10 US Cities With the Most Airbnbs — Is Buying One a Good Idea?

stockcam / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Airbnbs are a popular alternative to hotels. Travelers book a reservation online for a room or an entire house. Many travelers prefer them because they have more space and privacy than a hotel. The rental is often a fully-appointed investment property used solely for hosting guests. Compared to hotels, Airbnb owners have fewer costs and less stringent requirements for safety and accessibility.

We looked at ten U.S. cities with the most Airbnbs to see if the popularity and cost structure make buying one a good idea.

Cities With the Most Airbnbs

​​The key metrics in calculating the return on investment (ROI) for an Airbnb include the rate that is charged for each day and the average occupancy rate. Rabbu is a company that evaluates the market potential and return of Airbnbs. The Rabbu ROI Score is included in the metrics for each city.

Kissimmee, Florida

• Number of Listings: 10,746
• Average Occupancy: 52%
• Average Daily Rate: $183
• Rabbu ROI Score: 57 (Fair)

Miami, Florida

• Number of Listings: 7,746
• Average Occupancy: 43%
• Average Daily Rate: $212
• Rabbu ROI Score: 46 (Fair)

Austin, Texas

• Number of Listings: 6,902
• Average Occupancy: 43%
• Average Daily Rate: $236
• Rabbu ROI Score: 42 (Fair)

San Diego, California

• Number of Listings: 6,238
• Average Occupancy: 57%
• Average Daily Rate: $292
• Rabbu ROI Score: 43 (Fair)

Las Vegas, Nevada

• Number of Listings: 6,119
• Average Occupancy: 50%
• Average Daily Rate: $280
• Rabbu ROI Score: 48 (Fair)

Nashville, Tennessee

• Number of Listings: 5,971
• Average Occupancy: 50%
• Average Daily Rate: $280
• Rabbu ROI Score: 48 (Fair)

Houston, Texas

• Number of Listings: 5,767
• Average Occupancy: 44%
• Average Daily Rate: $160
• Rabbu ROI Score: 43 (Fair)

Los Angeles, California

• Number of Listings: 4,978
• Average Occupancy: $233
• Average Daily Rate: 53%
• Rabbu ROI Score: 35 (Low)

Davenport, Florida

• Number of Listings: 4,711
• Average Occupancy: 51%
• Average Daily Rate: $186
• Rabbu ROI Score: 58 (Fair)

Atlanta, Georgia

• Number of Listings: 4,636
• Average Occupancy: 43%
• Average Daily Rate: $167
• Rabbu ROI Score: 37 (Low)

A Good Idea?

The scores for these cities aren’t very impressive. Then again, even in a popular city like Honolulu, Hawaii, with only 3,714 listings, the Rabbu ROI Score is 51 (Fair), which begs the question, Is buying an Airbnb a good idea?

Investors look at the ROI as one factor in deciding on an investment. While none of the cities has better than a Fair ROI, whether or not an AirBNB investment is a good idea depends upon the other available investment opportunities, the timeframe and the risk of losing the money invested.

The best way to decide is to take the estimated annual net income for the amount invested and compare that to the estimated annual net income for a different investment of the same amount. Factor in any preferences for liquidity and personal involvement in tending to the investment to reach a decision.

Share This Article: