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Best Cities to start Airbnb Rental Arbitrage Business in the US.

Best Cities to Start Airbnb Rental Arbitrage Business

The pandemic has hit short-term rental businesses all over the world, but it’s not the case in the US. It’s backed by data that many of the remote US destinations have experienced the most profitable Summer in 2020 and are looking for another profitable Summer in 2021. So it might seem the world is falling apart and everything is going down. But the data is speaking otherwise, according to 2020 airbnb data this is a great time to start your STR journey. The market is about to bounce back as people are craving the outdoors. So to help you focus more on the important things in your STR journey, and not the boring research part, we have compiled a list of the best cities to start Airbnb in US.

The Airbnb business is booming

The rental arbitrage model is extremely attractive for hungry and motivated entrepreneurs. You don’t need much money to get started with your first rental. In fact, you can even start by renting out your own room (and you stay the night at your car or friend’s house) to save up the initial deposit to start your first arbitrage unit. However, the rental arbitrage won’t generate passive income – It’s not true passive income because you constantly need to pitch to landlords and manage day to day operations.

Rental Arbitrage is booming
dashboard of best cities to start airbnb

What is Airbnb Rental Arbitrage?

Maximize your rental property revenue with more inventory and dynamic pricing tools.

Data-backed Market Research: You start with conducting thorough research about the market to find the profitable neighborhoods, amenities, and styles.  


Pitch to landlords: Now you know the number and you know this property will generate profit for sure. It’s time to contact landlords to get permission to do rental arbitrage and get accepted.


Efficient operation & Profit: A lot of hustles in putting your listings on various channels, right pricing, and many other tactics. Still, I trust that you will be able to learn along the way as long as you have started with the right properties. 

man jumping

How to identify profitable rentals for rental arbitrage?

Make more informed decisions with the power of accurate data.

short term rental data use case for property investors

Definition of Arbitrage: In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets. 

As the definition suggests, you need to find the gap between the “long-term rental market” and the “short-term rental market”. Fortunately, finding a long-term market base price is straightforward. You can easily find the market prices for the long-term rental market in Zillow. Finding the short-term rental market price is more difficult since looking at “daily rate” and “cleaning fees” on Airbnb isn’t enough because you also need to know “occupancy rates”. Therefore, the key to the success of rental arbitrage research is in short-term rental market research.

Then, what is the “key” of short-term rental market research? It is basically clearly identifying the range of profit of properties in different neighborhoods and by the size of properties

The profit consists of three variables – 1) occupancy rate, 2) average daily rate and 3) expenses. The size of properties is a little bit more complex as it consists of the “number of bedrooms, bathrooms, and the total number of beds”. I will go through different tools to find out the occupancy rate and daily rate of different neighborhoods a little bit later. 

How much does it cost to start your first rental arbitrage?

Stay up-to-date with relevant industry trends.

Don’t panic. After all, the starting cost is quite predictable once you do enough research. 

  • Deposit 
  • First-month rent 
  • Furnishing (Beds, Sofa, Dishes etc) 
  • Supplies (Here’s a checklist)

If I were you, I would start with basic furniture only – one mattress with a base and a cover per room, one used sofa, a pot, a pen, and plastic cutleries. Once I receive a few bookings, then, I will start investing more stuff like lamps, coffee pots, and so on. Starting with a huge budget will make you feel pressured to get a better return, so please be a minimalist when you get started. 

Airbnb Analytics dashboard image

Tips to do market research effectively and correctly

Use competitive and intelligent data to your advantage.

You need to make a comparison table to structure your research and efficiently search for your next properties. The template could look like below. 

Profit before paying rent = (occupancy rate * daily rate) + cleaning fees (that you charged from guests) – cleaning fees (that you actually spent) – other expenses 

Now you know the profit before paying rent, so now you can just identify which properties on Zillow can be profitable when you rent them. On Zillow, as of today (2021-06-20), there is only one property that can profit $500 a month to you.

best cities to start airbnb - redwood

How much does it cost to start your first rental arbitrage?

