Renting Airbnb properties has quickly become preferred over hotels by many travelers across the globe. Likewise, buying properties to rent has become a popular form of real estate investment. However, choosing the best cities to start an Airbnb in 2021 depends on several unique factors. First of all, location is key; for example, if a city or town near a popular tourist destination has relatively few hotel rooms, that will drive travelers to Airbnb, and drive up the price you can charge. Second, the best places for buying an Airbnb property have very few, or better yet, no restrictions on short-term rentals. Many cities have placed onerous restrictions on short-term rental properties, such as Airbnb. Third, popular tourist destinations with relatively affordable housing prices make purchasing property to start an Airbnb very attractive. Finally, look into the average Airbnb occupancy rate for that area to determine if you’ll likely have enough guests to turn a profit. Popular areas with a high occupancy rate will ensure a steady flow of customers. With that said, let’s look at 10 cities where starting an Airbnb could be a good investment.
This busy, vibrant Midwestern city on the shores of Lake Michigan is home to five Fortune 500 companies, and many other corporations, guaranteeing a steady stream of corporate travel. Milwaukee also has many financial firms, transaction processing firms, and mutual funds, as well as quite a few publishing companies. The median property price in Milwaukee is just around $160,500 with an average monthly rental income of $1,950. The average occupancy rate for Milwaukee is a nice 54%. One thing to keep in mind is that the city does have a high crime rate, so choose your neighborhood carefully. A few of the best neighborhoods include Mount Mary, Green Moor, and College Heights.
As the second-largest city in the Midwest, Columbus has a robust and diverse economy, which includes the headquarters for five Fortune 500 companies. JP Morgan Chase, Owens Corning Glass. Wendy's and many others are based in Columbus. This means a lot of corporate travel; in fact, the city has an average occupancy rate of 57%. The median property price in Columbus is around $220,000 with an average monthly rental income of around $2,300.
This city will have quite a bit of business travel; the GDP in this busy, business-oriented city tops $150 billion. The top industries here are insurance, finance, manufacturing, professional and business services, education, health care, and wholesale trade. Three Fortune 500 companies and three Fortune 1000 companies are based here. The median property price in Indianapolis is around $221,000 with an average monthly rental income of $2,200. The average occupancy rate in this city is 52%.
Memphis is the home of American Music, and is guaranteed to see many tourists visiting Graceland, Beale Street, and Sun Studio. It’s also the home of the National Civil Rights Museum and many other cultural destinations. Memphis is also a logistics hub, and home to these Fortune 500 companies, Auto Zone, FedEx, and International Paper. Finally, the entertainment and film industries are quite active here. The median property price in Memphis is around $233,000 with an average rental income of around $2,000. The average occupancy rate for this city along the Mississippi is a hefty 63%. Unfortunately, Memphis has a very high crime rate, so choose your neighborhood wisely.
The birthplace of the American Revolution, Philadelphia is sure to have a steady stream of tourists who want to visit the Liberty Bell, Independence Hall, and all the other patriotic places to see. Philadelphia is also a hub for biotechnology and information technology, as well as serving as a home base for many companies, including Comcast, Aramark, GlaxoSmithKline, and many more. Property prices in this historic city are around $300,000 with an average monthly rental income of around $2,100. The average occupancy rate in this busy city is 54%. The crime rate here is high, and the safest neighborhoods include Fitler Square, Bella Vista, and Queen Village.
Close to Orlando, this sunny Florida city is a good place to invest in Airbnb property. The Orlando metro area has a $13 billion technology industry employing more than 50,000 people, and is a hub of innovation. The area is also home to more than 150 international companies, including Lockheed Martin, General Dynamics, and Boeing. In addition to the robust business activity, the Orlando-Kissimmee area also is home to Universal Studios and Walt Disney World, guaranteeing thousands of families visiting the area on vacation. The median property price in Kissimmee is $270,000 with an average monthly rental income of $2,550. The robust business and tourism activity means the average occupancy rate for Kissimmee is a strong 70%.
This sprawling metropolis in the Arizona desert has a balance of business travel and tourism; it’s a popular winter destination for those wishing to escape from frigid temperatures. Some of the major corporations based in Phoenix are PetSmart, Uhaul, Best Western, and Honeywell. Luke Air Force Base in the western portion of the valley also means a large military presence. The median property value in the Valley of the Sun is $395,000 with an average rental income of nearly $2,600. The average occupancy rate is 57%. You might also consider the safer suburbs of Tempe, near the University, and Peoria, near Luke AFB.
Scenic Eugene is a popular destination for arts and culture. Eugene is widely known as the culinary center of Oregon. The city has more than 25 micro-breweries, is surrounded by award-winning wineries, and offers many fine dining options with a focus on local cuisine. The median property price in Eugene is $430,000 with an average rental income of $2,660. The average occupancy rate is 53%.
Everything is big in Texas, and the Dallas/Fort Worth area is certainly big. The diverse economy includes financial services, defense, information technology, transportation, and telecommunications. Moreover, ten Fortune 500 companies call Dallas home, and the Dallas–Fort Worth metropolitan area is home to twenty-three additional Fortune 500 companies. More than 40 colleges and universities are also here. Needless to say, there will be a lot of travel to Dallas. The median property price in Dallas is around $400,000 with an average monthly rental income of nearly $2,900. The average occupancy rate is around 59%.
Atlanta is a corporate powerhouse, with a GDP exceeding $385 billion. The economy of the Atlanta metropolitan area is the tenth-largest in the country and ranks in the top 20 globally. More than75% of Fortune 1000 companies have business in the city, and the area has offices for more than 1,250 multinational corporations. The city also hosts much of the entertainment and media industry. That means a lot of business travelers looking for an Airbnb. The median property value in Atlanta is $426,000 with an average monthly rental income of $2,250. The average occupancy rate in Atlanta is 45%.