mackerel Beach, Australia, with its Little Black Shack, is sure to take you back.
Where Is the Highest Demand for Airbnb?
According to market analysis, fifteen cities worldwide are witnessing a booming need for Airbnb. These cities demonstrate an increasing demand for this accommodation service provider.
What Are the Best Cities for Airbnb Investment?
Five of the best cities to invest in Airbnb in 2025 will be Artesia, Waianae, West New York, Bellingham, and Prairie Village. They are seen as the best Airbnb markets for those looking for the best city to invest in.