Recovery in the Airbnb industry started soon after the initial shock of the Coronavirus pandemic.
Read our 2022 Airbnb Cap Rate by City Analysis here.
Indeed, real estate investors are still making money from short-term rentals in 2021, and frequently this strategy offers a higher return on investment than traditional rentals. So, if you’re thinking about joining the millions of successful Airbnb hosts this year, you need to know what Airbnb cap rates by city to expect in the US housing market in 2021. This will help you target your investment property search at the locations with the highest profitability.
Before we look into the capitalization rates which the 100 most profitable locations for Airbnb rentals offer in 2021, let’s discuss the data quickly. The real estate data below is based on nationwide real estate market analysis conducted by Mashvisor. Mashvisor is an industry-leading real estate data and analytics platform which helps you find the best locations for investing as well as top-performing rental properties in a matter of minutes.
For the purpose of this blog, we’ve looked at Airbnb data as well as real estate listings data across the entire US market to calculate the Airbnb cap rates by city which you can expect to see. Our Airbnb data comes directly from the Airbnb.com platform, while the rest of the real estate data comes from a number of reputable, publicly available sources. Once we’ve done our analysis through AI and machine-learning algorithms, we’ve organized the analysis in tables to make it easier to navigate through and comprehend.
Related: Where to Get Reliable Airbnb Data in 2021
Moreover, we look at a few different sets of cap rates for vacation home rentals. First, we take a look at the city averages across all residential real estate property types available on our platform which includes single-family homes, condos, apartments, and townhouses. Then we look into the rate of return for each of these property types individually, including also foreclosures. As you will see, different residential property types offer various return on investment, so it’s important for real estate investors to know where to focus their rental property search efforts based on their budget and their preferred property type.
Last but not least, our Airbnb rental market analysis is not limited to the cap rate by city but also takes into consideration other important metrics. These include:
- Airbnb daily rate
- Airbnb occupancy rate
- Airbnb income
- Median property price
The main reason we include these metrics is to show you where our estimates of the Airbnb cap rates by city come from. After all, the return on investment on short-term rentals is the result of the Airbnb daily rate which hosts are able to charge and the Airbnb occupancy rate which they are able to attract. This gives us the Airbnb rental income. When we combine this with the home value as well as one-time startup costs and recurring monthly expenses, we can calculate the rate of return on a rental property.
Furthermore, access to the median property price will help first-time investors as well as other investors with a limited budget to focus their efforts on the most affordable real estate markets in 2021 to avoid a foreclosure.
So, without further ado, let’s have a look at the US housing markets which promise the highest return with the Airbnb strategy:
2021 Airbnb Cap Rates by City Across the US
Following are the capitalization rates for vacation rentals which you can see in 100 of the most important US real estate markets organized in a descending order:
Table 1: Airbnb Cap Rates by City in 2021, All Property Types
| City and State | Airbnb Cap Rate | Airbnb Daily Rate | Airbnb Occupancy Rate | Airbnb Rental Income | Median Property Price | |
| #1 | San Angelo, TX | 7.58% | $123 | 74% | $3,291 | $361,635 |
| #2 | Chesapeake, VA | 6.84% | $157 | 69% | $3,501 | $331,858 |
| #3 | Valdosta, GA | 6.21% | $95 | 70% | $2,179 | $286,698 |
| #4 | Canton, OH | 6.06% | $106 | 54% | $2,965 | $200,989 |
| #5 | Portsmouth, VA | 6.05% | $126 | 65% | $2,469 | $213,569 |
| #6 | Independence, MO | 5.99% | $107 | 61% | $1,697 | $192,067 |
| #7 | Fayetteville, NC | 5.92% | $98 | 71% | $2,162 | $223,337 |
| #8 | Springfield, MO | 5.79% | $100 | 59% | $2,225 | $285,676 |
| #9 | Fort Wayne, IN | 5.71% | $82 | 68% | $2,293 | $262,809 |
| #10 | Jackson, MS | 5.71% | $97 | 67% | $2,590 | $280,022 |
| #11 | Riverside, CA | 5.69% | $156 | 67% | $4,467 | $542,633 |
| #12 | Richardson, TX | 5.66% | $193 | 67% | $3,466 | $401,900 |
| #13 | Arlington, TX | 5.61% | $180 | 62% | $2,745 | $318,823 |
| #14 | Akron, OH | 5.55% | $85 | 58% | $1,647 | $150,381 |
| #15 | Bakersfield, CA | 5.46% | $135 | 74% | $3,016 | $380,973 |
| #16 | Ypsilanti, MI | 5.39% | $155 | 67% | $2,489 | $278,978 |
| #17 | Richmond, VA | 5.38% | $140 | 65% | $2,937 | $369,318 |
| #18 | Columbus, GA | 5.24% | $98 | 67% | $1,828 | $254,838 |
| #19 | Springfield, IL | 5.22% | $100 | 63% | $1,566 | $162,622 |
| #20 | Roanoke, VA | 5.18% | $106 | 68% | $2,407 | $322,907 |
| #21 | Reno, NV | 5.13% | $142 | 65% | $3,514 | $581,879 |
| #22 | Tucson, AZ | 5.06% | $102 | 65% | $2,515 | $320,662 |
| #23 | Norfolk, VA | 5.05% | $158 | 62% | $2,567 | $308,407 |
| #24 | Kalamazoo, MI | 4.96% | $102 | 69% | $2,781 | $330,304 |
| #25 | Birmingham, AL | 4.95% | $119 | 62% | $2,378 | $306,786 |
| #26 | San Bernardino, CA | 4.95% | $131 | 73% | $2,936 | $380,438 |
| #27 | Colorado Springs, CO | 4.73% | $147 | 62% | $2,915 | $472,277 |
| #28 | Frederick, MD | 4.73% | $125 | 64% | $3,397 | $428,542 |
| #29 | Charlottesville, VA | 4.72% | $290 | 54% | $3,969 | $565,639 |
| #30 | Virginia Beach, VA | 4.70% | $310 | 51% | $3,330 | $412,793 |
| #31 | El Paso, TX | 4.56% | $83 | 68% | $2,254 | $248,999 |
| #32 | Montgomery, AL | 4.46% | $111 | 63% | $1,895 | $289,152 |
| #33 | Memphis, TN | 4.42% | $125 | 59% | $2,299 | $287,493 |
| #34 | Jacksonville, FL | 4.41% | $129 | 59% | $2,111 | $282,320 |
| #35 | Gainesville, FL | 4.40% | $147 | 58% | $2,217 | $311,458 |
| #36 | Augusta, GA | 4.40% | $190 | 53% | $1,712 | $235,193 |
| #37 | Lexington, KY | 4.33% | $139 | 53% | $2,215 | $339,352 |
| #38 | Lakeland, FL | 4.33% | $110 | 58% | $2,237 | $302,543 |
| #39 | Albany, NY | 4.33% | $119 | 66% | $2,707 | $284,720 |
| #40 | Little Rock, AR | 4.31% | $101 | 75% | $2,435 | $323,694 |
