The 7 Best US Cities If You Want To Invest in an AirBnB in 2024

Real estate investments are on the rise, as investors look to broaden and diversify their portfolio and embrace assets that can help hedge against inflation.

There’s a strong focus on buying properties that you can rent out, or for potentially better returns on your investment, list on AirBnB. Taking the AirBnB route can also provide more income than you’d get if you were a traditional landlord.   

When you’ve decided to purchase a property that you’ll rent out on AirBnB, you should know which cities are proving to be particularly worthy investments, thanks largely to their strong tourism and high demand for short-term rentals. 

GOBankingRates spoke with real estate experts to find out the seven best U.S. cities if you want to invest in an AirBnB rental property.

Austin is an increasingly popular tourist hub, meaning you can count on a healthy influx of visitors to prospectively rent out your AirBnB.

“Austin continues to be a favorite destination for tourists due to the vibrant culture, booming technology scene and annual festivals,” said Peter Lopipero, a real estate expert and CEO at LI House Wanted. “Airbnb occupancy rates are high due to the city’s growing economy and population. Austin realtors stress that there are many different property options in the city, which ensures a high demand for short term rentals.”

As of Sept.23, 2024, the current average home value in Austin is $527,213, down 4.9% year over year, according to Zillow.

Thanks to Nashville’s strong foodie scene and steadfast reputation as an international music hub, Nashville is a major tourism spot. It’s also a relatively affordable city for real estate investors. 

“Airbnb investments are made easier by the city’s affordability in comparison to other large markets, and its favorable local regulations,” Lopipero said. “Real estate agents’ insights highlight Nashville’s high-potential for short-term rentals.” 

As of Sept. 23, 2024, the current average home value in Nashville is $432,956, up 1% year over year, according to Zillow.

Gorgeous beaches, a happening nightlife scene and a strong international appeal all go towards making Miami a tourism hotspot. 

“Airbnb investments here are attractive because of the warm climate and luxurious appeal,” Lopipero said. “Miami’s diverse neighborhood and high rental demand are cited by local realtors as contributing factors to the market’s appeal for short-term rentals.”

As of Sept. 23, 2024, the current average home value in Miami is $580,297, up 7.5% over the past year, according to Zillow.

Anyone who loves the outdoors and the various recreational activities they provide probably loves, or will love, Denver — another great city to invest in an AirBnB property. 

“Denver is a year-round destination for visitors who enjoy the city’s urban amenities as well as its outdoor adventures,” Lopipero said. “The city’s strong job market and growing population ensure a constant demand for short-term accommodations. Realtors say that Denver’s competitive real estate market offers significant rental income opportunities.”

As of Sept. 23, 2024, the current average home value in Denver is $559,014, down 0.9% year over year, according to Zillow.

Another major hotspot for AirBnB investors is Las Vegas, for obvious reasons: it’s one of our nation’s most popular tourism hubs. 

“Las Vegas has endless entertainment and big conventions, making it perfect for Airbnb bookings and strong returns for owners,” said Sergio Aguinaga, owner and founder at Michigan Houses For Cash. 

According to Zillow, as of Sept. 23, 2024, the average home value in Las Vegas is $426,533  — up 6.8% year over year.

Ever heard of a little ‘ole place called Disneyland? The original version of this amusement park, located in Anaheim, California, sees millions of visitors a year, meaning the demand for very short-term rentals is soaring.

“Year-round Anaheim gets incredibly high tourist traffic, so as a short-term rental owner, you frankly never have to worry about gaps between guests,” said Seamus Nally, CEO of TurboTenant. “These days, people are often looking for alternatives to hotels, whether they want more space and privacy, or if they want to save money, so AirBnBs in Anaheim get high volumes of searches.”

As of Sept. 23, 2024, the average Anaheim home value is $908,955 — up 8.8% over the past year, according to Zillow. 

With its temperate climate, vast beaches and ample array of family-friendly attractions, San Diego is a popular choice for vacationers. 

“The constant flow of visitors to the city ensures a steady demand for vacation rental properties,” Lopipero said. “According to realtors, San Diego’s coast offers lucrative opportunities for AirBnB investment due to its high rental rates.”

San Diego is a notably expensive city, and housing prices are steep. According to Zillow, as of Sept. 23, 2024, the average home value in San Diego is $1,013,179, up 8.6% year over year. Though this city can be a profitable one for AirBnB property investors, it’s the most expensive one on this list.