Stay up-to-date with relevant industry trends.

Now I guess you are wondering how much a short-term rental around your neighborhoods is making. 

You can use our research tool to find it. You can choose one city, and if you zoom in to a specific neighborhood, it will show the average daily rate and occupancy rates from the short-term rentals on the map. 

If you do research, you will find out that there are so many profit combinations (neighborhoods x property size). 

Now let’s take a look at the best cities to start airbnb in the US.

best cities to start airbnb - airbtics

Best Cities to Start Airbnb in US

To make it easy for you, below are some (not all) best cities to start Airbnb in the US that have possible profitable combinations for rental arbitrage. 

There’s no point in giving you some numbers of expected rental arbitrage returns because it will be depending on the exact neighbourhood and the size of properties you are going to rent. Please do your thorough research to find out some areas where there’s a high demand for short-term rentals while having excessive long-term rental supplies. 

San Antonio

New York City

Las Vegas 

San Diego










What's next?

If you are doubtful about using data solutions, I’d recommend you to 1) speak to a property manager in your area 2) ask other Airbnb hosts in various Airbnb host’s communities 3) collect data on your own from Airbnb website. 

If you are lost, you can find other Airbnb hosts from the following links. 

Read More from me
Rental Arbitrage Florida 
AirDNA Review: Does it still hold up in 2021? 
5 Short Term Rental Tools for Perfect Pricing

Blog posts

Best Airbnb deals in Dallas (2021 Updated)

Bring out your cowboy boots and get ready to explore the best deals in yet another amazing southern city of Dallas, being bordered with Mexico and with more than 42% Hispanic population, you’ll find fusion foods that are so amazing and unique that it’ll be hard to find such combinations anywhere else in the country. Dallas is the fastest growing city in the US currently with a 1.3 million population and it’s inviting more people to come and explore the culture. Here is the list of 9 Best Airbnb deals in Dallas that you can’t find anywhere else.


Downtown/Deep Ellum 1 BR – 3 guests  ($60)

Deep Ellum house in dallas

Located within walking distance to the city center, this place is great if you aren’t bringing your car with you, Sheraton Downtown and Deep Ellum are 2 min walking from this location. At this price point finding a place in the city center is near impossible.

Why is it the Best Airbnb Deal in Dallas?

  • Great location – walking distance from major Dallas attractions
  • Affordable with sufficient amenities for the price.
  • Free Parking
  • Experienced Host with 4.7 ratings and 650+ Review

Click Here to Book


Artist’s Loft Near Deep Ellum & Fair Park – 1BR | 2 Guests ($77)

artist's loft near deep ellum in dallas

If you love colors and artistic stuff and want to inspire the artist in you, then this loft near Deep Ellum is the perfect place for you, surrounded by trees and featuring the old original artwork the design and overall architecture will surely inspire you as soon as you enter the house, and the price will surely motivate you to stay a day extra. 

Why is it the Best Airbnb Deal in Dallas?

  • 15 mins from the Downtown Dallas
  • Beautiful design and artwork throughout the house
  • Free Parking
  • Super-Host with 4.99 Rating & 130+ reviews

Click Here to Book


Belle 2BR Bungalow | Downtown Med Center Stadium ($145)

best deal in dallas

This is an 1100 Sqft Duplex apartment on a half-acre property, located in the central Metroplex in a safe and quiet neighborhood. Great location only 30 mins from fort worth and 15 mins from the airport. This house is perfect for someone looking for some extra space and a quiet neighborhood to stay in peace with some lush greenery around the house. 

Why is it the Best Airbnb Deal in Dallas?