| #41 | Chandler, AZ | 4.25% | $160 | 65% | $3,144 | $466,065 |
| #42 | Baton Rouge, LA | 4.24% | $130 | 55% | $2,301 | $313,935 |
| #43 | Madison, WI | 4.03% | $199 | 60% | $3,131 | $415,308 |
| #44 | Pensacola, FL | 3.96% | $134 | 66% | $3,102 | $522,086 |
| #45 | Columbus, OH | 3.91% | $127 | 61% | $1,940 | $272,796 |
| #46 | Tempe, AZ | 3.86% | $181 | 60% | $2,788 | $402,913 |
| #47 | Rochester, NY | 3.81% | $119 | 63% | $2,197 | $187,580 |
| #48 | Knoxville, TN | 3.80% | $127 | 62% | $2,301 | $361,306 |
| #49 | Cincinnati, OH | 3.73% | $133 | 59% | $2,462 | $354,217 |
| #50 | Las Vegas, NV | 3.73% | $205 | 62% | $2,463 | $468,337 |
| #51 | Chattanooga, TN | 3.67% | $119 | 67% | $2,298 | $331,394 |
| #52 | Tallahassee, FL | 3.66% | $147 | 51% | $1,799 | $286,591 |
| #53 | Hampton, VA | 3.65% | $147 | 61% | $1,694 | $236,584 |
| #54 | Albuquerque, NM | 3.49% | $103 | 66% | $2,135 | $356,498 |
| #55 | Durham, NC | 3.43% | $111 | 58% | $2,333 | $407,094 |
| #56 | Columbia, SC | 3.43% | $136 | 57% | $1,735 | $293,565 |
| #57 | Fort Worth, TX | 3.43% | $136 | 60% | $2,555 | $339,589 |
| #58 | St. Louis, MO | 3.40% | $120 | 55% | $1,955 | $265,800 |
| #59 | Tulsa, OK | 3.38% | $106 | 64% | $2,153 | $407,275 |
| #60 | Indianapolis, IN | 3.36% | $135 | 55% | $1,718 | $263,239 |
| #61 | Prescott, AZ | 3.35% | $126 | 67% | $2,965 | $629,427 |
| #62 | Bloomington, IN | 3.29% | $178 | 47% | $2,114 | $387,652 |
| #63 | Pittsburgh, PA | 3.26% | $122 | 59% | $2,121 | $342,900 |
| #64 | Kansas City, MO | 3.24% | $141 | 60% | $1,979 | $313,759 |
| #65 | Fort Collins, CO | 3.21% | $156 | 67% | $3,038 | $540,757 |
| #66 | Raleigh, NC | 3.16% | $128 | 65% | $2,429 | $503,692 |
| #67 | Tuscaloosa, AL | 3.16% | $502 | 29% | $1,828 | $326,716 |
| #68 | Phoenix, AZ | 3.15% | $171 | 64% | $2,569 | $465,610 |
| #69 | Irving, TX | 3.15% | $148 | 64% | $2,582 | $394,853 |
| #70 | Milwaukee, WI | 2.96% | $141 | 52% | $1,572 | $201,431 |
| #71 | Philadelphia, PA | 2.89% | $135 | 51% | $1,997 | $374,508 |
| #72 | San Antonio, TX | 2.89% | $125 | 57% | $2,149 | $288,008 |
| #73 | Saint Paul, MN | 2.70% | $147 | 59% | $2,102 | $283,394 |
| #74 | Charlotte, NC | 2.56% | $127 | 56% | $2,414 | $474,769 |
| #75 | Austin, TX | 2.53% | $218 | 54% | $3,099 | $677,893 |
| #76 | Minneapolis, MN | 2.48% | $145 | 57% | $2,142 | $369,517 |
| #77 | Baltimore, MD | 2.38% | $128 | 54% | $1,835 | $306,956 |
| #78 | Bend, OR | 2.38% | $175 | 60% | $3,421 | $792,462 |
| #79 | Detroit, MI | 2.32% | $151 | 51% | $1,625 | $180,999 |
| #80 | Nashville, TN | 2.29% | $265 | 45% | $2,098 | $482,565 |
| #81 | Dallas, TX | 2.26% | $139 | 58% | $2,811 | $465,534 |
| #82 | Providence, RI | 2.25% | $163 | 60% | $2,194 | $376,910 |
| #83 | Tampa, FL | 2.07% | $128 | 51% | $2,037 | $488,753 |
| #84 | Honolulu, HI | 1.90% | $292 | 56% | $2,262 | $852,913 |
| #85 | Cleveland, OH | 1.84% | $122 | 57% | $1,550 | $180,499 |
| #86 | Key West, FL | 1.82% | $569 | 47% | $5,521 | $1,207,025 |
| #87 | Los Angeles, CA | 1.64% | $192 | 65% | $4,289 | $1,144,675 |
| #88 | New Orleans, LA | 1.59% | $196 | 40% | $1,825 | $477,508 |
| #89 | Houston, TX | 1.57% | $137 | 53% | $2,247 | $407,186 |
| #90 | San Diego, CA | 1.46% | $201 | 59% | $3,007 | $843,901 |
| #91 | Naples, FL | 1.30% | $258 | 51% | $2,580 | $654,422 |
| #92 | Washington, DC | 1.18% | $164 | 54% | $2,220 | $692,610 |
| #93 | Arlington, VA | 1.10% | $180 | 55% | $2,352 | $659,360 |
| #94 | Scottsdale, AZ | 1.05% | $221 | 49% | $2,634 | $1,034,251 |
| #95 | Fort Lauderdale, FL | 0.74% | $262 | 51% | $2,746 | $692,340 |
| #96 | San Jose, CA | 0.59% | $171 | 57% | $3,040 | $981,729 |
| #97 | Portland, OR | 0.26% | $163 | 58% | $2,169 | $632,097 |
| #98 | Atlanta, GA | 0.19% | $176 | 42% | $1,760 | $480,409 |
| #99 | San Francisco, CA | 0.12% | $253 | 57% | $3,807 | $1,478,164 |
| #100 | Miami, FL | 0.09% | $230 | 44% | $2,363 | $618,444 |
Airbnb Cap Rate Data: Important Takeaways
That is definitely a lot of data and analytics to digest right away. To help out beginner investors, here are some of the most significant conclusions which can be drawn based on these numbers.
The Airbnb cap rates by city are expected to vary from 0.09% in the Miami real estate market to 7.58% in the San Angelo real estate market. Actually, a rate of return of 7.58% at the city level is an excellent indicator as this is just an average of the performance of all short-term rental properties available on the market there.
Importantly, in 2021 the list of the most profitable locations for Airbnb rentals are headed by rather smaller, less important – secondary and even tertiary – markets. Meanwhile, the largest US cities – such as Airbnb San Francisco, Airbnb Atlanta, Airbnb San Diego, and Airbnb Los Angeles – offer significantly lower profitability, at around 1%. This trend is attributable to the Covid-19 pandemic which has put tourist activities in major cities on hold in addition to having forced people to look for the safety which smaller locations offer.
While the best Airbnb markets are distributed across the US, one important trend is that the Florida housing market has largely lost its position as the leader in the short-term rental industry. Our analysis from the fall of 2020 showed that the Airbnb occupancy rate continued to fall in Florida even after it started picking up in many other locations. This continued drop in occupancy is now having a negative impact on the return which Airbnb hosts can expect in the Sunshine State.
Meanwhile, Virginia, Ohio, Texas, and Georgia have some of the highest concentrations of top-performing Airbnb markets in 2021.
Last but not least, you should keep in mind that many of these markets face restrictive short-term rentals regulations which limit the ways in which a vacation rental business can be run. Thus, you should check out the local Airbnb laws before diving into neighborhood analysis and investment property search.
If you want to save some time, a good starting point is the 20 cities with no Airbnb legal issues.
Now that we know what general Airbnb cap rates to expect, let’s have a look at how profitability varies from one property type to another.
We will start with single-family homes as this is the most popular listings type in most markers. In addition, single-family homes make up for great first rental properties due to the many advantages which they offer.
