In recent years, finding the best place to buy Airbnb property has become a popular strategy for earning extra income. You could own a cozy condo in a buzzing city or a peaceful cabin by the lake, generating steady revenue while giving travellers a memorable place to stay. With the right location, an Airbnb investment can offer impressive returns, attracting both seasoned real estate investors and new hosts looking for passive income.
But here’s the thing: success isn’t guaranteed.
As with any investment, choosing the right location is perhaps the most important thing. Buy in a popular spot with high demand and supportive regulations, and your property could be fully booked year-round. In the wrong area, however, you might struggle to fill rooms or face restrictions that cut into your profits.
In this article, you’ll discover:
- Key factors that make a location ideal for Airbnb investments
- A curated list of U.S. and international hotspots to consider in 2024
- Practical tips for evaluating each destination’s potential for maximum profitability
The best place to buy Airbnb property: 6 key factors to consider
To make a smart investment, you’ll need to weigh factors like tourism growth, economic stability, and local regulations—details that can make or break your Airbnb success.
Below, we dive into the six critical factors that determine a location’s potential for profitability. Each factor will help you pinpoint areas that attract guests, have investment-friendly rules, and offer strong returns.
Tourism popularity and potential for growth
A high tourism rate often leads to consistent bookings and solid income.
Popular destinations, especially those with year-round appeal generally offer more stable demand. But markets that are growing in popularity can be equally, if not more, profitable.
Look for places with a mix of natural attractions, cultural significance, and a good variety of local events.
How to assess tourism growth:
- Check recent tourism reports and travel statistics.
- Look for cities investing in new attractions or hosting annual events.
- Analyze market reports that show changes in occupancy and average nightly rates.
Economic stability and forecast
Economic health is crucial to a location’s Airbnb potential.
A city with steady economic growth tends to:
- Attract more visitors
- Has higher spending rates
- Maintains property values
An investment property in a city with solid economic stability can offer both high rental returns and long-term value appreciation, making it ideal for Airbnb hosts and investors alike.
Tips for evaluating economic stability:
- Review recent economic growth trends and forecasts.
- Consider cities with major employers or industries that draw travellers, like tech, finance, or entertainment.
- Research local unemployment rates and income levels.
Airbnb regulatory environment
Regulations are often overlooked but can significantly impact your investment. Some cities, like New York, where full-unit short-term rental isn’t even legal anymore, have strict short-term rental laws, while others, such as Austin, have more tolerant rules.
In many areas, zoning rules establish where short-term rentals are permitted, typically allowing them only in commercial or mixed-use neighbourhoods and restricting them in residential zones.
In addition, compliance costs, insurance, and mandatory fees can add up, affecting your profit margin.
Choose markets where regulations favour short-term rentals, as this can lead to smoother management and higher profitability.
Important considerations:
- Research local Airbnb and short-term rental laws.
- Account for permit fees, short-term rental insurance, and occupancy tax requirements.
- Stay updated on proposed legislative changes that might impact short-term rentals.
Return on investment (ROI) potential
Cities with high occupancy rates and solid average nightly rates often offer the best returns.
Keep in mind that ROI is influenced not only by income but also by:
- Expenses
- Taxes
- Maintenance
How to assess ROI:
- Research average daily rates, occupancy rates, and seasonality in the area.
- Calculate projected expenses, including property management fees, if applicable.
- Use Airbnb calculators or other investment tools to estimate potential returns.
Accessibility and infrastructure
Good accessibility—such as proximity to airports, public transit, and highways—can significantly boost your property’s appeal and overall monthly rental income. Cities with efficient infrastructure allow travellers easy access to key attractions, translating to higher guest satisfaction and repeat bookings.
Strong accessibility directly impacts occupancy rates, leading to increased rental income, especially during peak travel seasons.
Considerations for infrastructure:
- Look at proximity to airports, train stations, or other transportation hubs.
- Evaluate the quality of roads, public transport, and availability of amenities.
- Check for any planned improvements that could attract more visitors.
Competition
Competition can be both a challenge and an opportunity for vacation rental investors. In markets with many Airbnb listings or hotels, standing out might require more investment in amenities or marketing.
