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Cheapest Massachusetts Investment Property Markets Below 200K For Your Next Airbnb

Massachusetts investment property

Key Takeaways

With its hundreds of world-renowned educational institutions, Massachusetts is known as the most educated state in the United States. With the average property price of $545,516, it might be a challenge for a lot of investors to tap into its Airbnb market. 

In this article, we will provide you with a list of the best rental markets in Massachusetts for under $200K. You will also learn how these markets can go in terms of profits by using short-term rental data analytics.

Introduction

You do not need a Harvard degree for you to find profitable Airbnb markets in Massachusetts. With just a click, you will realize you can find one with ease using short-term rental data analytics. But if you have a maximum property price for an investment, then this article is for you. 

In this article, we will talk about profitable Massachusetts Investment Property Markets that you can enter with less than 200K capital. 

Is Massachusetts good for real estate investment? 

Nearby educational institutions are among the considerations when buying an investment property. Massachusetts public education system operates 1,751 schools. On the other hand, the state has 866 private schools.  

It just also happens that Massachusetts is the location of hundreds of world-renowned universities such as MIT, Harvard, and Tufts.  Top liberal arts colleges such as Amherst, Wellesley, Smith, and Williams are also found in Massachusetts. It is no surprise that Massachusetts tops the list of the most educated state. In short-term rentals, investors can expect a high number of exchange students needing an Airbnb.

How much does Airbnb make in Massachusetts?

According to March 2023 data from Airbtics, a one-bedroom Airbnb property in Boston can earn $204 from a strong occupancy rate of 79%. Its peak season is June. This can bring in $6,399 for this month alone. Annually, the said property size can generate an income of $56,935. These figures can manage the expectations from investing in Boston real estate market.

Massachusetts investment property

Cheapest Cities for Airbnb Investments in Massachusetts Under 200K

Massachusetts’ average property price is $545,516. This price alone makes real estate investing in Massachusetts seem like a hefty investment. But below is the list of markets that you can enter with just under 200K. We can also rely on Airbtics Dashboard to see if these markets can bring in profits. And according to data, they can! 

1. Boston
  • Property price: $109,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 85%
  • Annual Revenue: $83,949
2. Springfield
  • Property price: $70,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 89%
  • Annual Revenue: $42,682
3. North Adams
  • Property price: $139,900
  • Property size: 2 bedrooms
  • Occupancy Rate: 63%
  • Annual Revenue: $35,173
4. Northampton
  • Property price: $149,900
  • Property size: 2 bedrooms
  • Occupancy Rate: 88%
  • Annual Revenue: $60,219
5. Worcester
  • Property price: $199,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 73%
  • Annual Revenue: $38,770
6. Williamstown
  • Property price: $175,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 67%
  • Annual Revenue: $51,294
7. Dennis
  • Property price: $63,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 52%
  • Annual Revenue: $45,871
8. Wareham
  • Property price: $179,900
  • Property size: 2 bedrooms
  • Occupancy Rate: 52%
  • Annual Revenue: $47,923
9. Pittsfield
  • Property price: $150,000
  • Property size: 2 bedrooms
  • Occupancy Rate: 55%
  • Annual Revenue: $42,747
10. Yarmouth
  • Property price: $149,900
  • Property size: 1 bedroom
  • Occupancy Rate: 66%
  • Annual Revenue: $36,677

Conclusion

In this article, we have found out that buying a rental property in Massachusetts is within reach. Of course, all investors who spend even USD 200K on an investment property still want to make the most out it. For this, we can rely on short-term rental data analytics to monitor the Airbnb Massachusetts market. It will give them a bird’s-eyeview of important data like occupancy rate and average revenue. This way they will be guided to continue making informed business decisions.

If you fear doing the math, let this free Airbnb Profit Calculator do the analysis for you.

Dive Deep into The Most Profitable
Airbnb Locations in Massachusetts and Nearby Cities.
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Airbnb Investment All About Airbnb

The 10 Most Profitable Places for Airbnb Investment in Boston, MA

Best places to Airbnb in Boston

Key Takeaways
  • Boston’s overall financial stability, student market, & tourism has helped various hosts in the city to earn a passive income.
  • Discover what real estate investors can expect when investing in an Airbnb property in Boston and nearby areas. 
  • Find out the top 10 profitable areas for Airbnb nearby Boston along with their respective Airbnb data.