  • 15 mins from the Airport and Fort Worth
  • Safe and beautiful neighborhood with a big back and front yard
  • Free Parking
  • Super-Host with 4.91 Rating & 162+ reviews

Click Here to Book


2BR – 6 Guests | Near Main Street Garden Park ($164)

main street garden park dallas

This house is managed by Sonder, which is a professional Airbnb management company. The overall vibe and design of this place are very modern and have been recently renovated so everything here feels new. This place has large windows and receives plenty of sunlight throughout the day, this place also has a fully functional equipped kitchen and all the smart appliances. There is a theater room, gym, and lounge in the complex which is accessible by the guests as well. 

Why is it the Best Airbnb Deal in Dallas?

  • Modern design and recently furnished
  • 10 mins walking from downtown
  • Digital Self-Check In
  • Gym, Lounge, and Theater Room
  • Experienced Host with 4.42 Rating

Click Here to Book


1BR house with hot tub, backyard, and private entrance ($70)

1BR house with hot tub, backyard and private entrance dallas

This spacious 1 bedroom house is located in Downtown Dallas and within walking distance of all the major spots in Dallas center. This is a pet-friendly house, also the host provides a bike to stroll around downtown and in the neighborhood. The house is also equipped with an electric car charger for all the Tesla drivers. This place also has a hot tub, fireplace, smart tv with Netflix, and free parking. For $70 this place is a steal in the center of downtown Dallas.

Why is it the Best Airbnb Deal in Dallas?

  • Super Host with 4.93 Rating
  • Plenty of amenities for the price 
  • Budget-Friendly
  • Pet Friendly

Click Here to Book


1BR – 2 guests | Cozy Private Room  ($45)

Cozy Private Room in dallas

If you are on a budget and don’t mind sharing your place with someone else then this place can provide you a comfy home away from home at just $45, you will be a lockable private room and bathroom, this place is great for a solo traveler on a budget looking for a comfy place with all the basic amenities without shelling out a lot of money.

Why is it the Best Airbnb Deal in Dallas?

  • Super Host with 4.89 Rating
  • Super Affordable with all basic amenities
  • Fully functional stocked kitchen
  • Free Laundry
  • 15 mins from Downtown

Click Here to Book


Bardo Lofts Studio | 3 Guests ($80)

Bardo Lofts Studio in dallas

If you are a sucker for modern design then this studio house is perfect for you, located in this newly constructed residential building. This place is perfect for anyone who wants to live in peace and luxury at the same time. Though being in a residential complex there are a lot of rules that you need to follow but if you love the design and price of this place then it’s totally worth it.

Why is it the Best Airbnb Deal in Dallas?

  • Modern Design and Architecture
  • Walking distance from Bishop Arts
  • New construction
  • Experienced Host with 4.70 Rating

Click Here to Book


3 BR – 6 Guests | Green House by Downtown  ($102)

This is a perfect place for people looking for some extra space and is traveling with Pets. With a huge front and side yard, this palace is the perfect place for your pets to run around and it also has a deck patio to hang out and read some books in peace when your dog is creating havoc in the garden. This palace has 3 decent-sized rooms with 2 queens and 1 double bed. Free parking on premises is available for the guests.

Why is it the Best Airbnb Deal in Dallas?

  • Located in Downtown Dallas
  • Pet Friendly & Self check-in
  • Free Parking
  • Ample of space in the house
  • Super Host with 4.78 Rating

Click Here to Book


9 Guests – 3 BR | Cozy Bungalow Retreat by Downtown Dallas ($127)

best deals in dallas 2021

Situated Northwest of Dallas and a short drive away from the Airport this large apartment can host up to 9 guests. The house is in close proximity to the historic Bird’s Fork Park which is great if you want to go on a morning hike. The apartment comes with 1 full-sized bed, 1 king-size bed and 1 Queen sized bed, and one Air Mattress, a fully stocked kitchen, and a backyard. 

Why is it the Best Airbnb Deal in Dallas?

  • Great Location with private Backyard
  • 60” TV with Netflix, Amazon Prime, Chromecast, HBO & Satellite
  • Pet Friendly & Self check-in
  • Free Parking
  • Super Host with 4.72 Rating

Click Here to Book


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