But in cities with limited accommodation options, your property could become a go-to choice. Vacation rental investors can gain an edge by researching local market dynamics and focusing on unique amenities that attract specific traveller demographics.
Aim for locations with moderate competition where you can differentiate your listing.
How to gauge competition:
- Research the number of Airbnb listings in your target area.
- Look at average occupancy and rates to assess demand.
- Consider nearby hotels that may draw travellers away.
Top locations to buy Airbnb property
Austin, Texas
Austin is a top U.S. destination for Airbnb investments, known for its lively music scene, tech industry, and major events like the South by Southwest (SXSW) festival. This combination draws millions of visitors each year, creating steady demand for short-term rentals, especially in central areas like South Congress and Zilker.
If Texas is on your radar, make sure to check out some Texas rental management insights for a deeper look into market trends, which are heavily influenced by the tech industry and event-driven tourism. This extra knowledge can help you make smart, profitable choices.
Best for: city rentals and cultural events
With high demand for city rentals during festivals and events, properties near downtown often achieve high occupancy.
Local regulations and insights
Austin requires permits for short-term rentals, categorizing them as owner-occupied or non-owner-occupied. Permit fees start at $572, and annual renewals cost $313, with regulations on zoning and density to manage the market.
Market statistics as of 2024
- Average annual revenue: $37,172
- Average daily rate: $253 (October)
- Occupancy rate: 44% (October)
- Average home value: $894,418
Potential challenges
High home prices and a growing number of listings, up 82% year over year, increase competition. Optimizing listings with quality management, like One Fine BnB, can help investors stand out.
Learn more about Airbnb property management in Austin with One Fine BnB
Memphis, Tennessee
Memphis, renowned for its rich musical history and southern hospitality, is becoming a sought-after location for Airbnb investments. Visitors flock here year-round for iconic attractions like Graceland, Beale Street, and the National Civil Rights Museum, making it ideal for city rentals.
Best for: city rentals with a cultural appeal
With a strong draw for music and history lovers, properties near downtown and popular attractions tend to perform well, especially in peak months like May.
Local regulations and insights
Short-term rentals in Memphis require a permit, and hosts must comply with local taxes and zoning regulations. While regulations are fairly mild, investors should stay updated on any changes that could impact rental operations.
Market statistics
- Average annual revenue: $22,493
- Average daily rate: $154 (October)
- Occupancy rate: 40% (October)
- Average home value: $274,519
Potential challenges
Memphis has lower occupancy rates and revenue than larger markets, with an October occupancy of 40%. However, the city’s affordable property values ($274,519 average) and moderate competition make it a cost-effective option for new investors looking to enter the market.
Explore Airbnb property management services in Memphis with One Fine BnB
Orlando, Florida
With its world-famous theme parks and year-round warm weather, Orlando is a magnet for tourists, making it one of the most reliable markets for vacation rentals. Attractions like Walt Disney World and Universal Studios ensure a steady flow of visitors, especially during peak months like March. For vacation rental owners, Orlando’s tourist demand offers a stable rental market, where family-friendly amenities and proximity to theme parks can ensure consistent bookings.
Best for: family-friendly and theme park rentals
Properties near major attractions and family-oriented neighbourhoods are especially popular with vacationing families and groups.
Local regulations and insights
Orlando’s regulations for short-term rentals require properties to adhere to zoning rules and occupancy limits. Hosts should also register for a short-term rental permit and collect local tourist taxes. These policies help balance the city’s high demand while supporting a fair environment for both residents and visitors.
Market statistics as of 2024
- Average annual revenue: $26,784
- Average daily rate: $145 (October)
- Occupancy rate: 46% (October)
- Average home value: $545,255
Potential challenges
The Orlando market faces high competition, with new listings increasing by 88% year over year. This high volume, combined with October occupancy rates of around 46%, means property owners need to focus on standout amenities and effective pricing.
Learn about Airbnb property management services in Florida with One Fine BnB
Miami, Florida
Miami’s tropical climate, vibrant nightlife, and pristine beaches make it a year-round destination for travellers, placing it among the top Airbnb markets in the U.S. The city’s blend of luxury and cultural hotspots—such as South Beach and the Art Deco District—attracts both domestic and international guests, especially during peak times like March.