Table 2: Airbnb Cap Rates by City in 2021, Single-Family Homes
| City and State | Airbnb Cap Rate | Airbnb Daily Rate | Airbnb Occupancy Rate | Airbnb Rental Income | Median Property Price | |
| #1 | Chesapeake, VA | 6.71% | $157 | 69% | $3,650 | $349,900 |
| #2 | Canton, OH | 6.63% | $106 | 54% | $3,267 | $208,282 |
| #3 | Arlington, TX | 6.59% | $180 | 62% | $3,027 | $331,752 |
| #4 | Portsmouth, VA | 6.38% | $126 | 65% | $2,558 | $209,849 |
| #5 | Fayetteville, NC | 6.01% | $98 | 71% | $2,186 | $226,535 |
| #6 | Fort Wayne, IN | 5.89% | $82 | 68% | $2,303 | $265,161 |
| #7 | Springfield, MO | 5.82% | $100 | 59% | $2,213 | $275,270 |
| #8 | Akron, OH | 5.77% | $85 | 58% | $1,613 | $150,006 |
| #9 | Riverside, CA | 5.68% | $156 | 67% | $4,468 | $542,707 |
| #10 | Jackson, MS | 5.59% | $97 | 67% | $2,643 | $286,552 |
| #11 | Richmond, VA | 5.57% | $140 | 65% | $3,054 | $367,257 |
| #12 | Norfolk, VA | 5.50% | $158 | 62% | $2,478 | $285,207 |
| #13 | Hattiesburg, MS | 5.47% | $98 | 60% | $1,982 | $261,990 |
| #14 | Grand Rapids, MI | 5.44% | $125 | 61% | $2,277 | $275,422 |
| #15 | Richardson, TX | 5.38% | $193 | 67% | $3,436 | $423,005 |
| #16 | Visalia, CA | 5.37% | $84 | 78% | $2,798 | $405,072 |
| #17 | Columbus, GA | 5.32% | $98 | 67% | $1,804 | $242,151 |
| #18 | Bakersfield, CA | 5.29% | $135 | 74% | $3,012 | $382,406 |
| #19 | Springfield, IL | 5.19% | $100 | 63% | $1,569 | $165,820 |
| #20 | Chattanooga, TN | 5.16% | $119 | 67% | $2,643 | $316,314 |
| #21 | Charlottesville, VA | 4.97% | $290 | 54% | $4,227 | $578,479 |
| #22 | Kalamazoo, MI | 4.95% | $102 | 69% | $2,790 | $338,072 |
| #23 | Tucson, AZ | 4.93% | $102 | 65% | $2,634 | $343,730 |
| #24 | Birmingham, AL | 4.93% | $119 | 62% | $2,326 | $312,567 |
| #25 | San Bernardino, CA | 4.90% | $131 | 73% | $3,022 | $373,733 |
| #26 | Wilmington, NC | 4.79% | $139 | 57% | $2,796 | $458,073 |
| #27 | Jacksonville, FL | 4.77% | $129 | 59% | $2,160 | $290,171 |
| #28 | Wichita, KS | 4.72% | $95 | 66% | $2,040 | $254,050 |
| #29 | Colorado Springs, CO | 4.65% | $147 | 62% | $3,035 | $491,024 |
| #30 | Knoxville, TN | 4.63% | $127 | 62% | $2,292 | $318,949 |
| #31 | Lexington, KY | 4.61% | $139 | 53% | $2,304 | $339,772 |
| #32 | Madison, WI | 4.61% | $199 | 60% | $3,683 | $441,460 |
| #33 | Las Vegas, NV | 4.60% | $205 | 62% | $3,161 | $502,640 |
| #34 | Memphis, TN | 4.57% | $125 | 59% | $2,410 | $291,388 |
| #35 | Augusta, GA | 4.52% | $190 | 53% | $1,716 | $235,345 |
| #36 | Gainesville, FL | 4.50% | $147 | 58% | $2,509 | $344,659 |
| #37 | Henderson, NV | 4.49% | $226 | 64% | $4,050 | $688,114 |
| #38 | Saint Paul, MN | 4.48% | $147 | 59% | $2,345 | $283,568 |
| #39 | Milwaukee, WI | 4.46% | $141 | 52% | $1,798 | $193,314 |
| #40 | Albany, NY | 4.44% | $119 | 66% | $2,751 | $335,085 |
| #41 | Virginia Beach, VA | 4.42% | $310 | 51% | $3,324 | $420,409 |
| #42 | Montgomery, AL | 4.41% | $111 | 62% | $1,900 | $295,873 |
| #43 | Corpus Christi, TX | 4.36% | $147 | 55% | $2,603 | $321,951 |
| #44 | Chandler, AZ | 4.34% | $160 | 65% | $3,410 | $513,881 |
| #45 | Little Rock, AR | 4.32% | $101 | 75% | $2,477 | $333,575 |
| #46 | Columbus, OH | 4.31% | $127 | 61% | $1,982 | $266,860 |
| #47 | Baton Rouge, LA | 4.25% | $130 | 55% | $2,499 | $345,818 |
| #48 | Fort Worth, TX | 4.22% | $136 | 60% | $2,666 | $329,698 |
| #49 | Abilene, TX | 4.18% | $171 | 62% | $2,069 | $262,288 |
| #50 | Pensacola, FL | 4.09% | $134 | 66% | $2,869 | $442,674 |
| #51 | Detroit, MI | 4.08% | $151 | 51% | $1,602 | $148,373 |
| #52 | Dallas, TX | 4.05% | $139 | 57% | $3,562 | $519,132 |
| #53 | Durham, NC | 4.04% | $111 | 58% | $2,578 | $409,593 |
| #54 | Rochester, NY | 4.04% | $119 | 63% | $2,158 | $195,948 |
| #55 | Cincinnati, OH | 3.98% | $133 | 59% | $2,611 | $384,722 |
| #56 | St. Louis, MO | 3.92% | $120 | 55% | $2,080 | $277,050 |
| #57 | Irving, TX | 3.91% | $148 | 64% | $2,892 | $427,392 |
| #58 | Greenville, SC | 3.86% | $133 | 59% | $2,386 | $376,419 |
| #59 | Tallahassee, FL | 3.83% | $147 | 51% | $1,968 | $319,268 |
| #60 | Gilbert, AZ | 3.71% | $188 | 63% | $3,101 | $512,192 |
| #61 | Columbia, SC | 3.68% | $136 | 57% | $1,874 | $330,863 |
| #62 | Bloomington, IN | 3.66% | $178 | 47% | $2,184 | $365,274 |
| #63 | Minneapolis, MN | 3.63% | $145 | 57% | $2,351 | $354,211 |
| #64 | Indianapolis, IN | 3.62% | $135 | 55% | $1,757 | $258,230 |
| #65 | Cleveland, OH | 3.59% | $122 | 57% | $1,380 | $145,957 |
| #66 | Hampton, VA | 3.50% | $147 | 61% | $1,679 | $241,613 |
| #67 | Denton, TX | 3.44% | $93 | 66% | $2,341 | $364,680 |
| #68 | Mesa, AZ | 3.43% | $142 | 62% | $2,604 | $430,697 |
| #69 | Albuquerque, NM | 3.39% | $103 | 66% | $2,179 | $366,970 |
| #70 | Beaufort, SC | 3.38% | $147 | 59% | $2,455 | $472,531 |
| #71 | Charleston, SC | 3.37% | $269 | 59% | $3,520 | $684,250 |
| #72 | Phoenix, AZ | 3.29% | $171 | 64% | $2,837 | $507,572 |
| #73 | San Antonio, TX | 3.22% | $125 | 57% | $2,196 | $291,105 |
| #74 | Tulsa, OK | 3.16% | $106 | 64% | $2,185 | $433,481 |
| #75 | Raleigh, NC | 3.11% | $128 | 65% | $2,628 | $561,697 |
| #76 | Philadelphia, PA | 3.00% | $134 | 51% | $1,991 | $333,722 |
| #77 | Austin, TX | 2.90% | $218 | 54% | $3,488 | $766,455 |
| #78 | Tampa, FL | 2.90% | $128 | 51% | $2,243 | $469,803 |
