How to Identify the Best Type of Property for Airbnb (2024)

FAQs

Which type of property is best for Airbnb? ›

Try a few tests to see if there's a market for you to profit from: Look at similar properties and check their Airbnb occupancy rate. Review their prices per night and guests and multiply by their occupancy rate. Get a third-party service like AirDNA or Jetstream to get an estimate of your yearly revenue.

Look for off-market properties, foreclosures, and even bank-owned homes. These can offer a high Airbnb return on investment since most are sold at a bargain. And don't stop at that.

Painting walls and cabinets is a sure way to give your house an appealing look and add more value to your Airbnb rental.

Guests can find an array of high-quality homes across the more than 60 categories available on Airbnb, but those searching for top stays in the great outdoors will find a wealth of options, as Countryside, Beach, National parks, Amazing pools and Golfing are the top 5 categories featuring the most homes in the top 10% ...

States like Hawaii have the highest Airbnb density per resident, which increases competition for potential guests. The amount of Airbnb properties in your city greatly impacts your revenue.

As of Aug 31, 2024, the average hourly pay for an Airbnb Host in the United States is $18.25 an hour. While ZipRecruiter is seeing hourly wages as high as $30.77 and as low as $8.65, the majority of Airbnb Host wages currently range between $14.42 (25th percentile) to $19.23 (75th percentile) across the United States.

Furthermore, expect the return to be substantial if the property is in a good location and has a moderate to high occupancy rate - even if there is a tiny level of risk involved. According to AirDNA, investors in Airbnb often receive returns of at least 40% or perhaps even more.

How to analyze a property for Airbnb? ›

Based on our research, you can earn anywhere between $200 and $25,000 monthly, depending on your location, listing type, and pricing strategy. This article contains detailed revenue breakdowns for different categories (from countries and cities to property types and amenities).

Best types of Airbnb properties to buy

If you're more urban, the best type of property for Airbnb is arguably a city apartment. Having a centrally-located apartment in an in-demand area means you'll have plenty of attention from guests.

Without an LLC, personal assets are vulnerable in the event of business-related lawsuits. As an Airbnb host, forming an LLC is advantageous due to its crucial asset protection. In the Airbnb industry, where property-related risks are common, it shields personal assets from guest claims or property incidents.