The 10 Best U.S. Cities to Make Money on Airbnb
Running an Airbnb is a lot of work—there’s paperwork, price wars, and a plethora of clean towels. But, despite these challenges, there is still a hefty profit to be made if you’re willing to put in a little elbow grease. However, that number is largely going to depend on where your Airbnb is located.
According to a new analysis by investment property exchange company IPX 1031, you have a better chance at turning a profit if your Airbnb location is located a bit outside of a major tourist hub. By offering travelers easy access to desirable destinations at a more affordable price, homeowners in these areas stand to make a great return on their investment.
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For their analysis, IPX 1031 compiled a list of the best cities to invest in a property to rent out through Airbnb, using the data from short-term rental analytics database AirDNA. They then ranked the cities by the average annual profit hosts make annually.
The most profitable Airbnb location was Moreno Valley, California, where hosts can bring in an annual average profit of $33,720 if they rent out their home for an average of $226 a night. Moreno Valley is considered part of the Greater Los Angeles-area. Located in the Inland Empire, it offers proximity to popular tourist destinations, including Lake Perris and the Badlands.
Overall, California is a pretty great place to be an Airbnb host: Of the top 10, four are located in the state in areas on the fringes of both the Los Angeles metropolitan area (Garden Grove at No. 4) and the San Francisco Bay area (Fremont at No. 5).
Here are the top 10 cities to earn a profit renting out your home on Airbnb:
Moreno Valley, California
Annual profit: $33,720
Virginia Beach, Virginia
Annual profit: $32,208
Pasadena, Texas
Annual profit: $29,988
Garden Grove, California
Annual profit: $29,772
Fremont, California
Annual profit: $26,700
Grand Prairie, Texas
Annual profit: $24,432
Columbus, Georgia
Annual profit: $23,820
Oxnard, California
Annual profit: $23,256
Orlando, Florida
Annual profit: $22,020
Shreveport, Louisiana
Annual profit: $19,992
Curious to see the best place to open an Airbnb near you? See the full ranking of 50 cities on IPX 1031’s site, as well as their ranking of the best places to rent on Airbnb (based on price and number of superhosts in each city) and the cities with best and worst hosts.