| #79 | Baltimore, MD | 2.85% | $128 | 54% | $1,935 | $305,146 |
| #80 | Fort Lauderdale, FL | 2.78% | $262 | 51% | $3,481 | $861,852 |
| #81 | Charlotte, NC | 2.73% | $127 | 56% | $2,486 | $474,017 |
| #82 | Nashville, TN | 2.65% | $265 | 45% | $2,168 | $477,156 |
| #83 | Miami, FL | 2.50% | $230 | 44% | $3,134 | $637,889 |
| #84 | Bend, OR | 2.35% | $175 | 60% | $3,421 | $821,264 |
| #85 | Orlando, FL | 2.28% | $106 | 52% | $2,060 | $424,261 |
| #86 | Hollywood, FL | 2.19% | $242 | 47% | $2,378 | $490,518 |
| #87 | New Orleans, LA | 2.13% | $196 | 40% | $1,852 | $456,497 |
| #88 | Houston, TX | 2.09% | $137 | 53% | $2,567 | $421,473 |
| #89 | Atlanta, GA | 1.98% | $176 | 42% | $2,294 | $496,030 |
| #90 | Los Angeles, CA | 1.95% | $192 | 65% | $5,045 | $1,280,050 |
| #91 | Naples, FL | 1.91% | $258 | 51% | $3,129 | $861,141 |
| #92 | Washington, DC | 1.80% | $164 | 54% | $3,063 | $693,343 |
| #93 | Portland, OR | 1.69% | $163 | 58% | $2,801 | $647,146 |
| #94 | San Diego, CA | 1.68% | $201 | 59% | $3,126 | $838,965 |
| #95 | Scottsdale, AZ | 1.35% | $221 | 49% | $3,329 | $1,334,751 |
| #96 | Chicago, IL | 1.23% | $188 | 46% | $1,846 | $411,395 |
| #97 | Irvine, CA | 0.97% | $242 | 61% | $4,316 | $1,454,387 |
| #98 | Lake Worth, FL | 0.96% | $146 | 41% | $1,891 | $391,331 |
| #99 | Sarasota, FL | 0.83% | $138 | 48% | $2,123 | $814,095 |
| #100 | New York, NY | 0.44% | $191 | 52% | $2,313 | $947,448 |
Another property type which many first-time investors find attractive is condos and apartments. However, keep in mind that some HOAs prohibit the use of housing units as Airbnb rentals. So make sure to read through the HOA regulations before investing in a condo or an apartment for the sole purpose of renting out on Airbnb.
Table 3: Airbnb Cap Rates by City in 2021, Condos and Apartments
| City and State | Airbnb Cap Rate | Airbnb Daily Rate | Airbnb Occupancy Rate | Airbnb Rental Income | Median Property Price | |
| #1 | Fayetteville, NC | 5.57% | $98 | 71% | $1,908 | $155,750 |
| #2 | Birmingham, AL | 5.29% | $119 | 62% | $2,598 | $308,539 |
| #3 | Colorado Springs, CO | 5.29% | $147 | 62% | $2,024 | $468,730 |
| #4 | Tucson, AZ | 5.17% | $102 | 65% | $1,723 | $197,435 |
| #5 | Tulsa, OK | 4.99% | $106 | 64% | $1,639 | $202,659 |
| #6 | Norfolk, VA | 4.99% | $158 | 62% | $2,305 | $364,247 |
| #7 | Baton Rouge, LA | 4.74% | $130 | 55% | $1,519 | $163,665 |
| #8 | Henderson, NV | 4.57% | $226 | 64% | $2,004 | $227,709 |
| #9 | Arlington, TX | 4.45% | $180 | 62% | $1,496 | $132,069 |
| #10 | Aurora, CO | 4.41% | $124 | 68% | $2,135 | $247,200 |
| #11 | Traverse City, MI | 4.37% | $209 | 45% | $3,213 | $475,935 |
| #12 | Virginia Beach, VA | 4.30% | $310 | 51% | $4,321 | $581,556 |
| #13 | Richmond, VA | 4.04% | $140 | 65% | $2,507 | $368,920 |
| #14 | Rockville, MD | 3.95% | $150 | 69% | $2,168 | $378,778 |
| #15 | Gainesville, FL | 3.76% | $147 | 58% | $1,409 | $171,671 |
| #16 | Fort Wayne, IN | 3.45% | $82 | 68% | $1,978 | $246,769 |
| #17 | Reno, NV | 3.35% | $142 | 65% | $2,438 | $280,731 |
| #18 | Charlottesville, VA | 3.32% | $290 | 54% | $2,423 | $425,609 |
| #19 | Memphis, TN | 3.21% | $125 | 59% | $1,614 | $253,922 |
| #20 | Bradenton, FL | 3.19% | $135 | 62% | $1,657 | $224,232 |
| #21 | Charleston, SC | 3.17% | $269 | 59% | $2,796 | $586,880 |
| #22 | Silver Spring, MD | 3.08% | $129 | 60% | $1,861 | $269,008 |
| #23 | Ypsilanti, MI | 3.06% | $155 | 67% | $1,739 | $218,944 |
| #24 | Jacksonville, FL | 3.04% | $129 | 59% | $1,906 | $267,118 |
| #25 | Madison, WI | 3.04% | $199 | 60% | $2,630 | $349,915 |
| #26 | Santa Fe, NM | 3.03% | $199 | 62% | $2,120 | $425,021 |
| #27 | Knoxville, TN | 3.00% | $127 | 62% | $2,377 | $407,144 |
| #28 | Wilmington, NC | 2.98% | $139 | 57% | $1,607 | $221,427 |
| #29 | Grand Rapids, MI | 2.77% | $125 | 62% | $2,186 | $380,740 |
| #30 | Raleigh, NC | 2.75% | $128 | 65% | $1,981 | $385,522 |
| #31 | New Haven, CT | 2.70% | $135 | 61% | $2,155 | $210,597 |
| #32 | Mesa, AZ | 2.67% | $142 | 62% | $1,503 | $199,607 |
| #33 | Cincinnati, OH | 2.56% | $133 | 59% | $1,981 | $237,517 |
| #34 | Boulder, CO | 2.55% | $238 | 61% | $2,864 | $523,587 |
| #35 | Pensacola, FL | 2.55% | $134 | 66% | $3,711 | $1,014,816 |
| #36 | Phoenix, AZ | 2.53% | $171 | 64% | $2,019 | $361,481 |
| #37 | Torrance, CA | 2.50% | $204 | 75% | $3,335 | $495,556 |
| #38 | Las Vegas, NV | 2.46% | $205 | 62% | $1,606 | $464,357 |
| #39 | Alexandria, VA | 2.37% | $176 | 57% | $1,958 | $460,595 |
| #40 | Bethesda, MD | 2.34% | $151 | 61% | $3,067 | $780,061 |
| #41 | Stamford, CT | 2.25% | $208 | 66% | $2,754 | $407,599 |
| #42 | Bloomington, IN | 2.22% | $178 | 47% | $1,900 | $422,884 |
| #43 | Tallahassee, FL | 2.21% | $147 | 51% | $1,403 | $194,070 |
| #44 | Spokane, WA | 2.20% | $101 | 61% | $1,610 | $361,097 |
| #45 | Decatur, GA | 2.19% | $153 | 54% | $1,888 | $205,097 |
| #46 | Tempe, AZ | 2.14% | $181 | 60% | $1,830 | $301,280 |
| #47 | Columbus, OH | 2.11% | $127 | 61% | $1,769 | $270,501 |
| #48 | Louisville, KY | 2.09% | $213 | 54% | $1,477 | $244,399 |
| #49 | Oxnard, CA | 2.07% | $310 | 66% | $3,962 | $573,071 |
| #50 | Denver, CO | 1.97% | $157 | 62% | $2,017 | $353,450 |