The median property price in Miami can be high, but properties in desirable neighbourhoods like Wynwood or South Beach often see a high return on investment through steady bookings and peak rental rates.
For detailed support with navigating Miami’s regulations, One Fine BnB offers Miami vacation rental management to help streamline operations in this competitive market. Our expertise can guide you through local laws and provide helpful tips for maximizing occupancy.
Best for: beach rentals and luxury city stays
Properties near Miami Beach, Wynwood, and downtown are ideal for those seeking beachside relaxation and urban experiences.
Local regulations and insights
Miami has specific regulations for short-term rentals, including zoning restrictions that vary by neighbourhood. Hosts need to secure a permit and comply with local tax collection and safety standards. Staying informed on zoning rules is essential for new and existing hosts alike.
For detailed support with navigating Miami’s regulations, One Fine BnB offers tailored property management services in Florida.
Market statistics as of 2024
- Average annual revenue: $44,172
- Average daily rate: $206 (October)
- Occupancy rate: 43% (October)
- Average home value: $916,689
Potential challenges
With 7,336 active listings and an 84% year-over-year increase, Miami’s high competition poses challenges for new hosts. The average home value of $916,689 also represents a sizable initial investment.
Explore Airbnb property management options in Miami with One Fine BnB
Las Vegas, Nevada
Las Vegas is a popular Airbnb destination, drawing millions each year with its casinos, entertainment, and convention events. This makes it ideal for city rentals catering to tourists and business travellers. As vacation rental properties in Las Vegas continue to attract steady demand, owners in prime locations—such as near the Strip—see significant returns during conventions and seasonal events.
If you’re interested in tapping into this market, a vacation rental in Las Vegas could bring in steady bookings, particularly during peak event seasons.
Best for: entertainment-focused city rentals
Properties near the Strip and major event venues are prime choices, especially during peak months like March.
Local regulations and insights
Las Vegas requires short-term rental permits, with strict zoning laws in residential areas and occupancy limits. Compliance with tax collection is also essential for hosts.
Market statistics as of 2024
- Average annual revenue: $42,929
- Average daily rate: $253 (October)
- Occupancy rate: 49% (October)
- Average home value: $609,969
Potential challenges
With 6,804 active listings and 98% growth in new listings year over year, competition is intense. Hosts need unique amenities and effective pricing to attract bookings.
Los Angeles, California
Explore the vacation rental market in California with One Fine BnB
With its beaches, Hollywood attractions, and diverse neighbourhoods, Los Angeles is a hotspot for Airbnb rentals, drawing tourists year-round.
For Airbnb hosts who want to stand out, managing an Airbnb here can be challenging, but partnering with a full-service property management company can make it a breeze.
Best for: city and beach rentals
Prime areas include Santa Monica, Venice Beach, and Hollywood, especially during summer peak months like July.
Local regulations and insights
LA enforces strict short-term rental laws, requiring hosts to register and adhere to zoning regulations, with limited occupancy for non-primary residences. Our expertise in California regulations helps hosts stay compliant.
Market statistics as of 2024
- Average annual revenue: $43,063
- Average daily rate: $231 (October)
- Occupancy rate: 48% (October)
- Average home value: $1,655,273
Potential challenges
High home values and 83% growth in listings create stiff competition, making effective management essential.
Tucson, Arizona
Learn about Airbnb management in Tucson with One Fine BnB
Tucson’s natural beauty, cultural attractions, and university presence make it a growing destination for Airbnb rentals, particularly popular among outdoor enthusiasts and seasonal visitors.
Best for: desert retreats and cultural stays
Tucson properties near the downtown area or close to hiking trails in the Catalina Foothills perform well, especially during February.
With the increased competition in Tucson, using outsourced Airbnb property management can give investors a significant advantage by providing:
- Top-notch guest services
- Competitive pricing
- Effective property maintenance
Local regulations and insights
Tucson’s Airbnb regulations are generally mild, though hosts should ensure compliance with local tax collection and zoning guidelines.
