Property ownership is often seen as living the American dream. Fortunate people have been able to secure property for residential purposes. And the luckier folks may be thinking about owning another one for their vacation rental venture.
Who can blame them? Airbnb has opened doors for homeowners to make a lucrative business out of their properties. And where else will they first look for but in the cheapest places to buy rental property in the United States?
In this blog article, we will lead you to the cities with the most affordable investment properties for Airbnb. All of them have higher revenue potential, and we’re not drawing assumptions out of thin air. The list is informed by data analytics. This article will cover:
The research method to check short-term rental profitability
- Validating Airbnb profitability in the cheapest places to buy rental property in the United States
- Finding an alternative Airbnb market more in line with your investment goals
How To Know Your Airbnb Potential Revenue?
Check the gross rental yield by simply dividing income over the property cost. This takes into account the market average income potential in comparison to its purchase price. So, the more affordable real estate investments for Airbnb may have a higher revenue potential.
You can get the market average of multiple Airbnb metrics from Airbtics’ Insights Tool. Just type in any US city in the search bar, and you will see the following in no time:
- Revenue Potential
- Occupancy Rate
- Nightly Rate
Cheapest Places to Buy Rental Property for Airbnb
We have curated a list of cities with the cheapest home prices for short-term rentals. They do not only promise affordability. They also offer profitability as confirmed by the Insights Tool of Airbtics. Now, discover the untapped potential that awaits you in the cheapest places to buy rental properties for Airbnb:
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|---|---|---|---|
| City | Median Property Price | Airbnb Annual Revenue Potential | Gross Rental Yield |
| Detroit, MI | $52,952 | $18,973 | 35.83% |
| Cleveland, OH | $94,900 | $21,846 | 23.02% |
| Toledo, OH | $80,000 | $19,105 | 23.88% |
| Peoria, IL | $79,900 | $20,259 | 25.36% |
| Terre Haute, IN | $70,500 | $24,596 | 34.89% |
| Davenport, IA | $145,000 | $21,078 | 14.54% |
| Erie, PA | $135,000 | $27,384 | 20.28% |
| Utica, NY | $120,000 | $21,008 | 17.51% |
| Macon, GA | $115,450 | $19,179 | 16.61% |
| Syracuse, NY | $110,000 | $18,044 | 16.40% |
City
Airbnb Dataset
- Median Property Price: $52,952
- Airbnb Annual Revenue Potential: $18,973
- Gross Rental Yield: 35.83%
- Median Property Price: $94,900
- Airbnb Annual Revenue Potential: $21,846
- Gross Rental Yield: 23.02%
- Median Property Price: $80,000
- Airbnb Annual Revenue Potential: $19,105
- Gross Rental Yield: 23.88%
- Median Property Price: $79,900
- Airbnb Annual Revenue Potential: $20,259
- Gross Rental Yield: 25.36%
- Median Property Price: $70,500
- Airbnb Annual Revenue Potential: $24,596
- Gross Rental Yield: 34.89%
- Median Property Price: $145,000
- Airbnb Annual Revenue Potential: $21,078
- Gross Rental Yield: 14.54%
- Median Property Price: $135,000
- Airbnb Annual Revenue Potential: $27,384
- Gross Rental Yield: 20.28%
- Median Property Price: $120,000
- Airbnb Annual Revenue Potential: $21,008
- Gross Rental Yield: 17.51%
Remember that the revenue potential is the average in the given market. If you find the optimal number of Airbnb bedrooms in the area, you can expect a much higher gross rental yield! This gives you a bang for your buck in any of the cheapest places to buy rental property in the US.
Source: Airbtics Dashboard
Your Lead to the Best Airbnb Market
As we have seen, the cheapest places to buy rental property for Airbnb also happen to be highly profitable. 6 of them offer very high gross rental yields, exceeding 20%! We have confirmed this with data analytics using Airbtics’ Insight Tool. This powerful tool has given us the average data points of the cheapest real estate markets for Airbnb mentioned in this list.
Intrigued to know which Airbnb market is waiting to be tapped? Gain access to invaluable insights, data-driven recommendations, and hidden gems of the short-term rental industry. Sign-up now and let data lead you to Airbnb greatness!