| #51 | Tuscaloosa, Al | 1.92% | $502 | 29% | $1,686 | $333,514 |
| #52 | Honolulu, HI | 1.91% | $292 | 56% | $2,121 | $717,308 |
| #53 | Greenville, SC | 1.91% | $133 | 59% | $2,245 | $588,986 |
| #54 | Indianapolis, IN | 1.90% | $135 | 55% | $1,500 | $323,955 |
| #55 | Glendale, CA | 1.87% | $159 | 65% | $3,153 | $640,972 |
| #56 | Anaheim, CA | 1.81% | $198 | 61% | $2,685 | $456,510 |
| #57 | Chattanooga, TN | 1.78% | $119 | 67% | $1,712 | $341,655 |
| #58 | Oakland Park, FL | 1.73% | $163 | 57% | $1,596 | $198,813 |
| #59 | Lexington, KY | 1.71% | $139 | 53% | $1,635 | $372,269 |
| #60 | Vancouver, WA | 1.71% | $122 | 62% | $1,862 | $295,781 |
| #61 | Austin, TX | 1.69% | $218 | 54% | $2,228 | $441,330 |
| #62 | Portland, ME | 1.66% | $163 | 54% | $2,540 | $597,958 |
| #63 | New Orleans, LA | 1.61% | $196 | 40% | $1,496 | $332,563 |
| #64 | Clearwater, FL | 1.58% | $143 | 51% | $1,453 | $353,195 |
| #65 | St. Louis, MO | 1.51% | $120 | 55% | $1,490 | $232,127 |
| #66 | Nashville, TN | 1.34% | $265 | 45% | $1,486 | $471,240 |
| #67 | Fort Myers, FL | 1.30% | $140 | 49% | $1,573 | $244,993 |
| #68 | Seattle, WA | 1.28% | $144 | 51% | $1,842 | $522,336 |
| #69 | Philadelphia, PA | 1.23% | $134 | 51% | $1,804 | $505,466 |
| #70 | Charlotte, NC | 1.22% | $127 | 56% | $2,013 | $511,671 |
| #71 | Houston, TX | 1.20% | $137 | 53% | $1,251 | $192,840 |
| #72 | Washington, DC | 1.15% | $164 | 54% | $1,961 | $587,519 |
| #73 | Long Beach, CA | 1.14% | $152 | 64% | $2,423 | $534,679 |
| #74 | Pasadena, CA | 1.11% | $163 | 66% | $3,574 | $909,432 |
| #75 | Durham, NC | 1.08% | $111 | 58% | $1,484 | $370,319 |
| #76 | Cleveland, OH | 1.08% | $122 | 57% | $1,766 | $335,879 |
| #77 | Stuart, FL | 1.07% | $197 | 43% | $1,489 | $622,839 |
| #78 | Providence, RI | 1.04% | $163 | 60% | $2,120 | $344,512 |
| #79 | Pompano Beach, FL | 1.03% | $247 | 53% | $1,902 | $325,755 |
| #80 | Los Angeles, CA | 0.99% | $192 | 65% | $2,973 | $838,119 |
| #81 | Irvine, CA | 0.90% | $242 | 61% | $3,354 | $847,136 |
| #82 | Arlington, VA | 0.88% | $180 | 55% | $1,887 | $570,701 |
| #83 | Sandy Springs, GA | 0.85% | $173 | 53% | $1,628 | $258,947 |
| #84 | Key West, FL | 0.80% | $569 | 47% | $3,020 | $763,830 |
| #85 | Smyrna, GA | 0.72% | $126 | 46% | $1,470 | $293,948 |
| #86 | Oakland, CA | 0.68% | $147 | 62% | $2,777 | $661,197 |
| #87 | Naples, FL | 0.68% | $258 | 51% | $2,179 | $540,288 |
| #88 | San Diego, CA | 0.52% | $201 | 59% | $2,561 | $804,033 |
| #89 | Scottsdale, AZ | 0.38% | $221 | 49% | $1,711 | $503,686 |
| #90 | Celebration, FL | 0.33% | $141 | 51% | $1,469 | $290,263 |
| #91 | San Jose, CA | 0.31% | $171 | 57% | $2,566 | $701,859 |
| #92 | Minneapolis, MN | 0.28% | $145 | 57% | $1,726 | $374,596 |
| #93 | New Smyrna Beach, FL | 0.24% | $141 | 44% | $1,839 | $436,552 |
| #94 | Boston, MA | 0.20% | $194 | 52% | $2,335 | $884,452 |
| #95 | Corpus Christi, TX | 0.19% | $147 | 55% | $1,415 | $179,568 |
| #96 | Brookhaven, GA | 0.13% | $158 | 46% | $1,561 | $282,867 |
| #97 | Dallas, TX | 0.12% | $139 | 57% | $1,811 | $345,211 |
| #98 | Baltimore, MD | 0.11% | $128 | 54% | $1,647 | $457,815 |
| #99 | San Francisco, CA | 0.02% | $253 | 57% | $3,368 | $1,239,293 |
| #100 | North Miami, FL | 0.02% | $308 | 43% | $1,380 | $218,204 |
Townhouses are usually cheaper than single-family homes (because of the shared walls) and come with less restrictions than condos. So it’s worth checking what Airbnb return on investment you can expect on them across the 2021 US housing market.
Table 4: Airbnb Cap Rates by City in 2021, Townhouses
| City and State | Airbnb Cap Rate | Airbnb Daily Rate | Airbnb Occupancy Rate | Airbnb Rental Income | Median Property Price | |
| #1 | Jackson, MS | 7.59% | $97 | 67% | $1,841 | $140,686 |
| #2 | Chico, CA | 7.37% | $152 | 69% | $3,054 | $232,416 |
| #3 | Johnson City, TN | 7.34% | $109 | 61% | $2,030 | $160,811 |
| #4 | Harrisonburg, VA | 7.30% | $125 | 70% | $1,836 | $176,749 |
| #5 | Chesapeake, VA | 7.08% | $157 | 69% | $2,622 | $250,160 |
| #6 | Knoxville, TN | 7.05% | $127 | 62% | $2,446 | $208,750 |
| #7 | Wilmington, NC | 6.06% | $139 | 57% | $2,785 | $279,950 |
| #8 | Richardson, TX | 5.97% | $193 | 67% | $2,452 | $211,613 |
| #9 | Tucson, AZ | 5.94% | $102 | 65% | $2,256 | $245,110 |
| #10 | Madison, WI | 5.83% | $199 | 60% | $2,544 | $271,450 |
| #11 | Riverside, CA | 5.37% | $156 | 67% | $3,448 | $331,374 |
| #12 | Frederick, MD | 5.36% | $125 | 64% | $3,426 | $372,485 |
| #13 | San Bernardino, CA | 5.14% | $131 | 73% | $2,205 | $177,400 |
| #14 | Tallahassee, FL | 5.09% | $147 | 51% | $1,536 | $175,137 |
| #15 | Visalia, CA | 5.09% | $84 | 78% | $2,066 | $209,075 |
| #16 | Norfolk, VA | 4.99% | $158 | 62% | $2,305 | $364,247 |
| #17 | College Station, TX | 4.98% | $206 | 41% | $1,666 | $152,638 |
| #18 | Prescott, AZ | 4.78% | $126 | 67% | $2,652 | $320,908 |
| #19 | Colorado Springs, CO | 4.68% | $147 | 62% | $2,595 | $383,513 |
| #20 | Tuscaloosa, AL | 4.53% | $502 | 29% | $2,000 | $233,700 |
| #21 | Chandler, AZ | 4.48% | $160 | 65% | $2,668 | $331,131 |
| #22 | Arlington, TX | 4.45% | $180 | 62% | $1,496 | $132,069 |
| #23 | Jacksonville, FL | 4.44% | $129 | 59% | $2,017 | $213,818 |
| #24 | Virginia Beach, VA | 4.30% | $310 | 51% | $4,321 | $581,556 |