Introduction

Boston is known for its colonial history and Revolutionary War which attracts many curious visitors that want to learn more about it. This city is also fairly walkable and has many attractions in close proximity, which allows tourists to easily explore.

Aside from the fact that this city is a top historical tourist destination, it’s also worth mentioning that it is home to renowned institutes like Harvard and MIT. On top of that, Boston also owns a solid position as an economic leader in Massachusetts.

On the other hand, Airbnb mentioned Boston, MA as one of the most popular places to stay for extended periods to enjoy the fall season in the US!

Wondering which area in Boston you should target for  Airbnb investment property?

We got you! In this article, we’ll talk about the best short-term rental places in Boston, Massachusetts and some of the expectations for investing in an Airbnb. Continue reading to learn more.

Why invest in an Airbnb in Boston, MA?

Boston is an interesting market to invest in for property investors. This city is widely known for its renowned institutes of higher education, but check out some of the major reasons why Airbnb Boston is a good investment: 

1. Stable financial situation

Boston is not only the economic and political heart of Massachusetts State, but it’s also one of the fastest-growing cities in the country. The city is home to many major companies and over 40,000 small businesses, thus, it offers a booming job market. The significant sectors that contribute a lot to Boston’s economy are education, financial services, healthcare, and technology.

2. Touristy city

We can’t deny that Boston has a fascinating history and architecture created and inspired by world-renowned architects. In fact, the city is a top historical destination on the East Coast that attracts a great number of visitors throughout the year. On top of that, Boston is also relatively close to other touristy places like Salem and the mountains of New Hampshire.

3. Hottest rental markets

Boston offers one of the hottest rental markets in the State, especially if you’re interested in investing in the student real estate market. This city is also home to many prestigious institutions. According to Norada Real Estate, the high property prices and rental income in Boston have led to a decent return on investment for rental properties!

Is Airbnb Profitable in Boston?

Airbtics confirms that Airbnb Investment Properties in Boston are lucrative. Still, it’s good to have in mind that the level of profitability depends on your location and property type.

According to Airbtics’ data, an Airbnb host can expect an occupancy rate of 86% and an average daily rate of $282 for operating a 2-bedroom property in Boston, Massachusetts.

Best places to Airbnb in Boston

The 10 Best & Most Profitable Areas to Airbnb nearby Boston

Boston is the 24th most populous city in the US which has 23 designated neighborhoods. So you may wonder, “where should I invest in Airbnb in Boston?”– don’t worry, we got you! Check out the best neighborhoods and nearby cities in Boston, MA that are highly recommended for starting an Airbnb business:

1. Boston, Downtown
  • Total Number of Airbnb Listings: 120
  • Best bedroom size: 3 bedrooms
  • Median property price (3-bedroom): $749,000
  • Airbnb Annual revenue: $99,432
  • Gross rental yield: 13.28%
2. Cambridge
  • Distance from Boston: 3 miles (18 minutes drive)
  • Total Number of Airbnb Listings: 472
  • Best bedroom size: 2 bedrooms
  • Median property price (2-bedroom): $889,000
  • Airbnb Annual revenue: $70,338
  • Gross rental yield: 7.91%
3. Provincetown
  • Distance from Boston: 116 miles (2 hours 8 minutes drive)
  • Total Number of Airbnb Listings: 495
  • Best bedroom size: 1 bedroom
  • Median property price (1 bedroom): $625,000
  • Airbnb Annual revenue: $67,435
  • Gross rental yield: 10.79%
4. Barnstable Town
  • Distance from Boston: 60 miles (1 hour 14 minutes drive)
  • Total Number of Airbnb Listings: 452
  • Best bedroom size: 3 bedrooms
  • Median property price (3 bedroom): $630,000
  • Airbnb Annual revenue: $73,069
  • Gross rental yield: 11.59%
5. Dennis
  • Distance from Boston: 65 miles (1 hour 19 minutes drive)
  • Total Number of Airbnb Listings: 378
  • Best bedroom size: 3 bedrooms
  • Median property price (3-bedroom): $659,000
  • Airbnb Annual revenue: $67,769
  • Gross rental yield: 10.28%
6. Worcester
  • Distance from Boston: 40 miles (53 minutes drive)
  • Total Number of Airbnb Listings: 120
  • Best bedroom size: 3 bedrooms
  • Median property price (3-bedroom): $450,000
  • Airbnb Annual revenue: $62,597
  • Gross rental yield: 13.91%
7. Providence, RI
  • Distance from Boston: 42 miles (56 minutes drive)
  • Total Number of Airbnb Listings: 430
  • Best bedroom size: 2 bedrooms
  • Median property price (2-bedroom): $315,000
  • Airbnb Annual revenue: $46,533
  • Gross rental yield: 14.77%
8. Newport, RI
  • Distance from Boston: 62 miles (1 hour 23 minutes drive)
  • Total Number of Airbnb Listings: 558
  • Best bedroom size: 2 bedrooms
  • Median property price (2-bedroom): $600,000
  • Airbnb Annual revenue: $89,081
  • Gross rental yield: 14.84%
9. Old Orchard Beach, ME
  • Distance from Boston: 87 miles (1 hour 34 minutes drive)
  • Total Number of Airbnb Listings: 259
  • Best bedroom size: 2 bedrooms
  • Median property price (2-bedroom): $400,000
  • Airbnb Annual revenue: $59,986
  • Gross rental yield: 15.03%
10. Conway, NH
  • Distance from Boston: 114 miles (2 hours 22 minutes drive)
  • Total Number of Airbnb Listings: 189
  • Best bedroom size: 3 bedrooms
  • Median property price (3-bedroom): $399,900
  • Airbnb Annual revenue: $75,709
  • Gross rental yield: 18.93%

Summary

Nearby cities and neighborhoods in Boston offer a variety of great property investment opportunities to investors. While there are many areas that you can discover and can bring attractive rental yields and annual revenue, it’s always recommended to analyze them carefully!

After getting an overview of the best short-term rental places for Airbnb in Boston, MA, go further and take a look at Airbtics’ Airbnb income estimator, so that you can maximize profitability and stand out among your competitors.

Explore The Most Profitable Airbnb Locations Near Boston, MA

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Airbnb Investment All About Airbnb

Airbnb Investment Property Profitability in Boston, MA

airbnb property investment Boston

Boston, Massachusetts, where do I begin? This beautiful city has everything that young professionals & all kinds of travelers desire. From great universities, historical landmarks, to the arts & music scene, Boston is not only preferred by travelers, but it’s most certainly a thrill for property investors too.

To begin with, the major costs and potential revenue should be considered before deciding to purchase a property. Another excellent option is to do rental arbitrage since it’s fairly popular and does not require you to purchase a property as a start.

.

“Boston is a fairly walkable city in Suffolk County with a population of approximately 700,000 people, making the Boston housing market rather large on its own.
It is a thriving city, which makes it the best location to buy an investment property at any point in time including the present.”

– Norada Real Estate on Boston Real Estate Investment

Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.

This includes the best website recommendations for both city center and waterfront property investments in Boston, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!

Pros of buying an Airbnb Property in Boston

Boston is a city with a lot of history and serves as a destination for art, culture and much more! The best is that you will never run out of things to do here. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Boston:

1. Boston’s economic stability

Boston is one of the fastest-growing cities in the USA as well as the economic and political heart of Massachusetts. The city enjoys a strong economy with a booming job market where its main activities are concentrated in the education, healthcare and technology sectors. 

2. Bustling tourist destination!

It’s a given fact that Boston can easily catch people’s attention with its fascinating history and eye-catching architecture! Thanks to this it is considered a top historical destination on the East Coast, so you can expect the arrival of many visitors throughout the year here. In addition to this, the city also enjoys a great location as it’s close to other destinations like Salem, Caped Cod and even to the mountains of New Hampshire!

3. Home to renowned institutes of higher education

This city is a leader when it comes to higher education institutes since it’s home to prestigious institutes like Boston University, Harvard and many others that attract many students that are interested in studying here. Hence, this surely will catch the attention of investors who are interested in the student real estate market!

