Top 10 Cities for an Airbnb
Are you considering buying a vacation home that will serve as an Airbnb? Depending on your initial investment costs and location, becoming an Airbnb host can be very profitable. However, to ensure that you're getting the most from your investment, choosing a city with affordable housing costs and enticing amenities and attractions is crucial. To make your search easier, we've compiled a list of the 10 best cities in America to purchase and implement an Airbnb. Note that even though these may be great cities to invest in, the more unique the property the better.
#1 Fort Myers, Florida
Sunny Southwest Florida is a popular tourist destination that sees more than 5 million visitors annually. From world-class shopping and dining to pristine sandy beaches, people flock to Fort Myers for many reasons. It's estimated that Airbnb's in Fort Myers are occupied about 60 percent of the year and can make you a cool $40,000 in profit each year.
#2 Phoenix, Arizona
Phoenix, AZ., is another hot winter travel destination, as snowbirds from colder states escape to the city's warmth. Yet, the weather isn't the only draw in this city. Phoenix is a sports-lover's dream as it's home to more than 200 golf courses and several MLB teams that visitors travel to see during spring training. Aside from sports, the area is also home to many nature activities such as trails, state parks, and more. Investing in a condo or single-family home with a shaded deck or pool is sure to bring you good profit.
#3 Sante Fe, New Mexico
Situated in the foothills of the Sangre de Cristos, Sante Fe is New Mexico's capital city and home to unique dining, historic architecture, world-renowned art, year-round outdoor adventures, and so much more. The local real estate market comprises single-family homes that are affordable, beautifully maintained, and some even feature riverfront views. Nicknamed "The City Different," Sante Fe is like no other city on Earth.
#4 Palm Springs, California
Palm Springs, CA., has been a popular tourist destination for years, but many modern tourists prefer alternatives to mega-resorts. Thus, Airbnb hosts work to fill the niche by offering a more homey, bed-and-breakfast-style atmosphere and accommodations. Some realtors have recently suggested that Airbnb hosts stand to make as much as $62,000 in annual profit from just one rental.
#5 Eureka, Illinois
Just outside of Peoria, IL., you'll find a quaint town called Eureka. This area is renowned for the local college and is a magnet for retirees, families, and young professionals alike. Research has shown that Airbnb rentals in Eureka, IL., offer an astounding 70 percent occupancy rate and an average 10 percent return on your cash investment.
#6 Kauai, Hawaii
If you're looking for strictly vacation rentals, then consider somewhere that people can go to find what they most want out of a vacation. One great option is Kauai, HI. This destination offers properties that are within walking distance of the ocean or even right on the shores. Just keep in mind that property can be a bit expensive in this area, and the more bedrooms you invest in, the more money you will earn.
#7 Boston, Massachusetts
Boston is one of America's oldest cities and a popular spot for history buffs to vacation. Tourists come from near and far to view the famed Old North Church, walk the Freedom Trail, tour the USS Constitution, or attend an MLB game at Fenway Park. Spring is a busy time of the year with people arriving to attend the St. Patty's Day Parade or test their stamina in the annual Boston Marathon. Moreover, fall is another bustling time for Airbnb's in Boston thanks to whale-watching in the Harbor, Harvard University, and other events.
#8 Denver, Colorado
Denver, CO., is another city that's home to many yearly festivals and events that draw large crowds. One significant benefit of the Mile-High City is that Airbnb's aren't just found inside the city and suburbs, as it's also a common place to rent accommodations that are off the beaten path. Airbnb hosts enjoy high-profit margins during most of the year, as travelers commonly book these rentals in the Denver metro area.
#9 Myrtle Beach, South Carolina
Between miles of beaches and over 100 golf courses, Myrtle Beach, SC., is also home to many budget-friendly vacation activities, making it an excellent option for families. This city consistently ranks on the list of best cities to invest in an Airbnb. And if you decide Myrtle Beach is perfect for your investment, be sure to check out beach houses and bungalows.
#10 Austin, Texas
Austin, TX., is home to a great deal of nightlife, dining options, and massive events, making it a great place to buy an Airbnb. Texas' capital city draws tourists from around the world who attend one of over 250 musical venues, visit world-class museums, or simply bar-hop through the speakeasies and various bars around the city.
While there are many cities to peruse on the internet, you must always do your due diligence on the local laws and cash on cash returns you will get from purchasing an investment property. Know your numbers first.