| #25 | Las Vegas, NV | 4.26% | $205 | 62% | $1,971 | $262,441 |
| #26 | Gainesville, FL | 4.19% | $147 | 58% | $1,630 | $187,031 |
| #27 | Fayetteville, NC | 4.15% | $98 | 71% | $1,922 | $181,000 |
| #28 | Albany, NY | 4.06% | $119 | 66% | $2,634 | $277,679 |
| #29 | Portsmouth, VA | 4.06% | $126 | 65% | $1,638 | $453,780 |
| #30 | Richmond, VA | 4.04% | $140 | 65% | $2,507 | $368,920 |
| #31 | Naples, FL | 3.70% | $258 | 51% | $2,659 | $349,033 |
| #32 | Bend, OR | 3.67% | $175 | 60% | $3,835 | $619,575 |
| #33 | Raleigh, NC | 3.64% | $128 | 65% | $2,192 | $373,544 |
| #34 | Reno, NV | 3.63% | $142 | 65% | $2,673 | $360,537 |
| #35 | Philadelphia, PA | 3.47% | $134 | 51% | $2,068 | $331,702 |
| #36 | Phoenix, AZ | 3.45% | $171 | 64% | $2,258 | $353,090 |
| #37 | Carrollton, TX | 3.42% | $163 | 64% | $1,826 | $222,654 |
| #38 | San Marcos, TX | 3.37% | $177 | 46% | $1,458 | $149,580 |
| #39 | Charlottesville, VA | 3.32% | $290 | 54% | $2,423 | $425,609 |
| #40 | Baton Rouge, LA | 3.27% | $130 | 55% | $1,551 | $202,319 |
| #41 | Sacramento, CA | 3.24% | $126 | 73% | $2,646 | $374,355 |
| #42 | Henderson, NV | 3.21% | $226 | 64% | $2,235 | $375,043 |
| #43 | Santa Fe, NM | 3.16% | $199 | 62% | $2,497 | $386,216 |
| #44 | Baltimore, MD | 3.12% | $128 | 54% | $1,906 | $258,024 |
| #45 | Tempe, AZ | 3.11% | $181 | 60% | $2,085 | $289,485 |
| #46 | Bryan, TX | 3.03% | $280 | 43% | $1,547 | $216,975 |
| #47 | Gilbert, AZ | 3.03% | $188 | 63% | $1,997 | $320,561 |
| #48 | Beaverton, OR | 3.02% | $156 | 64% | $2,549 | $359,129 |
| #49 | Pompano Beach, FL | 3.01% | $247 | 53% | $3,661 | $480,464 |
| #50 | Sioux Falls, SD | 2.83% | $95 | 65% | $1,849 | $248,236 |
| #51 | Chattanooga, TN | 2.80% | $119 | 67% | $2,384 | $432,753 |
| #52 | Durham, NC | 2.78% | $111 | 58% | $2,004 | $430,264 |
| #53 | Fort Collins, CO | 2.73% | $156 | 67% | $2,519 | $418,438 |
| #54 | Franklin, TN | 2.64% | $193 | 54% | $1,689 | $3,615,643 |
| #55 | Birmingham, AL | 2.63% | $119 | 62% | $1,743 | $291,552 |
| #56 | Torrance, CA | 2.50% | $204 | 75% | $3,335 | $495,556 |
| #57 | Rockville, MD | 2.47% | $150 | 69% | $4,295 | $737,589 |
| #58 | Nashville | 2.45% | $265 | 45% | $1,889 | $360,246 |
| #59 | Claremont, CA | 2.39% | $164 | 63% | $3,588 | $597,467 |
| #60 | Miami, FL | 2.38% | $230 | 44% | $2,631 | $448,003 |
| #61 | Alexandria, VA | 2.37% | $176 | 57% | $1,958 | $460,595 |
| #62 | Ventura, CA | 2.25% | $259 | 64% | $3,026 | $452,275 |
| #63 | Decatur, GA | 2.19% | $153 | 54% | $1,888 | $205,097 |
| #64 | Oxnard, CA | 2.07% | $310 | 66% | $3,962 | $573,071 |
| #65 | Lincoln, NE | 2.07% | $136 | 65% | $1,704 | $356,495 |
| #66 | Fort Lauderdale, FL | 1.99% | $262 | 51% | $3,595 | $733,377 |
| #67 | Clearwater, FL | 1.99% | $143 | 51% | $2,055 | $336,174 |
| #68 | Saint Paul, MN | 1.90% | $147 | 59% | $1,818 | $341,863 |
| #69 | Glendale, CA | 1.87% | $159 | 64% | $3,153 | $640,972 |
| #70 | Anaheim, CA | 1.81% | $198 | 61% | $2,685 | $456,510 |
| #71 | Mesa, AZ | 1.70% | $142 | 62% | $1,479 | $257,597 |
| #72 | Austin, TX | 1.69% | $218 | 54% | $2,228 | $441,330 |
| #73 | El Paso, TX | 1.53% | $83 | 68% | $1,851 | $224,480 |
| #74 | Minneapolis, MN | 1.43% | $145 | 57% | $1,927 | $418,000 |
| #75 | Tampa, FL | 1.30% | $128 | 51% | $2,101 | $442,938 |
| #76 | Orlando, FL | 1.30% | $106 | 52% | $1,812 | $310,443 |
| #77 | Houston, TX | 1.20% | $137 | 53% | $1,251 | $192,840 |
| #78 | Boise, ID | 1.20% | $105 | 58% | $1,661 | $433,971 |
| #79 | Boulder, CO | 1.20% | $238 | 61% | $4,464 | $1,033,375 |
| #80 | Scottsdale, AZ | 1.17% | $221 | 49% | $2,123 | $625,385 |
| #81 | Long Beach, CA | 1.14% | $152 | 64% | $2,423 | $534,679 |
| #82 | Denver, CO | 1.14% | $157 | 62% | $2,399 | $502,700 |
| #83 | Washington, DC | 1.13% | $164 | 54% | $3,004 | $955,190 |
| #84 | Pasadena, CA | 1.11% | $163 | 66% | $3,574 | $909,432 |
| #85 | Los Angeles, CA | 0.99% | $192 | 65% | $2,973 | $838,119 |
| #86 | Seattle, WA | 0.94% | $144 | 52% | $2,401 | $594,955 |
| #87 | Irvine, CA | 0.90% | $242 | 61% | $3,354 | $847,136 |
| #88 | Arlington, VA | 0.88% | $180 | 55% | $1,887 | $570,701 |
| #89 | Fremont, CA | 0.86% | $165 | 67% | $2,590 | $595,136 |
| #90 | Sandy Springs, GA | 0.85% | $173 | 53% | $1,628 | $258,947 |
| #91 | West Palm Beach, FL | 0.74% | $181 | 43% | $1,670 | $260,833 |
| #92 | Smyrna, GA | 0.72% | $126 | 46% | $1,470 | $293,948 |
| #93 | Hilton Head Island, SC | 0.75% | $268 | 35% | $1,335 | $398,700 |
| #94 | Oakland, CA | 0.68% | $147 | 62% | $2,777 | $661,197 |
| #95 | San Diego, CA | 0.52% | $201 | 59% | $2,561 | $804,033 |
| #96 | New York, NY | 0.35% | $191 | 52% | $2,245 | $752,555 |
| #97 | San Jose, CA | 0.31% | $171 | 57% | $2,566 | $701,859 |
| #98 | Brookhaven, GA | 0.13% | $158 | 46% | $1,561 | $282,867 |
| #99 | Dallas, TX | 0.12% | $139 | 57% | $1,811 | $345,211 |
| #100 | San Francisco, CA | 0.02% | $253 | 57% | $3,368 | $1,239,293 |
Related: What to Look for When Buying a Townhouse for Investment
We will also take a look at the Airbnb cap rate offered by foreclosures. While this is not a separate property type, foreclosed homes frequently provide a better rate of return as they come at a lower price. That’s why they need some attention.