Market statistics as of 2024
- Average annual revenue: $27,874
- Average daily rate: $160 (October)
- Occupancy rate: 46% (October)
- Average home value: $511,856
Potential challenges
With a 75% increase in listings, Tucson’s market faces rising competition. Successful properties emphasize unique features or strategic locations to stand out.
Salt Lake City, Utah
Discover Airbnb property management options in Salt Lake City with One Fine BnB
Salt Lake City attracts both nature lovers and winter sports enthusiasts, making it a solid choice for Airbnb investments, especially during ski season and events.
Properties close to ski resorts and downtown areas are popular choices, especially for tourists looking to experience Utah’s outdoor offerings. If managing a vacation rental remotely seems overwhelming, One Fine BnB can support your venture with expert Airbnb property management, ensuring your property reaches its maximum potential without the extra effort on your end.
Best for: outdoor and winter sports rentals
Properties near ski resorts and downtown are popular, particularly during peak months like March.
Local regulations and insights
Salt Lake City has moderate regulations for short-term rentals, requiring hosts to comply with zoning laws and local tax obligations.
Market statistics as of 2024
- Average annual revenue: $25,154
- Average daily rate: $155 (October)
- Occupancy rate: 39% (October)
- Average home value: $862,516
Potential challenges
With a high home value and a 74% increase in listings year over year, competition is intensifying. Highlighting proximity to outdoor activities can improve a property’s appeal.
Lisbon, Portugal
Lisbon’s historic charm and vibrant culture make it a top choice for Airbnb investors, with steady demand from international travellers drawn to neighbourhoods like Alfama, Baixa, and Bairro Alto.
If you’re considering expanding your portfolio overseas, One Fine BnB has a solution for your next real estate investment to help streamline the process.
Best for: city rentals with high occupancy
Properties in popular tourist districts perform well, particularly during the summer peak in August.
Local regulations and insights
Lisbon has lenient short-term rental regulations, though hosts are encouraged to display a license number on listings. International visitors make up 93% of guests, boosting year-round occupancy.
Market statistics as of 2024
- Average annual revenue: €30,000
- Average daily rate: €100
- Occupancy rate: 85%
- Active listings: 13,505
Potential challenges
With a high occupancy rate and 13,505 active listings, competition is strong, and YoY revenue has decreased slightly by 1.08%, suggesting an evolving market.
Bangkok, Thailand
Bangkok is a vibrant Airbnb market, popular with international travelers seeking cultural experiences and nightlife. Iconic attractions like the Grand Palace, Wat Arun, and Chatuchak Market make it ideal for city rentals.
For those looking to secure a vacation rental property in Bangkok, the city’s year-round tourism demand can translate to high occupancy rates. Prime locations near public transit and main attractions are particularly popular among visitors.
Best for: city and cultural Rentals
Properties near central attractions and public transport hubs perform well, with peak demand in February.
Local regulations and insights
Bangkok’s short-term rental regulations are mild, hosts are encouraged to stay informed, but the market remains favorable for Airbnb investments.
Market statistics as of 2024
- Average annual revenue: THB344,000 ($10,219.85)
- Average daily rate: THB1,519 ($45,13)
- Occupancy rate: 65%
- Active listings: 15,032
Potential challenges
With 15,032 active listings, Bangkok is competitive. However, YoY revenue growth at 5.64% suggests ongoing rental demand, making unique amenities essential to stand out.
Ready to take your passive income to the next level?
Exploring the best locations to buy Airbnb properties is the first step toward a profitable investment, but managing a short-term rental can be challenging. From finding guests and ensuring spotless stays to handling check-ins and last-minute maintenance, a successful Airbnb business requires consistent attention to detail. This is where One Fine BnB steps in to make life easier for property owners.
At One Fine BnB, we handle everything from property management and guest communication to advertising and maintenance. With our advanced technology and experienced team, your vacation rental is listed on all top booking sites and optimized for maximum visibility and occupancy.
Whether you’re an experienced investor or new to the vacation rental market, we make it simple to maximize your property’s potential.
Ready to take your Airbnb investment further? Schedule a free consultation with One Fine BnB and let us help turn your property into a reliable source of passive income.