What to Expect When Purchasing a Property in Boston?

Now that we know the pros of investing in Boston, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. High cost of living

While Boston’s economic and tourism sectors are quite attractive, it also has some downsides as the cost of living here is pretty high, 46% higher than the national average and 12% more than other cities in Massachusetts. In addition to that, the housing market prices are also higher than the national average, being this $942K.

2. Property Taxes are high

Located in Middlesex County, you should be aware that the average effective tax rate here is 1.24%, which is higher than the national average of 0.99%. Unfortunately, overall in Massachusetts, homeowners face one of the largest annual property tax bills in the country according to SmartAsset.

3. Be ready to face the terrible traffic!

As a lively and bustling city, you can already guess that the traffic in Boston can end up being a nightmare. In fact, Boston occupies the 4th place as one of the cities with the highest traffic delay time, here, drivers lose around 134hrs in congestion per year. Aside from this, you can also expect that it’s really difficult to find a parking spot available here.

Best Neighborhoods for Airbnb in Boston

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Boston. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:

1. Beacon Hill
  • Annual Revenue: $73,889
  • Occupancy Rate: 84%
  • Average Daily Rate: $224
2. South End
  • Annual Revenue: $77,666
  • Occupancy Rate: 86%
  • Average Daily Rate: $230
3. Back Bay
  • Annual Revenue: $76,394
  • Occupancy Rate: 84%
  • Average Daily Rate: $219

airbnb property investment Boston

Is Property Investment Profitable in Boston, MA?

Using a short-term rental income calculator, it was discovered that a 2-bedroom apartment in Boston can generate an annual revenue of $112,481 with a steady occupancy rate of 64% and a nightly rate of $463.

airbnb property investment Boston

airbnb property investment Boston

Properties & Homes for Sale in Boston, MA

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage. 

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the profitable properties in Boston along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

airbnb property investment Boston
airbnb property investment Boston

12 Stoneholm St #73, Boston, MA 0211

1. Studio-type Property for Sale Boston 
  • 0.8 miles Hurley K-8 School
  • Asking Price: $110,000
GROSS RENTAL YIELD 35.35%
ANNUAL REVENUE $38,887
CASH ON CASH RETURN 80.29%
airbnb property investment Boston
airbnb property investment Boston

74 Lakeview Dr, Bethlehem, CT 06751

2. 1-Bedroom Type Property for Sale Boston
  • 1 mile to Bethlehem Elementary School
  • Asking Price: $125,000
GROSS RENTAL YIELD 25.64%
ANNUAL REVENUE $32,050
CASH ON CASH RETURN 51.15%
airbnb property investment Boston
airbnb property investment Boston

232 Canton St APT 104, Randolph, MA 02368

3. 2-Bedroom Type Property for Sale Boston
  • 0.4 miles to Margaret L Donovan
  • Asking Price: $189,900
GROSS RENTAL YIELD 24.22%
ANNUAL REVENUE $45,987
CASH ON CASH RETURN 46.88%
3-bedroom Boston
3-bedroom Boston

25 Crump St, Hudson, MA 01749

4. 3-Bedroom Type Property for Sale Boston
  • Near Maroon Mountain Dr
  • Asking Price: $249,900
GROSS RENTAL YIELD 22.10%
ANNUAL REVENUE $55,229
CASH ON CASH RETURN 40.53%
4-bedroom Boston
4-bedroom Boston

288 Middle St, Weymouth, MA 02189

5. 4-Bedroom Type Property for Sale Boston 
  • 0.5 miles Abigail Adams Middle School
  • Asking Price: $330,000
GROSS RENTAL YIELD 25.01%
ANNUAL REVENUE $82,524
CASH ON CASH RETURN 49.25%

Conclusion

Investing in a property is certainly a huge step that one needs to not only think about but also conduct market research for accuracy. With the economic stability & recreational activities to do in Boston, it can generate a nice cash flow for property investors as long as the right neighborhood is targeted!

Hence, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage calculator is certainly what you need for success in the long run. It’s a fact that some of the STR investors are also considering Airbnb Rental Arbitrage, but they still need to have a reliable data tool on which to base their conclusions! 

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