Table 5: Airbnb Cap Rates by City in 2021, Foreclosed Homes
| City and State | Airbnb Cap Rate | Airbnb Daily Rate | Airbnb Occupancy Rate | Airbnb Rental Income | Median Property Price | |
| #1 | Green Bay, WI | 9.64% | $257 | 42% | $1,171 | $218,333 |
| #2 | Cleveland, OH | 8.97% | $122 | 57% | $1,480 | $103,000 |
| #3 | Columbus, OH | 8.70% | $127 | 61% | $2,047 | $169,111 |
| #4 | Fairbanks, AK | 8.61% | $127 | 63% | $1,937 | $108,300 |
| #5 | Columbus, GA | 8.43% | $98 | 67% | $1,914 | $163,500 |
| #6 | Youngstown, OH | 8.41% | $97 | 68% | $1,905 | $117,563 |
| #7 | Memphis, TN | 8.38% | $125 | 59% | $2,175 | $125,433 |
| #8 | Wilmington, NC | 8.30% | $139 | 57% | $3,166 | $320,500 |
| #9 | Traverse City, MI | 8.16% | $209 | 45% | $3,117 | $255,000 |
| #10 | Tuscaloosa, AL | 7.87% | $502 | 29% | $2,308 | $159,000 |
| #11 | Birmingham, AL | 7.71% | $119 | 62% | $1,979 | $169,385 |
| #12 | Hattiesburg, MS | 7.56% | $98 | 60% | $2,393 | $212,250 |
| #13 | Springfield, IL | 7.53% | $100 | 63% | $1,719 | $138,475 |
| #14 | San Bernardino, CA | 7.39% | $131 | 73% | $3,148 | $343,750 |
| #15 | Reno, NV | 7.21% | $142 | 65% | $3,028 | $276,000 |
| #16 | Rio Rancho, NM | 7.09% | $150 | 60% | $2,342 | $229,150 |
| #17 | Charlottesville, VA | 6.91% | $290 | 54% | $4,109 | $372,450 |
| #18 | Charleston, SC | 6.91% | $269 | 59% | $2,321 | $210,000 |
| #19 | Albany, NY | 6.73% | $119 | 66% | $2,829 | $163,450 |
| #20 | Springfield, MA | 6.66% | $135 | 69% | $2,396 | $219,129 |
| #21 | Boston, MA | 6.44% | $194 | 52% | $3,881 | $425,000 |
| #22 | Dayton, OH | 6.20% | $147 | 64% | $1,607 | $137,300 |
| #23 | Riverside, CA | 5.95% | $156 | 67% | $3,846 | $470,547 |
| #24 | Saint Louis Park, MN | 5.95% | $189 | 53% | $3,025 | $300,000 |
| #25 | Corpus Christi, TX | 5.85% | $147 | 55% | $1,931 | $170,578 |
| #26 | Tulsa, OK | 5.79% | $106 | 64% | $1,861 | $181,455 |
| #27 | Colorado Springs, CO | 5.75% | $147 | 62% | $2,732 | $353,789 |
| #28 | Eugene, OR | 5.74% | $160 | 55% | $4,794 | $374,900 |
| #29 | Tucson, AZ | 5.65% | $102 | 65% | $2,311 | $254,747 |
| #30 | Jacksonville, FL | 5.54% | $129 | 59% | $2,055 | $230,045 |
| #31 | Pensacola, FL | 5.54% | $134 | 66% | $2,094 | $213,250 |
| #32 | Bakersfield, CA | 5.49% | $135 | 74% | $2,738 | $295,994 |
| #33 | Cincinnati, OH | 5.40% | $133 | 59% | $2,764 | $213,714 |
| #34 | Little Rock, AR | 5.32% | $101 | 75% | $2,413 | $174,164 |
| #35 | Spokane, WA | 5.20% | $101 | 61% | $2,212 | $265,750 |
| #36 | Syracuse, NY | 5.14% | $106 | 63% | $1,700 | $144,975 |
| #37 | Portsmouth, VA | 5.10% | $126 | 65% | $1,720 | $179,000 |
| #38 | Avondale, AZ | 5.03% | $181 | 69% | $2,176 | $318,273 |
| #39 | Baton Rouge, LA | 5.01% | $130 | 55% | $1,308 | $170,400 |
| #40 | Richmond, VA | 4.99% | $140 | 65% | $2,174 | $237,188 |
| #41 | Vancouver, WA | 4.99% | $122 | 62% | $3,269 | $373,500 |
| #42 | Gainesville, FL | 4.96% | $147 | 58% | $1,753 | $191,600 |
| #43 | Anchorage, AK | 4.86% | $136 | 65% | $2,318 | $265,333 |
| #44 | Waco, TX | 4.78% | $168 | 52% | $1,945 | $252,400 |
| #45 | Montgomery, AL | 4.71% | $111 | 63% | $1,661 | $213,843 |
| #46 | Lakeland, FL | 4.60% | $110 | 58% | $1,419 | $198,500 |
| #47 | Las Vegas, NV | 4.58% | $205 | 62% | $2,374 | $405,774 |
| #48 | Chandler, AZ | 4.54% | $160 | 65% | $2,916 | $392,600 |
| #49 | Jackson, MS | 4.50% | $97 | 67% | $2,095 | $216,300 |
| #50 | Louisville, KY | 4.37% | $213 | 54% | $2,038 | $220,667 |
| #51 | Gilbert, AZ | 4.32% | $188 | 63% | $2,361 | $437,733 |
| #52 | Henderson, NV | 4.30% | $226 | 64% | $3,698 | $428,000 |
| #53 | Greenville, SC | 4.24% | $133 | 59% | $2,363 | $282,000 |
| #54 | Orlando, FL | 4.22% | $106 | 52% | $1,501 | $273,263 |
| #55 | Kalamazoo, MI | 4.21% | $102 | 69% | $2,129 | $227,333 |
| #56 | Philadelphia, PA | 4.12% | $134 | 51% | $1,775 | $244,400 |
| #57 | Sacramento, CA | 4.12% | $126 | 73% | $3,308 | $398,857 |
| #58 | Albuquerque, NM | 3.99% | $103 | 66% | $1,929 | $231,304 |
| #59 | Pompano Beach, FL | 3.99% | $247 | 53% | $2,200 | $262,700 |
| #60 | Phoenix, AZ | 3.95% | $171 | 64% | $2,068 | $308,956 |
| #61 | Mesa, AZ | 3.91% | $142 | 62% | $2,120 | $337,083 |
| #62 | Saint Paul, MN | 3.89% | $147 | 59% | $1,998 | $232,690 |
| #63 | Pittsburgh, PA | 3.84% | $116 | 59% | $1,875 | $240,421 |
| #64 | Aurora, CO | 3.72% | $124 | 68% | $2,417 | $398,057 |
| #65 | Naples, FL | 3.70% | $258 | 51% | $3,157 | $525,986 |
| #66 | Toledo, OH | 3.61% | $106 | 55% | $1,824 | $146,500 |
| #67 | Nashville, TN | 3.47% | $265 | 45% | $2,389 | $330,000 |
| #68 | Columbia, SC | 3.41% | $136 | 57% | $1,253 | $144,850 |
| #69 | Denver, CO | 3.35% | $157 | 62% | $2,064 | $403,677 |
| #70 | Buffalo, NY | 3.35% | $127 | 56% | $1,874 | $182,800 |
| #71 | Detroit, MI | 3.24% | $151 | 51% | $961 | $74,545 |
| #72 | Houston, TX | 3.18% | $137 | 53% | $1,897 | $229,438 |
| #73 | Milwaukee, WI | 3.12% | $141 | 52% | $1,375 | $146,095 |
| #74 | Fort Collins, CO | 3.02% | $156 | 67% | $2,035 | $422,667 |
| #75 | Wichita, KS | 3.01% | $95 | 66% | $1,609 | $153,029 |
| #76 | Saint Petersburg, FL | 2.99% | $114 | 52% | $1,441 | $252,286 |
| #77 | Minneapolis, MN | 2.90% | $145 | 57% | $1,806 | $257,944 |
| #78 | Los Angeles, CA | 2.82% | $192 | 65% | $4,405 | $948,573 |
| #79 | Scottsdale, AZ | 2.77% | $221 | 49% | $1,961 | $453,500 |
| #80 | Baltimore, MD | 2.76% | $128 | 54% | $1,632 | $210,024 |
| #81 | Bend, OR | 2.71% | $175 | 60% | $3,913 | $665,500 |
| #82 | San Antonio, TX | 2.36% | $125 | 57% | $1,458 | $238,667 |
| #83 | Grand Rapids, MI | 2.35% | $125 | 61% | $1,486 | $231,400 |
| #84 | Miami Gardens, FL | 2.20% | $165 | 51% | $1,411 | $294,078 |
| #85 | Seattle, WA | 2.08% | $144 | 51% | $4,254 | $875,000 |
| #86 | Augusta, GA | 2.05% | $190 | 53% | $1,283 | $223,500 |
| #87 | Tampa, FL | 2.00% | $128 | 51% | $1,320 | $305,333 |
| #88 | New Orleans, LA | 1.96% | $196 | 40% | $1,251 | $177,750 |
| #89 | North Bergen, NJ | 1.95% | $131 | 44% | $1,262 | $510,750 |
| #90 | San Diego, CA | 1.65% | $201 | 59% | $3,009 | $677,726 |
| #91 | Chicago, IL | 1.64% | $188 | 46% | $1,329 | $233,960 |
| #92 | Oakland, CA | 1.56% | $147 | 62% | $2,260 | $1,244,200 |
| #93 | Miami, FL | 1.41% | $230 | 44% | $2,041 | $412,811 |
| #94 | New York, NY | 1.30% | $191 | 52% | $2,153 | $644,089 |
| #95 | Washington, DC | 1.26% | $164 | 54% | $1,861 | $381,767 |
| #96 | Atlanta, GA | 1.14% | $176 | 42% | $1,524 | $661,182 |
| #97 | Jersey City, NJ | 1.12% | $134 | 45% | $1,543 | $501,747 |
| #98 | Indianapolis, IN | 1.12% | $135 | 55% | $1,078 | $161,738 |
| #99 | Fort Lauderdale, FL | 0.91% | $262 | 51% | $3,080 | $710,688 |
| #100 | San Francisco, CA | 0.58% | $253 | 57% | $3,139 | $1,465,000 |
Airbnb Cap Rate Data by Property Type: Major Conclusions
Following are the main takeaways from the real estate data presented in the tables above:
The cap rates by city for single-family homes will be in the range between 0.44% in the New York real estate market and 6.71% in the Chesapeake real estate market. If you’re interested in investing in a single-family home for sale, you should look at Virginia, Ohio, and Texas.
Condo and apartment cap rates by city will be between 0.02% in Airbnb North Miami and 5.57% in Airbnb Fayetteville. For this property type, there is more diversity in the geographical distribution of the top markets for short-term rentals.
Townhouses are expected to bring a rate of return from 0.02% in the San Francisco real estate market to 7.59% in the Jackson real estate market. The latter is a particularly affordable location with a median property value of $140,686.
Finally, foreclosed real estate offers a much higher rate of return than other property types, mostly because of the lower property prices. Foreclosures are frequently sold at below market value, which allows investors to push up their return on investment. The expected range for the Airbnb cap rates by city in this case is between 0.58% for Airbnb San Francisco and 9.64% for Airbnb Green Bay.
What Is the Capitalization Rate?
In case you are a beginner investor, you might not be 100% sure what does cap rate mean even if you’ve heard the expression multiple times.
As you have probably gathered by now, the cap rate formula is one of the measures for return on investment in residential real estate investing. The cap rate calculation is easier and faster to perform than the cash on cash return calculation, which makes the former the preferred metric when comparing the rate of return expected in different markets. That’s why it’s frequently used to identify the best places to invest in real estate in 2021 or in any other year for that matter.
However, when you use the real estate cap rate, you should keep in mind that it is a bit too simplistic. Namely, it ignores the method of financing – cash vs. mortgage. So, when you search for and analyze specific investment properties for sale, it’s best to also use the cash on cash return measure.
How Do You Find the Most Profitable Airbnb Rentals?
If you’re reading our real estate blog, it means that you are mostly likely interested in finding a top-performing short-term rental property in the US market. So, let’s take a look at the steps you need to take to do that.
Real Estate Market Analysis
The first step is to find out which markets are optimal for this rental strategy. However, knowing which locations offer the highest Airbnb cap rates by city in 2021 is not enough. You can still find poorly performing properties in a great location.
In your real estate market analysis, you should focus not only on the cap rate but also on the property prices (to make sure they are within your budget) and the Airbnb occupancy rate (to ensure that marketing your rental will not require excessive efforts).
You also need to study the local short-term rental regulations to know what to expect in this regard.
Neighborhood Analysis
The next step requires the performance of diligent neighborhood analysis. This is a must as different areas within the same US housing market can yield strikingly different rates of return.
While analyzing each individual neighborhood within your chosen market is a laborious exercise, fortunately there is a shortcut.
You can use Mashvisor’s real estate heatmap to identify the locations with the lowest listing prices and the highest Airbnb occupancy rates, Airbnb rental incomes, and Airbnb cash on cash returns in any US city or town. While our heatmap does not feature Airbnb cap rate, the Airbnb cash on cash return is a close approximation to this metric.
After you’ve selected a couple of promising areas, you can access detailed neighborhood analysis where you will be able to confirm if that’s the right location for your Airbnb property.
Investment Property Analysis
Finally, it’s time to search among rental properties for sale to find the best one for your investment goals. You can use the search engine on the Mashvisor real estate investment software to find listings which match your exact criteria such as budget, expected return on investment, property type, and others. Within a few clicks of a button, you will have a comprehensive list of MLS listings as well as off-market properties that promise the cap rate that you expect to generate.
By clicking on each of these properties, you get access to detailed investment property analysis. This is based on the actual performance of Airbnb rental comps in the area and eliminates the need to conduct manual rental market analysis. You can view various metrics such as:
- Property price
- One-time startup costs
- Monthly Airbnb income
- Recurring monthly expenses
- Cash flow
- Airbnb occupancy rate
- Airbnb daily rate
- Airbnb cash on cash return
- Airbnb cap rate
What is really cool is that you get this same level of analysis for both the Airbnb strategy and the traditional rental strategy. So if you ever decide that you were not cut for the Airbnb industry, you can switch strategies and still generate positive cash flow and good cap rate.
All this analysis is provided by Mashvisor’s cap rate calculator.
In case you are not sure that Airbnb is the right approach to real estate investing for you, you can check out the traditional cap rates by city in 2021 as well.
The first step to making a profitable real estate investment decision is knowing which markets offer the best return. Now you know what Airbnb cap rates by city to expect in 2021, across the entire US housing market. What’s left is to do your investment property search to start generating Airbnb income in 2021. If you need a bit of help, sign up for Mashvisor now. Turn 3 months of research and analysis into 15 minutes.